Shanta Gold Share Discussion Threads

[jasper2712] 19/6/2019 14:10

I cannot remember if it was a proactive investor interview with Eric or some other interview as it was around mid March. He did say in that interview that he was fairly confident that the VAT issue would be resolved and he was hoping to have more information around mid May. The interview is out there somewhere and I saw another interview where he implied that progress was being made.

[redhill] 19/6/2019 13:38

AG

They way i understand the situation is that after the Barrick takeover Barrick will pay the TZ government $300 million. That will resolve all outstanding tax payments with Acacia meaning there will be no VAT owed.

There will then be a 50-50 partnership with TZ government which is being broken down in a number of ways. ie economic benefits ,16% carried interest ,taxes etc.

Eric implied that once payment had been made then VAT repayments in the country would resume.

[redhill] 19/6/2019 12:07

No AG i suggested that the VAT would be repaid after Acacia was sorted.

No allowance was made in the TZ budget for VAT refunds in year 2018/19.

Acacia & Barrick are having a bit of a public squabble about valuation at present but think it will be sorted soon.

[jc2706] 19/6/2019 11:02

jasper2712,

can you point to an interview stating mid-May VAT resolution? I know that this has been bandied about but was wondering whether there is any solid basis for it.

I'll ignore the usual dim comments from AG.

[jc2706] 19/6/2019 10:36

I believe that the suggestion was that there was a link between the Acacia resolution and the likely timetable for VAT refund. I don't recall anyone saying that this would be sorted by mid-May unless you can point to evidence to the contrary.

[jasper2712] 19/6/2019 09:54

I noticed that there has been a lack of information as to the outstanding VAT repayments. Now mid June and we were meant to have this sorted by mid May according to Eric.

[redhill] 18/6/2019 15:37

I note the Barrick deadline has now been extended until 9/7.

[redhill] 18/6/2019 15:26

My guess would be that they have used some of the hedge so we may find that the gold price achieved is slightly lower than the quarters average.

[jc2706] 18/6/2019 14:40

338,

The point being that the hedge is almost certainly rolled over again so it will still be there.

[redhill] 18/6/2019 14:30

Actually AG that's probably a good guess but of course we don't know what price they are selling the gold for.
However i don't believe they would need an advance payment.

[redhill] 18/6/2019 13:51

Ok AG

Its time to guess the cash balance at 30/6

[338] 18/6/2019 13:51

juju44: not to mention meaning "don't worry" Mate... sorry I am not a dictator :) lol

[338] 18/6/2019 13:49

Let's hope SHG will be debt free by Q2-2020 (paying $5m more than the plan)

[juju44] 18/6/2019 13:48

338 - you just instructed me to not mention hedging again . Does this apply to you too

[338] 18/6/2019 13:47

$8m cash is also irrelevant because SHG increase debt repayment from Q2-2019 to Q2-2020

Cash position will only be matter if they miss the debt payment plan

[338] 18/6/2019 13:44

Also:...

The Company has the flexibility to defer settlement of forward sales and had full exposure to the spot gold price

which is always true that the average selling price has always been higher

[338] 18/6/2019 13:32

okay, up to Aug 2019 ... for 5 months (April to Aug) or 9,000 oz per month which impossible to get fulfilled...

[jc2706] 18/6/2019 13:10

Incorrect 338. To quote the Q1 report:

"As of 31 March 2019, the Company had sold forward 45,020 oz to August 2019 at an average price of US$1,223 /oz against the average spot price for the quarter of US$1,304 /oz. The Company has the flexibility to defer settlement of forward sales and had full exposure to the spot gold price during the Quarter having deferred settlement of all forward contracts in place. The Company has also benefited from the gold price forward curve during the Quarter, resulting in a slightly favourable average forward contract price on deferred contracts versus the position at the end of Q4 2018. Short-term cashflow remains protected against gold spot price volatility with US$9.7 m of contractual debt payments falling due during the Q2."

So, it was August rather than July and I fully expect them to have deferred again to make the most of the gold price currently.

juju44,

You are assuming that the gold price continues to climb from here. Whilst I am positive about the price in the long term, I would not rule out a sharp pull back just yet.

[338] 18/6/2019 12:50

previous hedge was only up to June 2019 sales volume... we have never heard the hedging from July 2019 onwards

Please don't discuss the past hedging anymore... irrelevant unless got rolled over

[juju44] 18/6/2019 12:49

You may be right but pay back day arrives sometime and the longer they leave it the more they will lose in the end