Shanta Gold Share Discussion Threads

[redhill] 17/1/2020 17:07

kennyp52

Very unlikely in the foreseeable future bearing in mind that it appears to be reducing again now.

Also net debtors & creditors have never been included in this calculation.

[kennyp52] 17/1/2020 16:20

This stands out to me ...

Q4 Financial Summary
· Net debt 1 (excluding VAT receivable) of US$14.3 m (Q3: US$20.7 m);

If the VAT was recoverable why would you exclude it ?

The point remains ... are they going to have to write this down at some stage ??

[imnotspartacus] 16/1/2020 19:47

So having listened to the conference call; they are playing down the VAT refunds for obvious reasons but that is massive for the company. Looking good...well done Eric.

[imnotspartacus] 16/1/2020 18:39

I hope you're right Redhill

[jc2706] 16/1/2020 15:52

I would sincerely doubt that the Government would refund all of the VAT or allow it against corporation tax all in one go. This is not just SHG we are talking about, it is across the board so a large sum. The Government effectively gets very cheap funding and they will only release that gradually. I would expect small amounts refunded over a period of a few years rather than in one lump.

[goodgrief] 16/1/2020 15:51

Expect a VAT update come April.

From the today's presentation on their website...

21 April 2020 Q1 2020 results: deleveraging and VAT update

[echnaton1] 16/1/2020 15:45

During the conf call it was clearly said that they had received clearance to use only a certain portion of the VAT against corporation tax: there is currently nothing in hand which corroborates that it will be useable in full. Whether the company is being a bit vague about it is because they are still negotiating with the Gov't or whether it is a lost and damaging cause I do not know.

[jasper2712] 16/1/2020 15:28

I have got to give credit when credit is due. Well done to Eric with regard to his announcement that there would be some movement on the VAT situation. I was hoping for more but it is a start and hopefully it will continue this year until it is all paid back one way or the other.

The one downside is that the VAT was reported in a rather blasey manner when it should have been one of the highlights .

[redhill] 16/1/2020 13:26

Imnotspartcus

It will soon. Just consolidating after recent rise.

[imnotspartacus] 16/1/2020 12:32

Almost 6 million back from vat receivables & 2.7 million of it in cash...why is this not flying!!!

[jc2706] 16/1/2020 11:36

Unfortunately not but I will listen when it is available.

[redhill] 16/1/2020 11:34

Did anyone get to listen to the conference call yet ?

[chipperfrd] 16/1/2020 10:59

Too true!

It can be fatal when producers start to high-grade their mining.

No need at these gold prices of course!

[bignads] 16/1/2020 10:35

A good set of results. Focus on the bottom line and net debt is down 31% in 1Quarter and well on track to being eliminated during the first part of 2020.

On AISC rising and production falling, I think what has happened is that the Board has prioritised steady production, and they have used lower grades this quarter because mining those is highly profitable at this gold price. Better to exploit these now then when the gold price is at 1000$/oz. So they are managing their resources and smoothing earnings over time which seems sensible. The CEO is being prudent and taking a long-term perspective. Very wise!

[jc2706] 16/1/2020 10:35

No you didn't and no I didn't. You said:

"Hard to get excited about this unfortunately"

No mention of "the market", just you.

[juju44] 16/1/2020 10:20

JC I do look beyond 1hr which is why I hold these shares. I simply said this would not excite the market - you thought it would and you are wrong . I believe the shares will rise over time so I am waiting

[chipperfrd] 16/1/2020 10:13

In spite of all the difficulties in Tanzania they have steadily improved their balance sheet and now look to be very close to clearing their debt. They can then finally phase out their hedging insurance and get full and lasting benefit from gold sold at spot.

Really good to see that the VAT receivables are now being accepted against tax by the GoT - it's about time!

Well done SHG :-)

[jc2706] 16/1/2020 09:45

Juju,

You need to look beyond your 1 hour timeframe. AIM investors are hardly the most patient or smartest investors so some tend to sell when the share price doesn't go up dramatically on news. SHG has never been one of those shares to double overnight but it will rise as the VAT situation is resolved, debt eliminated and cash produced.

[jasper2712] 16/1/2020 09:32

This is the fly in the ointment -

All In Sustaining Costs ("AISC")(3) of US$902 /oz (Q3: US$723 /oz), including US$47 /oz in respect of an accelerated power station generator refurbishment;
-- Cash operating costs of US$638 /oz (Q3: US$474 /oz);

The reason for the $132/oz increase?

VAT at least going in the right direction but they are getting more royalties.

[juju44] 16/1/2020 09:12

JC , don't bother with your advice . Looks like the market agrees with me , not you .