Highlights

  • St Barbara shares jumped 20.34% on 21 January after completion of the 15-Mile Processing Hub’s Pre-Feasibility Study.
  • The 15-Mile hub could deliver over 103,000 ounces of gold annually for 11+ years.
  • Capital-efficient design and low sustaining costs of USD 1,188/oz support favourable project economics.

St Barbara Ltd (ASX:SBM) shares surged 20.34% on 21 January 2026, extending one-year returns to 173.08%. The rise came after the company announced the completion of a Pre-Feasibility Study (PFS) for its 15-Mile Processing Hub Project, which indicated encouraging project economics, efficient capital use, and an environmentally mindful design.

Investors responded positively as the Pre-feasibility study highlights that the 15-Mile Processing Hub could deliver compelling returns across multiple gold price scenarios. At a gold price of USD 3,000/oz, the project shows post-tax profits of AUD 1.4 billion, while at USD 4,000/oz, this rises to AUD 2.3 billion.

The study also projects an average annual gold output of 103,000 ounces over more than 11 years, providing a consistent production profile that underpins long-term revenue visibility, capital efficiency, and low sustaining costs—averaging USD 1,188/oz, combined with capital-efficient design and use of existing Touquoy processing plant infrastructure, appear to have contributed to the sharp 20% rise in SBM shares. The project’s design also minimizes upfront capital requirements, supporting operational and financial efficiency while reinforcing near-term viability.

Environmental and Regulatory Considerations

The Pre-feasibility study incorporated design improvements to reduce environmental and social impacts, including a 391-hectare reduction in surface disturbance and the avoidance of 97 wetlands and 14 watercourses. St Barbara confirmed that the proposed Touquoy project Restart will not affect the development timeline, as existing surface ore stockpiles will be processed before relocating the plant to the 15-Mile site.

Next steps and Project Funding

The 15-Mile Processing Hub is expected to be funded from cash flow generation at the New Simberi Gold Project and the proposed Touquoy Restart. With Environmental and Social Impact assessments and the Feasibility Study underway in FY26, investors have increased clarity on the project’s timeline and execution. The combination of predictable production, low sustaining costs, and capital-efficient design continues to support positive market sentiment around St. Barbara shares.