The St Barbara Ltd (ASX: SBM) share price has returned from its trading halt with a bang.

At one stage today, the gold miner's shares were up over 25% to 81.7 cents.

The St Barbara share price has since pulled back a touch but remains up 18% at 76.7 cents.

The company's long-suffering shareholders will certainly be pleased with this given the dreadful year they have had.

You only need to look at the chart below to see how poor the St Barbara share price has performed in 2022.

Why is the St Barbara share price racing higher today?

Investors have been scrambling to buy shares today in response to the announcement of plans to merge with Genesis Minerals Ltd (ASX: GMD).

As covered here, the two gold miners plan to merge their operations in the Leonara District of Western Australia to form Hoover House.

Hoover House will comprise:

• 7Moz mineral resources
• 2Moz ore reserves
• Fully funded "capital-light" base case production target +300koz per annum (almost double St Barbara's Leonara production target)

Demerger plans

St Barbara also revealed that it plans to spin off its non-Leonara assets and list them separately on the Australian share market as Phoenician Metals.

Management advised that Phoenician Metals will be focused on realising the long-term value of a portfolio including the Atlantic (Canada) and Simberi (Papua New Guinea) operations, which have 6.2Moz mineral resources and 3.7Moz ore reserves.

Phoenician Metals will also have a portfolio of St Barbara royalties, $34 million in listed ASX investments, and $85 million cash.

If everything goes to plan, St Barbara shareholders will receive an in-specie distribution of shares in Phoenician Metals.

The gold miner's chair, Tim Netscher, is "confident that this unique transaction will deliver significant value for all shareholders." Based on the St Barbara share price performance today, the market appears to agree with this view.

The post ASX 200 gold share St Barbara returns with a bang, up 25% appeared first on The Motley Fool Australia.

The St Barbara Ltd (ASX: SBM) share price won't be going anywhere on Monday.

That's because this morning the struggling gold miner requested a trading halt.

Why is the St Barbara share price halted?

The St Barbara share price was placed in a trading halt this morning after the company announced plans to merge with Genesis Minerals Ltd (ASX: GMD).

According to the release, the two gold miners plan to merge their Leonora District operations in Western Australia to form a new gold company, Hoover House.

The release notes that the merger will result in the following:

• 7Moz Mineral Resources
• 2Moz Ore Reserves
• Fully funded "capital-light" base case production target +300koz per annum (almost double St Barbara's Leonara production target)

After a year of struggles for the St Barbara share price, as you can see below, investors will no doubt be hoping this is the catalyst to getting its shares heading higher again.

What else?

As you may have noticed above, the merger will be focused on St Barbara's Leonora District assets.

The remainder of its assets will be demerged to form a new junior gold company, Phoenician Metals, which is then expected to be listed on the ASX.

Phoenician Metals will be focused on realising the long-term value of a portfolio including the Atlantic (Canada) and Simberi (PNG) operations, which have 6.2Moz mineral resources and 3.7Moz ore reserves. It was also have a portfolio of St Barbara royalties, $34 million in listed ASX investments, and $85 million cash.

St Barbara shareholders will receive an in-specie distribution of shares in Phoenician Metals and Hoover House will retain a 20% shareholding as a supportive cornerstone investor.

Why merge?

St Barbara's chair, Tim Netscher, believes the merger will deliver significant value for shareholders. He said:

I am confident that this unique transaction will deliver significant value for all shareholders. The merger with our Leonora neighbour, Genesis, to create Hoover House, will accelerate our Leonora Province Plan. Shareholders will reap the benefits of more production at lower cost and lower risk from this prolific mining district.

A significant component of the value delivered by the creation of Hoover House is the unique synergies delivered by the resultant combination of assets, such as the ability to sensibly stage the development of the various orebodies and to match one party's ore to the other party's mill capacity.

Netscher also believes that the demerger of non-Leonora assets to form Phoenician Metals will realise value for shareholders. He added:

In parallel, select assets including Atlantic and Simberi will be de-merged to create Phoenician Metals. This will provide an opportunity for shareholders to realise the long-term value of this well-endowed portfolio in a dedicated vehicle with a high-quality management team. Phoenician Metals will attract stronger investor attention and valuation in a stand-alone entity, while allowing Hoover House to focus 100% on the Leonora District.

The post St Barbara share price halted amid major gold merger plans with Genesis Minerals appeared first on The Motley Fool Australia.

A three to five-year "structural bull market" for ASX mining shares and commodities is yet to play out.

That's according to energy, mining, and commodities expert Ben Cleary, who manages listed investment company (LIC) Tribeca Global Natural Resources Ltd (ASX: TGF).

Cleary says of all the commodities, battery metals are likely to lead the way in coming years.

What's the opportunity for ASX investors today?

In an interview with Livewire, Cleary said: "Whether it's base metals or battery metals, the big supply-demand deficits kick in in 2025-2026".

Cleary says commodity prices have already dipped to the same lows seen during the global financial crisis and in 2015. That's despite globally low inventories. And there's been a flow-on effect to ASX mining shares.

Cleary said:

Think aluminium, which hit a 30-year low on the LME yesterday. Copper, nickel, iron ore, oil, all these commodities are in very short supply generally.

So the markets are bearish to the point where stocks are trading at these very deeply depressed trough valuation levels, but inventory is low and demand is still strong.

We've stress test demand, and even with a recession in Europe and a slowdown in the US, we're still getting deficits.

Cleary pointed out that the resources sector is generating record cash flows. This is despite COVID-19 and labour availability challenges, as well as higher oil prices and a tighter supply of mining inputs.

He also said the valuations of various ASX mining shares were "looking more and more attractive".

Cleary said:

Despite all those headwinds, the sector's never made more cash flow. And on top of that, I think the delta of those challenges is improving.

While the outlook is somewhat uncertain with Europe and its energy woes and potential recessions, I think generally it's been a big pullback across all asset classes and there is some very heavy valuation support in the resources industry that is looking more and more attractive.

What's next for ASX mining shares?

Cleary attended the annual Diggers and Dealers Mining Forum in Kalgoorlie, Western Australia this week.

He said the leaders of various companies he is invested in told him labour shortages were decreasing.

Cleary also believes oil prices won't remain around US$100 per barrel. He thinks they are likely to decline toward the end of 2022.

However, he said iron ore could face more pressure in the coming months:

The softer property market in China has impacted all things related to building materials, particularly on steel subsidiaries. But iron ore prices have held up pretty well.

That is because, like a lot of these commodities, there's been a number of supply issues. But if the Chinese property market remains soft, iron ore is going to face some headwinds. But that could very quickly turn into a tailwind depending on the outcome of Chinese monetary policy into the year-end.

Which ASX mining shares might be buys?

When asked to pick the five best presentations at Diggers and Dealers, Cleary nominated Develop Global Ltd (ASX: DVP), Genesis Minerals Ltd (ASX: GMD), Capricorn Metals Ltd (ASX: CMM), Syrah Resources Ltd (ASX: SYR), and Bellevue Gold Ltd (ASX: BGL).

Cleary said all five companies are well funded with impressive production growth, yet not beholden to commodity prices.

He said:

They [are] going to make good margins regardless of whether commodity prices remain high. 

Another common thread through those five stories was that they are all at the bottom of their respective cost curves. And they all have been very focused on keeping their best people as labour is tight. 

The post 5 ASX mining shares with 'good margins regardless of commodity prices': fundie appeared first on The Motley Fool Australia.

First Sentier's Tim Canham reckons the commodities boom ain't over yet.

He's particularly bullish on ASX gold share Genesis Minerals Ltd (ASX: GMD) and mineral sands miner Iluka Resources Limited (ASX: ILU).

Canham is a senior portfolio manager within First Sentier's emerging companies team.

In an interview with the Australian Financial Review (AFR), Canham revealed they have just bought a gold share.

Why buy Genesis Minerals?

Canham said:

Even though it's not a sector in favour, we have a new position in a gold stock, Genesis Minerals. Former management team of Saracen Minerals, which merged with Northern Star.

The company recently conducted a $100 million capital raising. Genesis also announced a merger with troubled Dacian Gold. This gives the emerging company access to a relatively new processing facility in the region at below replacement value.

This merger and potential further transactions at a time when labour and capital cost pressure are intense, puts the company in an enviable position at a low point in the gold cycle.

The Genesis Minerals share price closed Friday's session at $1.39, up 4.92%. The gold share is up 94% over the past 12 months but down 18% in the year to date.

Why buy a gold share when commodity prices are falling?

This might come as a surprise given commodity prices have been falling for a few months now. The price of gold has fallen from a recent high of around US$2,052 t.oz in March to US$1,760 t.oz today.

Canham says the environment for gold shares "is very tough given the increasing cost environment in terms of labour, fuel and other processing inputs".

He adds:

An Achilles heel of the sector is that it has no pricing power, despite the relative cushion of a weaker Australian dollar. But I always like to own some gold, as when it's in favour, the stocks can really do well. Usually, when you least expect it, you are thankful you own some.

What's the outlook for commodities?

Canham is "quite bullish" on commodities:

When we look across a number of commodities like natural gas, oil, copper, zircon, and nickel – there has been very little supply response in any those key ingredients for global growth. The current high operating and capital costs make supply growth even more unlikely.

When I attempt to marry this up against these wonderful, smooth, upward-sloping demand charts of electric vehicle production, renewable energy and grid build-out, I do scratch my head. It makes me quite bullish in the medium term on the commodity complex.

Why buy Iluka Resources?

When asked to name an undervalued ASX share that he is most bullish on, Canham nominates Iluka Resources.

Yes, there are headwinds from global recession fears and Chinese housing issues, but the fundamental lack of supply in mineral sands products is very real.

Generally for me to get bullish about a commodity there must be a supply angle (i.e., a lack of it).

We think its rare earth refinery investment in WA is also misunderstood by the market and undervalued. As a manufacturing destination, WA looks attractive with some of the lowest gas prices in the world.

The Iluka Resources share price closed Friday's session at $9.58, down 0.1%. Iluka shares are down around 4% over the past 12 months and 8% in the year to date.

The post The All Ordinaries gold share 'in an enviable position': fundie appeared first on The Motley Fool Australia.

The Genesis Minerals Ltd (ASX: GMD) share price has soared into the green during early trade on Wednesday.

Genesis shares are now changing hands at 19 cents apiece, a 160% gain from the market open.

Let's take a look.

What's fuelling the Genesis Minerals share price today?

Genesis shares are on the move after the company made a key announcement regarding a capital raise and board restructuring.

The company advised its planned "strategic funding and board restructure", which is "aimed at delivering extensive financial and management strength" to Genesis.

Overall, the moves are a part of the plan to "grow Genesis into a mid-tier Australian gold company".

Under the above proposal, Genesis will seek to raise $16 million via a placement at 6 cents per share.

This signifies a 65% discount to the current Genesis Minerals share price. However, just prior to the announcement, it represented just an 18% discount.

The proposal is "led" by "highly regarded gold mining executive", Raleigh Finlayson, who hails from previous managing director positions at Saracen Mineral Holdings (ASX: SAR) and Northern Star Resources Ltd (ASX: NST), as per the release.

Finlayson will be "appointed managing director of Genesis by no later than 31 March 2022", and will have performance option rights attached to his tenure.

In addition, former Fortescue Metals Group Limited (ASX: FMG) managing director and CEO Neville Power will be invited to join the board, alongside "highly experienced corporate lawyer" Michael Bowen.

The moves appear to be a big step in credibility for the company, which now has an "enviable team" filling its board, according to the statement.

Genesis' largest shareholder, Alkane, has advised the company that it "strongly supports the strategic investment and board changes".

Investors appear to strongly support the changes too and are driving the Genesis Minerals share price into unseen heights during early trade on Wednesday.

What did management say?

Commenting on the announcement, Genesis chairperson Tommy McKeith said:

Raleigh is a highly successful gold miner with an exceptional track record of creating value for
shareholders, growing Saracen from a junior explorer and developer into a $6 billion company at the
time of its merger with Northern Star.

Speaking on the additional appointments to the board, McKeith added:

With Raleigh working alongside Neville, whose vast experience and achievements are widely acknowledged across the Australian business spectrum, and Michael, who is one of Perth's most highly regarded corporate lawyers, Genesis will have an enviable team in the Boardroom.

Genesis Resources share price snapshot

The Genesis Resources share price wasn't producing anything exciting before today's announcement.

It closed yesterday's session at 7.3 cents, down from around 8 cents a year ago.

It is now up 156% this year to date, and over 130% in the last 12 months – a huge plus for investors who bought Genesis shares back then.

The post Why the Genesis Minerals (ASX:GMD) share price is rocketing 160% today appeared first on The Motley Fool Australia.

The Genesis Minerals Ltd (ASX: GMD) share price is up by 6.35% in morning trade after the miner announced a significant resource upgrade.

We take a look at the ASX gold share's latest announcement below.

What did Genesis Minerals report this morning?

Genesis Minerals shares are flat after the company upgraded its mineral resources estimate at its Ulysses Gold Project in Western Australia.

The new mineral resources estimate for the project is 1,608,000 ounces of contained gold, a 26% increase on the previous estimate from June 2020.

Additionally, the ASX gold miner reported a 32% – 237,000 ounce – increase in its higher-confidence total measured and indicated mineral resource, bring the measured and indicated gold at Ulysses to 61% of the total contained ounces.

Commenting on the resource upgrade, Genesis managing director Michael Fowler said:

This is a result that confirms the scale and quality of the Ulysses Project, reflecting the outcomes of the highly-successful drilling programs completed over the expanded project area over the past six months…

The updated Mineral Resource will now form the foundation of our ongoing Feasibility Study on a standalone gold project at Ulysses, which is on-track for delivery next Quarter and is expected to potentially comprise both an open pit and underground mining operation…

This Resource will continue to be updated, with strong growth potential. Drilling is continuing and a further update is expected late this year.

The company is targeting its next resource update for the fourth quarter of the 2021 calendar year.

Genesis Minerals share price snapshot

Genesis Minerals shares are up 123% over the past 12 months, outpacing the 33% gains posted by the All Ordinaries Index (ASX: XAO) in that same time.

However, the Genesis Minerals share price has been struggling in 2021, with shares down 16% year-to-date.

At the current price of 6.3 cents per share, Genesis Minerals has a market cap of $128 million.

The post What's going on with the Genesis Minerals (ASX:GMD) share price today? appeared first on The Motley Fool Australia.