Santana Minerals SMI - The next large Otago Macraes Gold Deposit ?

[clearasmud]

Just wait till it lists on the NZX, I have a feeling it'll get so much local attention from investors here and funds getting in. The capital raise brought the share price down, but now rebounding back quite strongly.

The Gold is there but will this be allowed to get into production without undue delay?
If so this could get to $6 assuming 4k gold and 300m shares.

[Daytr]

The Gold is there but will this be allowed to get into production without undue delay?
If so this could get to $6 assuming 4k gold and 300m shares.

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.

[clearasmud]

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.

Management has to prove that they can not pollute the Clutha River basin during weather events.

[Daytr]

Management has to prove that they can not pollute the Clutha River basin during weather events.

Of course.
This is a very experienced team that have huge credentials, particularly the Chairman Peter Cook.
Cooky used to be a client of mine and I've had many a fine dinner with him over the years.
Top bloke and very smart and straight as they come.

[whatsup]

Of course.
This is a very experienced team that have huge credentials, particularly the Chairman Peter Cook.
Cooky used to be a client of mine and I've had many a fine dinner with him over the years.
Top bloke and very smart and straight as they come.

IMHO, The first real test will be where will the development funding come from, I know that in Aust its no probs but this is in N Z with all of its fish hooks and what is the appetite for S Hers to front up with more and more capital ?

[Daytr]

IMHO, The first real test will be where will the development funding come from, I know that in Aust its no probs but this is in N Z with all of its fish hooks and what is the appetite for S Hers to front up with more and more capital ?

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.

[clearasmud]

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.

Cooky loaded up big time and I presume you did too.
This thread could be moved to the nzx soon and get busier.

[silverblizzard888]

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.

[clearasmud]

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.

[percy]

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