Business Description:
St Barbara Limited (SBM) is a gold producer and mineral explorer in Australia. SBM's primary focus is on Leonora and Southern Cross regions in Western Australia. As at FY11, the total ore reserves were 2.8Moz Au, with total production of 258,474oz Au.

Strategy Analysis:
SBM's long-term strategy is focused on low-cost, high-margin gold production. Over time, this will be supported by operations based on higher margin underground mill feed from the Gwalia and Marvel Loch underground mines. The company will also seek growth through corporate activity and, in the longer term, through exploration. SBM has a target of reaching an annual production rate of 500,000oz per annum from three operations by 2014 St Barbara reported NPAT of $68.63m for the year ended 30 June 2011. Underlying NPAT also increased substantially to $54.4m (2010: $14.5m) due mainly to increased gold production and higher gold prices. Revenues from ordinary activities were $373.41m, up 23% from last year. Diluted EPS was 20.94 cents compared to (13.64) cents last year. Net operating cash flow was $117.12m compared to $76.62m last year. No dividend was declared. Key objectives for the 2012 financial year include continuing to increase margins, increasing gold production by approximately 30% to 320,000 to 350,000oz of gold, and increasing exploration activities to target discoveries.