St Barbara Limited has secured the financial backing and strategic partnership to accelerate its transformation into a major gold producer, with Lingbao Gold Group’s completion of a strategic investment in the New Simberi Gold Project for A$389 million on 2 April 2026. The investment is coupled with Final Investment Decision approval for a US$333 million expansion of the Simberi operation, marking a critical inflection point for the company’s ambitions to become a 200,000 ounce per annum producer.
The capital from Lingbao provides St Barbara with the funding to pursue multiple growth projects simultaneously. Beyond Simberi, the company has secured regulatory approvals to restart processing operations at Touquoy in Nova Scotia, with production expected to resume by the end of calendar 2026. The Pre-Feasibility Study on the 15-Mile Processing Hub, announced in January, unveiled an attractive development case with a mine life exceeding 11 years at average all-in sustaining costs of US$1,188 per ounce, targeting production above 100,000 ounces per annum. The company is aiming for a final investment decision on this project in June 2027.
Operationally, St Barbara has demonstrated meaningful momentum at Simberi. Third quarter gold production reached 13,522 ounces at an all-in sustaining cost of A$4,323 per ounce, representing a 49 percent increase from the prior quarter. March production alone totalled 5,973 ounces, reflecting improved processing performance under new operational leadership. These production improvements are occurring before the major capital expansion is deployed, suggesting the expansion’s returns could be substantial.
The financial position underpins the company’s ability to execute on this multi-project development pipeline. As of 2 April 2026, after receiving the Lingbao investment, St Barbara held A$504 million in cash and bullion. The company explicitly stated it is fully funded for the Touquoy restart, the Simberi expansion, and the 15-Mile development through a combination of cash on hand and forecast operating cash flow once Touquoy and Simberi return to full production. This funding certainty removes a key execution risk for investors.
The Papua New Guinea Government’s approval to extend Simberi’s mining lease to 2038 also addresses longer-term operational security. Investors have long viewed political risk as a meaningful component of valuation for PNG-based assets, and this lease extension substantially mitigates that concern. Near-term catalysts include the Touquoy restart ramp-up throughout 2026, Simberi production as the expanded operation comes online, and the final approval decision on 15-Mile in mid-2027. Execution on these projects is the primary metric to monitor. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About St Barbara Limited (ASX: SBM)
St Barbara Limited is an Australian-based gold mining company with operations in Canada and Papua New Guinea. The company operates the Atlantic Operations in Nova Scotia, Canada, which includes the Touquoy mine, and the Simberi Operations in the province of New Ireland, Papua New Guinea. The company engages in the exploration, development, mining, and sale of gold, with additional interest in silver exploration.
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
