Key Highlights

  • Ore Reserves at the Nova Scotia 15-Mile Processing Hub increased 17% to 1.4 Moz, with Life of Mine extended to 13 years at average production of 106 koz per annum and AISC of US$1,098/oz
  • Binding agreement signed to sell remaining New Simberi interest to Lingbao Gold Group for A$410 million cash plus A$43 million repayment, retaining a 2.75% NSR on future gold and silver production
  • Proforma cash, gold and investments position of A$880 million with no debt; fully Franked Dividend of A$0.05 per share paid on 16 October 2026
  • Feasibility Study timeline accelerated, now targeting completion in Q3 March FY27 with Final Investment Decision still targeting Q4 June FY27

St Barbara Limited (ASX:SBM) delivered a materially positive Q1 FY27 update, with the company's Nova Scotia development program in Canada advancing on multiple fronts simultaneously. The 15-Mile Processing Hub Pre-Feasibility Study Update, released on schedule at the end of September 2026, increased Ore Reserves by 17% to 1.4 million ounces and extended the Life of Mine to 13 years. Average gold production is modelled at 106,000 ounces per annum at an All-In Sustaining Cost averaging US$1,098 per ounce, with production above 120,000 ounces per annum anticipated in FY31 and FY32. Initial Capital is estimated at C$289 million, consistent with the prior estimate of C$283 million.

The Feasibility Study, which will underpin the Final Investment Decision, has been accelerated and is now targeted for completion in Q3 March FY27 — one quarter ahead of the previous schedule. The Final Investment Decision itself remains targeted for Q4 June FY27. This acceleration signals growing management confidence in the project's technical and economic parameters.

Touquoy Restart and Near-Term Production

The Touquoy Restart — a resumption of open pit processing at the existing Touquoy mine within the Nova Scotia portfolio — is on track for commencement of stockpile processing by the end of Q2 December FY27. Mill refurbishment work progressed during the quarter and commissioning was anticipated to begin in November 2026. Ore movement from stockpiles to the ROM pad began during the period, representing the first material movement associated with the restart program.

New Simberi Sale Crystallises Value

Alongside the Nova Scotia progress, St Barbara announced a binding agreement to sell its remaining interest in New Simberi Gold to Lingbao Gold Group in exchange for A$410 million in cash, A$43 million repayment of capital contributions since April 2026, a 2.75% net smelter return Royalty on 100% of future gold and silver production from New Simberi, and a 1.5% NSR on 100% of future minerals production from the Tabar Island Group exploration licences. Completion is targeted for Q3 March FY27.

The deal transforms St Barbara's balance sheet. On a proforma basis incorporating the sale proceeds, the company holds approximately A$880 million in cash, gold and investments with no debt. Management has indicated the board will consider a further fully franked dividend of approximately A$0.13 per share following completion, and is also evaluating an on-market share buyback of up to 100 million shares — subject to market conditions and capital requirements at the time.

Financial Position and Capital Returns

Total cash at 30 September 2026 stood at A$416 million, excluding A$33 million of attributable cash at New Simberi. A fully franked ordinary dividend of A$0.05 per share was declared in August and paid on 16 October 2026. New Simberi produced 10,746 ounces of gold on a 100% basis in Q1 at an AISC of A$6,011 per ounce, with A$67 million of growth capital deployed during the period.

Risks and What to Watch

The key near-term risks are execution at Touquoy as commissioning approaches and regulatory completion of the New Simberi sale, which involves PNG government approvals. Any slippage in the Feasibility Study timeline would push back the Final Investment Decision with flow-on effects for the Nova Scotia development schedule. The high AISC relative to current gold prices also warrants monitoring as the project moves toward a construction decision.

Watch for formal Feasibility Study release in Q3 FY27, Touquoy commissioning updates, and confirmation of New Simberi sale completion.