Shanta Gold Share Discussion Threads

[jc2706] 09/12/2019 08:44

I don't think that the chart is indicative of a dead cat let alone a bounce.

[redhill] 09/12/2019 08:43

The Market makers are trying to create the impression that there are a lot of sales going through when in fact the opposite is true according to the quotes i get.

[borisjohnsonshair] 09/12/2019 08:39

Dead cat bounce

[338] 09/12/2019 08:24

Erick deserves £millions of bonus when SHG hit my target of 45p 👍

[texaschaser] 09/12/2019 08:21

Nice article shame about company. Throw good money after bad.

[johnrxx99] 09/12/2019 08:19

What a good article. Learnt more from that than 5 years on this board. :-)

[sleveen] 09/12/2019 08:05

That must have been some article!

[redhill] 08/12/2019 22:22

Could be an interesting start to trade tomorrow. Almost a full page article i see.

[redhill] 08/12/2019 17:13

just under half of that was a performance bonus and after what he has done for the Company i don't begrudge him a single dollar !

Yes that figure is US$ and not GBX, trader 365.

[goodgrief] 08/12/2019 13:29

He's being paid in shares, so his interests are very much aligned with shareholders.

[trader365] 08/12/2019 13:24

A quick look on google...

What is the salary of Mr Erick Zurrin?

As the CEO & Director of Shanta Gold, the total compensation of Mr Zurrin at Shanta Gold is GBX529,000. There are no executives at Shanta Gold getting paid more.

Seems a bit greedy to me

[risa5] 08/12/2019 12:48

MIDAS SHARE TIPS: Miner Shanta Gold could give your portfolio a rich seam of profits
By Joanne Hart for The Mail on Sunday
Published: 22:02, 7 December 2019 | Updated: 11:27, 8 December 2019

Gold is on a roll. The price has risen 20 per cent over the past year to $1,478 (£1,137) per troy ounce and the outlook is fair. At the same time, the gold mining market is consolidating, as big operators snap up smaller ones both here and overseas.
These benign conditions have given many gold miners a bit of a boost. But some remain stubbornly undervalued, including Shanta Gold, based in Tanzania.
Gold has been mined in Tanzania for more than 100 years. The country is known to have some of the best deposits in the world and giants of the gold industry have been working there for decades.
Tanzania was also thought to be a relatively stable place to mine – until a dispute erupted in 2017 between the government and AIM-traded firm Acacia Mining. The fracas savaged Acacia’s share price and cost the firm its independence. Barrick Gold, a seasoned operator in Africa, bought the business in September and the row was quickly settled.

Shanta Gold was caught in the crossfire and the shares plummeted when Acacia’s woes became public. Recent performance has been strong but, at 8.25p, there is still plenty of potential.

Over the past two years, Shanta has been steadily reducing costs, cutting debt, extending the life of its mine site and focusing on shareholder returns.
The strategy is largely down to chief executive Eric Zurrin. Originally an investment banker, Zurrin has spent years in the mining industry and was parachuted into Shanta on various occasions to help out before being offered the top job in 2017.
Under Zurrin’s stewardship, there has been a forensic focus on efficiency. The workforce has been cut by 35 per cent, with many overpaid ex-pats kicked out and replaced by locals. Even the amount spent on meals for miners has been cut by 40 per cent, as Zurrin replaced expensive South African caterers with an in-house local team.

These relatively simple steps have helped Shanta to lower production costs and thereby boost cash flow over the long term.
The group’s flagship New Luika mine has been in production for the past seven years and it is expected to deliver around 82,000oz of gold this year. Shanta’s exploration licences cover an area roughly the size of Greater London and it is using the latest mining techniques to find more sources of gold.
Annual production is relatively stable but the more gold that is discovered, the longer the mine can continue to operate. Results have been extremely encouraging so far and more discoveries are likely to be announced in the short and medium term.
As cash flow increases, Shanta’s debts are coming down. Previous management borrowed heavily and debts were uncomfortably high. Now they have fallen to $21million and Zurrin expects to be able to pay off creditors completely by next year.
With no debts and cash in the bank, Shanta is likely to look at acquiring assets from larger rivals – mines in Africa that are a little too small for big players to operate. Talks are ongoing and there are a number of potential opportunities.
Dividends are on the cards as well, not least because Zurrin and other managers are shareholders too and incentivised to make this business work. Shanta is not immune from policies introduced by President John Magufuli, including a move to rein in VAT refunds owed to companies across the country. Shanta itself was owed $28million in refunds and City analysts had largely written off that cash.
But the situation has begun to change. The group received $1.4million in November and the rest of the money should be repaid in the coming months.
Zurrin is in regular contact with policymakers and relations are good. The company pays its taxes in full and on time and there is a real emphasis on community engagement, employing local workers and using local suppliers.
Shanta is also mindful of environmental considerations. The Luika mine is in the middle of a forest reserve, leopards, hippos and monkeys live alongside the miners and any damage to the land is swiftly addressed.
Midas verdict: Shanta shares have suffered from the Acacia effect, fears about local political risk and concerns about its debt pile. These worries have been overdone and the shares, at 8.25p, should see a material uplift in the months to come. Gold’s prospects are good, Zurrin is doing all the right things to drive production and reduce costs and there is always the chance of some bid action. Buy.

[trader365] 08/12/2019 12:36

What is Zurrins total annual compensation?

[goodgrief] 08/12/2019 12:28

FYIhtTps://www.thisismoney.co.uk/money/investing/article-7767283/MIDAS-SHARE-TIPS-Miner-Shanta-Gold-portfolio-rich-seam-profits.html

[juju44] 08/12/2019 11:19

Shanta deserves a much higher rating but then this has been the case for some time. Zurrin seems a good CEO although I never agreed with the hedge which I believe he got wrong .Apart from that he is doing good work . We are long overdue some joy

[redhill] 08/12/2019 10:09

Excellent. At least it would be if i could see it !

[plasybryn] 08/12/2019 07:36

Tipped in The Mail on Sunday

[redhill] 06/12/2019 09:23

It is and there may have been a stock overhang that was cleared. Another 1 million buy showed up late this morning.

[sleveen] 06/12/2019 08:19

Monday 2nd Dec: 1 MM on the bid @8p 6 MM on the offer at 8.5p


Today 3 v 3.

sp strengthening.

[jasper2712] 05/12/2019 19:02

January was the given time frame. December i.e. a couple of weeks was the phase 2 update.
So far 5% of the total VAT has been paid back- however this amount will be given back as the VAT continues to be paid out.
The VAT issue has been dragging on as long as the Brexit fiasco - let's hope both are resolved in Jan but don't hold your breath.

[redhill] 05/12/2019 18:39

risa5

I would say that anything we get back is a bonus and i'm certainly not expecting it all back in such a short time frame.
Let's just see what we get and when.

[risa5] 05/12/2019 18:32

Also he says he is confident of getting more VAT back but he never says getting all of the VAT back.

[redhill] 05/12/2019 18:31

jasper2712

He actually said the next few weeks in the presentation of 27/11 so anytime now.

Also i understand your negativity as you stated we wouldn't get any back at all !

[jasper2712] 05/12/2019 16:47

He said January which is the start of their new financial year. Maybe the market hasn.t responded as it has heard this all before.