Simberi Gold Output Jumps 37% as US$235M Expansion Advances

Operational Momentum at Simberi

St Barbara Limited has delivered a notable operational uplift in the third quarter of fiscal 2025, with gold production at its flagship Simberi operation climbing 37% quarter-on-quarter to 14,053 ounces. This surge was driven by the commissioning of a new Sizer crusher, a SAG mill reset, and access to higher-grade ore zones, particularly evident in March’s full-month performance. The All-in Sustaining Cost (AISC) fell sharply by 30% to A$4,169 per ounce, reflecting improved operational efficiencies and cost control.

Material movement increased by 18% despite logistical challenges during crusher installation, supported by fleet enhancements including additional excavators and new Volvo A60H trucks. Milling throughput rose 9% over the previous quarter, underpinning the production gains and signalling a positive trajectory as the operation transitions into higher-grade sulphide ore processing phases.

Simberi Expansion Project Advances

The company’s updated pre-feasibility study, released in late April 2025, confirms a robust expansion plan for Simberi with a life of mine extended to 13 years. Gold production is forecast to exceed 200,000 ounces per annum from fiscal 2028, a substantial increase from the current 90,000 ounces projected for FY27. The expansion entails an initial capital investment of approximately US$235 million, with an additional US$40-60 million earmarked for pre-expansion growth projects.

Key infrastructure developments are progressing, including the awarded contract for a new 5.8MW ball mill and ongoing construction of a new wharf to accommodate larger concentrate shipments. Early works such as camp expansion, haul road design, and fleet augmentation are well underway, positioning the project for commissioning of sulphide ore processing by Q1 FY28.

Financial Strength and Strategic Challenges

St Barbara’s balance sheet remains solid, with total cash, bullion, receivables, and listed investments amounting to A$200 million at quarter-end, free of bank debt and hedging obligations. Gold sales for the quarter totaled 11,643 ounces at an average realised price of A$4,548 per ounce, supporting a positive cash contribution of A$12 million before sustaining capital.

However, the company faces a significant regulatory hurdle with an ongoing objection to tax assessments issued by the Papua New Guinea Internal Revenue Commission. A dedicated review team has been established to expedite resolution, but the uncertainty has delayed the final investment decision for the Simberi Expansion Project, now anticipated in late Q2 or early Q3 FY26. The outcome of this review will be pivotal for securing project funding and maintaining the expansion timeline.

Exploration and Atlantic Gold Separation

Exploration drilling continues across multiple fronts, including resource definition and sterilisation programs at Simberi, with assay results pending for several holes. In Australia, aircore drilling at the Back Creek Project has extended known gold anomalies, while in Canada, study work integrates the Cochrane Hill deposit with the 15-Mile Project processing hub, aiming to optimise throughput and capital efficiency.

Separately, St Barbara is progressing the strategic separation of its Atlantic Gold operations into a Canadian entity, attracting multiple interested parties and expected to advance shareholder value through focused development and permitting efforts.

Safety and Sustainability

Safety performance remains exemplary with no recordable injuries reported during the quarter and a significant reduction in the Total Recordable Injury Frequency Rate to 1.7. Rehabilitation efforts at Simberi and the Touquoy mine site in Nova Scotia continue on schedule, reflecting the company’s commitment to environmental stewardship alongside operational growth.