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St Barbara Limited has announced a binding agreement to sell its remaining interest in the Simberi Gold Project to Lingbao Gold Group for A$453 million in total cash proceeds, representing a significant portfolio restructuring for the Perth-based gold producer. The transaction will see St Barbara exit active ownership of New Simberi while retaining exposure to future production through a 2.75 percent net smelter return royalty on gold and silver output, alongside a 1.5 percent royalty on minerals from the Tabar Islands exploration licences.
The deal structure comprises A$410 million in direct cash consideration plus approximately A$43 million representing St Barbara’s share of construction capital funded between April 2026 and signing of the binding agreement. Under the terms, Lingbao has committed to fund St Barbara’s remaining capital calls through to completion, eliminating the cash drain associated with ongoing project development. This arrangement addresses a critical capital intensity issue for St Barbara, which had been shouldering significant capital requirements as New Simberi moves toward production.
The transaction provides St Barbara with a dramatically improved balance sheet on completion. Pro-forma assets at March quarter 2027 are expected to include approximately A$880 million in cash, no debt, and no hedging positions. This cash-generative outcome reflects not only the Simberi proceeds but also St Barbara’s existing cash position as at 31 August 2026 and anticipated loan repayments from Lingbao. The royalty retention preserves meaningful upside exposure to New Simberi economics without the capital commitment, while maintaining optionality on the Tabar Islands exploration potential.
The announcement reflects a strategic recalibration of St Barbara’s asset portfolio. The company is exiting the Simberi development stage to focus capital on the 15-Mile Processing Hub Project and the Touquoy Restart Project. By monetizing the Simberi stake, St Barbara transforms from a capital-intensive growth developer into a more diversified business combining operating and exploration assets with a meaningful royalty stream. The royalties provide ongoing participation in production economics at Simberi while eliminating execution risk and capital volatility associated with bringing the project online.
Investors should note the transaction remains subject to completion of an earlier transaction with Kumul Mineral Holdings, announced in December 2025, whereby Kumul acquires a 20 percent stake in New Simberi for A$100 million. Once both transactions complete, St Barbara’s attributable interest will effectively decline from 50 percent to zero percent ownership, though the royalty positions establish ongoing economic participation. The transaction is targeted to complete in the March quarter 2027 and is subject to a number of specified conditions precedent. This announcement is classified as price sensitive and has been flagged as material by the ASX.
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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.
