The St Barbara Ltd (ASX: SBM) share price is taking off today despite only silence from the company.
The gold miner's gains come as the price of the metal lifts. Perhaps a more compelling explanation for the stock's surge, however, is the emergence of reports claiming it could be a takeover target.
At the time of writing, the St Barbara share price is $1.53, 7.75% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.2% right now. Meanwhile, the All Ordinaries Index (ASX: XAO) has slipped 0.4%.
Let's take a closer look at what might be going on with the gold miner's stock on Tuesday.
What's boosting the St Barbara share price today?
St Barbara's stock is storming higher amid rising gold prices and rumours it could be a takeover target.
Gold futures are up 0.24% on Tuesday morning AEDT, trading at US$2,000.60 an ounce, according to CNBC.
Reports that the St Barbara share price's sluggish recent performance has placed it in prime takeover territory could also be bolstering the stock's performance today.
Overnight, the Australian Financial Review (AFR) reported that bankers are looking to the gold miner and its Western Australian assets as a future merger and acquisition target.
The company's Leonora Operations – housing the Gwalia Gold Mine – could be a shining beacon to other gold producers in the area.
These include Northern Star Resources (ASX: NST) and Ramelius Resources Limited (ASX: RMS), according to the AFR.
However, the publication claims St Barbara's Simberi Operations – located in Papua New Guinea – might be a dead weight for acquisition talk.
Despite today's gains, the St Barbara share price is still in the long-term red.
It has fallen 22% over the last 12 months while many of its gold mining peers have recorded gains.
