Highlights

  • The S&P/ASX 200 (ASX:XJO) closed at 8,819.40 points, down 1.03% on 10 September 2026.
  • St Barbara (ASX:SBM) closed at AUD 0.85, up 16.44% on the day.
  • The company signed a binding agreement to sell its remaining interest in the New Simberi Gold Project to Lingbao Gold Group.
  • The transaction includes AUD 410 million cash consideration, additional Capital repayment and ongoing Royalty exposure.

St Barbara (ASX:SBM) attracted significant investor attention on Thursday, 10 September 2026, after announcing a binding agreement to sell its remaining interest in the New Simberi Gold Project to Lingbao Gold Group. The S&P/ASX 200 (ASX:XJO) closed at 8,819.40 points, down 1.03%, while St Barbara closed at AUD 0.85, up 16.44% following the strategic update.

The transaction represents a major portfolio change for St Barbara, allowing the company to simplify its asset base while retaining exposure to future production through royalty interests.St Barbara (ASX:SBM) shares closed at AUD 0.85, up 16.44% on the day.

Simberi transaction details

St Barbara has entered into an agreement with Lingbao Gold Group for the sale of its remaining interest in Tabar Islands Holdings, which owns the New Simberi Gold Project and associated Tabar Islands exploration licences.

Under the agreement, St Barbara expects to receive AUD 410 million in cash consideration upon completion. The company will also receive an additional AUD 43 million cash repayment representing its share of construction capital funded between April 2026 and the signing of the agreement.

The transaction is targeted for completion in the March quarter of 2027, subject to satisfaction of required conditions, including regulatory approvals and other transaction requirements.

Retained royalty exposure

Although St Barbara is divesting its ownership interest, the company will retain exposure to future production through royalty arrangements.

Following completion, St Barbara is expected to receive a 2.75% net smelter return royalty on 100% of future gold and silver production from New Simberi. It will also retain a 1.5% net smelter return royalty on minerals produced from the Tabar Islands exploration licences.

The retained royalties provide St Barbara with continued exposure to the long-term value potential of the Assets without direct ownership responsibilities.

Balance sheet and portfolio focus

Following completion of the transaction, St Barbara expects to have a pro-forma cash position of approximately AUD 880 million, alongside its remaining projects and royalty portfolio.

The company’s post-transaction asset base is expected to include the 15-Mile Processing Hub Project, exploration portfolio, Touquoy Restart Project and royalty interests, with no Debt or hedging.

St Barbara stated that the transaction would allow the company to focus on advancing its Nova Scotia gold projects and exploration opportunities surrounding the 15-Mile Processing Hub.

Potential Shareholder returns

The company stated that, subject to completion of the transaction, the Board will consider an additional fully franked Special Dividend of approximately AUD 0.13 per share.

This would follow the fully Franked Dividend of AUD 0.05 per share already declared on 28 August 2026.

St Barbara also confirmed that it is considering an on-market share buy-back of up to 100 million shares following the release of the updated Pre-Feasibility Study for the 15-Mile Processing Hub Project expected later in September 2026.

Any dividend, buy-back or capital distribution decisions will depend on factors including market conditions, share price, future capital requirements and other considerations.

Strategic outlook

The Simberi transaction marks a shift in St Barbara’s strategy by reducing direct exposure to the development project while maintaining future royalty participation.

The company highlighted that the divestment is intended to streamline operations and allow greater focus on its remaining growth opportunities.

Investors are likely to monitor completion of the Lingbao transaction, progress at the 15-Mile Processing Hub Project, the Touquoy Restart Project and future decisions regarding capital allocation.

For St Barbara, the agreement changes the company’s operating profile by increasing financial flexibility while maintaining exposure to potential future value from Simberi through royalties.