Shanta Gold Share Discussion Threads

[hazl] 16/12/2019 08:08

GOOD old SHG!

[redhill] 16/12/2019 07:48

Another good set of drilling results !

[338] 16/12/2019 07:20

See you at 45p with or without dividend... is fine 👍

[redhill] 15/12/2019 21:38

jasper2712

The Company already do that to a fair degree. If you follow Shanta's tweets you can actually see what they are doing community wise which appears to be going down well with the TZ government.

[jasper2712] 15/12/2019 20:11

It would be better to use any divi money to give to the local communities for their education/health/improve farming. This would go down well with the TZ government which in turn should benefit SHG shareholders. The share price would go to multiples to the value we are seeing at present. In all everyone is a winner

[imnotspartacus] 15/12/2019 18:21

I’m with Redhill on this one...buy backs & divi’s

[redhill] 14/12/2019 23:53

In my view its a good idea to have a mixture of share buy backs and dividends.
Over the last 10 years there have been several capital raising placings resulting in numerous shares being issued.
The less shares in issue the higher the amount the dividend can be.

[meanreverter] 14/12/2019 18:44

Chestnuts

Perhaps a better performance metric for directors' bonuses would be total shareholder return. If investors prefer dividends to buybacks, they will reward the company with a higher share price for satisfying their preference. If the company gears up (for buybacks or other purposes), the share price will suffer if investors do not like it.

Regarding debt, IMHO, the move to higher levels of gearing in recent years is more to do with record-low interest rates than with directors attempting to manipulate share prices. Spending the borrowed funds on buybacks may achieve better value for the company than acquisition (which typically demands a premium) or capital expansion to add output for which there is no demand in the presently stagnant economy.

[juju44] 14/12/2019 18:25

Or they could pay a 2p divi . Now that would be more like it and as well would rocket the share price . No share buy backs please

[imnotspartacus] 14/12/2019 17:52

At this price they could buy back 25% of the shares for $18 million, I'm up for that.

[chestnuts] 14/12/2019 16:49

meanreerter

Any company spending there spare cash on their own shares need all the directors sacking, as in most companies directors salaries are normally linked to the share price. And they are working against market forces or there share price would be alot higher.
IF I WAS THE FSA I WOULD BAN BUY BACKS.

[goodgrief] 14/12/2019 16:17

There have been too many examples of companies raising debt, esp. in USA, in order to execute share buybacks so as to allow CEO's to achieve performance/bonus metrics!

[meanreverter] 14/12/2019 15:25

Share buybacks make sense when the company has spare cash and the shares are at a deep discount to net asset value. The problem is that what the company sees as its NAV may be considered an overestimate by investors (hence the discount). In the case of property (real-estate) companies, I tend to side with the company. For miners, working out what the true NAV number should be is far trickier, and they should probably leave it to the market rather than act as though they knew better — even if they do know better.

[chestnuts] 14/12/2019 11:52

Share buy back are like giving your self a blood transfusion

[juju44] 14/12/2019 10:55

Agree . Share buy backs almost never work

[goodgrief] 14/12/2019 10:35

Never understood the point of share buybacks? Would far rather have any surplus cash returned to shareholders!

[redhill] 14/12/2019 10:18

Yes and there is also a mandate in force for a share buyback as and when.

[fitton] 14/12/2019 09:09

At 9p ish, Shanta are currently one of the best value stocks I have looked at recently.Debt has been the problem with Shanta over the last few years but this is clearly reducing at a fantastic rate.Even if gold falls to $1200 Shanta will still be making a great margin per Oz.I think the hedge will be cleared by May next year?.I also believe there is a very good chance the VAT will be drip fed back to the company.
Drilling results continue to be very good and current drilling campaign has been very cost effective.It looks like the company will be debt free sometime next year even without the VAT.My understanding is the CEO is focusing on paying down the debt and introducing a dividend as soon as debt is cleared.At the current £72m market cap I hope with will double next year.I think the company should be able to pay at least a 1p dividend once the debt has gone.

[imnotspartacus] 13/12/2019 23:06

Historically Jan to Feb are good months to invest in gold, so I’m expecting gold to move above $1500 soon, also on the weekly chart Shanta does not look over bought.

[redhill] 13/12/2019 14:36

338

Yes also we are still due the regional exploration update.

[338] 13/12/2019 12:45

I am expecting the drilling update to be released next week 👍

[chestnuts] 12/12/2019 14:12

Chip

Thanks for your reply

[jasper2712] 12/12/2019 13:52

Always better to have the grades out of the ground rather then an inference grade. i.e. "a bird in the hand " comes tomind.

[jc2706] 12/12/2019 13:36

Chip,

This has varied hugely over the years with the variance between transactions being large. As such it is not, I believe, a particularly reliable mechanism for assessing value even if it does at least provide a mechanism for very immature projects. Personally I would give nothing for inferred resources. A lot, of course, depends on the nature of the deposit.

[chipperfrd] 12/12/2019 11:48

chestnuts,

re value of inground gold resources - at least for explorers!

A reasonable rule-of-thumb is the % of PoG that has been paid on average for deposits held by explorers under M&A activity.

Measured ~ 20.8% of PoG
Indicated ~ 11.4%
Inferred ~ 2.4%

Chip