Why the St Barbara share price is climbing higher
There are a couple of factors pushing the St Barbara share price higher in the ASX afternoon session.
For starters, the Aussie gold miner released a quarterly production update to the market in the early afternoon.
A recent “fall of ground” at the miner’s Gwalia mine in Western Australia has temporarily halted operations. This will impact on the first quarter result.
However, St Barbara is expecting to recover the shortfall next quarter with full year production guidance maintained at between 175,000 and 190,000 ounces.
It’s not just that announcement that is pushing the St Barbara share price higher today. Fellow ASX gold shares are surging too.
That has been largely driven by risk-off moves across both global and domestic markets. Investors have been selling down their riskier, growth holdings, particularly in the tech sector, with gold providing a safe haven of sorts.
St Barbara shares are now up 23.6% in 2020 which is welcome news for investors. Many of the ASX gold shares are surging in value this year thanks to the coronavirus pandemic.
Investors have been spooked by the March bear market and subsequent rebound. That means ASX gold shares like St Barbara have been in high demand this year for the precious metal’s perceived safety.
Should you buy right now?
The St Barbara share price has done well this year but I won’t be buying. However, I think it could provide a good hedge against further downside in 2020.
Shares in the gold miner are trading at a price to earnings (P/E) ratio of 21.9 with a 2.4% dividend yield. Throw in some inflation hedging properties for gold and it’s worth a look for concerned investors.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
- The RBA says the recession could be over. What does it mean for your ASX shares? – October 28, 2020 9:08am
- What zero COVID-19 cases in Victoria means for ASX 200 shares – October 26, 2020 10:04am
- 3 super reasons to buy ASX 200 shares today – October 22, 2020 9:40am