DELIVERING PROFITABLE GROWTH

St Barbara further consolidated its strong financial position in FY11, reporting a statutory net profit after tax of $68.6 million for the year, and an underlying net profit after tax of $54.4 million, with cash on hand at 30 June 2011 of $79.5 million and total debt of $12.1 million.

The significant increase in underlying net profit after tax over the previous year was driven by the 12% increase in gold production and a higher average gold price of A$1,387 per ounce (2010: A$1,244 per ounce).

In FY11 cash flows from operating activities increased by 53% due to higher gold revenue, and the Company invested significant cash in exploration, ongoing mine development to support mining at the Gwalia and Marvel Loch underground mines and in developing the King of the Hills underground mine. St Barbara’s substantial cash balance and low gearing provides flexibility to fund increased exploration activities and future organic growth opportunities.

During the year a business improvement program was established within the Company. This program includes a centralised procurement function, which has already achieved estimated cost savings of $10 million over a two year period. The combination of controlling costs, improving operating efficiencies and increasing productivity contained operating cost price increases to an average of 3.6% in FY11.

In FY12 business improvement will continue to focus on driving productivity initiatives and cost saving opportunities across the Company.

FINANCIAL HIGHLIGHTS