The Australian gold rush to North America is accelerating. St Barbara has joined Newcrest and North Star resources in spending up big on mines in either Canada or Alaska. Total spend so far has topped $2.2 billion.
Continuing operations at Gwalia and Simberi were weaker in the September quarter, Credit Suisse notes. However, the company’s recently-acquired Atlantic Gold has performed in line with expectations and offset the weaker contribution from Gwalia and Simberi.
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.