Shanta Gold Share Discussion Threads

[338] 27/8/2019 17:02

Central bankers love gold 👍

[redhill] 27/8/2019 16:23

Gold at $1540 and MM's have been given 400000 shares .

[338] 27/8/2019 15:19

Better for those sellers to do it now... they should not hold SHG price down... MM's need shares

[redhill] 27/8/2019 15:12

Once the bid gets to 10p there is bound to be a few sellers. Round numbers always attracts them.

[338] 27/8/2019 15:11

45p next... Doughnuts for AG 🍩🍩🍩

[redhill] 27/8/2019 15:10

The MM's have tried marking this down to get their shares back but it hasn't worked.I wonder what their next ploy will be !

[338] 27/8/2019 13:49

Silver price hit $18... Good setup for PoG rally

hxxp://silverseek.com/charts/24silver.php

[338] 27/8/2019 13:31

What if Argentina can't repay their debt... Could give another push to PoG...

[338] 27/8/2019 13:07

Is China going to hit USA back soon?

[redhill] 27/8/2019 12:23

Looks like the Market Makers are getting ready for the next leg up. Level 2
2v3 9.2p-10.0p

[redhill] 27/8/2019 11:42

"The dogs in the street knew gold was in a long bull move when they fixed this hedge . That is the information that was available . "

That is not how forward contracts are done. Its not a negotiation. It was right at the time and although its costing us now it was a necessary evil.

[jc2706] 27/8/2019 10:33

juju44,

You are wrong. If the "dogs in the street" knew that the price was going to go up then it will almost certainly go down as that is a sure indication of a market reversal.

AG,

No point in replying to you.

[juju44] 27/8/2019 10:22

The dogs in the street knew gold was in a long bull move when they fixed this hedge . That is the information that was available . They totally misjudged their own market - or did a deal with their pals

[338] 27/8/2019 10:12

So, I hope everyone can understand that the cost of loans and credit facility was VERY EXPENSIVE...

Shanta can sort it out! What's the problem?

Shanta would have got liquidated without debt facilities. AG would have been happy and laughing to all of us... 😂

[jc2706] 27/8/2019 10:06

I am not sure what the relevance of shareholders believing in the future price of gold has to do with a hedge taken out by the company. The BoD's primary concern is consideration for the shareholder's investment. This tends to preclude gambling the survival of the company when an option exists to guarantee that survival. Quite rightly the company opted to guarantee that survival at the possible (remember there was no guarantee that the gold price would continue up at the time) expense of some future cash/profits.

With the benefit of hindsight the hedge has not proved beneficial but does that mean that the hedge was incorrect at the time with the information that they had available? No. Does it mean that the hedge is greater than it might have been? Possibly.

[338] 27/8/2019 10:04

Anyway, people should admit that Shanta's operation in Tanzania will become a success story because expensive loans / credit facility will eventually get repaid with minimum money from shareholders

[338] 27/8/2019 09:58

Was the $55m figure taken from 45,000 oz x $1241?

Is it capped to $15m?

[338] 27/8/2019 09:56

Hedging was part of the deal of Investec Loan

A registered charge of US$55,000,000 (which includes a margin facility for gold forward sales of up to US$15,000,000) against the mineral and prospecting rights of both Shanta Mining Company Limited and Shield Resources Limited;

[redhill] 27/8/2019 09:46

I'm not aware of being able to cap a forward contract but i may be mistaken.

[redhill] 27/8/2019 09:45

kennyp52

Where does this $11.65 m come in to this ?

[kennyp52] 27/8/2019 09:43

Irrelevant ... just seeking whether or not the $5.5m is full reserve on the 45,000 Oz or whether further reserves will be necessary because they are delaying supply of gold to the lender . It will impact greatly either way on the next financials . If they did not put on cap on POG then it’s further cash down the drain . I am not looking to deramp in anyway ... I am invested .... just want to clarify the hedge cost .

[juju44] 27/8/2019 09:42

This is all about gold price. If you dont believe in gold you shouldn't be here