Shanta Gold Share Discussion Threads

[tsmith2] 13/5/2019 11:24

Because he's a crackpot

[redhill] 13/5/2019 11:14

$ 8.4 million in cash and $2.5 million of gold sales expected gives $10.9 million. Also there is a $2.5 million restricted facility from Exim. All this at quarters end.
Not sure why we are even having this conversation.

[jc2706] 13/5/2019 10:44

Talk to the company and they will explain to you where you are going wrong.

[jc2706] 13/5/2019 10:44

AG. We have all been there - investing in a company that promised a great deal and in which we have put a significant amount of money only to see the share price plunge and for the money to disappear. However, whilst wallowing in misery and self pity is a temptation (that you have clearly succumbed to) a more appropriate way forwards is to learn the lessons and to proceed in a more informed fashion. By your own admission you have missed out on significant share price rises over the period when you have decided to avoid the market. A period during which a great deal of people have made substantial profits.

So whilst you were clearly a 'mug punter' as you like to contemptuously refer to honest people who are just investing their income in the hope of creating a better life for themselves and their families, your lesson has been to become so risk averse so as to avoid investment completely, as a result of which you have completely missed out on one of the largest bull markets in history.

As such, I would suggest that you aspire to 'mug punterdom' as they are clearly doing a lot better than you.

[jc2706] 13/5/2019 10:23

As I thought AG. The real reason that you do not want to talk to them is that you do not want to desist from your viewpoint.

[jc2706] 13/5/2019 10:09

I have a radical suggestion. How about talking to the company? But of course, AG will not as he is not looking for answers that do not support his thesis.

[buywell2] 13/5/2019 09:52

POG is the main point

US$ is weakening and POG is marking time

US Banks are now in control of POG

Buying mining stocks is now very dodgy as costs rise but POG is range bound

[redhill] 13/5/2019 09:49

No but my point is that wages would be paid evenly throughout the month/quarter and not just at the beginning.

[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.