Shanta Gold Share Discussion Threads

[jc2706] 14/5/2019 12:27

No they weren't. Not great investments for sure but scams? Certainly not all of them. As an example, if you compare Hambledon (now Altyn) and Anglo Asian (the current darling of the gold miners) from 2005 onward, it wasn't until mid-2017 that AAZ really started to outperform ALTN. I suspect that, on your criteria, AAZ would have been viewed as a scam in mid-2017. I am pretty sure that you missed out on the subsequent 1500% rise in the share price on that basis. The trouble is that you view the entire stock market as a scam. Granted it is a dirty place but viewing the whole thing as a scam has meant that you have missed out on a huge opportunity for the last ten years.

Anyway, enough of this. It is like conversing with an ill-educated school child sneering at schools and universities.

[jc2706] 14/5/2019 11:45

Then you have nothing to fear by phoning them, secure as you are in your own knowledge.

[redhill] 14/5/2019 11:45

ag

They have already said they will pay off the convertibles this quarter in addition to their normal debt repayments.
Nothing suggests to me that this is a problem.
Come April next year repaying the last tranche could be problematical i agree but that's not now and my crystal ball doesn't work that far ahead.

[jc2706] 14/5/2019 10:42

As I have said all he needs to do is talk to the company and they will explain all of his points including the EBITDA and debt repayments. But he won't because that will undermine his thesis.

[redhill] 14/5/2019 10:39

I can't believe he thinks the gross debt is going to reduce in equal amounts each quarter. Over $8 million reduction due this quarter on its own.

[jc2706] 14/5/2019 10:32

Hmmm. Let me think. Should I believe somebody I have spoken to and questioned or someone whose portfolio has performed worse than anyone else I have heard of for the last ten years and clearly has a grudge against the company? It's a tough call but I think I'll go with the company.

[jc2706] 14/5/2019 09:39

Redtrend,

I suggest a chat with the company as I am sure that they can update you on their ability to repay the outstanding debt.

All that aside, the fact that the company is still reducing net debt, despite the fact that the government is not abiding by its fiduciary duty with respect to VAT repayments, is outstanding.

[jc2706] 14/5/2019 09:35

As he doesn't understand depreciation I suspect that he will be running to his bank account as we speak to check his balance.

[redhill] 14/5/2019 09:10

He's certainly depreciating though !

[338] 14/5/2019 08:55

AG surely can't wear out... lol

[redtrend] 14/5/2019 07:40

1) 7.5 MwH HFO Power Station (20yr design life) circa $16m capex spent + fuel storage facility
2) Mass Gravity Dam - 50yrs+ design life
3) Solar Plant
4) Tailings Storage Facilities (13yrs+ life)
5) Heavy Machinery - 10yr+ mine life (spares, maintenance, repairs covered under Opex costs, AISC etc.)
6) 1,000m3 pre-leach tank
7) Camp, facilities, main infrastructure to support the mine etc.


You honestly think SHG which only has a 5yr mine life left will be replacing these assets in the course of its working life, even if/when it extends the mine life?!

Yes extending mine life will involve additional Underground Mining Capex for said extensions, but you're crazy if you think it's anywhere near to the $120m+ over the 2014-2018 period, which included the above major one-time costs.

Whilst I'm starting to converge on some issues you raise in the short-term (cash crunch later this year if no VAT rebates paid, loans refinanced or placing), long-term you are way off in terms of Capex. Any mine extensions will require significantly less Capex in comparison to past Capex.

[redhill] 14/5/2019 07:11

ag

Surely that depends upon what the assets were in the first place !

[338] 14/5/2019 06:36

Did you sleep last night, AG?

[jc2706] 13/5/2019 20:44

Sorry AG. If you refuse to discuss with the executives of the company, as I am sure the rest of us have or would, then there is really very little point discussing your warped analysis.

To be honest I am not sure why I have started responding again as I swore I wouldn't when you treated depreciation as a cash item