Insights

Why is the St Barbara share price crashing 14% to a multi-year low?

St Barbara isn’t glittering on Wednesday. Here’s why this gold share is sinking…
The post Why is the St Barbara share price crashing 14% to a multi-year low? appeared first on The Motley Fool Australia. –

The St Barbara Ltd (ASX: SBM) share price has come under significant pressure on Wednesday.

In morning trade, the gold miner’s shares have tumbled 14% to a multi-year low of 97.5 cents.

Why is the St Barbara share price sinking?

Investors have been selling down the St Barbara share price on Wednesday following the release of an announcement.

According to the release, the company has deferred making a final investment decision on the Simberi sulphide expansion in favour of a strategic review.

The release notes that St Barbara faces capital investments at each of its three operations in the next two years. This strategic review will assess the best allocation of capital for risk and return compared with the company’s other projects.

St Barbara also revealed that it has received unsolicited enquiries from potential investors in Simberi and anticipates the Sulphide expansion project to proceed either under St Barbara or different ownership.

Trouble at Atlantic Gold

St Barbara also advised that there is a near-term risk of disruption to its Touquoy Operation. This is due to potential permitting delays for its tailings management facility after authorities sought further clarification on aspects of the in-pit tailings deposition application.

The company has made an application to raise the existing tailings management facility wall as an interim solution while the in-pit deposition matter is progressed to conclusion.

However, should the application not be successful, St Barbara will be forced to suspend the operation and place it in care and maintenance mode.

Finally, St Barbara revealed that it will undertake a re-design of its operating model, including for the provision of corporate support. This will result in a rationalisation of the corporate workforce including a consolidation of the company’s two corporate offices into one.

The St Barbara share price is now down over 30% in 2022.

The post Why is the St Barbara share price crashing 14% to a multi-year low? appeared first on The Motley Fool Australia.

Should you invest $1,000 in St Barbara Ltd right now?

Before you consider St Barbara Ltd, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and St Barbara Ltd wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of January 13th 2022

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

ASX 200 midday update: St Barbara and Zip drop to multi-year lows
These were the best performing ASX 200 shares last week
5 things to watch on the ASX 200 on Friday
Why Block, Nanosonics, St Barbara, and Woodside shares are dropping
Can the St Barbara share price recover its losses in 2022?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Free Share Allocation Reward Levels

STARTER

Class
$ 2,500 Deposit & Trade
  • REWARD^
  • 1 x Marathon Oil Corporation (NYSE:MRO)

ECONOMY

Basic
$ 5,000 Deposit & Trade
  • REWARD^
  • 1 x Pfizer Inc (NASDAQ:PFE)

ECONOMY

Standard
$ 10,000 Deposit & Trade
  • REWARD^
  • 1 x Amazon.com Inc (NASDAQ:AMZN)

ECONOMY

Plus
$ 25,000 Deposit & Trade
  • REWARD^
  • 2 x Apple Inc (NASDAQ:AAPL)
POPULAR

BUSINESS

Class
$ 50,000 Deposit & Trade
  • REWARD^
  • 4 x Apple Inc (NASDAQ:AAPL)

FIRST

Class
$ 150,000 Deposit & Trade
  • REWARD CHOICES^
  • 12 x Apple Inc (NASDAQ:AAPL)
  • 2 x Tesla (NASDAQ:TSLA)
^Please refer to the Free Share Promotion Terms and Conditions for details.

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info