Lingbao Strategic Transaction Completed and FID Approved
| Stock | ST Barbara Ltd (SBM.ASX) |
|---|---|
| Release Time | 2 Apr 2026, 11:28 a.m. |
| Price Sensitive | Yes |
St Barbara Completes Lingbao Transaction, Approves Simberi Expansion
- Lingbao transaction completed with A$389 million cash consideration received
- Gain on sale of A$0.5 billion to be included in FY26 financial results
- Final Investment Decision approved for US$333 million New Simberi Gold Project construction
St Barbara Limited has announced the formal completion of the Lingbao Gold Group's strategic investment in the New Simberi Gold Project. The transaction has resulted in St Barbara receiving A$389 million in cash consideration, comprising the agreed A$370 million plus a A$19 million working capital and cash holdings adjustment. This has increased St Barbara's cash balance to A$504 million as of the announcement. The company anticipates recording a gain on the sale of approximately A$0.5 billion (unaudited), which will be included in the FY26 Financial Results. Importantly, there will be no tax leakage in relation to the transaction with Lingbao. In line with the completion, both Lingbao and St Barbara have approved the Final Investment Decision to proceed with the US$333 million construction of the New Simberi Gold Project, which includes US$13 million already spent by the company. St Barbara is fully funded for its 50% share of the construction costs. The New Simberi Gold Project is expected to increase production to over 200 kozpa at an expected All-in Sustaining Cost of between US$1,100 - US$1,400 per ounce. The project is anticipated to have a mine life that extends to 13 years based on Ore Reserves alone, without including any conversion of Mineral Resources or exploration targets.
The New Simberi Gold Project is expected to increase production to over 200 kozpa at an expected All-in Sustaining Cost of between US$1,100 - US$1,400 per ounce.
The New Simberi Gold Project is anticipated to have a mine life that extends to 13 years based on Ore Reserves alone, without including any conversion of Mineral Resources or exploration targets. St Barbara and Lingbao will work together to deliver great value to their shareholders, as well as significant benefit to the local community and PNG stakeholders.