PERTH (miningweekly.com) – Gold miner St Barbara has narrowed its half-year loss, despite operations at the Gold Ridge mine remaining suspended since April of last year.

In fact, St Barbara reported on Wednesday that the suspension of the unprofitable Gold Ridge operations had helped to narrow its segmented loss to only A$6-million, from A$43-million in the previous corresponding period, when it also reported a A$25-million impairment charge.

For the half-year ended December 31, St Barbara reported a statutory loss of A$20-million, compared with the A$87-million loss reported in the previous corresponding period.

The results reflected an increased segment profit at the Leonora operation, in Western Australia, with the mine delivering A$53-million in profit instead of the A$45-million reported in 2014, while improved operating performance at the Simberi mine, in Papua New Guinea, resulted in a reduced segment loss of A$14-million, instead of the A$35-million in the previous corresponding period.

“The results of St Barbara’s turnaround strategy are becoming evident. Our aim was to quickly reduce the pressure on the company from its higher cost assets and reduce costs overall to suit a lower gold price environment,” said MD and CEO Bob Vassie.

Group revenue during the half-year increased from A$228-million in the first half of 2014 to A$236.3-million in the first half of 2015, despite revenue from the Leonora operations being impacted by marginally lower average gold spot prices in the period.

St Barbara sold 137 877 oz of gold during the period, compared with 139 188 oz in the previous corresponding period.

“We are not resting on our laurels at Leonora, which has improved performance during the half. Simberi’s performance improved dramatically over the half to be cash flow positive in the month of December. The improved operating performance we achieved towards the end of the first half positions us well for the second half,” said Vassie.

St Barbara recently increased its production expectations for the Gwalia mine, near Leonora, from between 180 000 oz and 200 000 oz, to between 200 000 oz and 210 000 oz for 2015.

With production at King of the Hills, also at Leonora, coming to an end during the June quarter, St Barbara was expecting the project to deliver between 50 000 oz and 55 000 oz of gold, instead of the previous estimate of between 60 000 oz and 70 000 oz.

Simberi, meanwhile, said it still expected to produce between 70 000 oz and 80 000 oz of gold during the full year, with production expected to increase to a rate of 100 000 oz/y by the June quarter.