St Barbara (ASX: SBM) – Mining Forum Americas Investor Presentation

St Barbara has agreed to sell its remaining 40% stake in the New Simberi Gold Project to China-based Lingbao Gold for A$453 million in total consideration, A$410m cash upfront plus A$43m capital reimbursement, fundamentally reshaping the company into a Nova Scotia-focused gold developer. The transaction removes exposure to Papua New Guinea operations and leaves St Barbara holding 2.75% net smelter royalties on gold and silver from New Simberi and 1.5% royalties on the Tabar Islands exploration licenses, providing ongoing cash flow from production without operational involvement. The deal, expected to close by March 2027, creates an A$880m pro-forma cash position against a current market capitalisation of A$1,043m, giving management significant capital deployment flexibility.

The strategic pivot targets near-term cash generation from the Touquoy Restart, where processing of existing stockpiles is scheduled to commence by end of calendar year 2026. St Barbara expects the 13-month operation to produce 38,000 ounces of gold at an all-in sustaining cost averaging US$1,598 per ounce, generating operating cash flow of approximately C$118m at US$4,000 per ounce gold prices. This low-capital project requires just C$11.4m initial spend and validates the company’s operational capability in Nova Scotia while providing near-term shareholder returns before the flagship 15-Mile Processing Hub reaches production.

The 15-Mile project underpins longer-term value creation. An updated pre-feasibility study released in September 2026 shows 1.4 million ounces of ore reserves, up 17% from prior estimates, capable of generating over 100,000 ounces of gold annually across a 13-year mine life. At a US$3,000 per ounce gold price, the company models a post-tax NPV of A$1,705m and IRR of 81.6%, with those metrics expanding to A$2,721m NPV and 121.4% IRR at US$4,000 per ounce. The all-in sustaining cost averages US$1,098 per ounce on a 2.8-to-1 waste-to-ore strip ratio, positioning the project among lower-cost producers in a peer set. Final investment decision is targeted for June 2027 with production commencing in fiscal 2030.

The company has signalled a shareholder capital return program, considering a special fully franked dividend of A$0.13 per share following transaction completion in addition to a previously declared A$0.05 per share dividend. Combined with an on-market share buyback of up to 100 million shares, this deployment of excess capital acknowledges the cost of holding cash while maintaining optionality for 15-Mile development acceleration.

Investors should monitor Touquoy restart commissioning timelines and gold recovery rates through calendar year 2026, progress on 15-Mile federal impact assessment determinations, and completion of the feasibility study targeted for June 2027. Regulatory approvals in China and Papua New Guinea remain conditions precedent to the Lingbao transaction closing.

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.

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