St Barbara to Sell Simberi Interest to Lingbao
Key points
- St Barbara to sell remaining 40% interest in New Simberi Gold Project for A$453m cash plus royalties
- Completion targeted for Q3 March FY27
- Pro forma cash balance to increase to A$869m
- Potential for additional cash realization following royalty portfolio strategic review
Full summary
St Barbara Limited announced the sale of its remaining 40% interest in the New Simberi Gold Project to Lingbao Gold for A$453 million cash plus royalties. The transaction includes a A$410 million upfront cash payment and A$43 million reimbursement for capital expenditure on the project from April until signing. The transaction is expected to complete in Q3 March FY27, subject to regulatory and shareholder approvals. Post-completion, St Barbara plans to consider a fully franked dividend of A$0.13 per share, in addition to the A$0.05 per share dividend paid on 16 October. The company is also considering a share buyback of up to 100 million shares. The transaction will result in a pro forma cash balance of A$869 million, providing potential for further cash realization following a strategic review of the royalty portfolio.
Guidance
Post-transaction, St Barbara expects a pro forma cash balance of A$869 million.
Outlook
Following the transaction, St Barbara will focus on its Nova Scotia projects, with near-term production at Touquoy Restart and development activities at the 15-Mile Processing Hub.
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