Santana Minerals - good project, but not a buy yetGday,
I believe the project is currently under-valued as a producing asset. However, it is not producing. They just applied for a Mining Permit today. From their announcement, a minimum of 6 months until resource consent is granted, maybe a little longer for the full permit. I'm not an expert about what steps would then be required after that.
Then, they would have to commence construction... so production is a little ways off (3 years maybe???). So, I expect a number of investors will lose patience if the share price declines while physical gold continues higher. Some will sell and it MAY drop down into my blue box. I will re-evaluate the project and the timing should that happen. It may not happen, it may go to the moon without me on-board. But, the market is tough on explorers and developers these days. It all seems to be about cash-flow.
The gold grade seems good at >2g/ton. To some it may appear marginal, but check out Capricorn Metals on the ASX if that is how you feel. They are 3 years into production, grades LESS THAN 1g/ton of ore and they have an AUD 3.3B market cap and are netting 20% of gross income. If this project does anywhere near as well it is a screaming buy. But, I'll be waiting for lower prices simply because there are other projects out there that are (in my view) more undervalued and / or further on towards production. I was up 12% on Santana over a few months but sold and bought NTL at 0.049 two days ago... that is up 10% already.
