Santana enters FY27 with Bendigo-Ophir permit, land and A$188 million cash

Bendigo-Ophir moves from study to construction readiness

Santana Minerals Limited (ASX/NZX:SMI) ended FY26 with the Bendigo-Ophir Gold Project looking less like an exploration proposition and more like a mine awaiting permission to proceed. The company secured a 30-year mining permit, obtained approval to acquire 3,680 hectares of strategic freehold land and finished the year with A$188.3 million in cash.

That preparation has extended beyond paperwork. Santana has installed about 5 kilometres of raw-water pipeline, progressed site access and power infrastructure, secured Komatsu build slots for its core mining fleet and established a local project team. The company says it is positioned for a final investment decision and construction commencement after Fast-track approval, although the annual report makes clear that financing and other project conditions still need to be completed.

Fast-track decision remains the critical gate

The remaining regulatory question is substantial rather than ceremonial. Santana lodged its Fast-track Approvals Act application on 31 October 2025, and the application passed through expert-panel hearings, submissions, site visits, technical conferencing and requests for further information. A draft decision is due in November, with the final determination scheduled for 20 January 2027.

The company says the application now contains updated technical material, management plans and revised consent conditions. That does not amount to approval: construction remains conditional on a favourable panel decision, satisfaction of remaining conditions, project financing and a board-approved final investment decision. The delay from an earlier expected October timetable to January therefore leaves the central risk intact, even as the project’s supporting infrastructure advances.

PFS economics rest on a 13.8-year mine plan

The Updated Pre-Feasibility Study outlines a conventional 1.2 million-tonne-per-year carbon-in-leach operation, with peak annual production of 120,000 ounces and average production of about 90,000 ounces over an initial 13.8-year mine life. The study estimates initial capital of A$277 million and all-in sustaining costs of A$1,842 per ounce.

At its assumed gold price of A$4,950 per ounce, the study produced an after-tax net present value of A$1.52 billion, a 65% internal rate of return and payback of less than 1.7 years. Those figures are study outputs, not operating results, and the production target includes 7% inferred resources, which carry lower geological confidence and may not ultimately convert into mineable reserves.

Cash has been rebuilt, but construction still needs capital

Santana raised about A$190 million through placements and share purchase plans during the year, lifting cash from A$50.5 million to A$188.3 million at 30 June 2026. The company reported a net loss of A$1.4 million, while cash used in exploration, evaluation and investing activities reached A$48.8 million. Interest income of A$5.3 million substantially offset operating and administrative costs in the income statement.

Management says its cash-flow projections support the business as a going concern through at least September 2027. That is a runway for the next phase, not a full funding solution for a mine: the annual report says Bendigo-Ophir is expected to require additional debt, equity or other financing to reach commercial production. The eventual funding package will need to be assessed against the A$277 million PFS capital estimate, evolving project costs and the timing of consent.

Drilling adds upside while community scrutiny continues

Exploration remains an important secondary catalyst. At Rise and Shine North, drilling extended mineralisation beyond the existing resource and underground mine design, including an intersection of 8.7 metres at 30.6 grams per tonne gold. A separate step-out hole encountered 38.6 metres at 1.70 grams per tonne, extending the known system about 465 metres north of the current resource.

Santana has outlined a conceptual Exploration Target of 3.6 million to 7.7 million tonnes at 1.9 to 2.8 grams per tonne, containing 0.52 million to 1.48 million ounces of gold. That target is not a Mineral Resource and requires further drilling. At the same time, the company is attempting to build local support through expanded engagement, earlier downstream water monitoring, a proposed NZ$10 million biodiversity and heritage fund and a NZ$1.25 million annual community fund. The next market-moving sequence is unusually clear: consent, financing, final investment decision and evidence that construction can begin on schedule.