The St Barbara Ltd (ASX: SBM) share price is taking off today despite only silence from the company.
The gold miner’s gains come as the price of the metal lifts. Perhaps a more compelling explanation for the stock’s surge, however, is the emergence of reports claiming it could be a takeover target.
At the time of writing, the St Barbara share price is $1.53, 7.75% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.2% right now. Meanwhile, the All Ordinaries Index (ASX: XAO) has slipped 0.4%.
Let’s take a closer look at what might be going on with the gold miner’s stock on Tuesday.
What’s boosting the St Barbara share price today?
St Barbara’s stock is storming higher amid rising gold prices and rumours it could be a takeover target.
Gold futures are up 0.24% on Tuesday morning AEDT, trading at US$2,000.60 an ounce, according to CNBC.
Reports that the St Barbara share price’s sluggish recent performance has placed it in prime takeover territory could also be bolstering the stock’s performance today.
Overnight, the Australian Financial Review (AFR) reported that bankers are looking to the gold miner and its Western Australian assets as a future merger and acquisition target.
The company’s Leonora Operations – housing the Gwalia Gold Mine – could be a shining beacon to other gold producers in the area.
These include Northern Star Resources (ASX: NST) and Ramelius Resources Limited (ASX: RMS), according to the AFR.
However, the publication claims St Barbara’s Simberi Operations – located in Papua New Guinea – might be a dead weight for acquisition talk.
Despite today’s gains, the St Barbara share price is still in the long-term red.
It has fallen 22% over the last 12 months while many of its gold mining peers have recorded gains.
The post Here’s why the St Barbara (ASX:SBM) share price is leaping 8% on Tuesday appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Tuesday
- 5 things to watch on the ASX 200 on Friday
- 5 things to watch on the ASX 200 on Friday
- Why Australian Ethical, Domino’s, Scentre, and St Barbara shares are falling
- Profits down: St Barbara (ASX:SBM) share price slides 5% on half-year results
Motley Fool contributor Brooke Cooper 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 Bruce Jackson.
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