St Barbara Limited reports strong feasibility outcomes for its New Simberi Gold Project and Nova Scotia developments, backed by significant strategic investments and regulatory approvals.
- New Simberi Gold Project feasibility confirms 13-year mine life with 200kozpa production
- PNG government extends Simberi mining lease to 2038
- Binding agreements signed with Lingbao Gold and Kumul Mineral Holdings for A$470 million investment
- Nova Scotia 15-Mile Processing Hub pre-feasibility shows rapid payback and 100kozpa production
- Q2 FY26 gold production impacted by processing issues but maintains positive cash flow
Simberi Expansion – A Long-Life, Low-Cost Asset
St Barbara Limited has delivered a pivotal update on its New Simberi Gold Project in Papua New Guinea, confirming the project’s status as a long-life, low-cost gold producer. The recently completed Feasibility Study forecasts annual production exceeding 200,000 ounces of gold per annum over a 13-year mine life, with all-in sustaining costs (AISC) estimated between US$1,100 and US$1,400 per ounce. This positions Simberi as a competitive asset in the global gold market.
Crucially, the Papua New Guinea government has approved an extension of the mining lease to 2038, providing regulatory certainty that underpins the project’s development timeline. Early works capital expenditure of A$19 million in the quarter has been directed towards critical infrastructure, including procurement of a new ball mill, camp expansion, and water treatment facilities.
Strategic Investments Strengthen Financial Position
St Barbara has secured binding agreements with Lingbao Gold Group and Kumul Mineral Holdings, collectively injecting A$470 million into the New Simberi Gold Project. Lingbao’s subsidiary will acquire a 50% interest in St Barbara Mining for A$370 million, translating to a 40% stake in Simberi, while Kumul will acquire 20% with funding supported by a A$100 million loan from the co-owners. These transactions are expected to complete by the end of Q3 FY26, coinciding with the company’s Final Investment Decision (FID).
The company also completed a A$58 million institutional placement to advance its growth projects, bolstering its cash reserves to A$187 million, including bullion and listed investments. Notably, St Barbara remains debt-free and unhedged, providing financial flexibility as it progresses its development pipeline.
Nova Scotia Projects – Rapid Payback and Environmental Progress
In Canada, the 15-Mile Processing Hub Pre-Feasibility Study highlights a robust project with average annual production of 100,000 ounces over more than 11 years and a post-tax payback period of less than one year. The project benefits from leveraging existing processing infrastructure and improved permitting conditions, with environmental and social impacts significantly reduced through community and First Nations engagement.
The Touquoy Restart Study outlines a near-term, low-capital restart producing approximately 38,000 ounces over 13 months at an AISC ranging from US$1,299 to US$1,942 per ounce. Regulatory progress includes the Nova Scotia Environment and Climate Change authority treating the restart as an amendment to existing approvals, expediting the permitting process.
Operational Performance and Exploration Update
Operationally, Simberi’s Q2 FY26 gold production was 9,057 ounces, down from the previous quarter due to processing plant mechanical issues, particularly within the Sorowar crushing circuit. Despite this, the operation generated positive cash flow of A$13 million for the quarter. The company expects a significant production increase in the second half of FY26 as processing performance improves.
Exploration activities continue across Papua New Guinea and Nova Scotia, with ongoing drilling programs targeting resource definition and sterilisation. Assay results from recent drilling are pending, and further exploration is planned to support resource growth and project development.
Safety and Sustainability
Safety metrics showed a slight increase in the Total Recordable Injury Frequency Rate, rising from 0.2 to 0.5 over the quarter, with one medically treatable injury reported. Rehabilitation efforts at Simberi continue, with 1.6 hectares of new rehabilitated land completed in the quarter. The improved permitting environment in Nova Scotia and withdrawal of litigation reflect positive progress on environmental and community fronts.
Bottom Line?
With strategic funding secured and regulatory approvals advancing, St Barbara is poised for a transformative year as it moves towards final investment decisions and project ramp-ups.
Questions in the middle?
- Will Simberi’s processing plant issues be fully resolved to meet production targets in H2 FY26?
- How will the tax dispute with PNG’s Internal Revenue Commission impact long-term project economics?
- What are the timelines and risks associated with permitting and development of the 15-Mile Processing Hub in Nova Scotia?