Shanta Gold Share Discussion Threads

[trader365] 07/1/2020 21:03

Misleading or not, it's what the TAZ government pulled from SHG in addition to the ongoing $600,000 monthly VAT payments and therefore totals $24m, or 125% of the 2018 operating profit and 3x 2018 net profit.

Posible brown envelopes changing hands?

The average wage in Tanzania is $565 per month, how many employees does SHG have?

[redhill] 07/1/2020 19:10

trader365

Actually the operating profit in 2018 was $19.255 million and corporation tax amounted to $5.152 million.

Yes if you include all the taxation the employers paid to the government in would come to some $17.2 million but that's rather misleading.

[trader365] 07/1/2020 18:36

Seems the government are running SHG not Zurrin

During 2018 Shanta contributed US$17.2 million to the Government of Tanzania in taxes, exclusive of VAT payments.

Monthly VAT outgoings have been reduced to approximately US$600,000 per month

Profit after taxation of US$8.0 m

The government are getting more cake than the shareholders

[jc2706] 07/1/2020 17:10

Because he holds all the cards of course and can force the government into repaying the VAT regardless of the fact that they are withholding this more generally. I can see the government cowering under the threat. Not.

[trader365] 07/1/2020 13:34

Zurrin should be around there kicking the door down, shame on him he's letting them away with $26 million of shareholders cash

[trader365] 07/1/2020 13:32

I'd give them an award to if I had their $26 million sat in my bank account, if the relationship was good they wouldn't be holding Shanta's money back

[redhill] 07/1/2020 13:11

As far as we are aware relationships between Shanta and the TZ government are good and have been during the governments dispute with Acacia.
In fact they have won several awards from the government in relation to helping the local community and treatment of their workforce.

[washbear] 07/1/2020 11:30

Any Previous ACA holders here?Just wodering how Barrick are getting on with the Tanzanian govt ?Would tell SHA how relations will be ....

[seagreen] 07/1/2020 09:46

Well they hedged half their production so don't get too excited

[juju44] 07/1/2020 09:27

They have just increased the spread to silly levels again , Bid has barely moved

[qs99] 07/1/2020 09:03

anyone got a nose bleed yet at these dizzying heights? haha....nice to see...11p about to go IMO

[qs99] 07/1/2020 08:14

should break 11p today IMO....GLA.....POG continuing to head towards $1,600

[zcaprd7] 06/1/2020 22:54

Indeed, technically looking very positive, move 12p in short order... Lot of volume on the break out as well?

[redhill] 06/1/2020 20:14

Fridays close was 9.5p-10.2p

Tonights close is 10.2p-10.4p

That's a very good rise today.Breaking decisively through 10p was key today.

[trader365] 06/1/2020 17:29

The share price rise in SHG since end of 2018 has been driven by the rising gold price during the same period, it's nothing to do with VAT refund.

[trader365] 06/1/2020 17:29

The share price rise in SHG since end of 2018 has been driven by the rising gold price during the same period, it's nothing to do with VAT refund.

[jasper2712] 06/1/2020 17:05

I am only going by what Eric said. He was positive that there would be some movement on the outstanding VAT in January 2020.
The share price rise is being driven by this - so I hope he is right. Shanta does not tend to rise with the gold price probably in part due to the hedge.
There is speculation on the VAT being paid.
"They" are banking on it. The rise in gold price is an added bonus.

[trader365] 06/1/2020 16:22

VAT going in the wrong direction don't hold your breath. In 2017 the balance was $13m its now doubled to $26m

2017....
8 November 2017

Shanta Gold Limited

("Shanta Gold", "Shanta" or the "Company")

VAT REFUND RECEIVED

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, is pleased to announce that it has received a VAT refund of US$3.4 million, which is made up of a US$1.9 million offset against corporate taxes payable in 2016 and 2017 and a cash payment to the Company of US$1.5 million. The current VAT Receivable balance has reduced to US$13.4 million.


2 years later in 2019....

4 November 2019

Shanta Gold Limited

("Shanta Gold", "Shanta" or the "Company")

VAT REFUND RECEIVED

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, announces that it has received a VAT refund of US$1.4 million in the form of a cash payment at its Tanzanian wholly owned subsidiary. The current VAT Receivable balance has reduced to US$26.6 million as of 31 October 2019.

[jasper2712] 06/1/2020 15:49

Key drivers IMO are

VAT repayment -coming soon according to Eric.

[qs99] 06/1/2020 15:38

OK maybe now we are starting with narrow spread to march higher???

[qs99] 06/1/2020 15:34

82k (80-84 range stated) with cash cost of say $550 and POG say at $1,550.....leave the rest with you.....DYOR!

Key drivers IMO are:

new resource / exploration extending LOM

POG defo and keeping AISC low

Business friendly govt (not easy in Africa!) & more VAT refunds

Debt continuing to be paid down & hedge unwound.....

DYOR....338's 48p would be nice in 2020....hehe....

[fitton] 06/1/2020 15:22

Would I be correct in thinking that with the debt gone, the hedge finished and gold trading at about $1600, Shanta could be earning $40m a year?. If thats the case we could see a company valuation in excess of £200m.