I tend to agree , fingers crossed that the ma$$ots protest somewhere else !
Big news day.
Let's see how much they are looking to raise & at what level.
Anything better than $1.10 sits well with me.
I wonder if they should look at a duel listing?
Capital Raise - 27.1m shares at $1.15
https://cdn-api.markitdigital.com/ap...9453-6A1204344
Interesting that 25% of the 31m is earmarked for "Continued resource definition and extensional drilling".
One without great knowledge (me) might presume that to get this far they already know enough to start actual mining and this 8m might be better invested in a big truck or something. ....And that "Continued resource definition" might thus be funded in due course by the sale of gold. Its not like they will mine the whole field in one go.
This is a virgin mine & there will be a lot yo learn about the geology.
Resource definition is key to not have any surprises in geology, this will also be required for a BFS. There are some pretty experienced campaigners in this company and they know what they are doing. They basically need to convert resources to reserves.
Fair comment.
Guess Im saying they've had a good picture of what and where and the geology of the field for some time and its not like they aren't going to dig a big hole so just getting on with it (subject to other variables obviously) also adds knowledge. And some of the pickings (from a several updates back) look like easy money which could be used to fund expansion rather than too many diluting capital raises (there will be more of course, some expensive equipment required).
Absolutely they know what they are doing. That said I suspect many simple folk could have told Ryman borrowing from USA might end in tears. Guess I'd be happier at this stage of the project to know if someone with genuine industry skills is ready to challenge where the money is being directed and how future eps is being considered. As that's clearly not me I live in hope.
Regardless, quite fascinating following this one.
It is a modern day 'virgin' mine, there was alot of gold mining in the area in the past.
Great spot to have a mooch around on the hill up above bendigo and some of the old goldminers stone cottages
- https://www.doc.govt.nz/globalassets...a-brochure.pdf
Cheers Sideshow, comparing pick & shovel of the 1860s with modern mining is like your first flirtation compared to having a family of 10 kids.
Have you been to the Superpit in Kalgoorlie?
In the canyon created by the modern mine that makes the massive dump trucks look like dinky toys at the bottom of the pit, you can see the workings of the old miners at the top of the face. Meanwhile 58 million of ounces have been mined since.
Rise and Shine is a cracking good gold project thick intercepts high gold ... with forward mining plan ...great met ... so many Aussie Gold developers will be very jealous of the SMI project.
.the biggest hurdle will be the local NIMBY that would be anti any mining in any local area even if they never see the operation ...and the fact over $2-Billion will be paid in taxes royalties CAPEX-OPEX .. and the added employment and spending into the local communities will be hundred's millions just over the first 10yrs of the first stage of Gold to be processed ...
Exploration upside in a very under-explored area would surely add many more stages of operation once the plan and production funds allow for more step-out drilling ..
Just topped. Nice to get some shares below the capital raise.
Now come on fast track process!
I reckon this project is one of the most likely to succeed.
Maybe paywalled. https://businessdesk.co.nz/article/p...with-new-board
But they mentioned 45% of shareholders are Kiwis.
www.chrislee.co.nz
This week's taking stock is of interest.
A lot to like about the company's prospects at the moment especially with gold price soaring high, but of course with the pending capital raising from now till 24th June that should hold the share price down for a bit. Not expecting much in the short term, but could well be a rewarding hold in the medium to long term. If they can get all the approvals and development work done and get into production under the current government they will be golden.
Last raise at 60 odd cents, I was picking them up in the weeks after as low as 50 cents I think. Looking forward to it.
Possibly, although it's only $4M that they are going out to Shareholders for.
Once those applications are lodged, I don't necessarily see it as much of a handbrake if some good news comes fourth, or instutiional investors start getting in.
Santana doesn't seem to have had much coverage in Australia compared to here.
Yes in the scheme of things $4m is not a large amount, but when you add up the $31.2m raised from institutions also at $1.15 and the 35 million options with an issue price of $1.08 at the end of January. You're looking at over $75 million of shares at todays pricing that will eventually dilute the current share base. You'll need a really good announcement or some really big institutions to move that volume when the share price gets higher.
Why would institutions necessarily need to move that amount of volume if those who bought the new shares aren't selling?
Or if they will need to enticed with a good profit on their investment. I.e a higher SP.
There was always going to be some dilution required, it's the nature of the beast.
$80M in cash with the options should easily get them through to BFS & also fund quite a bit of drilling. Exciting times.
Institutional buying is what I am referring to. I.e fund managers etc. coming on board.
Yeah bound to be some more equity involved, but hopefully mostly debt. Plenty of time for exploration to hopefully increase the resource base & extend the mine life.
I would like to see the plant throughput capacity increase by at least 50% as they are bound to find more gold and get production up around 160k - 180K toz per annum.
$250M - $300M of free cash p.a. would be a serious proposition and the earlier bigger cashflow would get factored into the P.E ratio.
Has resource consent been issued through the fast track process or is that still to come?
Can someone please share the best presentation to review based on the potential of the mine? many thanks
No, the resource consent hasn't been issued and they are only invited to apply for the fast track. (I think this process is only just getting underway and not yet voted into law).
https://www.odt.co.nz/regions/centra...ast-track-bill
Not sure on the best, but here is their scoping study - with a good chunk of pictures, tables and graphs......
https://cdn-api.markitdigital.com/ap...6296-6A1202971
They do include broker/equity research on their website:
https://www.santanaminerals.com/equity-research
A great clip on nearby east OTAGO Macraes Gold mine
Macraes gold mine is the biggest mine in New Zealand. After working FIFO in the mines of Western Australia I got a job out there. This video is a snapshot of working in New Zealand's largest mine.
https://www.youtube.com/watch?v=T1PJOz355po&t=188s
Santana now back above cap raise level.
I notice Peter Cook picked up more shares on market over & above his take in the cap raise.
Hopefully see a rerating if approved as part of the fast track process.
Great drill results for Santana.
This project I think has huge upside.
I see they mention the fast track process as well. Fingers crossed as being on private land, large scale revenue & job creator it must be one of the most likely to succeed.
https://www.santanaminerals.com/asx-announcements
It feels like the Government's resources extraction mandate is heating up with the overturn of the oil & gas exploration ban.
FastTrack bill next?
Watch this space as I'm sure Santana must be bloody high on the list, due to its scale & the fact its not on Conservation Land.
I wouldn't say loaded up. Average sized position for me.
I just think if it is Fast Tracked it will bring revenue forward of what appears to be a substantial & robust project with plenty of exploration upside beyond what is already known.
Fast Tracking will also assist with lending to develop the project.
The payback if all goes to plan is massive.
I think the beauty of it is its not on Conservation Land. Should make things easier.
I also know the Chairman & he's no mug & he's been buying outside the CR.
Santana considering listing on the NZX
https://www.nzherald.co.nz/business/...G6QXJSUCHOVGI/
And a good interview here with the CEO.
https://www.nzherald.co.nz/business/markets-with-madison-gold-rush/YC32DKVOOUGHRV2BZJQ4VZHHOQ/
Those Kiwi imputation credits once gold starts flowing to stakeholders & taxes being paid here would be handy ;)
Probably already a large Kiwi following onboard - list here & fire the rest of the other bits in the SMI bag into a new shell for an in-specie distribution that the Aussies can then have scrap over on ASX ;)
A decent IRR% for a Gold project in the scoping study see how the DFS looks esp with a higher NZD Gold price ... certainly looks like a BUY to me ...
If it does list on the NZX would be the first stock I'd actually want to BUY in a long times since OGC days
I think he said they have 40% of their share registry as Kiwi domiciled.
Quite likely to be standout in a pretty lackluster market. Market Cap would attract NZ institutions. Also diversity for NZ investors as not too many mining stocks to invest in let alone gold stocks in NZ.
Also not a bad thing to say if you are looking to get FastTracked by the NZ Government.
Yeah it's a pretty robust looking project, but they have hardly scratched the surface so to speak in regards exploration and I think there will be plenty of upside in that regard over time.
And right on cue, indicated resources upgraded to 1.45M toz
https://www.tipranks.com/news/compan...urce-estimates
NZX compliance listing on July 25
Excellent summary of the project presented at the Sydney Mining Conference.
I once hosted the panel at this event in a different life.
https://www.santanaminerals.com/asx-announcements
I can't see why not. It's on private land not DOC & not that I'm an environmental expert, but it doesn't appear to be an overly sensitive site.
As mentioned previously, I think it's one of the better prospects to get FastTracked due to the reasons above, plus the scale and job creation.
It's a fair question. Obviously funding only comes in once approvals are in place, hopefully through the Fast-track legislation.
It's an Australian listed company and banks finance Australian mining companies that mine all around the world and in a lot trickier locations than NZ.
Knowing Cooky he would favour debt over equity as he always said debt is a discipline but debt is a lot cheaper than equity dilution as well.
A bank may insist on a certain portion of equity being raised, who knows.
My pick would be Macquarie Bank as largely all the debt finance that Cooky has done in the past has been through them. But there were always a number of other banks knocking on the door, but Macquarie knows mining, well at least they did do in my day.
I really don't think getting finance will be difficult at all, it will just depend on the level of debt to equity.
In addition, I don't really expect the SMI share price to do too much over the next few months, unless they get Fast Tracked prior to then or the gold price explodes.
Given the stock has 40% NZ registered shareholders already, shows the interest in a strong gold mining stock is really in demand. The NZX listing will only boost that demand particularly with being included in the indexes and institutional funds that have limited NZX investing criteria's. Still a lot to be done to get to production, but the minute you hear the CEO speaking you really feel this is a very convincing and strong project. The government will be very interested since it could contribute $1 billion over ten years to the government through taxes and royalties. Imagine all the good things a $100m can go towards, why wouldn't they want this project to be fast tracked.
Also the multiplier effect is not to be ignored.
With NZ's dependency on agricultural exports and positive forecasts for global mineral demand NZ needs to broaden its export base to ensure its prosperity .
In particular the Gold price is outstanding.
Who knows how long Santana's gold mine could be producing for.
Bell Potter;
Santana Minerals (SMI)
SMI has reported Scoping Study
results for an initial Bendigo-Ophir
Gold Project. Key metrics from the
study include: (1) a post-tax Net
Present Value (NPV) of A$852m, using
a 10% discount rate, at a US$2,340
gold price, and 0.66 AUD:USD
exchange rate (A$3,545/oz), (2) total
gold production of 1.12Moz, averaging
110koz per annum over a 10-year
mine life, after (3) initial capital costs
of A$233m (A$130m processing plant
and infrastructure, and A$103m
pre-production mining costs), at (4)
life of mine total production costs of
A$1265/oz (real 2024 dollars). We
anticipate that SMI will continue to be
re-rated as it achieves the Project’s
milestones, with key environmental
approval submissions expected in
4QCY24. SMI has significant additional
value over the Scoping Study results
from underground Resources not
included in the Scoping Study, and
the underexplored prospectivity of the
30km long Project, which is analogous
to the Macraes Gold Mine (90km to the
southeast) from which over 5Moz has
been mined.
Buy (Speculative), Valuation $2.15
Listing on the NZX next week, should add to the buying pressure of the stock, won't take much to see it back at the pre-raise pricing.
NZX listing is now confirmed and quarterly to be released prior to listing.
"Santana will commence trading on the NZX at 10.00am (NZ time) on July 25, 2024 under the ticker SMI."
Could see NZ shareholder % increase to 50-60%
At last a more respectable & promising listing lands on NZX .. makes up for the ones that have gone, fallen off & other remaining trash going nowhere fast among the handful or two still respectable resident there :)
Wonder if we can repackage & fire the rest of the sorry bits SMI have lurking within back into a refloat / in-specie job, so the Aussies can have back those parts with our love & blessing ?