St Barbara posts steep FY loss

Writes down over half the value of Allied Gold acquisition on weak gold price, poor output.

Junior gold miner St Barbara (SBM) has blamed a sharp decline in the gold price in writing down $309 million from the value of its PNG and Solomon Islands businesses, acquired in the $556 million takeover of Allied Gold in September 2012.

St Barbara warned that its pacific operations would require further time and cash injections to reach profitability but said its cornerstone Gwalia mine in West Australia would cover interest on debt and corporate overheads.

The company posted a full year net loss of $192 million versus a profit in 2012 of $130 million.

Revenue for the year, excluding discontinued operations rose 33% to $511 million, with underlying profit down 76% to $29.3 million.

The company will not pay a dividend.