Key Highlights

• St Barbara (ASX:SBM) commenced ore processing at the Touquoy Restart Project on 3 November 2026, with ramp-up to full production expected by end of December 2026.

• FY27 gold production guidance for Nova Scotia is set at 17,000-21,000 ounces at AISC of A$2,070-A$2,560 per ounce.

• Growth Capital Expenditure for the Touquoy Restart and 15-Mile Processing Hub projects is anticipated at A$40-A$50 million, subject to permitting timetable.

• The restart secures approximately 200 jobs in rural Nova Scotia, with first gold doré production expected in January 2027.

St Barbara Limited(ASX:SBM), the Australian-listed gold Mining company, announced on 5 November 2026 that ore processing has commenced at its Touquoy Restart Project in Nova Scotia, Canada. The milestone represents the resumption of gold production at the site for the first time since 2023, following a period of care and maintenance.

Touquoy Restart Achieves First Ore

First ore was processed through the ball mill on 3 November 2026, in line with the planned timeline. The company expects processing operations to ramp up to full capacity by the end of December 2026, with first production of gold doré anticipated in January 2027. Processing involves transporting ore from existing low and medium grade stockpiles to the plant. These stockpiles were previously processed in Q1 September FY24 with excellent recoveries of 84%, providing a benchmark for expected metallurgical performance during the current campaign. The restart was celebrated with an official re-opening event attended by Nova Scotia Minister for Natural Resources, the Honourable Mr Tory Rushton, and the Nova Scotia Attorney General and Minister of Justice, the Honourable Scott Armstrong. The event featured a performance by Men of the Deeps Choir, a community benefits agreement partner, reflecting the project's integration with local communities. Managing Director and CEO Andrew Strelein noted the Province's commitment to resource development had enabled the rapid implementation from a care and maintenance standing start.

FY27 Production and Cost Guidance

With the successful commencement of ore processing, St Barbara provided FY27 guidance for its Nova Scotia operations. Gold production from the Touquoy Restart Project is anticipated to range between 17,000 and 21,000 ounces, at All-in Sustaining Costs (AISC) of A$2,070 to A$2,560 per ounce, equivalent to C$1,945 to C$2,403 per ounce at an AUD/CAD Exchange Rate of 0.94. Growth capital expenditure for both the Touquoy Restart Project and the 15-Mile Processing Hub Project is expected to fall between A$40 million and A$50 million, subject to the permitting timetable. The 15-Mile Processing Hub accounted for A$30 million to A$35 million of this figure, with A$10 million to A$15 million allocated to the Touquoy Restart.

Reclamation and Exploration Expenditure

Touquoy site reclamation costs are expected to range from A$24 million to A$30 million in FY27. The company noted an opportunity to execute a significant portion of the reclamation obligation cost-effectively while excavators and dump trucks are on site during operations and the tailings management surface is dry and stable. However, the release of reclamation bond monies is not anticipated in FY27, as completed works will require inspection and sign-off before releases are approved. Actual reclamation spend in Q1 September FY27 was A$8 million, up from A$4 million for the full prior year. Exploration expenditure is guided at A$6 million to A$7 million for FY27, with the potential for increases once diamond drilling capacity for the Old Austen Mine Down-Plunge Mineral Resource and 15-Mile Mineral Resource programs is determined. Exploration spend in Q1 September FY27 was A$0.9 million, with A$5.5 million to A$6.0 million allocated to Nova Scotia regional exploration.

Employment and Community Impact

The restart secures approximately 200 jobs in rural Nova Scotia, bringing back many past employees and contractors. The significance of the employment contribution was highlighted alongside the return of Nova Scotia as a gold-producing province. The community benefits agreement with the Men of the Deeps Choir and the attendance of provincial ministers at the re-opening event underscore the project's broader economic and social impact in the region.

The Bigger Picture

St Barbara's successful restart of ore processing at Touquoy on time and within budget represents a tangible operational milestone. The FY27 guidance provides clarity on expected production, costs and capital requirements for the Nova Scotia operations. However, the relatively high AISC range and significant capital commitments across the Touquoy Restart, 15-Mile Processing Hub and reclamation programs mean cash generation from these operations will depend heavily on gold price levels and the ability to achieve production targets at the upper end of guidance.