Shanta Gold Share Discussion Threads

[hazl] 18/3/2019 08:00

as previously posted they are worried that this is not working for Tanzania so I wonder if things might change positively for us.

[338] 18/3/2019 07:45

referring to the below news, it's imposible for Tanzanian Government to further increase the tax rate... so it can only stay or reduce... imagine how much cash will be generated by SHG if the tax rate is reduced by 10%?

VAT refund is overdue .. or should stop for the next batch of sales


hxxps://www.tanzaniainvest.com/mining/mining-taxes-highest-in-the-world

Using an Excel-based economic model that they developed for this analysis, the authors evaluated the impact of the fiscal regime on a number of hypothetical large-scale gold projects.

The result is that on a gold project with development costs of USD 420 million, per unit operating costs of USD 600 per ounce and a gold price of USD 1,300 per ounce, the average effective tax rate would be 74%.

This makes Tanzania the most taxed mining sector in the world, followed by Guinea (61%), South Africa (59%), Ghana (58%) and Chile (48%), Peru and Western Australia (45%), Zambia (44%), And Kyrgyzstan (39%).

[hazl] 17/3/2019 16:08

Or perhaps you are more blinkered than you know?

Who knows?
I guess time will tell.

[hazl] 17/3/2019 13:42

Have you written to the institutions and told them all this?

I guess they have the luxury ofemploying their army of researchers, that might beg to differ.

[juju44] 17/3/2019 09:08

This thread is now ridiculous . I rarely visit and am always disappointed when I do . Be nice if someone could start another thread

[rjmahan] 16/3/2019 22:09

Reality is AG is the world's biggest SHG bull.

He wakes up in the morning, posts something mean on here then goes off and fills his boots... Every penny. Buying SHG all. day. long!

He has a shrine in his house with a picture of Eric Zurrin, he worships it, every morning and evening. Then goes to bed, dreaming of posting more BS and buying more SHG.

[redhill] 16/3/2019 22:05

ag

Well you keep believing that there is going to be a placing because this thought must keep you going day after day.

I mean what other reason would you be on here?

[hazl] 16/3/2019 14:04

Thank you for post redtrend....50% institution owned.
That is relevant in my opinion.

post 29282


.

[redtrend] 16/3/2019 13:37

2017 Accounts Trade Payables (which of course includes cash accruals) was $13.977m (Correct!)

Shown in the 2018 Accounts, for 2017 Trade Payables is $12.221m + Contract Liabilities of $1.756m = $13.977m (it's simply split as per new reporting, Correct!)

Whether you want to now pretend it's something different it matters not, across these line items, the difference is only $0.7m compared to 2018 (Correct!). They paid off the Contract Liabilities portion of the $1.756m in 2018 and so from a cashflow perspective, Net Debt improved by $8M and trade payables + contract liabilities (merely a subset of the former) only increased by $0.7m. At a time inventories increased by $5m too.

SSA as everyone knows is a commercial liability for delivery of physical silver, not cash. Hence it's a liability but not a cash accrual. If you were a real accountant, you would understand.

[redtrend] 16/3/2019 12:58

I suggest you have a look at the 2017 Accounts and then relook at the 2018 accounts. In line with new reporting requirements of IFRS trade payables has been split. Add them up on your calculator and report back to me what you get dear chap.

Even for you I did not think I'd have to spoon-feed you this much.

As we've all known, your armchair accountancy "skills" really are out of their depth and sorely lacking.

Spoiler: the correct answer is 0.76m. You and your calculator are welcome

[redtrend] 16/3/2019 12:11

The IIs that appear to read a set of accounts correctly? 50% Hazl

These were the same IIs that when they had 40% equity years back, AG made a claim that there was no II interest in SHG. If you don't laugh you'll cry!

[redtrend] 16/3/2019 12:09

Oh dear you still don't understand the true change in trade payables on a like for like basis was only 0.7m.

Guess I did give you too much credit in previous post that you could work it out yourself

[hazl] 16/3/2019 12:07

It's funny how the harder he tries ,the higher the share-price goes!
Remind me how much do institutions own here?

[redtrend] 16/3/2019 10:21

In the real world (copyright JC):

1) Net Debt improved by $8m last year in 2018
2) They have $9m unrestricted cash end of 2018
3) Estimate $2m less Capex and $1.5m less interest payments (and for last few years they've indeed been bang on their Capex forecasts) this 2019.

So that gives them $20.5m to play with (based on 82,000 & $1,260 avg. gold price) and that's notwithstanding production may be better this year. Not just because focus is on Bauhinia Creek at New Luika which has higher grades for 1st part of year, but they built up increase in inventories of $5m last year too.

Additionally on like for like basis trade payables only increased by 0.7m in 2018 (something AG is really struggling with if as I can see from past posts). Now I've made him aware of the real number I'm sure even he will be able to work it out and not be out by millions again... maybe.

I would not disagree that prior to Q4 2019/ Q1 2020 something big needs to happen as it’s extremely tight (VAT refund, refinancing, placing, gold spot price spike or mixture) to ensure payment of debt leading up to Q4 2019 and April 2020. But as ever AG's "numbers" and analysis are way off the mark. He's getting warmer in terms of durations by sheer repetition, but not by any correct analysis. None of the last 2+yrs of assumptions ever materialise and in the real world (ahem), something always occurs and the excuses starts ad infinitum and the moving of goal posts...

Even if in a worst case scenario, if SHG needed a placing (for example to cover part of Loan Notes due in April 2020), post April 2020 they have single digit debt and will be in an extremely strong position.

[redtrend] 16/3/2019 10:16

Breaking News: AG thinks SHG will go bust/have a placing (shock, horror, quel surprise).

And in other news a boy has cried wolf for the 10th time since Sept 2017 and for the 10th time, has been completely wrong... nil point on wolfies.

And in the real world (copyright JC)... 50% of IIs who know better than AG are invested in SHG believe it to be undervalued, as do 10% of directors/ex-board members. Does not leave many shares left for PIs and new IIs.

P.S. As ever the assumptions and conclusions the resident troll tries to draw from the numbers are completely wrong. Profits take into account D&A which as a reminder, is different to cashflow to be used for debt payments. Still finds D&A hard to grasp. I'm sure I saw JC spoonfeed this to him multiple times already.

[hazl] 16/3/2019 10:06

Well if it was the latter, that was a problem, I imagine we would see the share gradually decline, rather than suddenly, without warning, shooting up.

It is certainly an interesting situation we find ourselves in.