Shanta Gold Share Discussion Threads

[redhill] 13/5/2019 09:36

AG

How many builders in this country are paid monthly ?
How many miners in Tanzania are paid monthly ?

[redhill] 13/5/2019 08:09

I would have thought also that the majority of workers would get paid weekly and only a few would be monthly salaried. Staff costs for the year were $15.7 million (2018) plus directors salaries.

Regarding VAT. I'm confused that we are actually paying the government. I was under the impression we were paying VAT on goods and services directly to the suppliers with the invoice and this was the money that was reclaimable as there is no VAT on gold sales.

[nav_mike] 13/5/2019 07:31

Would be very surprised if Accruals related to payroll matters....

Accruals by defintion are costs that have to be provided for but that have not yet been billed to you. For instance, (simple example) you are expecting a quarterly phone bill, but it doesnt get billed until a month after the cut off point. You would accrue the two months relating to pre-cut off. Or you know you will be getting an audit bill relating to the year, but it obviously wont arrive until work is completed

Also, unless I have missed something, why would there be unpaid payroll at the beginning of each month? Payroll would be run at month end, and staff presumably paid on time?

It is somewhat unusual that Shanta dont have an 'other creditors' line. This is where sundry payables usually get put.

[redtrend] 13/5/2019 06:36

Redhill - Ag is partly correct that at the start of each month, there will be payments to be made: payrolls for staff and then some trade payables.

If we look at the accounts (page 66), there are accruals of 3.1m. So I assume these are for payroll?

You then have what most consider "pure" trade payables (suppliers etc.) of 8.6m (roughly 2.5 months of trade payables). So at any one month, you would expect circa 3.4m to be paid (it of course keeps rolling over with new trade payables).

So already we are up to 6.5m. I'm not sure when VAT gets paid, I would assume it's quarterly. So depending on the month, we also have 1.8m to pay the Government.


Of course in the same period, trade receivables will also be coming into SHG banks for gold sales and the like. So with outgoings and incomings, it's hard to determine exactly the minimum requirements of cash in the bank is from month to month.

If one is going to focus on outgoings, then you must also consider incomings. As usual Ag only looks at one side, but he does have a valid point. If for example payrolls get processed in the 1st week of each month, but gold sales from prior months on average only get paid to SHG in 2nd week, there could be periods where things get quite tight.

[redhill] 11/5/2019 22:22

Ag

I agree i couldn't work out why the cash balance wasn't higher but i don't have a full breakdown on how funds are spent each quarter and neither do you.

I mean what is all this nonsense in your head about "usual payments at the start of each quarter ". This is something you have made up .

What are the usual payments you refer to ?

[redhill] 10/5/2019 15:13

6.29p . Come buy my lovely stock ! :0)

Unlimited Market maker offer.

[hard work] 10/5/2019 08:46

From a couple of days ago...

Barrick Could 'Force' Resolution to Acacia's Troubles, CEO Says
Bloomberg - 9 minutes ago

Gets better....

Barrick Gold Corp.’s Mark Bristow said the company may have to "force" an end to stalled talks with Tanzania over the fate of its subsidiary Acacia Mining Plc -- but not yet. Shares of the unit pared gains.


Acacia has been at odds with Tanzania’s government since July 2017, when the state handed the London-listed gold producer a $190 billion tax bill, saying it falsely declared bullion exports. Bristow was named Barrick chief executive officer in January, and the following month the Toronto-based miner said it’s reached a settlement proposal with the government. Yet so far, no final deal with the government has been signed.

“We would definitely at a point intervene and force the process, but right now it’s not a constructive way to try to solve this problem,” Bristow said in an interview in Toronto Wednesday.

Sally Marshak, a spokeswoman for Acacia, said the company has no immediate comment. Shares of the London-listed company, which earlier rose as much as 4.9 percent, pared gains to 1.5 percent to 144.2 pence at 3:30 p.m. in London.

Bristow took the helm at Barrick after the miner merged with his company Randgold Resources Ltd. at the start of this year, rekindling hope of a resolution. The South African has a long history of successfully operating in Africa, but so far has left negotiations in the hands of his long-time lieutenant Willem Jacobs.

Barrick, which owns almost two-thirds of Acacia, has previously said that the plan includes the gold producer paying $300 million to resolve outstanding tax claims. It also involves a 50-50 sharing of the “economic benefits” of Acacia’s operations with the state.

Acacia has been frozen out of the talks, but its board will have to approve any deal. Once that’s done there’s uncertainty over the future of the miner that only operates in Tanzania. Barrick would favor taking back full control of the unit, people familiar with situation said last year.

“It’s a tragedy; what we’re dealing with is a complete breakdown of relationships,”; Bristow said Wednesday, noting that the Tanzanian government refuses to deal with Acacia. Bristow declined to provide more details on what an intervention would look like.

“There’s a way where we could get involved in wrapping up the business going forward and then deal with the assets ourselves,” Bristow said. “Or there’s a way where we could cooperate with the Acacia board and we could look at strategic options and realize the assets in a different way. Those are the options that we have.”

[qs99] 10/5/2019 07:47

Agreed Redhill, just voicing my frustrations again haha, Soz!

Given new sanctions on china today, surprised Gold hasn't moved higher

Good weekends all.

[redhill] 09/5/2019 16:31

QS99

In my view the market makers have been short of stock since they were caught out by that large rise two months ago.
All their actions suggest they are trying to balance their books by marking down on little selling.Been at it for weeks now. We could do with some news on VAT soon.
Barricks discussions with GOT seem to have been going on for ages now.

[qs99] 09/5/2019 16:21

6% off wtf?!

[juju44] 08/5/2019 20:28

Shanta just cannot take any decent news

[338] 08/5/2019 10:59

PoG is heading to $1300+ again

[redhill] 07/5/2019 22:18

Just vanishes ? When the half year accounts come out in August we can see where its been spent.

[redhill] 07/5/2019 19:51

Well it doesn't take a genius to work out that the grades are better at BC.
Now if you have a large amount of debt to repay in a short space of time you are hardly going to spend your time mining the lower of the two grades.
The grades at Luika are still pretty good and i very much doubt it will be closed for a while.

Still better in fact than the grades being mined by Acacia !