The St Barbara Ltd (ASX: SBM) share price has climbed higher in early trade as resources shares started the week with a bang.
The post Why the St Barbara (ASX:SBM) share price is climbing appeared first on The Motley Fool Australia. –
Why is the St Barbara share price on the move?
Advanced gold and copper explorer, Alice Queen Ltd (ASX: AQC), advised this morning that St Barbara was withdrawing from the Horn Island JV. St Barbara entered into the JV in 2019 to explore areas outside of Alice Queen’s existing Horn Island Inferred Resource.
Alice Queen said it was “disappointed” by the withdrawal and election to not pursue further exploration expenditure under the JV. The smaller JV partner will continue pursuing exploration including a scoping study to bring Horn Island to production as soon as possible.
Under the terms of the JV, Alice Queen will retain all of the information generated by St Barbara’s ~$2.6 million expenditure so far.
The St Barbara share price has climbed in early trade following the update alongside many ASX resources shares.
How has St Barbara been performing?
Prior to this morning, the St Barbara share price had slumped 17.8% lower in 2021 to Friday’s close. That comes amid a broader softening in gold prices as investors have pulled back on bearish views.
Record government stimulus and a rising US dollar have buoyed investor spirits and turned many away from the safe haven asset of gold.
That has put ASX gold shares like St Barbara under pressure to start the year. The Northern Star Resources Ltd (ASX: NST) share price has slumped 23.3% while Newcrest Mining Ltd (ASX: NCM) shares are down 7.7% in 2021.
What’s happening on the ASX this morning?
The S&P/ASX 200 Index (ASX: XJO) has climbed 0.4% at the open following strong stimulus signed off by the Biden administration.
Early gainers include BHP Group Ltd (ASX: BHP) and Lynas Rare Earths Ltd (ASX: LYC), which are up 2% at the time of writing. The A2 Milk Company Ltd (ASX: A2M) is among this morning’s fallers, down 0.6% at the open.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- Why top brokers want you to buy the embattled IAG (ASX:IAG) share price
- Why the South32 (ASX:S32) share price is outperforming today
- Why the News Corp (ASX:NWS) share price is one to watch today
- More Aussies now think shares are better than real estate
- ASX 200 Weekly Wrap: ASX 200 gets its mojo back
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.