St Barbara Secures Lingbao Investment, Approves US$333M Simberi Expansion

Lingbao Deal Fuels New Simberi Expansion

St Barbara Limited (ASX:SBM) has taken a decisive step towards scaling its gold production profile, completing a strategic investment with Lingbao Gold Group that injects A$389 million in cash and triggers a US$333 million expansion of the New Simberi Gold Project in Papua New Guinea. This transaction, finalised on 2 April 2026, also coincided with the approval of the Final Investment Decision (FID) to proceed with the project expansion, underpinning St Barbara's ambition to boost output to 200,000 ounces per annum by FY31.

The Papua New Guinea Government’s extension of the mining lease to 2038 further solidifies the project's long-term viability. Early works are well underway, including the shipment of a new 5.8MW ball mill expected in July 2026 and expansion of the power station capacity from 10MW to 25MW. Meanwhile, infrastructure upgrades such as a new wharf contract are anticipated imminently to accommodate larger shipping vessels.

Operationally, Simberi's Q3 FY26 gold production surged 49% quarter-on-quarter to 13,522 ounces at an improved All-In Sustaining Cost (AISC) of A$4,323 per ounce, driven by processing improvements under new leadership. The company anticipates attributable production of 40% from Simberi in Q4 FY26 following completion of the Lingbao deal and pending Kumul Mineral Holdings Limited's transaction.

Growth capital investment at Simberi reached A$25 million in Q3 FY26, supporting camp expansions and fleet upgrades, including the deployment of 16 Volvo A60 mining trucks. The company remains fully funded to meet capital requirements for the Simberi expansion and other projects, with cash and bullion rising to A$504 million post-Lingbao transaction, excluding jointly owned Simberi entities’ holdings.

Nova Scotia Projects Advance with Permitting and Funding

Across the Pacific, St Barbara is progressing its Nova Scotia gold projects with regulatory and operational milestones. The Touquoy Restart received amendments to its Industrial Approval permit from the Nova Scotia Department of Environment and Climate Change, clearing a critical hurdle to resume ore processing by the end of 2026. The Board approved early commitments of C$2.9 million ahead of FID approval, which came after the quarter ended.

The 15-Mile Processing Hub's Pre-Feasibility Study, released in January 2026, outlined a robust +11-year mine life producing over 100,000 ounces annually at an average AISC of US$1,188 per ounce. St Barbara is targeting a FID for this project in June 2027, with early engagement underway and the project description nearing completion to initiate permitting.

These developments are expected to underpin a production ramp-up in Nova Scotia, complementing Simberi’s output. The anticipated timeline and production profile for the combined Touquoy Restart and 15-Mile Processing Hub reveal a strategic sequencing of ore processing and mining to maintain stable gold production.

Exploration Drilling Bolsters Resource Potential

Exploration remains a core pillar of St Barbara’s growth strategy, with active drilling and trenching programs on Simberi and surrounding islands in Papua New Guinea yielding promising assay results. Notably, diamond drilling at Pigiput Southwest returned high-grade intercepts such as 23 metres at 4.1 g/t gold, including 4 metres at 20.7 g/t. Similarly, Samat and Darum waste rock dump areas showed encouraging mineralisation extending beyond current pit designs.

Regional soil sampling and trenching on Tatau Island continue to identify anomalous gold zones, setting the stage for follow-up drilling in FY27. In Canada, a comprehensive surface sampling and drilling program is planned to test multiple targets across St Barbara’s Atlantic tenements.

Financial Position and Safety Metrics

St Barbara reported gold sales of 11,974 ounces in Q3 FY26 at an average realised price of A$6,892 per ounce. The company maintains a debt-free balance sheet, with cash, gold receivables, bullion, and listed investments totaling A$170 million as at 31 March 2026; prior to the Lingbao cash receipt. Operational cash flow contribution from Simberi was A$13 million for the quarter.

Safety performance remained stable with a Total Recordable Injury Frequency Rate of 0.5, consistent with the previous quarter, and no reportable medically treatable injuries. Rehabilitation efforts continue at Simberi and Nova Scotia, reflecting the company’s commitment to sustainability.

These milestones come on the heels of St Barbara’s recent inclusion in the ASX 300, reflecting market recognition of its growth trajectory. The company’s ability to fund multiple major projects from cash on hand and forecast operating cash flow positions it well for the next phase of development.

St Barbara’s strategic momentum is evident, building on earlier announcements including the Strategic Transaction with Lingbao Completed and the Touquoy Restart with Local Contracts. These underpin the company’s roadmap to a materially larger, lower-cost gold producer over the coming years.