St Barbara Limited has declared a fully franked dividend and is progressing construction and exploration across its New Simberi and Nova Scotia gold projects, supported by a strong cash position and no debt.
- Fully franked A$0.05 dividend declared for FY26
- On-market buyback of up to 100 million shares under consideration
- New Simberi project construction underway with first sulphide ore production expected H2 FY28
- Touquoy Restart approved, ore processing to resume by end of 2026
- 15-Mile Processing Hub targets final investment decision by end FY27
Dividend and Capital Return Plans Signal Confidence
St Barbara Limited (ASX:SBM) has declared a fully franked dividend of A$0.05 per share for FY26, implying a yield of approximately 6.3%. The company’s board intends to pass on substantial franking credits to shareholders, leveraging a strengthened balance sheet post the Lingbao transaction. Cash reserves stand at a healthy A$475 million with zero debt and no hedging, positioning the company well to fund ongoing development projects while returning capital to shareholders.
Further capital discipline is evident as St Barbara contemplates an on-market share buyback of up to 100 million shares. This buyback, not requiring shareholder approval, is expected to commence after the 15-Mile Processing Hub Pre-Feasibility Study update anticipated at the end of September 2026. Execution will depend on market conditions and capital needs, offering flexibility in managing surplus capital.
New Simberi Project Advances with Construction and Production Milestones
The New Simberi Gold Project in Papua New Guinea is transitioning from oxide remnant mining to a higher annual production sulphide ore operation, underpinning a 14-year mine life. Construction is well underway, with earthworks nearing completion and the new ball mill scheduled for delivery in early October. Engineering and procurement of the grinding circuit are each 50% complete, targeting first sulphide ore production in the second half of FY28.
Recent milestones include the approval of a mining lease extension until 2038 and a December 2025 Feasibility Study confirming New Simberi as a long-life, low-cost asset with annual production exceeding 200,000 ounces on a 100% basis. The project is fully funded following the Lingbao strategic investment, which de-risked the expansion and secured final investment decision approval.
Nova Scotia Projects Poised for Growth with Touquoy Restart and 15-Mile Hub
In Canada, St Barbara’s Nova Scotia Projects encompass the Touquoy Restart and the 15-Mile Processing Hub, an integrated operation designed to deliver over 100,000 ounces of gold annually across an 11-plus year mine life. The Touquoy Restart received permit amendments approval and final investment decision in April 2026, with ore processing expected to resume by the end of calendar year 2026. This low-capital, near-term project targets 38,000 ounces of gold production over 13 months at an average all-in sustaining cost (AISC) of US$1,598 per ounce.
The 15-Mile Processing Hub Pre-Feasibility Study completed in December 2025 confirmed a robust project with a 2.5 million ounce resource and production life extending to FY41. The project involves mining four low strip ratio open pits feeding a relocated processing plant, with key environmental assessments underway. A final investment decision is targeted by the end of FY27, with production expected to start in FY30.
Exploration Accelerates Around 15-Mile Processing Hub
St Barbara is aggressively advancing exploration in Nova Scotia, with 58 active targets identified within 75 kilometres of the 15-Mile Processing Hub and an additional 12 targets beyond that radius. The FY27 work program includes surface sampling, geophysical surveys, 3D modelling, and extensive reverse circulation drilling. This expanded pipeline aims to bolster resource growth and underpin the long mine life of the 15-Mile hub.
The company’s exploration leadership team in Nova Scotia brings extensive local and international experience, supporting the technical and community engagement necessary for successful project delivery and permitting.
Experienced Management Teams Steer Growth Strategy
St Barbara’s operational and project teams at New Simberi and Atlantic (Nova Scotia) are staffed by seasoned professionals with decades of experience across multiple continents and mining disciplines. This includes leadership in processing, operations, project delivery, and community engagement; critical for navigating the complexities of large-scale gold projects in diverse jurisdictions.
The company’s strong governance and financial management underpin its capacity to execute on its growth projects while maintaining capital discipline and shareholder returns.
Bottom Line?
St Barbara’s blend of disciplined capital returns and advancing development projects positions it well for sustained production growth, but investors should watch for execution risks around project timelines and exploration outcomes.
Questions in the middle?
- Will the proposed on-market buyback proceed as planned after the 15-Mile Pre-Feasibility Study update?
- How will commodity price fluctuations affect the economics of New Simberi’s transition to sulphide ore processing?
- Can the accelerated exploration program near the 15-Mile Processing Hub translate into meaningful resource upgrades?