SANTANA MINERALS LIMITED (SMI)
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18/11/2024

1

Speculative Buy

$1.07

82.91%

Following the release of Santana Minerals' pre-feasibility study (PFS) on the Bendigo-Ophir Gold Project, Bell Potter suggests the project's financial metrics are attractive for both debt and equity financing.

The analyst highlights a high return on capital, rapid payback period, and substantial after-tax free cash flow, indicating the project is well-positioned to advance through final studies, financing, and permitting.

Bell Potter maintains a Speculative Buy rating and raises the target price to $1.07 from $0.98.

FORECAST
Bell Potter forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -1.40 cents.
Bell Potter forecasts a full year FY26 dividend of 0.00 cents and EPS of minus -0.90 cents.

20/11/2024

1

Speculative Buy

$1.22

108.55%

Santana Minerals’ updated pre-feasibility study (PFS) for the Bendigo-Ophir Gold Project outlines a high-margin operation producing an average of 125koz annually at costs (AISC) of $1,416/oz over a nine-year mine life, notes Canaccord Genuity.

The initial three years are expected to deliver 147koz annually at costs (AISC) of $1,255/oz, supported by high-grade open-pit mining.

Total pre-production capex is estimated at -$340m, including higher pre-strip costs, with first production targeted for the September quarter of 2027.

Management is targeting a final investment decision by mid-2025. Santana is well-funded with $32m in cash and no debt as of September 2024, explain the analysts.

Canaccord Genuity raises its target price to $1.22 from $1.16, citing an improved production profile and retains a Speculative Buy rating.

FORECAST
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -3.00 cents.
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus -4.00 cents.