St Barbara Eyes 200,000oz Gold Output Amid Atlantic and Simberi Reviews
St Barbara updates shareholders on its ongoing strategic review, highlighting stalled Atlantic separation talks and advancing Simberi sale discussions, while reaffirming commitment to a major expansion.
- No acceptable proposals received for Atlantic Gold separation
- Improved permitting and reopening prospects for Nova Scotia's Touquoy mine
- Advanced due diligence underway for potential Simberi sale
- Simberi Expansion Project targets over 200,000 ounces annual gold production
- Final Investment Decision on Simberi expansion expected by early 2026
Strategic Review Update
St Barbara Limited has provided a significant update on its strategic portfolio review, focusing on the future of its Atlantic Gold Operations and Simberi mine. The company initially announced plans earlier this year to separate Atlantic Gold, aiming to unlock shareholder value and enable independent development timelines for the 15-Mile Processing Hub. However, St Barbara has yet to receive any proposals that meet its valuation expectations for Atlantic, prompting a reassessment of options amid improving local conditions.
Atlantic Gold – Permitting and Reopening Opportunities
Despite the lack of acceptable offers, St Barbara notes encouraging developments in Nova Scotia's permitting environment. The provincial government’s increasing support for resource projects has opened the door to potentially reopening the Touquoy mine to process remaining low and medium grade stockpiles. This pivot could extend asset life and add value internally, reducing the urgency to divest Atlantic under less favourable terms.
Simberi – Exploring Strategic Options Amid Expansion Plans
Parallel to the Atlantic review, St Barbara has engaged Macquarie Capital to explore strategic alternatives for its Simberi operations, including a potential sale. Several interested parties are conducting advanced due diligence, with site visits and management briefings completed. While no binding offers have emerged, the process positions St Barbara to consider proposals before finalising funding arrangements for the Simberi Expansion Project.
Commitment to Growth and Value Creation
Crucially, St Barbara remains fully committed to the Simberi Expansion Project, which promises to boost annual gold production to over 200,000 ounces and extend mine life by 13 years to 2038. The project’s economics are robust, with an anticipated post-tax net present value of US$717 million and an internal rate of return of 62% at a gold price of US$2,500 per ounce. A final investment decision is expected by early 2026, with funding advisor appointments imminent.
Looking Ahead
As St Barbara navigates these strategic crossroads, the company is balancing the potential benefits of asset separation against evolving market and regulatory conditions. Shareholders can expect ongoing updates as the company advances its review processes and moves closer to critical investment decisions.
Bottom Line?
St Barbara’s strategic decisions over the next six months will be pivotal in shaping its growth trajectory and shareholder returns.
Questions in the middle?
- Will St Barbara receive firm proposals for Atlantic Gold separation in the near term?
- How will the reopening of the Touquoy mine impact Atlantic’s valuation and operational plans?
- What are the potential terms and timing for a Simberi transaction if a sale proceeds?
