Shanta Gold Share Discussion Threads

[quigonjin] 04/3/2019 09:48

@augustusgloop - gold was due a correction. Been on a $200 tear for a long time. Other fundamentals will refocus a lot of attention back on it and a retest and possible breakthrough the $1366 ATH is very likely. Add Central Bank hoarding and the sorry state of the US, downside is imo, limited and upside not so much

[boraki] 04/3/2019 09:45

The hedge was a prudent, sensible action.

[jc2706] 02/3/2019 23:00

Redtrend,

Yes, thanks for this. It makes for an interesting read as there are some decent companies in there. There is some suggestion on Twitter that they may be out of HZM. I doubt it but it is perhaps more likely that they are out of SML given the large trade on Friday and the fact that their position was relatively low.

[hazl] 02/3/2019 19:01

oh sorry double post red....

[hazl] 02/3/2019 19:00

....included in their portfolio SHG so might explain a certain amount of selling
perhaps as it weighs up its options?

[redtrend] 02/3/2019 11:18

JC - if you open this doc it lists all of CF's investments. On page 20 you'll see the mining investments. Including SHG, HZM, Avesoro and Serabi. Their biggest position is HZM.

[jc2706] 02/3/2019 10:56

Well, they might but there are 4 companies so far that I know of have been hit on Friday which marries up well with a large holder selling stock on the market. Whilst this sort of situation can be difficult to holders, it may well be a significant opportunity to buy some quality companies cheaply. So far I have found HZM, SML and ATM as well as SHG who were affected by falls on Friday. All decent or better companies in my opinion.

[jc2706] 02/3/2019 09:16

That may explain who was behind the 2m sell that triggered the fall.

I noticed that HZM was affected as well to the point that they issued an 'inverse speeding ticket'!

Anyone know who else is affected? I have been looking to increase my investment here and was also considering HZM at some point. This may provide a great opportunity. If there are some other quality assets affected it would be good to be able to keep an eye on them.

[boraki] 01/3/2019 21:02

Mmmm, that is ironic.

Shares
No. Million % of Company
held
1. Odey Asset Management
147,045,785
18.9%
2. Majedie Investments
73,699,442
9.5%
3. Sustainable Capital Limited
73,428,150
9.4%
4. River & Mercantile Asset Management 52,750,000 6.8%
5. Ketan Patel
43,667,957
5.6%
6. Hargreaves Lansdown Asset Management
39,753,345
5.1%
7. Jonathan Leslie 30,566,579 3.9%
8. City Financial
26,000,000
3.3%
Total 486,911,258 62.5


They own 26,000,000 shares

[redhill] 01/3/2019 19:56

That would explain some large sells recently.

[the_sage1] 01/3/2019 18:18

City Financial have a holding here I believe, share price may weaken next week - they have appointed administrators - HZM and a couple of others have suffered already.

[redhill] 01/3/2019 17:53

jasper2712

Indeed. The results were excellent so i dread to think what would have happened if they were bad !

Hopefully we will get a better insight into how Singida is held once funding from third parties is sorted out but my take on it is that a certain percentage of the new holding company will be exchanged for funding but Shanta will retain overall control.

[jasper2712] 01/3/2019 15:32

SP down 10% on the week with results which looked quite good to me . So what is it that others are seeing?
The VAT issue has been dragging on far too long but we all wait and hope!

Not sure exactly what this means
"Singida will be separated into a new company for funding by third parties at the asset level." Maybe someone could enlighten me as to what effect this has on SHG as a whole.

[qs99] 01/3/2019 10:22

Thanks and happy to continue to hold as this deleverages

Think VAt will get sorted as it will be a litmus year for govt on back of Barrick results DYOR

[jc2706] 01/3/2019 09:42

I don't see that AISC is particularly relevant in the short term cash/debt position. Cash costs in this instance are far more reflective of the situation. In the normal course of events the debt position here would be very sustainable and refinancing would be the obvious option. However, Tanzania is not currently normal so we should be looking at the need to eliminate debt as it falls due. There is the possibility of refinancing but I suspect that terms would be more onerous given the current situation in the country.

If we postulate that SHG does repay its debt as it falls due and eventually the VAT is refunded then the last couple of years would actually provide a launch pad for a company that is considerably leaner and more cash generative.

[jc2706] 01/3/2019 09:36

Meanwhile, in the real world......

[redhill] 01/3/2019 09:36

You are working that on a figure of $ .9 million which is totally false. Profit before taxation was $13..1 million.Exclude the VAT then deduct tax.

[redhill] 01/3/2019 08:13

Is that the best you can do ag ?

Of course another misleading statement,ignoring the taxation on the profit.

[buywell3] 28/2/2019 21:11

How long can the VAT ''Elephant in the Room'' run for in accounts

When will it have to be written off in the accounts.