St. Barbara Project Risk More than Priced In, Says Bull

Dow Jones
08/11

0400 GMT - Permitting and construction risk for St. Barbara's 15-Mile and Simberi sulfide projects are more than priced in to the gold miner's stock at current levels, says Macquarie. The bank reinstates coverage of St. Barbara with an outperform recommendation and a target of A$0.96/share. The stock trades at an enterprise value per resource ounce of A$41/oz, Australia-based analysts at the bank say. That is "a material discount to our gold coverage mean of A$557/oz," they say. The company's sell-down at Simberi injects enough cash to fund the sulfide expansion while progressing the Touqyoy and 15-Mile Hub growth projects, the analysts say. Shares are up 3.4% at A$0.615.

 

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