St Barbara sells PNG gold project to Chinese state firm for $410 million

Australian miner St Barbara announced the sale of its New Simberi gold project in Papua New Guinea to the state-owned Lingbao Gold Group for $410 million, prompting its shares to jump more than 20% before settling around 86 cents. Under the agreement, St Barbara will receive a 2.75% royalty on all future gold and silver output and a 1.5% royalty on any subsequent mineral exploration in the nearby archipelago, with projected royalty cash flows of $286 million over the mine’s lifespan.

The transaction also includes a $43 million repayment for capital expenditures made before closing, nearly doubling St Barbara’s cash reserves. The company reported a 2025/26 net profit just under $490 million, expected to rise to about $880 million, and plans to allocate the proceeds to further exploration at its Nova Scotia mine in Canada. The board is considering a special dividend of roughly 13 cents per share in addition to a five-cent dividend already declared. The sale adds to China’s recent surge in gold purchases, highlighted by the People’s Bank of China buying about 20 tonnes of gold in August.