Shanta Gold Share Discussion Threads

[qs99] 14/8/2019 15:45

and decent volume again.

Also the bliss of filtering AG for all this time.

happy days

[qs99] 14/8/2019 15:42

Either way we are heading through 10p, at last!

[redtrend] 14/8/2019 15:28

Acacia export both gold concentrate and gold dore bars.

Shanta only export gold dore bars (i.e. only partly processed, with impurities). Dore of course requires to be refined.

There is no refinery in Tanz so no miner exports pure gold bars.

Is there a legal argument to say a gold dore bar which is part processed is not a "raw material"? Of course there is. My point is at $1,500 I dont believe the Tanz Gov will change their position nor will miners fight it aggressively.

[hazl] 14/8/2019 15:13

TEN....TEN....TEN...Come on you know you can do it!

[redhill] 14/8/2019 15:13

AG

It is short term funding for working capital as you didn't know.

[redhill] 14/8/2019 15:08

Jasper is right. There is a difference. Acacia exported dore so they could be screwed over under this law. Shanta export gold bars.

[338] 14/8/2019 14:47

What's the different between Shanta 5p and Shanta 10p?

Correct answer: both are moving to the same destination of 45p 😂😂😂

[338] 14/8/2019 14:26

QS, 45p gets closer at this rate 😁

[qs99] 14/8/2019 14:15

Bug AG, will we actually be zooming through 10p today then?

338, only 4 bagger to go to get to your TP haha

[jasper2712] 14/8/2019 14:10

I was always under the impression that Shanta do not sell/export gold dore. They have an agreement to sell their silver directly and as such they must refine their gold and sell it as bullion. If this is the case then all VAT should be refunded to them.
As has been said before it is not just the miners in TZ but a whole range of companies are owed huge amounts in VAT returns

[qs99] 14/8/2019 14:03

is that 10p being asked?

[redhill] 14/8/2019 13:20

AG

Ok so you know so much. What are the restrictions on the $2.5 million ?

[redhill] 14/8/2019 12:58

Redtrend

The way i understand it is that Shanta have been advised by government officials that their gold is eligible for VAT rebates but i guess we shall have to wait and see..

Once the Barrick takeover goes through then the consignment held by the government is due to be released and the proceeds handed over to the TZ government in part payment of monies owed. That's when i believe we shall see movement on the VAT issue.

[qs99] 14/8/2019 12:53

thanks RT. TNZ govt do need to grow up slightly and start trying to be an attractive base for inward investment. Without which, as with many other African countries it will struggle for its people. Pre 2017 VAT would still help de-leverage as you say, and I am sure a lower than 13% coupon loan could be sourced with rates around the world as they are and people looking for a return. LEt's see what management can manage.....

Gold up nearly 1% already again, and can easily see it heading materially higher given the global situation. if the reserves can keep being firmed up, then 338's 45p is doable in the relative short term IMO! DYOR....

[redtrend] 14/8/2019 12:48

Redhill - the Tanz Government's interpretation of the VAT law is relatively clear - they consider gold dore to be a "raw material" and therefore not VAT exempt. The law was enacted/ came into effect July 2017, so the period prior to that, SHG and miners have a very strong case legally for receiving VAT rebates.

The only way SHG could get VAT rebates post July 2017 is if the Tanz Government changed their position on the law itself, as I can't see any miner taking them to court on the interpretation of said law in a Tanzanian Court. With gold at $1,500, I can't see the Government backing down as the gold miners can easily absorb this. For SHG it's an extra $6m per annum or $75 per Oz.

Now every single gold miner, their lawyers and accountants disagree with this interpretation and that gold dore should still be VAT exempt. I just don't believe it's a position the miners will win.

Funnily enough when gold price was a lot lower, I thought Tanz Government may change their position and back down quietly to generate more foreign investment that had dried up.

[redtrend] 14/8/2019 12:39

QS - partly agree, although I don't think Investec will roll over their loan and new debt for Tanz operations is still extremely limited, as proven by the need to perform an IPO in Dar. We also really don't want the Loan Notes to roll over again at 13%. That needs to be put to bed once and for all.

SHG appear to have very good relationship with Exim, so no doubt they could refinance or obtain new loan through them.

Also when I say "fair value", at present I see all gold miners doing extremely well over next year if gold remains over $1,450. So as SHG continue to pay down debt, get IPO off, extend LoM etc. etc., the "fair value" will continually rise in line with positive updates.

[redhill] 14/8/2019 12:36

Redtrend

Why are you assuming they will only get VAT rebates due prior to July 2017 just out of interest. My understanding is that there is no cut off point.

[338] 14/8/2019 12:34

Time to go all out on Gold, Treasury or cash

Get out of banks... dyor

[338] 14/8/2019 12:33

YIELD CURVE INVERTS: Recession indicator flashes red for first time since 2005

[338] 14/8/2019 12:29

Don't miss the boat... The fair value is 45p 😁