St Barbara Limited has reported a transformative FY26 with statutory profit after tax of A$490 million, marking a significant turnaround from prior year losses. The result, anchored by a A$500 million gain from the strategic deconsolidation of New Simberi Gold, reflects completion of the Lingbao investment and a fundamental restructuring of the company’s operational footprint and capital position.
The company’s balance sheet strengthened substantially, with net assets rising 148% to A$928 million from A$374 million in FY25. Cash holdings of A$475 million and an eliminated debt position, combined with no active hedging, position St Barbara with considerable financial flexibility as it pursues development of multiple growth projects. The Lingbao transaction represents a strategic reorientation, where the company reduced its ownership stake in New Simberi Gold from 100% to 50% in the final quarter while securing substantial capital proceeds and retaining upside through a 50% economic interest in future production.
Operating performance at New Simberi Gold improved markedly in the nine months prior to the transaction, with the asset generating an underlying profit of A$40 million against a A$30 million underlying loss in the full prior year. This turnaround reflects higher realised gold prices, which averaged A$6,232 per ounce in FY26 compared to A$4,428 per ounce in FY25, offsetting a rise in all-in sustaining costs to A$4,829 per ounce from A$4,582 per ounce. The gold price environment provided substantial tailwinds for profitability across the portfolio.
The board has declared a fully franked dividend of A$0.05 per share, supported by the transfer of A$355 million of statutory profit to a distributable reserve. This represents the company’s first dividend since the prior year and signals management confidence in capital management after a period of significant restructuring. The franking account will retain A$71 million in credits following the dividend payment, providing scope for additional distributions if balance sheet conditions permit.
Capital management remains under active review, with the company considering a share buy-back program of up to 100 million shares. However, the board has signalled it will delay any buy-back decision pending the release of an updated pre-feasibility study for the 15-Mile Processing Hub Project, anticipated in late September. This project represents a significant growth opportunity and the updated study results may materially influence capital allocation decisions. Investors should track the 15-Mile study outcomes, the status of permitting and funding for the New Simberi Gold Expansion Project FID, and progress toward achieving commercial production at the Touquoy Restart, all of which were advanced during FY26. This announcement is price sensitive and has been designated as material by the ASX.
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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.
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