Santana Minerals Ltd (ASX:SMI) December Quarterly Report
Project Milestones Achieved
Santana Minerals Ltd (ASX:SMI) announces significant progress in its Bendigo-Ophir Gold Project (BOGP) during the December quarter. The completion of the initial Pre-feasibility Study (PFS) highlighted potential output of 1.15 million ounces of gold over nine years at an All-in-Sustaining-Cost (AISC) of A$1,416 per ounce.
Since the PFS release on 15 November 2024, gold prices have surged from A$4,000 to A$4,375 per ounce. This price increase has resulted in an improved after-tax NPV8 of A$1.2 billion, an internal rate of return (IRR) of 76%, and free cash generation now exceeding A$2.0 billion.
Strategic Developments
The company is pursuing detailed engineering and development strategies aimed at reducing pre-production expenditures. Santana has finalised agreements for securing critical water supplies and is in advanced discussions for land acquisitions essential for the project’s success. The Bendigo-Ophir project has been officially designated as a ‘Fast-track’ project, allowing the submission of applications for permits in the upcoming quarter.
Exploration efforts continue alongside the PFS, yielding promising results, particularly from the RINA regional exploration program and infill drilling at the RAS, CIT, and SRX deposits, which have revealed high-grade mineralisation.
Financial Performance
Santana concluded the quarter with approximately A$31 million in cash, bolstered by the conversion of 13.4 million options at A$0.36 per share. Shareholders approved a 3-for-1 share split during the quarter, aimed at enhancing liquidity in the company’s stock.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.