Why Is St Barbara Attracting Strategic Interest for Its Simberi Expansion?

Strategic Momentum at Simberi

St Barbara Limited has underscored its commitment to growth with significant advancements in its Simberi Expansion Project in Papua New Guinea. The recently completed Pre-Feasibility Study confirms a robust production profile exceeding 200,000 ounces of gold annually, supported by a life-of-mine plan extending to 2038, pending the approval of a mining lease extension. This milestone signals a long-term operational horizon and underpins the company’s strategic focus on transitioning from oxide to sulphide ore processing.

Alongside operational progress, the company is navigating regulatory and fiscal complexities, notably lodging formal objections to tax assessments issued by the Papua New Guinea Internal Revenue Commission. Resolution of these matters remains critical to finalising funding arrangements and advancing the project to a Final Investment Decision targeted for the third quarter of FY26.

Atlantic Projects Gain Traction

In Nova Scotia, Canada, St Barbara is advancing its 15-Mile Processing Hub, a consolidation of three gold development projects including Beaver Dam and Cochrane Hill. The company reports marked improvements in the permitting environment and government support, with gold now designated as a Provincial Strategic Mineral. These developments have bolstered confidence in the project’s strong economics and environmental credentials, with a Pre-Feasibility Study update on track for completion in Q3 FY26.

Additionally, St Barbara is exploring the potential re-opening of the Touquoy processing plant to treat remaining stockpiles, capitalising on favourable regulatory shifts and community engagement. Despite exploring strategic alternatives, no proposals to separate the Atlantic assets have met the company’s valuation expectations, reinforcing the decision to retain and develop these assets within the broader portfolio.

Operational and Financial Discipline

Operationally, Simberi maintained business continuity with gold production of 51,168 ounces at an all-in sustaining cost (AISC) of A$4,582 per ounce, aligning with revised guidance. Safety performance improved significantly, with the Total Recordable Injury Frequency Rate dropping to 0.2 by the end of the September quarter FY26, reflecting the success of the Safety Always program.

Financially, St Barbara strengthened its balance sheet through a A$58 million institutional placement early in FY26, broadening its shareholder base and funding pre-expansion works. The company ended FY25 with A$67 million in cash and A$25 million in listed investments, positioning it well to support ongoing development and operational initiatives.

Looking Ahead

For FY26, St Barbara targets gold production at Simberi between 54,000 and 70,000 ounces at an AISC of A$4,000 to A$4,400 per ounce, continuing oxide ore processing under a business continuity strategy. The company remains focused on securing regulatory approvals, resolving tax disputes, and advancing feasibility studies for both Simberi and Atlantic projects. Strategic alternatives for the Simberi Expansion are under active consideration, with several parties engaged in advanced due diligence, though no transaction is assured.

With a strong gold price environment and improved permitting landscapes, St Barbara appears well positioned to transition from development to production growth, balancing operational stability with strategic flexibility.