Credit Suisse was impressed with the visit to the Torquoy mine and processing facility. The broker now appreciates why management was willing to pay a premium to acquire Atlantic Gold although still believes exploration success is necessary to bridge the premium.
The two conditions necessary for Atlantic Gold to exercise its option to purchase a 40% minority interest have been met. The broker believes it is in St Barbara’s interest to move to 100% ownership to simplify the current structure.
Target price steady at $2.76. Underperform rating retained.
Target price is $2.76.Current Price is $3.04. Difference: ($0.28) – (brackets indicate current price is over target). If SBM meets the Credit Suisse target it will return approximately -10% (excluding dividends, fees and charges – negative figures indicate an expected loss).