Shares in St Barbara Ltd (ASX: SBM) were placed into a trading halt during midday trade today after the Australian gold miner requested a temporary pause in trading.
The shares were last trading at 74 cents, down about 3.89 % before the halt. Investors appear cautious as they wait for clearer news on developments at the company’s Simberi Gold Project in Papua New Guinea (PNG).
According to the ASX notice, trading will resume once the announcement is released, or at the latest by Thursday morning.
A key project back in focus
Simberi is St Barbara’s most important operating asset. The open-pit gold mine is located on Simberi Island in Papua New Guinea and has been producing gold for more than a decade.
Over the past two years, St Barbara has been working on plans to significantly expand Simberi by moving into sulphide ore mining. This expansion is designed to lift production, extend the mine’s life, and improve long-term cash flow.
However, none of this can move ahead unless St Barbara secures a long-term extension to the Simberi mining lease.
Why the mining lease is so important
The current Simberi mining lease is due to expire later this decade. Without an extension, St Barbara would be unable to justify the large investment needed for the next phase of the mine.
In 2025, Papua New Guinea’s Mining Advisory Committee recommended extending the Simberi mining lease out to 2038. That recommendation was an important step forward and aligned with the company’s long-term mine plans.
Formal paperwork was later submitted to the PNG Minister for Mining. However, final approval has been delayed due to an unresolved tax reassessment issue with the PNG tax office.
St Barbara has previously told investors it expects the revised tax assessment to be reissued, which would allow the lease approval process to move forward.
What investors are waiting to hear
The trading halt suggests St Barbara is close to an important update. This could involve progress on the mining lease, movement on the tax issue, or another development linked to Simberi’s future ownership or funding structure.
The Simberi project has already attracted interest from major partners. Previous disclosures showed plans for PNG’s state-owned Kumul Minerals to take a stake in the project, alongside a proposed investment by China’s Lingbao Gold Group.
Any confirmation around approvals or ownership would be highly relevant for investors.
Foolish bottom line
St Barbara shares have delivered a strong run over the past year, supported by higher gold prices and renewed optimism around Simberi.
Today’s halt highlights how closely St Barbara’s outlook is tied to regulatory decisions and project approvals. If the Simberi lease extension is finalised, it could remove a major uncertainty hanging over the stock.
The post Why the St Barbara share price is halted today appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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