St Barbara gets thumbs-up from Moodys

PAPUA New Guinea and Australian gold miner St Barbara has said it has been re-rated by Moody’s Investors Service.
St Barbara gets thumbs-up from Moodys St Barbara gets thumbs-up from Moodys St Barbara gets thumbs-up from Moodys St Barbara gets thumbs-up from Moodys St Barbara gets thumbs-up from Moodys

Moody's has reclassified the company and its senior secured debt from Caa1 to B3, with a "stable outlook".

Moody's announcement noted that "the upgrade of St Barbara's ratings to B3 reflects the improvement in the company's financial profile, underpinned by continued productivity improvements at its Simberi (PNG) operation and strong production at the low-cost Gwalia mine. The upgrade also reflects the significant progress that the company has made on its debt reduction initiatives".

St Barbara said there was no change to the company's existing debt arrangements as a result of Moody's announcement.

The Simberi gold mine is in the New Ireland Province in of PNG and began production in February 2008.

St Barbara acquired the Simberi gold mine in 2012.

In 2013 the plant was being expanded to 3.5 million tonnes per year capacity with installation of a SAG mill designed to lift gold output towards a run rate of 100,000 ounces per annum.

St Barbara said it believed that there was substantial further exploration potential around the mine and on nearby Tabar and Tatau Islands.

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