Highlights

  • St Barbara shares declined 3.45% on 13 April 2026 despite positive operational updates
  • Q3 gold production rose 49% quarter-on-quarter to 13,522 ounces at Simberi
  • Company secured approval for Touquoy Restart permit amendments.
  • Touquoy restart expected to recommence ore processing by end of 2026.
  • Cash, bullion, and investments stood at AUD 170 million at quarter-end.
  • Q4 production guidance and strategic developments remain in focus

St Barbara Ltd (ASX:SBM) shares fell 3.45% to AUD 0.70 during the morning session on 13 April 2026, following the release of multiple operational updates. The decline comes even as the company reported improved production performance and progress on strategic developments.

Notably, the stock remains up 191.67% over the past year, indicating that the latest dip follows a period of strong longer-term gains. The current share price movement suggests a muted market reaction despite underlying improvements across key areas of the business.

Q3 Production Rebounds Favourably at Simberi

For the March 2026 quarter (Q3 FY26), St Barbara reported preliminary gold production of 13,522 ounces at its Simberi operations. This represents a 49% increase compared to the December quarter, reflecting a significant improvement in output.

Gold sales for the quarter totalled 11,974 ounces, with an average realised price of AUD 6,892 per ounce.

The increase in production was supported by higher processing volumes and improved ore grades. Processed tonnes rose 22% quarter-on-quarter to 493kt, while the average feed grade increased by 15% to 1.09 grams per tonne of gold.

March performance showed further operational improvement, with 192kt of ore processed at an average grade of 1.14 g/t, resulting in monthly production of 5,973 ounces.

Mining Conditions and Operational Challenges

Mining activity also improved during the quarter, with ore mined increasing by 24% to 679kt compared to Q2. This was supported by improved access to ore zones established earlier in the financial year.

However, overall mining volumes fell short of expectations due to challenging conditions. Rainfall across the quarter was significantly above average, with March rainfall reaching the 80th percentile based on historical records.

These conditions impacted mining rates, particularly in the Pigibo pit, where operations were affected by difficult ground conditions and the presence of backfill material from prior waste dumps.

Despite these challenges, the company noted that operations managed to maintain reasonable performance under the circumstances.

Q4 Outlook and Production Expectations

Looking ahead to the June 2026 quarter (Q4 FY26), St Barbara expects further improvements in both mining and processing performance compared to Q3.

However, some higher-grade ore planned from the Pigibo pit will not be mined within the quarter due to delays in mining face positions. These volumes are now expected to be recovered in July and August 2026.

Following the completion of a strategic transaction with Lingbao and the anticipated completion of a transaction with Kumul, the company expects to report attributable production based on a 40% interest in the New Simberi Gold Project.

For Q4 FY26, total gold production is expected to range between 14,000 and 17,000 ounces, with St Barbara’s attributable share estimated between 5,600 and 6,800 ounces.

All-in sustaining costs for the attributable production are expected to range between AUD 4,100 and AUD 4,500 per ounce, including the impact of diesel price movements.

Touquoy Restart Permit Approval Marks Strategic Progress

In a separate update, St Barbara confirmed that it has received approval for amendments to the Industrial Approval permit conditions required for the Touquoy Restart project in Nova Scotia.

The approval, granted by the Nova Scotia Department of Environment and Climate Change, aligns with the company’s submission and enables progress toward restarting operations.

The Touquoy Restart is expected to recommence ore processing by the end of calendar year 2026.

Earlier in February, the Board approved early capital commitments of C$2.9 million as part of the total estimated initial capital of C$11.4 million. These early investments are intended to accelerate refurbishment works for the processing facility.

Touquoy Restart Economics and Production Profile

The restart project is expected to generate operating cash flow of approximately C$118 million over a 13-month period, based on a gold price assumption of US$4,000 per ounce.

Production is estimated at 38,000 ounces from stockpiles totalling 3.0 million tonnes with an average grade of 0.4 g/t.

The all-in sustaining cost for the project is estimated at an average of AUD 2,458 per ounce (US$1,598 per ounce).

The project is also expected to contribute to employment and economic activity, with an estimated 197 jobs supported and measurable contributions to both Nova Scotia and Canadian GDP.

Operational Readiness and Workforce Retention

St Barbara indicated that it is well positioned to restart operations at Touquoy, supported by the retention of key personnel since the cessation of operations in October 2023.

This includes senior management, technical staff, environmental teams, and community relations personnel. Recruitment for additional roles is ongoing, while contractors have already provided quotes for key operational activities.

The company plans to recruit processing plant operators later in the year as the restart timeline progresses.

Cash Position and Balance Sheet Update

At the end of the March quarter, St Barbara reported total cash, bullion, receivables, and listed investments of AUD 170 million, representing a decrease of AUD 17 million from the previous quarter.

This included AUD 38 million in unrestricted cash, AUD 26 million in receivables and bullion, AUD 83 million in restricted cash, and listed investments valued at AUD 23 million.

The reduction in total balance was attributed to growth capital expenditure, including investment in additional truck fleet and working capital requirements, despite positive operating cash flow.

Importantly, this balance does not include the proceeds from the Lingbao transaction, which added AUD 389 million in early April 2026.

Strategic Developments and Industry Environment

The company also noted broader developments in the regulatory environment in Canada, including a co-operation agreement between Nova Scotia and the federal government aimed at streamlining project approvals.

This “one project, one review” approach is intended to improve efficiency in environmental and impact assessments, potentially supporting future resource development timelines.

What This Means for Investors?

St Barbara’s latest updates highlight a combination of improved operational performance and strategic progress across its asset base.

The strong rebound in gold production at Simberi, combined with the approval of the Touquoy Restart, points to ongoing activity across key projects. Additionally, forward guidance for Q4 and developments related to strategic transactions provide further insight into the company’s near-term outlook.

Despite these developments, the share price declined during the session, suggesting that market expectations or other factors may be influencing sentiment. However, the stock’s strong performance over the past year indicates that longer-term trends remain positive.