St Barbara (ASX: SBM) – St Barbara Q1 FY27 Quarterly Report

St Barbara has announced a binding agreement to sell its remaining 50 percent interest in New Simberi Gold to Lingbao Gold Group for A$410 million in cash, a significant strategic decision that reshapes the company’s portfolio. Beyond the cash payment, the company will receive A$43 million in repayment of capital contributions since April 2026. Completion is targeted for Q3 March 2027.

Management indicated that the transaction proceeds, combined with cash on hand and expected operating cash flows from the Touquoy restart, will fund the 15-Mile Processing Hub Project. By selling the asset outright while retaining a 2.75 percent royalty on future production, the company preserves upside exposure while eliminating the need to fund ongoing growth capital. This shift simplifies the capital allocation picture and allows concentration of development resources on the later-stage Nova Scotia projects, which offer attractive production scale at competitive unit costs.

In Canada, the 15-Mile Processing Hub Pre-Feasibility Study Update met its late September delivery schedule, with ore reserves increasing 17 percent to 1.4 million ounces and mine life extended to 13 years based solely on proved and probable reserves. The updated study contemplates average gold production of 106,000 ounces per annum at all-in sustaining costs of A$1,685 per ounce, with production exceeding 120,000 ounces per annum anticipated in the financial years 2031 and 2032. Initial capital is estimated at A$315 million, consistent with prior guidance. The Feasibility Study is now targeted for Q3 March 2027, accelerated from prior guidance of Q4 June 2027, with final investment decision remaining scheduled for Q4 June 2027. The Touquoy restart continues on track to commence stockpile processing by the end of Q2 December 2027, with mill commissioning anticipated to begin in November 2026.

St Barbara maintains a strong financial position with A$416 million in cash at September 30, 2026 (excluding attributable cash at New Simberi), plus A$14 million in listed investments. The company noted that the pro forma cash, gold and investments position would reach approximately A$880 million following completion of the Simberi sale. There is no debt and no gold hedging in place. The board has declared a fully franked dividend of A$0.05 per share, paid in October. Subject to completion of the New Simberi transaction, the board intends to consider a further fully franked dividend of approximately A$0.13 per share and an on-market share buyback of up to 100 million shares, with timing and parameters dependent on market conditions and future capital requirements.

Investors will be monitoring the pace of federal and provincial permitting for the 15-Mile Processing Hub Project, execution progress at the Touquoy restart, and the timing of completion for the New Simberi sale. The completion of the Feasibility Study in March 2027 will represent a key milestone in validating project economics ahead of the final investment decision. This announcement is price sensitive and has been classified as material by the ASX.

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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