Regulatory Hurdles Near Clearance as St Barbara Pushes Major Growth Projects

Strategic Expansion at Simberi

St Barbara Limited is positioning itself for a significant growth phase, anchored by the Simberi Sulphide Expansion Project in Papua New Guinea. The project aims to sustain an average annual gold production exceeding 200,000 ounces over a 13-year mine life, with an initial capital expenditure estimated at US$235 million. This expansion is designed to transition the operation from oxide to sulphide ore processing, promising lower costs and extended mine life.

The company reported FY25 production of 51,000 ounces at an all-in sustaining cost (AISC) of US$2,968 per ounce, consistent with prior guidance. This steady output reflects effective management of the oxide phase while preparing for the sulphide expansion.

Regulatory and Financial Milestones

Critical to the Simberi expansion is the imminent approval of the mining lease extension, which has garnered strong support from local landowners and government officials. Concurrently, St Barbara is close to resolving a significant tax reassessment issue with the Papua New Guinea Internal Revenue Commission, a development that will clear the path for final investment decisions and financing arrangements expected by early 2026.

These regulatory advances reduce key uncertainties, enabling the company to proceed with confidence on its expansion plans. Early works and pre-expansion capital projects are underway, focusing on infrastructure upgrades and long-lead items.

Atlantic Projects, Building a Processing Hub

In Nova Scotia, Canada, St Barbara is advancing its Atlantic Projects portfolio, centered on the 15-Mile Processing Hub. This integrated operation will consolidate ore from multiple satellite deposits, including Beaver Dam and Cochrane Hill, targeting a combined production of over 100,000 ounces annually over an 11-year mine life.

The company is updating its pre-feasibility study to incorporate these satellite deposits, with completion expected in early 2026. Notably, the permitting environment in Nova Scotia has improved markedly, with gold now designated as a Provincial Strategic Mineral and streamlined environmental approvals accelerating project timelines.

Additionally, St Barbara is exploring the potential re-opening of the Touquoy mill to process low and medium-grade stockpiles, leveraging existing infrastructure to enhance near-term production without impacting reclamation plans.

Exploration and Resource Growth

Exploration drilling at Simberi continues to yield promising results, with recent assays confirming high-grade gold mineralization beneath existing open pits. These findings support ongoing updates to mineral resource and ore reserve estimates, underpinning the feasibility studies for the sulphide expansion.

Similarly, Atlantic’s resource base remains robust, with combined ore reserves of 1.4 million ounces and mineral resources exceeding 2 million ounces, providing a solid foundation for the processing hub strategy.

St Barbara’s disciplined approach to capital allocation, regulatory engagement, and operational execution positions it attractively among peers, with valuation metrics reflecting the market’s recognition of its growth potential.