Highlights

  • St Barbara shares rise AUD 0.12, closing at AUD 0.71 in Tuesday’s session
  • Market reaction follows release of 15-Mile prefeasibility study results
  • Project economics and development timeline outlined in ASX announcement

Shares of St Barbara Ltd (ASX:SBM) closed higher on Tuesday, gaining AUD 0.12 or 20.34% to AUD 0.71, after the company released details from a prefeasibility study covering its 15-Mile Processing Hub Project. The update was disclosed in a statement to the Australian Securities Exchange and outlined project economics, development parameters, and funding considerations.

According to the company, the prefeasibility study indicates a post-tax payback period of less than one year, based on a gold price assumption of US$3,000 per ounce. The study also estimates post-tax cash flow of approximately AUD 2 bn over the expected life of the mine. These assumptions were presented alongside prevailing gold prices that are trading above the level used in the company’s calculations.

St Barbara stated that the proposed project is expected to deliver a stable production profile exceeding 100,000 ounces of gold per year across a mine life of more than 11 years. The company noted that this outlook excludes any potential contribution from future exploration activities in the surrounding area.

The estimated capital cost to construct the project is approximately AUD 308 mn. The prefeasibility study outlines an all-in sustaining cost of US$1,188 per ounce, supported by factors such as low open-pit strip ratios, conventional free-milling ore, and operating experience derived from the Touquoy mine. Open-cut mining at Touquoy is expected to restart and form part of the broader development framework.

Funding for the 15-Mile project is expected to be sourced from operating cash flow generated by the New Simberi gold project in Papua New Guinea, as well as contributions from Touquoy following its restart. The development plan incorporates three operating locations, with ore processing and tailings management centralised at the 15-Mile site. Beaver Dam and Cochrane Hill are planned to operate as satellite mines.

St Barbara added that completion of the prefeasibility study represents a milestone in advancing the project. The company expects to progress environmental and social impact assessment processes during FY26, alongside the completion of a feasibility study.