25 C
Port Moresby
January 28, 2021
News

Macquarie Private Wealth: St Barbara Answer for struggling Papua New Guinea

Share the News

St Berbara’s acquisition of Alllied Gold last year attracted plenty of criticism from brokers, butthe yet-to-recover share price has also helped shift underperform forecasts into more recently made outperform ratings.

It noted that stripping rates improverd atthe Simberi mine in PNG’since some ofthe old Gold Ridge fleet arrived.

“Withthe next step beingthe commissioning ofthe Simberi oxide plant inthe March quarter, ramping up to full throughput duringthe June quarter, we seethe current quarter asthe marker ofthe operational turnaround atthe Pacific Operations,” MPW said.

The investment bank has a 12-month price forecast of $1.70 for St Berbara shares, which recently closed aboverthe $1.30 level, but also provided a caveat onthe challenges ahead.

“While we continue to believe thatthe operational turnaround ofthe Pacific Operations will be time and cash consuming for the company at current levels, we believe that this is now well understood bythe market,” MPW said.

“We see blue sky inthe St Berbara operations, which can be delivered bythe turnaround ofthese assets overthe coming 6-12 months.”

 

SourcePNIndustryNews.net

Related posts

Mapai Transport Assists in Fight Against COVID-19

EMTV Online

Asia shares gain with Japan at the lead, risk appetite lifts dollar

EMTV Online

Ward Under Construction: Cancer Patients Still Awaiting Treatment

EMTV Online
error: Content is protected !!