The market is rising on Tuesday but one ASX gold stock is climbing more than most.
In fact, in afternoon trade, its shares are up a massive 22% to 47.5 cents.
Image source: Getty Images
Which ASX gold stock?
The gold stock that is rocketing today is St Barbara Ltd (ASX: SBM).
Investors have been buying its shares following the release of an update on its operations in Papua New Guinea (PNG).
As a reminder, late last year the PNG Internal Revenue Commission (IRC) issued tax reassessments for St Barbara.
In response, the ASX gold stock's subsidiary, Simberi Gold Company Limited (SGCL), lodged a formal objection to the reassessments, well within the required five-week timeframe.
Since that time the company and SGCL have pressed for the earliest possible completion of the review of its objections, as the existence of the unresolved matter impacted upon financing preparations for final investment decision and therefore the development timetable for the Simberi Expansion Project.
As you might have guessed from the way its shares are rising today, there has been positive news relating to Simberi.
What's the latest?
According to the release, the Minister of Mining, the Honourable Mr Rainbo Paita, has received the formal extension documentation, together with the recommendation and briefing materials, from the Mineral Resources Authority (MRA).
This follows the decision by the Mining Advisory Committee (MAC) to recommend to the Minister the grant of an extension of the Simberi Mining Lease 136 (Simberi ML) until 2038.
Furthermore, the PNG IRC Deputy Commissioner of Taxation has advised that the IRC will revoke the previous tax assessments issued in December 2024 and reissue a revised tax reassessment as early as 19 September 2025.
Good standing
The ASX gold stock notes that it is aligned with the Minister's comments regarding the importance of tenement holders maintaining good standing and operating in accordance with PNG laws.
It highlights that SGCL has operated the Simberi Mine since 2012, with over 90% of the workforce made up of locals and PNG nationals, contributing substantial royalties and broader direct and indirect benefits into PNG under strict governance standards.
It is also pleased to reconfirm it is in full compliance with all tax obligations and committed to working to resolve the matter with the IRC and welcomes the revised reassessments being issued soon.
The gold miner concludes:
MD and CEO Andrew Strelein has been in contact with the Mining Minister today, to clarify and confirm that the objections regarding the tax matter are presently with the IRC to conclude their review. The Minister advised that, once these reassessments are clarified and the tax matters are regularised, then the mining lease extension could proceed.
