Shanta Gold Share Discussion Threads

[qs99] 25/6/2019 08:46

And me, just wanted to play out some numbers and see whether it was a nuts figure to even contemplate?!! First up: July JORC resource, POG maintaining its current level (maybe kicking on from there), further decent Q2 updates on production and EBITDA and icing on the cake would be an ACA resolution and hopefully resultant VAT refund!!! DYOR

Then we can see whether those sorts of numbers are pie in the sky or realistic

[338] 25/6/2019 08:39

45p will be nice for me

[qs99] 25/6/2019 08:18

POG moving along nicely again. $1,500 doesn't seem unreasonable IMO at this rate. in which case SHG could be chucking off (based on posts here), another c.$20m, shove that onto the existing c.$50m and if reserves are extended, VAT paid down etc, then why not a multiple of 5 on the $70m+ to get an EV of £350m++.....if market cap is around $70m now then that would get the share price to near 40p no?

Obviously DYOR, country risk may mean multiple doesn't hit this, POG may falter, who knows, but sort of gives the size of the prize. LIkewise, once net debt is eliminated then divis could be a possibility?

All to play for and this continued hopefully sustainable POG rise helps

[nielsc] 25/6/2019 08:13

Jc,Very well put. You could say they are hedging their bets by only hedging half of their production;-)Cheers,Niels

[jc2706] 25/6/2019 07:51

In a rare act of agreement with AG, they will not be closing their edge other than fulfilling the obligation.

Juju44,

Once again, they did not get it wrong as the purpose was insurance. Your stance is akin to taking out house insurance and then cursing that your house hasn't fallen down.

[338] 25/6/2019 06:46

the rise of PoG is real deal .. not a blip..

[338] 24/6/2019 21:58

juju,
referring to Q1-2019 presentation the realised gold price per oz was US$ 1,305

So, impact of hedging to actual revenue is not much

[nielsc] 24/6/2019 21:52

Juju,Pretty certain they will hedge. Generally they have around half of their yearly production hedged. So we do get some benefit of the gold price rise.The percentage of production hedge will reduce as they pay their debt down.Cheers,Niels

[juju44] 24/6/2019 21:20

They would be mad to hedge going into a gold bull . They have feked this up enough . If they hedge again , I am out of here

[338] 24/6/2019 21:15

can SHG hit 10p this week?

[338] 24/6/2019 21:07

Citigroup expects the metal to reach $1,500-$1,600 per ounce in the next 12 months, and $1,500 by the end of 2019

meaning SHG can generate $25m more cash flow next year comparing last year

[338] 24/6/2019 21:04

deanmatlazin, I agree that 16p is at minimum with some condition as below:

1. Q2 gold production is over 22,000 oz
2. PoG steadily increases and hit $1500 by end of 2019
3. gold production in Q3 onwards can be maintained at 22,000 oz or more
4. political stability in TZ

sp can go further up (22p+) if shanta announce debt free next year and decide self-funding on Singida

[qs99] 24/6/2019 20:47

No idea tbh. BUT look forward to an update from the management in due course. those with better knowledge than me on here may be able to provide a view.

[goodgrief] 24/6/2019 20:46

How much is that going to cost?

[qs99] 24/6/2019 20:45

SHG should really be closing out and hedging higher, let's hope it is.....POG could really motor much much higher IMO>>.

[deanmatlazin] 24/6/2019 19:54

Back to Shanta....the share price will double in July. It should be 16p hopefullt. Fingers crossed!

[jc2706] 24/6/2019 19:51

A sideshow. He is getting the more important stuff very wrong.

[jc2706] 24/6/2019 19:23

He hasn't reversed course. He has put his foot on the throttle.

[jc2706] 24/6/2019 17:23

338,

Trump is only on Trump's side. Everything else is just a side effect.

[redhill] 24/6/2019 16:52

The Company may have now reduced some of that hedge or need to next quarter as its almost $200 below spot.