St Barbara Limited announced plans for a capital return program comprising a fully franked dividend of A$0.05 per share for FY26, expected to yield approximately 6.3%, alongside consideration of an on-market share buyback of up to 100 million shares. The buyback would commence following completion of the 15-Mile Processing Hub Pre-Feasibility Study update, anticipated by end September 2026, subject to market conditions and prevailing share price. Management states the franking balance of approximately A$71 million could fund additional franked dividends once balance sheet and development commitments allow.
The capital return program reflects a strengthened balance sheet following St Barbara’s transaction with Lingbao in April 2026, which fully funded and de-risked the New Simberi Gold Project expansion. The company held A$475 million in cash against A$16 million in net debt as at 30 June 2026, providing flexibility to fund development projects whilst distributing capital to shareholders. No shareholder approval is required for the buyback as it falls within the 10 percent per 12-month limit under the Corporations Act.
New Simberi is transitioning from processing oxide remnants to a high-volume sulphide operation. Construction commenced in H2 FY26 with main earthworks nearing completion and the new ball mill scheduled for arrival in early October 2026. The Feasibility Study released December 2025 projected annual production exceeding 200 thousand ounces from FY29 onwards across a 14-year mine life, delivering post-tax NPV of US$1,023 million at US$3,000 per ounce gold and US$30 per ounce silver. Plant commissioning targets H2 FY28, with mineral resources estimated at 5.8 million ounces on a 100 percent basis and mining lease extension secured through 2038.
St Barbara’s Nova Scotia assets provide production diversity. The Touquoy Restart, which received environmental approval in April 2026, targets commencement of ore processing by end 2026, producing 38 thousand ounces over 13 months at an average all-in sustaining cost of US$1,598 per ounce with just A$7 to 9 million initial capital required. The 15-Mile Processing Hub, which completed Pre-Feasibility Study in December 2025, projects production exceeding 100 thousand ounces annually across an 11-year operational life. Updated mineral resources for the hub increased to 2.5 million ounces, with feasibility study and final investment decision targeted for June 2027.
Investors should monitor the updated 15-Mile Pre-Feasibility Study expected late September 2026 for any material changes to project economics or production timelines. The timing of the share buyback commencement will signal management’s confidence in commodity pricing and balance sheet positioning. Production ramp from both Simberi and Touquoy restart should provide near-term cash generation visibility and demonstrate capital discipline execution across the development portfolio.
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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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