The figure, for the year ended June 30, represents a significantly greater loss than last year's after tax loss of $2.9 million.
Asset sales and gold derivatives could not make up for $28.5 million in exploration expenditure and a $4.9 million impairment loss relating to the unrealised loss on available for sale assets, both major contributors to the loss.
St Barbara said the increase in exploration spending was aimed at boosting the company's resources while the impairment loss related mainly to listed investments in the company's 10% stake in Bendigo Mining.
Production results didn't offer much blue sky either, with the company blaming reduced mill throughput, lower grades and lower recoveries for a production decrease at the Southern Cross operation in Western Australia.
Total gold output came in at 157,477 ounces, down 8.7% from last year, while on the upside, an average gold price of $A907 an ounce - up from $A780 in 2007 - helped to offset the lower production rates somewhat.
While earnings before interest, tax, depreciation and amortisation (EBITDA) for the Southern Cross mine were up 20% to $55 million, total reported EBITDA for St Barbara was down more than 50% to 12.3 million.
Meanwhile St Barbara is advancing toward commissioning stage at the Gwalia mill and expects gold production to begin next month.
The company is targeting gold production for this financial year of 295,000-315,000oz.
Shares in St Barbara gained 0.5c to 21c before easing back to 20.5c.
