Fund Manager Summary
The fund managers believe the outlook for St Barbara Ltd presents a significant opportunity for investors. In their opinion, the recent rally in shares, driven by strong Q4 FY22 results and positive cashflow generation, underscores the company’s potential. They highlight that St Barbara’s Gwalia mine is positioned for improved performance following strategic reinvestment, while the Simberi mine has resolved operational issues and may be sold, thereby reducing capex requirements and providing cash flow. The fund managers see multiple catalysts over the next year, including asset streamlining and consolidation in the Leonora gold district, which could further enhance value. Additionally, they note that St Barbara is among the cheapest gold companies globally based on resource valuation, indicating substantial upside potential.
Source: Trading View
Commentary From The Managers
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Paragon Funds
30 Sept 2025
$0.54
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Paragon Funds
30 Sept 2025
$0.54
Summary
Paradice Investment Management
31 Dec 2024
$0.23
- Paradice Investment Management has updated its investment thesis on St Barbara Ltd. (SBM), maintaining an overweight position.
- The SBM share price experienced a 38% decline over the quarter.
- This decline was influenced by two main factors:
- A decrease in the gold price from its peak in late October.
- An adverse tax announcement from the PNG Internal Revenue Commission (IRC).
- On December 24th, the stock fell 34% following the announcement of a A$210m tax notification affecting Simberi Gold, a wholly owned subsidiary of SBM.
- Simberi Gold plans to lodge a formal objection within the 60-day objection period.
Summary
Paragon Funds
30 Nov 2024
$0.33
- Paragon Funds notes St Barbara's recent correction of -26%
- Correction attributed to a $100m discounted 38c capital raise that surprised the market
- Paragon Funds did not participate in the capital raise but increased their position at 30c
- Current market cap of St Barbara is approximately $350m
- St Barbara holds ~$180m in cash and 7moz gold resources
- Also has ~$25m in listed investments, indicating deep value
- The capital raise aims to fund long lead time items for Simberi's US$250m expansion
- Simberi is projected to produce ~250koz pa for over 10 years
- Payback period for Simberi is expected to be ~12 months
Summary
Paragon Funds
31 Aug 2024
$0.24
- Paragon Funds continues to monitor St Barbara Ltd after five challenging years marked by significant operational issues.
- St Barbara faced problematic, producing assets like Gwalia and Atlantic.
- They undertook materially overpriced M&A, leading to excessive debt and a failed asset sale process for Simberi.
- The company experienced permitting delays in Canada and poor leadership, contributing to a significant stock decline.
- Gwalia's sale cleared the company’s debt, currently leaving a market cap around $200m.
- St Barbara is no longer burning cash and presents deep value in its remaining assets.
- Asset breakdown includes:
- Unrestricted cash of $125m and $130m in franking credits.
- An investment portfolio valued at $25m.
- Atlantic, with substantial mineable resources and infrastructure, valued conservatively at $50m.
- Simberi, producing ~70koz p.a. and breaking even, potentially worth multiples of its market-assigned value of $50m.
- Andrew Strelein has a clear mandate to realise value and an aligned equity incentive structure.
- Simberi's expansion focus has led to upgraded resources and reserves, and feasibility studies indicate strong investment metrics.
- Simberi is expected to attract interest from larger gold mining companies, notably those with Pacific operations.
- The market may soon re-rate St Barbara's share price or the management might pursue a sale of Simberi or the entire company.
Summary
L1 Capital
31 Dec 2022
$0.34
- St Barbara shares have increased by 28% following a merger announcement with Genesis Minerals.
- The merger will combine their Leonora gold operations into a new entity named Hoover House Limited.
- The remaining assets of St Barbara, including Atlantic and Simberi, will be spun off into Phoenician Metals.
- L1 Capital has identified the consolidation of the Leonora gold district as a significant catalyst for St Barbara.
- The merger is expected to create synergy benefits of approximately $200m NPV.
- It aims to achieve capital expenditure reductions of around $400m.
- The new management team is regarded highly and is believed to be capable of executing the proposed benefits.
- The separation of assets in Phoenician Metals could unlock additional shareholder value through better operational execution.
- A streamlined asset base may facilitate further consolidation opportunities.
Summary
L1 Capital
31 July 2022
$0.50
- St Barbara shares rallied in July following strong Q4 FY22 results, showing positive cashflow generation and solid mining production.
- Gwalia mine is positioned for improved performance after recent reinvestment, with further efficiencies expected from its expanded mill.
- Simberi mine has resolved operational issues and is now poised for a potential sale, which may reduce capex and provide additional cash flow.
- Several catalysts could unlock value within the next 12 months, such as asset streamlining and consolidation in the Leonora gold district.
- St Barbara is among the cheapest gold names globally based on price per ounce of resources and reserves, indicating significant upside potential.
- L1 Capital continues to hold because they believe in the long-term growth prospects associated with operational improvements.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"It seems St Barbara is on the brink of transformation, with catalysts aligning for potential value unlocks. As operational efficiencies emerge and asset streamlining takes shape, the company may just redefine its standing in the gold sector, despite its current low valuation."
Last Updated: 30 Sept 2025
Query The Data
Frequently Asked Questions
Who is investing in St Barbara Ltd (ASX:SBM)?
Fund managers including L1 Capital, Paragon Funds and Paradice Investment Management have invested in St Barbara Ltd (ASX:SBM).
Why do fund managers invest in St Barbara Ltd?
Fund managers are investing in St Barbara Ltd due to its strong Q4 FY22 results, positive cash flow, and solid mining production. The company's flagship Gwalia mine is set for improved performance following strategic reinvestments, while the Simberi mine is positioned for potential sale, reducing capital expenditure and generating cash. Additionally, upcoming catalysts such as asset streamlining and operational enhancements across key sites present significant value unlocking opportunities. St Barbara is also considered one of the most undervalued gold companies globally based on resource and reserve pricing.
What happened to St Barbara Ltd (ASX:SBM)?
Fund managers are investing in St Barbara Ltd due to its deep value proposition and potential near-term catalysts. Despite a recent setback from a tax claim, the company has demonstrated strong operational execution, particularly at its Simberi asset, which is projected to generate significant free cash flow and has attracted interest from major gold producers. The upcoming sale process for Simberi, alongside improving conditions for restarting operations at its Atlantic assets, positions St Barbara for substantial upside, with expectations of a competitive bidding process that could enhance shareholder value.