St Barbara has confirmed the sale of its entire shareholding in Catalyst Metals for $25.2 million, with the shares sold at $2 per share.
The sale is part of a strategic move by St Barbara to bolster its balance sheet liquidity as it focuses on advancing its 10-year-plus mine plan at Simberi in Papua New Guinea, which is supported by an increased mineral resource of five million ounces and an ore reserve of 2.8 million ounces.
The decision to sell came in response to strong market demand, which allowed St Barbara to exit its position without applying a discount, thereby maximising returns.
St Barbara said the sale aligns with its strategy of actively managing its investment portfolio, taking advantage of favourable market conditions while avoiding discounted bulk trades.
Following this transaction, St Barbara’s listed investment portfolio is now comprised of three key holdings: Brightstar Resources, Patronus Resources, and Peel Mining, collectively valued at approximately $22.5 million.
St Barbara has recently made significant progress with its Simberi expansion, with the company focused on transitioning to a long-term, sustainable operation.
In May, the company announced it had plans to boost gold production at the Simberi mine by collaborating with Stratum AI.
This collaboration enabled St Barbara to identify carbon in leach (CIL) treatable sulphides that would have been considered unsuitable previously for the current CIL circuit. The company has targeted for stable gold production of 70,000 to 75,000 ounces over the next three years.
In comparison, their 2024 full-year guidance is 60,000 to 70,000 ounces.
St Barbara also announced a metallurgical win at Simberi, confirming the early selection of the saleable concentrate flowsheet for the mine’s expansion three months ahead of schedule.
This decision was made due to strong recoveries from flotation testwork.
Subscribe to Australian Resources & Investment and receive the latest news on commodity prices, resource developments, executive movements and more.