Cora Gold plc (LON:CORA) has received positive interest from a number of West Africa-focused banks over the potential provision of US$60 million of senior debt for its flagship Sanankoro gold project in Mali.
The latest Cora Gold research note from Cavendish, dated 26 August 2026, describes the development as encouraging and highlights the additional flexibility it could give Cora when determining how to finance construction at Sanankoro. Cavendish has a 27.0p target price for the company, compared with a share price of 9.8p when the note was published, representing 177% upside based on those figures.
Research Analyst Nick Chalmers, Director of Research at Cavendish, wrote:
“In an encouraging update, Cora said that a number of West African-focused banks have shown positive appetite to provide US$60m of traditional senior debt to Cora’s flagship Sanankoro gold project in Mali, with the company expecting to formalise one or more of these opportunities in due course.”
US$60 million debt option could reshape Sanankoro funding
Cora already has a committed funding solution for Sanankoro through the US$120 million Gold Stream agreed in April with its largest shareholder, Eagle Eye Asset Holdings, which owns 29.9% of the company.
Following the interest received from banks, Cora and Eagle Eye have agreed to extend the period in which Cora can replace 50% of the Gold Stream with traditional senior debt.
The deadline is now the later of 30 October 2027 or six months after the Sanankoro mining permit is granted. Previously, the replacement needed to take place by 15 December 2026.
Cavendish believes this extension gives Cora considerably more time to assess potential debt funding while retaining the existing construction financing solution.
Under the existing Gold Stream structure, Eagle Eye is entitled to purchase 30.44% of Sanankoro’s life-of-mine gold production at 20% of the prevailing gold spot price. If Cora replaces 50% of the Stream with debt, this entitlement would reduce to 15.22%.
Key Sanankoro project highlights
- West Africa-focused banks have shown positive appetite to provide US$60 million of traditional senior debt.
- Cora has until the later of 30 October 2027 or six months after the mining permit is granted to replace 50% of its US$120 million Gold Stream with debt.
- The first interim renewal of the Sanankoro II exploration permit has been completed.
- Renewals of the Bokoro II and Kodiou exploration permits are the next steps in the permitting process.
- Front-End Engineering & Design, or FEED, work began in May and is expected to be completed during the second half of 2026.
- The updated UDFS financial model indicated an NPV8% of US$461 million and an IRR of 119% at a US$4,000 per ounce gold price.
- A 2026 exploration programme involving more than 12,000 metres of drilling began in June.
Mining permit remains an important milestone
Cora is continuing to work through the permitting process required before construction can begin.
The recent first interim renewal of the Sanankoro II exploration permit represents another step towards consolidating the infrastructure required for the project within a single mining permit covering approximately 100 square kilometres.
Cora continues to engage with the Malian authorities, with the renewals of the Bokoro II and Kodiou exploration permits identified by Cavendish as the next stages. Once those renewals have been secured, Cora expects to be able to progress its application for the mining permit required to start construction.
Construction preparation already under way
Cora has not waited for the mining permit before progressing work that could help prepare Sanankoro for construction.
Front-End Engineering & Design work started in May following the agreement of the Gold Stream. Cavendish says the study is progressing well and expects completion during the second half of 2026.
Completion of FEED should enable decisions to be made on long-lead items ahead of construction. Cora is also advancing complementary work, including land compensation in priority areas and refurbishment and upgrading of the existing exploration camp.
These activities are intended to help put Sanankoro in a position to move towards construction once the necessary mining permit has been received.
Cavendish highlights Sanankoro economics
The research note also points to the economics contained in the updated definitive feasibility study financial model released in May.
At a gold price of US$4,000 per ounce, the model indicated a post-tax NPV at an 8% discount rate of US$461 million and an internal rate of return of 119%. Cavendish notes that these calculations were not adjusted for the Gold Stream.
The broker also observed that the prevailing gold price at the time of its research note was approximately US$4,700 per ounce, above the US$4,000 per ounce assumption used for those project economics.
Cavendish’s estimates show Cora potentially moving into a more substantial operating phase in 2028, forecasting revenue of US$230.7 million and adjusted EBITDA of US$137.6 million for that year. These figures remain forecasts and depend on the development timetable and other project assumptions.
Exploration targets longer-term growth
Alongside development work, Cora is also seeking to increase the longer-term potential of Sanankoro.
The company commenced its 2026 exploration programme of more than 12,000 metres of drilling in June. The programme is targeting extensions to existing deposits as well as prospective targets close to the planned mining operation.
According to Cavendish, the objective is to grow Sanankoro’s resource base, potentially supporting higher production, a longer mine life, or a combination of the two.
Thoughts:
Cora Gold now has two potential routes to funding the development of Sanankoro. The existing US$120 million Gold Stream provides a committed financing solution, while interest from West Africa-focused banks could allow up to half of that arrangement to be replaced with conventional senior debt.
The extended deadline gives Cora additional time to evaluate those debt opportunities while it advances permitting, engineering and preparatory work. With FEED progressing, exploration continuing and the mining permit remaining the key prerequisite for construction, the next stages of Sanankoro’s development will be important to watch.
