St Barbara the talk of the town as gold M&A prospects rise
Anthony Macdonald,
Sarah Thompson and
Kanika Sood
Mar 7, 2022 – 9.35pm
Regional gold consolidation is back in resources bankers pitchbooks with dealmakers turning to one of their favourite stomping grounds, Western Australia’s goldfields region.
This time the spotlight is on bombed out St Barbara Ltd, a $1 billion odd miner with a wide open register, a well-regarded primary asset and in the middle of a turnaround story.
Regional consolidation is a perennial theme in Australian gold deals, and expectations are brewing of more M&A to come. Eddie Jim
St Barbara’s attraction, according to the banker pitchbooks, is its Leonora operations and more specifically its Gwalia underground mine and processing plant, that has already produced more than 2.5 million ounces of gold.
It’s nearby to a pair of Northern Star Resources mines and its Yandal hub, while Ramelius Resources and a handful of other mid-tier Australian players are in the region, and would likely love to get their hands on Gwalia.
It is understood St Barbara is keeping its bankers close, no doubt concerned by its share price performance and the way it has lagged a bunch of rivals in the past year, three months and even the past week.
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