St Barbara share price ASX plunged earlier on Wednesday after the mining company posted another abject quarterly update. The gold miner’ shares plunged 21.35% on Wednesday to trade at A$0.700. The stock has crashed 19.54% in the past week and more than 10% since the start of the year.
Investors are Shifting
St Barbara share price was the worst performer in the S&P/ASX 200 index as the firm’s disappointing quarterly update hammered its shares. Investors have been hitting the sell button ever since the company’s announcement.
For the three months ending December 31, the Australian gold miner delivered gold production of 60,976 ounces at an all-sustaining cost of A$2,666 per ounce. Compared to the first quarter, production in the December quarter was down 4.3%.
The results point to a mix of lower production and higher production costs in the quarter. The company’s cost was higher than the A$2,591 per ounce that it received from its customers for its gold.
SBM’s balance sheet for the quarter has left investors concerned about the company’s performance in the upcoming months. St Barbara ended the quarter with total debt owing of C$80 million and A$50 million with a cash balance of just $38 million.
St Barbara Share Price Forecast
The daily chart shows that St Barbara share price has been consolidating for the past few weeks. Along the way, the SBM stock has managed to move below the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) has continued falling, pointing to a decline in the stock’s demand.
Therefore, the St Barbara stock price is likely to continue falling in the upcoming months. If this happens, the sellers will be eyeing the important support at A$0.520.