St Barbara (SBM.AX) has announced last month it is planning to sell its New Simberi gold mine, allowing it to focus on the Nova Scotia based gold projects in the portfolio. The company will receive A$410M in cash and an additional A$43M cash repayment representing SBL’s share of construction capex that has been contributed since April 2026. Additionally, St Barbara will receive a 2.75% NSR on New Simberi as well as a 1.5% NSR on the Tabar Islands project zone. St Barbara has disclosed it will consider opportunities to realize the value of the royalty portfolio.
Those royalties could be quite interesting as the New Simberi royalty has a pre-tax value of US$212M at $4000 gold and applying a 5% discount rate.
St Barbara also plans to pay a special dividend to the tune of A$0.13 per share after the sale is completed, while there are concrete plans to complete a buyback program to the tune of 100 million shares) with the remainder of the cash to be used on its Canadian assets to further advance those.
Disclosure: The author has no position in St Barbara. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
