That's it. We're live now. Thank you, Chris. Welcome, everyone. Good afternoon to the attendees to the 2024 Annual General Meeting of Santana Minerals. My name is Peter Cook, and I'm the Non-Executive Chairman of the company, and I'll be chairing today's meeting. Today's meeting is also a hybrid meeting, and I'm delighted to be able to host some of you in person. I also welcome those participating online through our virtual meeting platform provided by our share register, MUFG. First, I'd like to introduce my fellow colleagues: Mr. Damian Spring, Executive Director and our CEO, Mr. Sam Smith in the middle. Sam is also an Executive Director in charge of Corporate Affairs and Investor Relations, and, of course, the patriarch of the company, Mr. Kim Bunting, a non-executive director, and our company secretary, Craig McPherson, who also serves a role as our CFO.
Also, I'd like to acknowledge the virtual presence of Simon Crane from KPMG, our auditors, who's online virtually from Brisbane, Josh Steele from our legal counsel, and, of course, the share register representatives here who'll be administering the attendance, the registration, and overseeing the voting. The process, or the procedure and the formalities of the meeting, will be to deal with the formal matters of the meeting first, following which Damian will give a presentation on the more technical side of the projects. Damian will open the floor to questions and also note that he can only respond to information that's been duly released through our trading platforms. Following the presentations, the shareholders are invited to mingle with the board out the front for some coffee and tea and ask any informal questions that they would like.
Our constitution suggests that we need three people, person and proxy, to have a meeting, and by those present in person and by proxy, I declare we do have a quorum, and I declare the Annual General Meeting open. Ladies and gentlemen, and those choosing to identify as a different salutation, it's my pleasure to chair this AGM. I was formally appointed to the position of Chairman of this company in October 2023, so it is actually my second AGM despite only being here for 13 months. Since the last AGM, there's been many changes in events within the company, and I'll leave Damian to elaborate on matters of a more technical nature. However, I'd just like to review a few key events that have happened during the year.
I suppose the main one in line with our transition from an explorer with a wonderful new discovery, a new board with a set of skills focused on the development and the production that's put in place, and that created some changes. Previous director, Warren Batt, another patriarch of the company, retired at the last AGM. Mr. Keevers and McDonald retired by year-end, and we essentially started the year afresh with two new executive directors: Damian Spring, previously not on the board, serving as CEO, moving up onto the board, and Sam Smith joining the board. So one of the last original directors remaining. And, of course, the new team kept well on the rails by our patriarch, Kim. And I'd just like to acknowledge Kim. His guidance and his passion and knowledge of the assets and his general business acumen is a great asset to the company.
Suffice to say, he still remains as one of our largest shareholders to date. A change of government in 2023. This was a nice surprise. Probably not for you New Zealanders, but a nice surprise for us, particularly with the proposed Fast-track Approvals Bill that intends to supersede a rather clunky RMA, was a win for the company. However, there's no shortcuts with that, but there is certainty and a process where minor self-interest objections cannot derail an economically advantageous development proposal. Another event, the board exhibited its intent to reward its shareholders with a bonus option. The bonus option, which expires on the 25th of February next year, gives shareholders the right to acquire shares at AUD 0.36. Post our split, shareholders actually have three times as many options as they did have.
And shareholders should look at this as a quasi-dividend and, most importantly, as an expression of the current board's intent to reward shareholders at every opportunity it gets. Mid-April 2024, we released a scoping study assessment for RAS. It, for the first time, exposed the preliminary economics of a mine development. At an operating level, that brought a number of changes, necessary changes, and coincidental changes to our business. We had to address the rapid increase in skill requirements to achieve our business objectives as we advanced from PFS to permitting. A capital raising of AUD 30 million was completed in April under our 708 rules and, of course, giving minority shareholders an opportunity to participate by our share purchase plan. For those unfamiliar with 708, it's a sophisticated investors' process.
This left the company capable of funding itself to a development decision in parallel with an increase in exploration activity.
We started a determined campaign to put the company, its new discovery RAS, and New Zealand as an investment area back on the international map. It's a place of promise for mineral exploration, a place worthy of investment again, and a place where it's easy to do business. This achieved strong success, our first international roadshow seeing the share price rise to a high of the year of AUD 2.46 or AUD 0.82 post-split. We now have seven broking houses covering us with international research, with more to come. We've refined our scoping study, and a PFS was released about 10 days ago now with greater accuracy. It affirmed the fantastic economic contribution of the development the project can have for our shareholders and, indeed, the New Zealand government and our nearby communities that will share an economic output in many ways.
Our share price, really the only true measure of this board's success, has performed well. Some would say it could perform better. I'm pleased to advise that the low for the year was actually the day after the last annual report at AUD 0.25 post-split, a peak of AUD 0.82 and trading at AUD 0.52 today, or 210% higher over the year, even higher again if you consider the quasi-dividend via the bonus option. Our register shows that approximately 40% of our shareholders have New Zealand home addresses. Hence, our highlight for the year was to list on the New Zealand Stock Exchange to give New Zealand investors the chance to buy their locally grown gold story in their own exchange, in their own time, and in their own currency.
At this point, I wish to acknowledge, in the room also, a champion of the company, and very pleased to see him here today, Mr. Chris Lee, whose strong advocacy and belief in the company has been excellent. Sir, I thank you and your sons for your belief and support, and I believe many of our New Zealand shareholders should also be thanking you as well. Also acknowledge the New Zealand Stock Exchange, Mark Peterson, who is not here, but he said he was coming. Listing rules aside made this a very smooth process for us. And, of course, the Santana engine room in this process was our CFO and Company Secretary, Craig McPherson, who did and continues to do a great job for the company. We do have a challenging but exciting year ahead as we seek to finalize our permits to develop the Bendigo-Ophir project.
We also have the task of establishing our financing for the project and moving to develop the plant and infrastructure. So that brief summary of a busy year. I sincerely thank you, our shareholders, for your continued support and belief in the company. I'd also like to thank my co-directors, our employees, contractors, and consultants who make it happen on the ground in the fast lane of business life. So without further ado, I now turn to the matters of the notice of meeting, the formal business. The notice of meeting was duly given, and this meeting has been properly convened. In the absence of any objection, I advise the meeting will proceed on the basis that the notice is taken as read. Please note that only shareholders, proxy holders, or shareholder company representatives may vote.
I propose Brendan from MUFG to call a poll of the resolutions, and for the purpose of the poll, I'll appoint him as our returning officer and to conduct the poll. Results of each of the resolutions will be announced on the ASX/NZX platform later today when counting is complete. Shareholders, representatives, and attorneys present in the room and entitled to vote, please ensure you have received an attendance card from MUFG person. If there's anyone missing one, you better get out the front real quick. Shareholder proxy holders or appointed representatives issued with a white voting card are entitled to ask a question or vote. If you've been issued with a blue card, you may ask questions, but you are ineligible to vote. If you've been issued with a black card, well, I wonder what that means, you're then unable to ask any questions.
Please see the MUFG team at the registration desk if you have any further questions. Shareholders attending the meeting online will be able to cast their vote using electronic voting cards received when online registration was validated. Please refer to the virtual annual meeting online portal or use the helpline specified if there is a problem. Online shareholders and online proxy holders can start submitting questions now by clicking the ask a question box. The company secretary will read these questions to the meeting at the appropriate point. However, we need to be reasonable, so he won't read out several questions that are largely the same. Lengthy questions he may summarise, and questions that relate to matters that have already been addressed during the meeting will not be raised. Feel free to ask any questions online.
The first item of our business to consider is the financial statements of the company for the year end of 30th of June 2024, together with the director's report and the auditor's report as set out in the annual report. I note that no resolution is required to move this matter in respect of this item. Also note, in respect of the representatives of the company's auditors, KPMG, Simon Crane, is present as is required by the Corporations Act. Simon is present virtually. Thank you, Simon. Is there any questions from shareholders in the room to the auditor relating to the annual report of the company? No? Craig, do we have any questions online on the matter?
No.
I'll now move to the resolutions. I note that all resolutions for consideration at this meeting are ordinary resolutions, each requiring a simple majority vote cast by shareholders entitled to vote.
Resolution one deals with the remuneration report on page 30 of the annual report. I note this resolution is displayed on the screen. In summary, the resolution concerns the remuneration report as set out in the notice of meeting. Is there any question from shareholders relating to this report in the room? Do we have any questions online, Craig?
No. Only questions.
No. Thank you. So please select for, against, or abstain on resolution one of your voting card. The proxy voting will now appear on the screen, as you'll see quite strongly in favour. Resolution two deals with the re-election of Mr. Damian Spring as the director of the company. Again, the resolution displayed on the screen. Is there any questions from shareholders in the room relating to this resolution? No questions. Any online questions, Craig?
No questions.
No. Thank you. Can you please select for, against, or abstain for resolution two on your voting card? The proxies for this resolution are displayed on the screen. Again, strongly in favour. Please also note that it's my intent to vote all unallocated proxies, and my apologies for not saying this earlier, in favour of all resolutions. Resolution three, which is the election of Samuel, or Sam as we call him, Smith, again displayed on the screen. Any questions from shareholders relating to this resolution in the room? Any questions online, Craig? Thank you. Please now again vote for, against, or abstain on that resolution, and the proxy votes will now appear on the screen. I just want to move to general questions.
I'd like our shareholders, bearing in mind you will have the opportunity to question Damian following his presentation, if there's any other questions that anyone would like to raise in general business of the company. No questions? So, ladies and gentlemen, that completes the formal part of the business. So I'll now hand over to Damian to give a brief presentation. I'll call on Damian to formally close the meeting at the end of his presentation. And we do have some coffee and hopefully some biscuits because I'm pretty hungry out the front, where you're welcome to mingle with us after that. Thank you.
Good afternoon, ladies and gentlemen. Thank you, Mr. Chairman. Your leadership and support over the last 12 months has been invaluable. It is my distinct pleasure to welcome you all to the 2024 Annual General Meeting of Santana Minerals Limited, being held here in person in the City of Sails and home to the alma mater for myself and fellow director, Mr. Kim Bunting, the University of Auckland. As we gather here today, I would like to extend my gratitude to each of you for your continued support and trust in our company, particularly the confirmation as directors of myself and Mr. Sam Smith.
Could you just interrupt as the ballot box gets passed around for people to submit their votes?
Oh, yeah. The ballot box will be passed around for you to submit your votes while I continue. This year has been a remarkable journey marked by significant achievements and strategic advances. I'm honored to share with you the highlights of our progress and the vision that propels us forward. The past year has been transformative for Santana Minerals.
Our unwavering commitment to exploration and development has yielded impressive results, with confirmation of the high-grade core of the Rising Shine, or RAS, gold deposit at our flagship Bendigo-Ophir Gold Project in Central Otago, the upgrade to 1.45 million ounces of indicated resources at RAS, the announcement of our maiden reserve this month of 15.5 million tonnes at 2.4 grams for 1.2 million ounces, a 79% rate of conversion from indicated to probable reserves, and, of course, the incredible results of the pre-feasibility study that form the basis of the reserve statement. This vital milestone sets us up well for the application of our permits under the Fast-track Approvals Bill to be submitted early next year while we progress detailed engineering in anticipation of a final investment decision mid-next year. Since last year, we've completed 26,000 meters of drilling over 225 holes.
The primary focus was to increase the amount of indicated resources to underpin our technical studies this year. This resulted in the increase to 1.2 million ounces of indicated at RAS announced in February earlier this year. The announcement of our results of our scoping study in April was the first chance to bring all the key elements of a new gold project together and demonstrate the outstanding economics that this project presents. Drill hole results announced in July confirmed the high-grade core was six of the seven holes landing in the top 20 high-grade intercept at RAS. A further increase to 1.45 million ounces of indicated resources demonstrates the continuity and strength of the RAS deposit downplunge and still open at some depth, 1.7 kilometers from outcrop on the angle and a mere 650 meters below surface.
Also, in July, we listed on the NZX to enable all New Zealanders the opportunity to participate in a project of truly national significance. Further infill drilling at Shreks and Shreks East resulted in a further Indicated Resources of 69,000 ounces being reported. Infill drilling at Come-in-Time has been completed, and results of that and an update of the MRE will be announced shortly. Meantime, the team continues to explore within the project footprint and near mine. Building on our exploration successes, we have made substantial progress in advancing our project towards development. We released the results of the Bendigo-Ophir Gold Project pre-feasibility study this month that demonstrates the high margin this mine will deliver over nine years of production with significant upside. Robust returns, high grade of over three grams per tonne from RAS, resulting in high margins of over AUD 1,500 an ounce.
A modest pre-production capital expenditure of AUD 123 million for a simple crush, grind, gravity, and CIL plant processing 1.5 million tons per annum. Site infrastructure of AUD 51 million for power, water, roading, offices, workshops, tailings storage, and water treatment, and a pre-strip at RAS of AUD 133 million to enable steady state ore production. This delivers 125,000 ounces a year for over nine years, but most importantly, delivers 150,000 ounces for each of the first two years of production. At a spot price of over AUD 4,000 an ounce, the payback is less than one year of production. Therefore, development of the underground commencing late in year two will be funded from cash flow with initial gold production from underground starting in year four.
By year eight, the RAS pit is completed, and the development of the Shreks Open Pit supplements the last of the probable ore reserves from underground.
But remember, there is another 300,000 ounces of inferred resources immediately downplunge from the underground that need to be upgraded to indicated. And of course, it's still open beyond that. So with due consideration, the mine life will likely extend beyond what is shown here. So robust gold development that delivers an after-tax net present value of over AUD 1 billion at a discount rate of 8%, less than one year payback, with an all-in sustaining cost of AUD 1,416 per ounce that puts us, the Santana Minerals, below the lowest quartile of the top 22 ASX gold producers, with plenty of upside for resource upgrade and near mine discovery, let alone the remaining 25 kilometers of the 30 kilometers of strike of the exploration permit.
But while the economics of our project are industry-leading, it is the process to deliver the necessary permits to commence construction and mining that are world-leading. This government is one reading, one parliamentary sitting away from passing into law a bill that was barely in the collective consciousness this time last year when the coalition partners were still in negotiations. The Fast-track Approvals Bill is a one-stop shop that covers the Resource Management Act, the Wildlife Act, the Heritage Act, and a number of other pieces of legislation under which we would normally require individual separate applications. This bill will enable robust evaluation of a single application for the necessary consents, permits, and authorities to enable mining of the Bendigo-Ophir Gold Project.
We are very close to completing our baseline studies and assessments of environmental effects that will be the basis of writing our single application that will be submitted in February next year. The Fast-track Approvals Bill could mean we have a decision by the middle of next year. Our engagement with mana whenua and with regulators and the local community is ongoing and will continue throughout the mine life. As we look to the future, Santana Minerals is poised for continued success. Our strategic priorities are clear: expand our resource base, advance the project through the development pipeline, and deliver sustainable value to our stakeholders. We have commenced detailed engineering to enable a rapid move to construction once permits are granted. Any works that are possible and meaningful to commence beforehand will be considered to enable a short timeframe to gold production.
Power, water, and roading are a vital first step. Then pioneering into the hills of the Rising Shine and Shepherds Creek to enable plant construction and bolt moving for the RAS Open Pit are key to this development. But with key infrastructure located in Shepherds Creek Valley, we are now undertaking wide-space drilling to discover any blind deposits at depth to enable infill drilling before the engineered landforms or tailings storage facility are in operation. Dubbed RAS is not alone. Thank you to our director, Mr. Kim Bunting, or RINA for short. This has the potential to be a game changer. The financial health of Santana Minerals remains robust. Our prudent financial management and capital allocation strategies have positioned us well to navigate the challenges and opportunities of the current market environment.
In the past year, we have successfully raised over AUD 40 million through a combination of equity placements and the bonus option. With approximately AUD 30 million in the bank and over AUD 30 million of the bonus options in the money, we are well placed through next year. We have begun early discussions with finance providers about options for project funding. We expect to align this with Fast Track Approval next year. In conclusion, I would like to express my keen appreciation to our dedicated team in Central Otago, our board and chairman, and to you, our shareholders. Your unwavering support and commitment are the driving forces behind our success. The achievements of the past year are a testament to our collective efforts and our shared vision for Santana Minerals. Thank you for your continued trust and support. Thank you. I'll open up the floor to any questions.
Damian, could I get the questions underway?
Sorry, Chris might need a microphone for the online audience.
Oh, okay.
Thanks very much, Damian. Chris Lee. I would like to get the questions started by asking questions that I think can be answered and haven't been answered by this. One obvious question to ask is, would a gold loan be part of the considerations that Santana would be undertaking as a means of financing some of the capital needs?
Definitely. I think our discussions are at an early stage, and certainly gold loans are a key part of our industry. Did you want to add anything to that, Mr. Chairman?
No, it's certainly under consideration. Been involved in those before. They're not all that common these days, but certainly it's a very effective way to fund a gold resource project. A little bit harder for initial development on a one-asset development with the lead times, with potential delays, with all those sorts of things with back delivering those gold. But certainly, it's one of the key considerations we're looking at.
Thank you. May I ask a second question? And that is whether the intention is in the first part of 2025 to intensively drill and reach measured status for the area around the Jewellery Box or O7?
Certainly, with our timeline to deliver gold by the end of 2026, we would expect that we would have a measured category well before then, whether it's early next year or later. We do have a little bit of time up our sleeve with the nature of the pre-strip to enable that ore to be exposed.
Are we far away from being told about the pre-strip and where it starts and what sort of boundaries and thoughts that Santana will have about getting that underway?
Certainly, in the timeline I showed here in our actual pre-feasibility presentation, with the granting of our consents, we expect that it would be a 12-to-15-month pre-strip, which will also take place in parallel with the construction of the plant. So it's fairly straightforward with the cross-sections that were shown. It's about lifting the lid off this ridge line that's shown here below Battery Hill to expose that ore on a consistent basis.
I'll pass the mic to someone else.
Any questions online?
No.
You've got a question over here.
Chris Lee, New Zealand Shareholders Association. What do you think the major hurdles are likely to be with the consenting? Because the Fast Track doesn't mean it's automatic, right?
No. Look, we've started on this journey as soon as I joined the company. It started last year, well before there was a fast-track. And given the semi-arid climate in Central Otago, particularly where we are, water is a key issue, both the supply of it and then the use of it and the protection of the water quality. So those are key aspects that we have focused on. Equally, while this is freehold sheep and beef country, there is a matter of ecology that is part of the overall 90,000 hectares of the Dunstan Ecological District that we're getting an understanding of how this particular part of that fits into the overall landscape. Certainly, our neighbours have expressed their views on the impacts that will probably affect them directly in terms of some increase in traffic, noise. But I think those are all very manageable.
As you can see, the nearest house is well over three kilometers away from our planned activity. We have, for all these things that we're taking very seriously, literally spent millions of dollars understanding up to this point. We will have fully addressed in our application under the Fast-track.
And manga te pino?
Those consultations are ongoing. They first visited site in 2018, I believe, and have since been to site late last year. So that is an ongoing discussion. And no more questions?
No?
Anything online? Great. I'll hand back to you, Mr. Chairman.
Yes, sure. Well, thank you, ladies and gentlemen. That concludes the Annual General Meeting today. Those people online, voting will close five minutes after the closure of this meeting. So obviously, our poll in the room is closed. So thank you for your attendance, and I welcome you to join with us for a cup of tea out the front. Thank you.