St Barbara has announced the divestment of its remaining 40% stake in the New Simberi Gold Project to Lingbao Gold for A$453 million in cash plus ongoing royalties. The transaction includes A$410 million at completion and A$43 million to reimburse project funding costs, boosting the pro forma cash position to A$869 million from A$416 million. St Barbara retains a 2.75% net smelter royalty on gold and silver production from New Simberi and 1.5% on Tabar Islands exploration licenses, preserving asset upside without operational risk. Completion is targeted for March 2027, pending regulatory approvals.
The sale marks a strategic pivot toward Nova Scotia development. St Barbara will focus on two Canadian projects: the Touquoy Restart for near-term cash generation and the 15-Mile Processing Hub for longer-term production. Touquoy is expected to produce 38,000 ounces of gold from existing stockpiles over 13 months at minimal capital cost, with processing targeted by December 2026. The 15-Mile hub offers greater scale, with a September 2026 pre-feasibility study showing 1.44 million ounces of ore reserves and projected life-of-mine all-in sustaining costs of US$1,098 per ounce, implying a post-tax net present value of A$1,705 million.
Development timelines are becoming clear. The 15-Mile feasibility study is due by March 2027, with a final investment decision targeted for June 2027. If approved, production is projected to commence in 2030. This timeline, combined with near-term cash from Touquoy, positions the company to fund development while distributing Simberi transaction proceeds to shareholders.
The capital generated will be returned to shareholders and allocated to development. Beyond the A$0.05 per share dividend paid on 16 October, the board signaled consideration of a special fully franked dividend of A$0.13 per share upon completion. The company is evaluating an on-market buyback of up to 100 million shares. These actions balance immediate returns with balance sheet capacity for 15-Mile development.
Investors should monitor the Touquoy Restart in the December 2026 quarter and the 15-Mile feasibility study and investment decision milestones through March and June 2027. The Nova Scotia exploration pipeline of 46 targets within 75 kilometres of the processing hub warrants attention, as resource extensions would enhance project economics. This announcement is classified as price sensitive and was flagged 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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