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Investing.com - RBC Capital has lowered its price target on Santana Minerals Ltd (ASX:SMI) to AUD0.75 from AUD0.85 while maintaining an Outperform rating on the stock.
The adjustment follows Santana’s feasibility update for its Bendigo Ophir project, which revealed lower gold volumes and 30% higher costs, though with reduced upfront capital expenditure requirements.
RBC Capital views the update as negative overall but notes the staged pit approach provides optionality for future expansions once mining operations commence.
Despite the reduced price target, RBC remains bullish on Santana, describing it as a "low-cost gold feasibility stage project with potential upside beyond studies."
The firm identifies licensing and financing as key near-term events that could de-risk the project further.
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