What happened to the St Barbara share price?
Shares of St Barbara Ltd [ASX:SBM] gained more than 5% today as the stock continues to rebound from a recent slump. It closed at $2.64. It’s now up 70% for the year.
Why did SBM shares jump up?
St Barbara is a gold miner. The gold price rose 2% last week to trade at US$1,220 an ounce. That was its highest price since 17 November, 2016. In 2016, St Barbara traded as high as $3.77. But as gold sold off last year, so did SBM. They are highly correlated.
What now for St Barbara Ltd?
All eyes will be on the gold price when it comes to St Barbara. Gold has shown recent strength. Should that continue, we can expect St Barbara to continue to trend higher. However, St Barbara brings with it the additional mining and business risks other than the gold price. Certainly, it’s an interesting stock to watch if you’re interested in having some exposure to gold.