St Barbara has crystallized substantial value for shareholders through its exit from the New Simberi Gold operation. Following an April 2026 strategic investment by Lingbao Gold Group that saw the company sell a 50 percent stake for A$389 million, the company announced in September its sale of the remaining interest to Lingbao for A$410 million in cash plus A$43 million in reimbursed capital expenditure. This dual transaction represents a significant liquidity event for St Barbara, removing the company’s operational exposure to Papua New Guinea and enabling a strategic pivot toward its Atlantic development projects.
The financial impact of exiting Simberi dominates the FY26 results. St Barbara reported statutory profit of A$489.7 million for the year ended 30 June 2026, primarily reflecting the A$499.3 million gain on deconsolidation. The underlying loss, excluding discontinued operations, was A$27.8 million. This distinction is important for investors assessing ongoing operational performance versus one-time gains. New Simberi Gold generated A$20 million in operating cash contribution in the nine months before the Lingbao transaction completed, while growth capital expenditure on the expansion project totaled A$39 million during that same period.
Beyond the Simberi exit, St Barbara’s balance sheet presents a materially strengthened position. The company ended FY26 with A$475 million in cash and no debt, providing substantial capacity to fund development activities. Management declared a fully franked ordinary dividend of A$0.05 per share, reflecting confidence in the financial position. The company also rejoined the S&P/ASX 300 in March 2026, a recognition of improved liquidity and market profile.
St Barbara retains valuable interests in the Simberi asset through royalties. The company holds a 2.75 percent net smelter return royalty on 100 percent of future gold and silver production from New Simberi Gold, plus a 1.5 percent net smelter return royalty on future mineral production from the Tabar Island Group exploration licenses. These royalties provide ongoing economic exposure without operational responsibility.
St Barbara’s strategic focus now turns decisively to Atlantic operations. The Touquoy Restart has received final investment decision approval, with processing of stockpiled ore targeted to commence by end of 2026. The updated Pre-Feasibility Study on the 15-Mile Processing Hub Project outlined an attractive development case, projecting over 100,000 ounces per annum average gold production across an 11 year mine life at average all-in sustaining costs of approximately US$1,188 per ounce. The company submitted the initial project description to Canada’s Impact Assessment Agency in June 2026.
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Safety performance improved materially, with the total recordable injury frequency rate declining from 1.1 to 0.4 per million hours worked across FY26. The Atlantic operations recorded zero recordable injuries during the year. Investors should monitor the trajectory of the Atlantic development projects through late 2026 and into 2027. The Touquoy Restart timeline remains critical, and progression of 15-Mile through permitting toward a targeted end of FY27 final investment decision will determine near-term capital allocation and cash generation opportunities. The PNG IRC tax assessment on former Simberi operations, currently under objection by St Barbara, warrants attention given potential exposure under the Lingbao investment agreement.
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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