Key Highlights

  • First ore was fed through the Touquoy plant on 3 November 2026.
  • The initial feed is drawn from low- and medium-grade stockpiles.
  • The plant is expected to reach full capacity by the end of December 2026.
  • The first gold dore pour is targeted for January 2027, and the restart is expected to support about 200 local jobs.

St Barbara (ASX:SBM) has restarted processing at its Touquoy operation in Nova Scotia, Canada, with first ore fed through the plant on 3 November. The company reported the milestone on 5 November, and it marks the start of a staged return to gold output from the province, where the group is also pursuing development of its 15-Mile processing hub.

The initial feed is drawn from low- and medium-grade stockpiles rather than from freshly mined ore, according to the company's update. St Barbara expects the plant to reach full capacity by the end of December 2026, with the first gold dore pour targeted for January 2027. The restart is expected to support about 200 local jobs.

Guidance for the 2027 financial year

Alongside the restart, St Barbara has set guidance for Touquoy of 17,000 to 21,000 ounces of gold in the 2027 financial year, at an All-In Sustaining Cost of A$2,070 to A$2,560 an ounce. These are forecasts, not results, and the first ounces from the restarted circuit are not expected until the new year. St Barbara reports on a June financial year, so if the January target is met, the guided ounces would effectively be produced in about the first half of calendar 2027.

The output range is relatively modest and reflects the nature of the feed. Stockpiled material has already been mined and hauled, which lowers the cost and complexity of getting a plant running again, but lower grades mean fewer ounces recovered per tonne processed. The width of both the production and cost ranges also signals that recoveries, throughput and costs during commissioning and ramp-up have yet to be demonstrated.

Where Touquoy fits in the broader strategy

St Barbara, whose portfolio also includes the Simberi operation in Papua New Guinea, has positioned its Nova Scotia Assets around a regional processing approach. The company has flagged growth Capital spending of A$40 million to A$50 million across Touquoy and the 15-Mile hub, but that spending is subject to permitting. In other words, the larger development pathway in the province is not yet fully approved.

Restarting Touquoy on stockpiles gives the company a way to generate gold sales, retain a trained local workforce and keep processing infrastructure active while longer-dated permitting work continues. It can also provide operating data on the plant ahead of any broader regional development, and local employment of around 200 people gives the operation a visible community footprint as approvals are sought. Whether that translates into lasting value will depend on how quickly the plant reaches steady-state operation and how costs track against the guided range.

Risks and uncertainties

Plant restarts can often encounter mechanical, metallurgical and staffing problems that delay ramp-up, and the December target for full capacity leaves limited time before the January first-gold goal. Production from stockpiles is finite, so the restart does not on its own establish a long-term operation. The permitting condition on the growth capital means timing for the 15-Mile hub remains uncertain, and cost guidance stated in Australian dollars for a Canadian operation is also exposed to currency movements.

What to watch next

The disclosed milestones are the plant reaching full capacity by the end of December and the first dore pour targeted for January 2027. Investors will also be looking for updates on permitting progress tied to the planned A$40 million to A$50 million of growth spending, and for quarterly reporting that shows how actual Touquoy production and all-in sustaining costs compare with the guidance set for the 2027 financial year.