Donald Trump’s victory in the 2024 elections fuelled a rally in the dollar and risk assets causing an upheaval in gold stock market. This led to profit booking in top gold stocks which had reached record highs in the run up to elections.
Santana Minerals Limited (ASX: SMI)
Santana Minerals Limited delivered a highly strategic quarter, advancing its Bendigo-Ophir Gold Project (BOGP) in New Zealand toward construction with substantial regulatory and operational progress. The BOGP, located in Central Otago, has been granted ‘Fast Track Project’ status under New Zealand’s Fast Track Approvals Bill, a designation that could significantly streamline the permitting process with final ratification expected by year-end. This regulatory milestone positions the company favourably for accelerated development. The Pre-Feasibility Study (PFS) for the BOGP remains on schedule, with completion targeted for the December quarter, and recent post-quarter achievements include securing critical land agreements with local landowners, enhancing infrastructure readiness, and securing water supply. Santana’s ongoing commitment to project development was underscored throughout the September quarter as it prioritized PFS completion and broader project infrastructure, supported by a strong cash balance of A$30.5 million—sufficient to fund near-term milestones. Additionally, the recent three-for-one share split, effective from October 29, was designed to increase liquidity and appeal among retail investors.
Santana has been one of gold companies to invest in because its Bendigo-Ophir Gold Project is anchored by the high-grade Rise & Shine (RAS) deposit, a core asset that has shown compelling economic results in a recent scoping study. With an average grade of 2.3 g/t Au across 2.2 million ounces, the RAS resource reflects both robust project economics and considerable exploration upside. At current gold prices of NZ$3,900/oz, the project targets an annual production rate of 110,000 ounces, indicating strong profitability potential with a 1.5 Mtpa processing plant capacity and a pre-strip ratio of 9.8:1. Over an expected 10-year mine life, the RAS deposit alone could yield around 1.12 million ounces, supporting a robust revenue stream and export value. The broader Bendigo-Ophir Project spans a five-kilometre strike with additional exploration potential, positioning Santana as a growing force in New Zealand’s gold sector. Recognized as a project of national importance, BOGP is expected to deliver significant regional and national economic benefits, amplified by fast-tracked government support. Recent gold price highs exceeding NZ$4,300/oz provide further tailwinds for potential project profitability.
Santana’s momentum through PFS and feasibility stages, backed by regulatory support and a clear timeline for final investment decision (FID) within the next year, highlights its commitment to commercializing BOGP. These advancements underscore substantial value creation for shareholders, as Santana strengthens its standing within the New Zealand mining sector and targets a critical position within the gold market.
Source: Company’s Report
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