St Barbara's 10 Year Plus Outlook for Simberi

St Barbara Limited (ASX: $SBM) has announced the outcomes of its Simberi Expansion Concept Study, projecting a 10 Year Plus Mine Plan Outlook. The study indicates a potential increase in average annual gold production to 230 koz from FY28, with a decrease in All-in Sustaining Cost (AISC) to US$1,000 to US$1,200/oz from FY28 to FY34. The company is considering a 3.7 Mtpa Saleable Concentrate flowsheet option, with an estimated Expansion Growth Capital of US$213 million across FY26 to FY28.

Executive Commentary

The Concept Study provides a strong case for St Barbara to push forward with the larger 3.7 Mtpa throughput options at Simberi. Our strategy with Simberi has been to extend the production of oxides into 2026, increase the Sulphide Resource and Reserve through extension drilling, and revisit the sulphide expansion development plan. The Concept study is a major milestone in progressing that development plan and we are excited about the potential of this project. Given the opportunity at Simberi and the unreasonable treatment of the Company by Nova Scotia Department of Environment and Climate Change, the Company does not intend to allocate significant growth capital to the Company's Nova Scotia Projects while advancing Simberi. We can review that position if there is change there.

Summary

St Barbara's Concept Study for the Simberi Expansion Concept Study has outlined a potential increase in average annual gold production to 230 koz from FY28, with a decrease in AISC to US$1,000 to US$1,200/oz from FY28 to FY34. The company is considering a 3.7 Mtpa Saleable Concentrate flowsheet option, with an estimated Expansion Growth Capital of US$213 million across FY26 to FY28. The study also revealed potential for improved investment returns over the Saleable Concentrate flowsheet options for any given throughput rate. St Barbara is now engaging with the Papua New Guinea government, the New Ireland Provincial government, and local landowners on renewal of the Mining Lease, with negotiations expected to include discussions on equity participation and economic benefits packages. The company plans to complete the metallurgical testwork program over the remainder of calendar year 2024 before finalising an updated Feasibility Study in H2 of FY25 and Front-End Engineering and Design (FEED) in H1 of FY26. Further resource definition and exploration drilling is planned to continue from July 2024, with a proposal for the FY25 program including in excess of 8,000m of diamond + reverse circulation drilling.