St Barbara has received A$389m ($269.5m) from Lingbao Gold Group for its investment in the New Simberi Gold Project and has approved the final investment decision (FID) to proceed with project construction, alongside Lingbao.
The company reported a cash balance of A$504m, excluding A$26m remaining as the initial cash position of a jointly owned subsidiary.
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The New Simberi Gold Project has a construction cost of $333m.
This amount includes about $13m that St Barbara had spent on the project by March 2026.
St Barbara has secured full funding for its 50% share of the New Simberi Gold Project construction costs.
The company expects to record around A$0.5bn gain from the transaction, which will be included in FY26 financial results, with no expected tax liabilities.
The completion of a separate transaction with Kumul Mineral Holdings is awaiting regulatory approval from Papua New Guinea’s Independent Consumer and Competition Commission (ICCC) and National Executive Council (NEC).
St Barbara anticipates these approvals will be granted soon. Any delay in the Kumul transaction will not affect the Lingbao deal or the final investment decision.
The New Simberi Gold Project plans to expand the current Simberi mining and processing operations to process higher-grade sulphide ore reserves.
Mining output is set to increase to approximately 20 million tonnes per annum (mtpa), doubling the current 10mt.
The project aims to boost production to over 200,000oz per annum, with an anticipated all-in sustaining cost between $1,100 and $1,400 per ounce.
The projected mine life is 13 years, based solely on the existing ore reserves, not accounting for any additional mineral resource conversions or exploration targets.
Macquarie Capital (Australia) is acting as the financial adviser and Mallesons as the legal adviser for St Barbara.
St Barbara managing director and CEO Andrew Strelein said: “Today’s completion of the Lingbao transaction and approval of the FID represents a major milestone for St Barbara. The New Simberi Gold Project is a long-life, low-cost operation fully funded for development and will increase production to over 200 kozpa.
“This transaction along with the FID approval significantly de-risks the development of the project and unlocks long-term value for the company and shareholders. The project will also deliver significant benefits to the local communities and PNG stakeholders.”
In August 2024, St Barbara divested its complete stake in Catalyst Metals, securing cash proceeds of A$25.2m.
