St Barbara Forecasts 61.7 Koz Gold Production at A$4,000–4,400/oz in FY26
St Barbara Limited forecasts a 21% increase in gold production for FY26 at its Simberi Operations, with costs expected between A$4,000 and A$4,400 per ounce. However, key capital investment decisions hinge on unresolved Papua New Guinea tax assessments and mining lease approvals.
- FY26 gold production guidance set at 54-70 koz, forecast at 61.7 koz
- All-in Sustaining Costs (AISC) projected between A$4,000 and A$4,400 per ounce
- Production weighted to second half of FY26, supported by new Volvo haul trucks
- Capital investment decisions delayed pending PNG tax review and mining lease extension
- Touquoy care and maintenance costs forecast to decline, reclamation costs significantly reduced
Strong Production Outlook for FY26
St Barbara Limited has released its production and cost guidance for the 2026 financial year, signalling a robust outlook for its Simberi gold operations. The company anticipates gold production between 54,000 and 70,000 ounces, with an internal forecast of 61,700 ounces representing a notable 21% increase over FY25 actuals. This growth is underpinned by operational improvements and the introduction of new Volvo A60H haul trucks, expected to enhance productivity from the end of the first quarter.
Production is expected to be weighted towards the second half of FY26, a pattern consistent with previous years due to planned shutdowns in the first half. Quarterly forecasts show steady growth, with the final quarter projected to deliver 18,600 ounces, a 27% increase year-on-year.
Cost Guidance and Operational Efficiency
St Barbara projects All-in Sustaining Costs (AISC) for FY26 to range between A$4,000 and A$4,400 per ounce, reflecting a disciplined approach to cost management amid fluctuating market conditions. This cost guidance aligns with the company’s strategy to maintain operational efficiency while navigating external challenges.
At the Touquoy site, care and maintenance costs are forecast between A$11 million and A$12 million, with reclamation costs expected to fall significantly to A$4 million to A$5 million. This reduction follows a slowdown in reclamation activities as the tailings management facility moves into consolidation and drying phases.
Capital Investment Decisions on Hold
While the production outlook is positive, St Barbara has deferred guidance on growth capital investment for the Simberi Expansion Project. The company awaits resolution of revised tax assessments from the Papua New Guinea Internal Revenue Commission (IRC) and approval of the Simberi Mining Lease 136 extension before finalising investment decisions.
The IRC’s review remains with external consultants, with no updated timeline or indication of outcomes provided. This regulatory uncertainty poses a significant variable for St Barbara’s future expansion plans and could influence production capacity beyond FY26.
Navigating Regulatory and Operational Challenges
St Barbara’s FY26 guidance reflects a balance between operational optimism and cautious prudence amid external uncertainties. The company’s ability to deliver on its production targets will depend not only on operational execution but also on navigating the complex regulatory environment in Papua New Guinea.
Investors will be watching closely for updates on the tax assessment outcomes and mining lease approvals, which are critical to unlocking further growth capital and sustaining long-term production increases.
Bottom Line?
St Barbara’s FY26 growth hinges on regulatory clarity in PNG, setting the stage for a pivotal year ahead.
Questions in the middle?
- When will the Papua New Guinea Internal Revenue Commission finalize its tax assessment review?
- What impact will the Simberi Mining Lease 136 extension approval have on expansion plans?
- How will the new Volvo A60H haul trucks influence operational efficiency and cost control?
