Shareholders in Santana Minerals Ltd (ASX: SMI) are sitting on some solid gains for the past 12 months, but some news announced just this week has given the analyst team at Shaw and Partners confidence that the company's shares can keep charging higher.
Santana's flagship asset is the Bendigo-Ophir gold project in the Otago region of New Zealand, for which the company released a prefeasibility study last year.
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Key milestone ticked off
The company said in a statement to the ASX this week that it had reached a key milestone in the Fast-Track Approvals Act (FTA) process for the project, which had set a timeline for the government to assess it.
As the company said:
The Panel Convener has used her discretion under the FTA and confirmed a 140 working-day statutory timeframe for determination of the Bendigo-Ophir Gold Project, with a decision due by 29 October 2026. In setting this timeframe, the Convener emphasised a process designed to be efficient, proportionate and outcome-focused, enabling the Expert Panel to regulate its own procedures in a practical manner that supports a fair, well-tested and timely decision and avoid unnecessary procedural formality. The approach allows the participants to use expert conferencing to efficiently resolve issues, and narrow points of contention.
Santana Chief Executive Damian Spring said the company now had a firm timeline "for what we believe will mark the commencement of development for a project of national and regional significance''.
He added:
While the timeframe is longer than we had hoped, we appreciate the additional diligence to support the consenting of this nationally significant project. The appointment of an experienced Panel and confirmation of a clear statutory timetable provides important process certainty.
Shares looking cheap
Shaw and Partners said in a note to clients that it was a welcome development for the project.
They said regarding the project:
Santana is one of a handful of companies globally to boast a +2Moz at +2g/t predominantly open pit resource. The recent land acquisition has materially derisked the project positioning the company in our opinion as 'shovel ready'. We maintain our positive view on gold with Santana being one of our preferred developer exposures, reiterate a buy recommendation.
Shaw recently raised its price target for the company's shares from $1.63 to $2.15, representing a 121.6% return if achieved.
The shares have more than doubled over the past 12 months, from lows of 39.7 cents to 97 cents on Friday.
The company was valued at $849.3 million at the close of trade on Thursday.
