Cora Gold (LON:CORA) is continuing to advance its flagship Sanankoro gold project in southern Mali, with Front-End Engineering & Design work remaining on schedule for completion during the fourth quarter of 2026, according to the latest research note from Cavendish.
The company has now completed 3D plant modelling and all associated field work, while equipment suppliers have been engaged across the comminution, carbon-in-leach and elution circuits.
This work is intended to shorten the timetable between receipt of the mining permit and first gold production by allowing decisions on long-lead equipment to be made as the project progresses.
Cavendish Director of Research Yuen Low writes: “Cora reported that Front-End Engineering & Design (FEED) on the flagship Sanankoro project in southern Mali is progressing well and remains on target for completion in 4Q26, with 3D plant modelling and all field work now concluded.”
Pre-construction work continues
Alongside the engineering programme, Cora has been progressing several pre-construction activities at Sanankoro.
Geotechnical drilling and test excavations have been completed around the proposed processing plant and power station areas, providing information needed for detailed foundation design.
The company has also upgraded its exploration camp and completed land compensation covering the 174-hectare tailings storage facility area.
Final geotechnical work at the tailings storage facility is expected to begin shortly ahead of detailed design.
These steps mean a number of project activities are being advanced before construction formally begins, with the mining permit remaining a key requirement before the company can move into the construction phase.
US$120 million funding structure in place
Cavendish also highlights the US$120 million Gold Stream agreed with Cora’s largest shareholder, Eagle Eye Asset Holdings, during the first half of 2026.
Under the agreement, Eagle Eye is entitled to purchase 30.44% of Sanankoro’s life-of-mine gold production at 20% of the prevailing spot gold price.
That percentage would fall to 15.22% if half of the Gold Stream is replaced with senior debt by the later of 30 October 2027 or six months after receipt of the mining permit.
Cavendish says Cora has received positive interest from West African-focused banks regarding the potential provision of debt funding.
The structure therefore gives Cora an existing funding route while retaining the option to adjust the eventual financing mix.
Permit process moving forward
Progress is also being made on the permits required to consolidate Sanankoro’s infrastructure under a single mining permit.
The first interim renewal of the Sanankoro II exploration permit was announced in August.
Cora continues to engage with the Malian authorities over the remaining renewals, with Bokoro II and Kodiou identified as the next exploration permits required. Once those renewals are secured, Cora expects to be in a position to progress its application for the mining permit needed before construction can commence.
Sanankoro economics remain substantial
Cavendish points to the updated financial outcomes from Cora’s Definitive Feasibility Study model released in May.
At a gold price of US$4,000 per ounce, the model produced:
• An NPV at an 8% discount rate of US$461 million.
• An internal rate of return of 119%.
• Project economics calculated before adjustment for the Gold Stream funding arrangement.
The research note also states that the prevailing gold price at the time of publication was approximately US$4,400 per ounce, above the US$4,000 per ounce assumption used in that scenario.
Drilling targets a larger resource base
Cora is also undertaking a 12,000-metre drilling programme designed to test extensions to existing deposits and nearby exploration targets.
The programme began in June and is aimed at increasing the resource base, with the potential to support higher production, a longer mine life or both.
Initial assay results announced earlier in September included broad zones of mineralisation outside the existing 2024 Mineral Resource Estimate.
Cavendish also highlights a higher-grade zone in fresh rock which could provide potential for future underground mining beyond the currently planned oxide operation.
All of the drilling areas are located within relatively short trucking distance of the proposed Sanankoro processing plant, which could become relevant if additional resources are incorporated into future mine planning.
Cavendish maintains 25.8p target price
Cavendish has retained its 25.8p target price for Cora Gold.
That compares with the 10.2p share price recorded in the research note, representing stated upside of 154%.
The broker’s estimates currently assume no revenue during 2026 or 2027, before revenue of US$113.2 million in 2028.
Adjusted EBITDA is forecast at a loss of US$2.2 million in 2026 and US$2.0 million in 2027, before moving to positive adjusted EBITDA of US$64.8 million in 2028.
Thoughts
Cora Gold is moving several parts of the Sanankoro development forward at the same time, including engineering, pre-construction work, permitting, financing and resource expansion drilling.
Completion of FEED in the fourth quarter would represent another step towards construction readiness, while the existing Gold Stream provides a defined funding solution that could later be combined with senior debt.
Cavendish continues to value Cora Gold at 25.8p per share as the company works towards securing the remaining permits and preparing Sanankoro for construction.
