Cora Gold Ltd (LON:CORA) is continuing to advance its flagship Sanankoro gold project in southern Mali, with Cavendish highlighting progress on funding, permitting, engineering work and exploration in its latest research note from 4 September 2026.
The broker describes the first half of 2026 as a significant period for the AIM-listed gold exploration and development company. Most importantly, Cavendish believes funding risk was effectively removed after Cora completed a £15.7 million equity fundraise in March, followed by the signing of a US$120 million Gold Stream financing package in April.
Research Analyst Nick Chalmers wrote: “Cora enjoyed a transformational 1H26, although the financial results reported today are largely academic.”
The funding arrangements provide Cora with a committed construction financing solution for Sanankoro, while the company retains flexibility over how that funding is ultimately structured.
Cora Gold 1H26 and operational highlights
- Cora completed a £15.7 million equity fundraise in March 2026.
- The fundraise was cornerstoned by Eagle Eye Asset Holdings, which became Cora’s largest shareholder with a 29.9% interest.
- Cora subsequently signed a US$120 million Gold Stream financing package with Eagle Eye Asset Holdings in April.
- The company has additional time to replace up to 50% of the Gold Stream with senior debt.
- Front-End Engineering & Design, or FEED, work began in May and is expected to be completed during the second half of 2026.
- A 12,000 metre drilling programme commenced in June, targeting extensions to existing deposits and prospective near-mine targets.
- The first interim renewal of the Sanankoro II exploration permit was announced ahead of the latest Cavendish research note.
Greater flexibility over Sanankoro financing
The period during which Cora can replace 50% of the Gold Stream with senior debt has been extended to the later of 30 October 2027 or six months after the Sanankoro mining permit is granted.
Cavendish sees this as giving Cora additional time to optimise the financing structure while maintaining access to a committed construction funding solution.
Under the current arrangement, Eagle Eye Asset Holdings is entitled to purchase 30.44% of Sanankoro’s life-of-mine gold production at 20% of the prevailing gold spot price. That entitlement would fall to 15.22% if Cora replaces 50% of the Stream with debt.
The research note also says Cora continues to see positive appetite from several West African-focused banks for traditional senior debt.
Sanankoro permitting remains a key milestone
Obtaining the Sanankoro mining permit remains central to the project’s development timetable.
The first interim renewal of the Sanankoro II exploration permit was described by Cavendish as another step towards consolidating the project’s mining infrastructure under a single mining permit.
Cora continues to engage with the Malian authorities regarding the remaining renewals, with the Bokoro II and Kodiou exploration permits identified as the next steps. Once those renewals are secured, the company expects to be able to progress its application for the mining permit required before construction can begin.
Cavendish has moved its assumed construction start to the first half of 2027 from the second half of 2026. This change has resulted in the broker reducing its short-term target price from 27.0p to 25.8p per share.
Even after that adjustment, the new target represents 177% upside to the 9.3p share price quoted in the research note.
Engineering work aims to shorten the route to production
Cora is also undertaking work intended to ensure Sanankoro is ready to move towards construction once the mining permit is received.
FEED work began in May and, according to Cavendish, is progressing well. The process should allow Cora to make decisions on long lead-time equipment and other items before construction begins.
Cavendish expects FEED to be completed during the second half of 2026, while Cora is also advancing complementary preparatory workstreams.
This work is intended to compress the future delivery timetable and support a quicker transition towards production once the necessary permitting is in place.
Sanankoro economics remain a key part of the investment case
Cavendish also points to the economics contained in the updated Sanankoro definitive feasibility study financial model released in May.
At a gold price of US$4,000 per ounce, the project model indicated an NPV8% of US$461 million and an internal rate of return of 119%, before adjustment for the Gold Stream arrangement.
The broker noted that project economics would be stronger at the approximately US$4,515 per ounce spot gold price referenced in its report.
Cavendish’s valuation work on page four of the note gives Cora a fully diluted sum-of-the-parts valuation of 25.8p per share. The broker values Sanankoro, resources outside reserves and the exploration target alongside forecast net cash and other items.
Exploration could add further value
Beyond construction preparation, Cora is continuing work designed to expand the Sanankoro resource base.
A 12,000 metre drilling programme started in June, targeting extensions of existing deposits as well as near-mine exploration opportunities. The aim is to identify opportunities that could ultimately support higher production, extend mine life, or both.
Cavendish also believes the shares are undervalued relative to a selection of African peers. On page five of its report, the broker says it expects Cora’s valuation to move closer to peer levels as important milestones are achieved, particularly receipt of the Sanankoro mining permit and continued project de-risking.
Final Thoughts
Cora Gold enters the next stage of Sanankoro’s development with funding arrangements in place, FEED progressing and further exploration underway. The mining permit remains the most important near-term milestone, and Cavendish has pushed its assumed construction start into the first half of 2027 to reflect the revised timetable. Even after reducing its target price to 25.8p, the broker continues to see substantial potential relative to the 9.3p share price used in its research note.
