St Barbara jumps 18% after $453 million sale of New Simberi and Tabar interests
The Australian benchmark index fell over 1% while St Barbara surged following a cash deal. Bond yields hit highs as US-Iran tensions drove oil above $101.
Investors in the S&P/ASX 200 market faced significant losses on Thursday as broad conditions deteriorated. The benchmark closed down 1.03% after slipping to a seven-week low of 1.9%. Rising US bond yields and geopolitical instability in the Middle East created pressure across sectors. Brent crude oil remained above $101 per barrel, influenced by tensions between the United States and Iran. Meanwhile, the US 10-year Treasury yield reached 4.85%, its highest level since 2023. These rate fears impacted Australian yields as well, marking their highest levels in years.
Mining stocks suffered despite copper prices hitting another record high. The sector's poor performance included shares for major operators like Nine and BHP. Utilities remained the only sector with gains by lunchtime. In contrast, St Barbara (ASX:SBM) gained approximately 18% in value during trading hours. The company announced a sale of its remaining interests in New Simberi and Tabar to Lingbao Gold. This transaction is valued at $453 million in cash. As a result of this deal, the company expects to hold roughly $880 million in cash while maintaining no debt and avoiding further hedging arrangements.
