. At the same time, rapid interest rate rises in the US have undermined sentiment toward gold stocks.
A recent St Barbara strategy update has also raised expectations the company would have more free cash flow in the near future by delaying growth spending in Canada and PNG.Rather than spend close to $200 million expanding its Simberi mine in PNG, St Barbara is now trying to sell it, meaning the asset could be a near term source of cash rather than a drain as had been expected until recently.
A full consolidation of the province around Leonora and Laverton would likely drag in Red 5 Limited, which operates the King of the Hills mine north of Leonora - an asset that St Barbara sold to Mr Finlayson’s Saracen in 2015. “By the end of the presentation, Mr Smith was very grateful for the rekindling of the fond memories he had as a Saracen shareholder over the journey,” said Mr Finlayson on Monday.
Based on the evidence from a feisty St Barbara investor call last week, shareholders see the boardroom rather than executive ranks as the part of their company most in need of new blood.