ASX-listed St Barbara has trimmed its full-year production guidance following a weather-related disruption at the Simberi mine, in Papua New Guinea, but remains optimistic as it awaits a key decision on the early renewal of the project’s mining lease.

The company now expects to produce between 50 000 oz and 52 000 oz of gold in the 2025 financial year, down from prior expectations, with an all-in sustaining cost (AISC) forecast of between A$4 400/oz and A$4 700/oz.

Gold production for the June, fourth quarter of 2025 is now expected to be between 14 000 oz and 15 000 oz, up slightly on the March quarter production. Gold production for April and May 2025 combined was 9 841 oz. A strong, 9 000-oz-plus month is expected for June based on the significant higher grade material scheduled from both the Pigibo Central and Sorowar pits and the positive performance from the processing plant.

Heavy rainfall — more than 100 mm since June 7 — has impacted mining at Pigibo Central, with flooding delaying access to two final benches that were scheduled for June. Mining at the Sorowar pit has continued, but has not been able to compensate for the shortfall from Pigibo.

“This rainfall event has disrupted access to higher grade feed from Pigibo Central at a critical time for achievement of guidance. The missed benches are however anticipated to be mined in July,” said MD and CEO Andrew Strelein.

“The team has done an excellent job keeping the other ore sources, in particular Sorowar, in production despite the rainfall. However, these sources are insufficient to make up for the delay from Pigibo Central.”

The company noted that alternative stockpile sources are being processed but are either lower grade or high in sulphur, resulting in lower recoveries. Despite the operational setback, St Barbara does not expect a material impact on its quarter-end cash and bullion position, thanks to a healthy gold-in-circuit balance built up over previous quarters. The company continues to have no bank debt and no hedging.

MINING LEASE RENEWAL 

Meanwhile, St Barbara has confirmed that the Mining Advisory Council (MAC) of Papua New Guinea will consider the company’s application for the early renewal of the Simberi mining lease at its meeting later this month. This is the final step before a recommendation is made to the Mining Minister.

“The confirmation that the application for early renewal of the Simberi mining lease will be considered at the June meeting of the MAC is very encouraging,” said Strelein. “Although we were hoping to make it onto the May meeting agenda, we understand there has been a significant number of tenement applications before the Mineral Resources Authority which made this timing challenging. We appreciate the attention and priority given to our renewal application.”

St Barbara has engaged extensively with stakeholders, including landowners and local authorities, and has proposed an enhanced net profits-based royalty as part of a new memorandum of agreement. The early renewal of the mining lease is seen as a key enabler for unlocking Simberi’s sulphide ore reserves and ramping up gold production to more than 200 000 oz/y.