Simberi sale sets new benchmark for PNG gold assets
Simberi ranks second on value per resource and reserve ounce in a selected transaction comparison. Lingbao Gold’s agreement to buy St Barbara’s remaining stake in the Simberi project in PNG at multiples near the top of international gold deals gives investors a reason to reassess Geopacific Resources’ Woodlark project. The Chinese producer will pay $410 million for the remaining interest and reimburse approximately $43m in construction expenditure. St Barbara will also receive royalties over future production. Lingbao will fund St Barbara’s share of project capital requirements between signing and completion, which is targeted for the March quarter of 2027, subject to approvals and other conditions.
How the price compares
For Geopacific Resources, the deal provides evidence of what a buyer will pay for PNG gold assets as the company seeks funding to develop Woodlark. Simberi ranks second by value per reserve and resource ounce in a transaction comparison included in Ord Minnett’s initial assessment, which covers selected global gold development deals above US$50m over the preceding two years. It puts Simberi at $638 per reserve ounce and $280 per resource ounce, based on St Barbara’s 40% attributable share and measured in gold-equivalent terms. The reserve multiple sits just below the $641/oz shown for Genesis Minerals’ Magnetic Resources deal and is close to the $282/oz shown for OceanaGold’s proposed Ausgold takeover.
Those Simberi multiples use estimated consideration of about $665m, comprising $453m in cash, including construction reimbursement, and an estimated A$212m for the retained royalty. The royalty valuation assumes US$4000/oz gold and a 5% discount rate. Ord Minnett’s own royalty estimate is lower at around $137m, bringing its assessment of total consideration to approximately $590m. The broker describes the transaction multiples as competitive, although the consideration falls below its valuation of St Barbara’s interest. The Simberi deal provides a benchmark for Geopacific.
Woodlark’s economics
The company’s May definitive feasibility study for Woodlark forecasts approximately 1.1 million ounces of gold production, averaging around 100,000oz annually. Woodlark has a 1.98Moz mineral resource and a 1.2Moz ore reserve. The mine plan covers the Kulumadau, Busai and Woodlark King deposits. At an assumed gold price of $5500/oz, the DFS estimates a post-tax net present value of $1.3 billion at an 8% discount rate, a 50.6% internal rate of return and payback around 18 months after first production. Forecast life-of-mine all-in sustaining costs are $1966/oz.
The proposed operation uses conventional carbon-in-leach processing, with forecast average gold recovery of 89.7% and gold doré produced on site. Higher-grade material is scheduled early to support initial cash flow. Geopacific says financing and strategic partnership discussions are progressing, with Argonaut and Taylor Collison assisting. The company is considering debt, equity, streaming and strategic partners. It’s targeting a December 2026 final investment decision and first gold in November 2028. The DFS estimates pre-production capital of $534.6m and total project funding requirements of approximately $650m. The timetable depends on securing funding and amendments to mining lease conditions.
Geopacific has revised the plant location and infrastructure layout, completed additional drilling and appointed management with mine construction experience. Work ahead includes upgrading access roads, completing village relocation and finalising engineering and construction contracts.
The parties on both sides of the Simberi transaction are familiar with Geopacific. Lingbao joined Geopacific’s register in August 2024 and now holds just under 5%. When announcing its initial investment, Lingbao identified Woodlark as part of its international expansion strategy. St Barbara acquired shares in 2025 as part of a separate corporate transaction and holds approximately 14% of Geopacific.
