Shanta Gold Share Discussion Threads

[fitton] 11/2/2020 10:43

The more interesting part of the deal is that Barrick are taking a 6% stake in the company.A great long term vote of confidence

[qs99] 11/2/2020 10:04

we may see that 20p sooner rather than later! DYOR....good to see value finally being recognised...

[mad foetus] 11/2/2020 08:31

Breaking into multi year highs, minimal resistance from here so should keep up momentum for some time. Let's face it, all goldies (with one or two obvious exceptions) are massively undervalued.

[338] 11/2/2020 08:22

Actually, the licence has gold deposit worth over $1.85 BILLION

That's even better 👍👍👍💵8181;💵Ԁ77;👍👍;

[teacup] 11/2/2020 08:17

I have been in Greatland Gold for years so can spot potential. The licence is the key here. I have just added but will be adding more as funds come available. Massive upside

[338] 11/2/2020 08:16

Shanta is now part of BARRICK'S portfolio...

That's excellent 👍👍👍💵8181;💵Ԁ77;👍👍;

[338] 11/2/2020 08:13

In next few years Shanta will produce over 200,000 oz of gold annually... That's excellent 👍👍👍💵8181;💵Ԁ77;👍👍;

[338] 11/2/2020 08:08

Buying a licence with gold deposit worth over USD$ 1.6 BILLION for $14.5 million + 2% royalty... That's excellent

Shanta can make hundreds of USD$ profit during the mine lifetime 👍👍👍💵8181;💵Ԁ77;👍👍;

[jc2706] 10/2/2020 22:03

Confusing.

"The market doesn't like it" and yet the share price finished up?

Why would anyone write off the VAT when some of it was refunded last quarter?

Very strange statements to say the least.

[risa5] 10/2/2020 21:18

We have a good CEO well done Eric Zurrin!

[redhill] 10/2/2020 21:17

kennyp52

The market does like it and the VAT is being refunded. Not sure what your angle is !

[hazl] 10/2/2020 20:49

I like the sound of it and after all, they are the experts and I trust them to make the right decision,especially with the geopolitical risk element it really makes sense to me.'
What was the phrase above...thanks risa....'potentially transformative’;?.

[qs99] 10/2/2020 17:35

All should be looking good for an attack on 20p+ IMO.

A news filled 2020 looms and like the words "transformational" for this deal being quoted by city types above. Now needs management to follow through and deliver.

VAT refund would help!

DYOR and good also to see gold price holding up.

[mad foetus] 10/2/2020 17:28

Worth adding that weak oil means lower cost of production: fuel is usually the biggest factor there.

[bignads] 10/2/2020 17:21

This is ready to pop.

Has the news, the management, the resources, the gold price is rising higher. Fundamentals are crazy cheap at EV/EBITDA of 2.7. AISC below $1000/oz.

This company has the assets of a mid-tier producer, the management capabilities of a major but valuations of a minor.

Technicals look bull flag-like - we've consolidated around 11p ready for the next shot up.

So, to recap: Macro looks supportive of the share, the sector looks supportive of the share, the fundamentals look supportive of the share, and the technicals look supportive of the share.

Crazy!

[risa5] 10/2/2020 17:09

Shanta Gold buys West Kenya prospects from Barrick for $14.5m in shares and cash
By David McKay -
February 10, 2020


SHANTA Gold is to buy gold exploration properties in Kenya from Barrick Gold for $14.5m in cash and shares in an effort to introduce geographical diversity to its asset base.

The company, listed on London’s Alternative Investment Market (AIM), currently mines at the New Luika gold mine in Tanzania. The deal increases Shanta’s gold resource inventory to over three million ounces of contained gold with the prospect of future growth, it said.

In terms of its agreement with Barrick, Shanta Gold will pay $7m in cash and $7.5m in new shares. This will make Barrick Shanta’s fifth largest shareholder with a 6.4% stake. Shanta has also agreed to a 2% life of mine net smelter return royalty over a section of the exploration properties – including the Rosterman mine – from which 259,000 ounces of gold was mined in the past at a grade of 12.3 grams per ton.

“The West Kenya acquisition is significant for Shanta Gold, creating an East African gold mining champion with realisable growth prospects and high asset quality across three attractive gold projects,” said Eric Zurrin, CEO of Shanta Gold in a statement today. Shares in the company had increased 1.4% by midday.

The West Kenya properties were previously owned by Acacia Mining, formerly listed in London, until Barrick bought shares it didn’t own in the company. Acacia Mining had spent $55m drilling the Kenya properties.

“One of Shanta’s competitive advantages is being able to operate long hole open stoping operations more efficiently than its peers which lends itself well to the advancement of the West Kenya Project,” said Zurrin.

The project contains an inferred mineral resource estimate of 1,182 million oz of gold grading 12.6 g/t. The properties are believed to be one of the highest grading one million oz plus gold deposits in Africa, said Shanta in an announcement.
Exploration drilling totalling 221,000 metres had been undertaken involving approximately 80,000 soil samples, said Shanta.

Shanta said in January it anticipated moving into a net cash position in the current financial year following a strong showing in the 12 months ended December 31.
Production last year totalled 84,506 oz which just about exceeded guidance of between 80,000 to 84,000 oz. Guidance for this year is the similar with an upper end of 85,000 oz targeted but all-in sustaining costs (AISC) of $830 to $880/oz were likely compared to AISC of $779/oz in the 2019 financial year.

Net debt was cut by about $6m in the quarter, largely owing to a VAT refund, to $14.3m which excludes $21.8m in VAT refunds still outstanding.

“The company is well-positioned for another strong year and we anticipate entering a net cash position during 2020 as our deleveraging strategy enters its final phase,” said Zurrin. Shanta had also replaced its reserves at New Luika. The company was hoping to upgrade resources and identify new ones at the mine, Zurrin said.

[jasper2712] 10/2/2020 16:51

Barrick bought this for $25m and are selling it for $18.5m + 2% royalties once production starts
The Kenyan government will be watching this one closely as they have had their fill when Acacia was in control.
SHG have a good track record with TZ so this should work out well for all parties
If I remember Kenya was the first to start withholding VAT and TZ followed suit a few years later!

[risa5] 10/2/2020 16:34

IC TIP UPDATES:
Shanta Gold (SHG) has bought a million-ounce gold project in Kenya from Barrick Gold (CN:ABX) for $15.5m (£12m) in cash and shares. The company has been focused on expansion through exploration at its New Luika mine and getting the Singida project to production.

The former Acacia Mining, now part of Barrick, got the West Kenya project to the resource stage, with 1.2 million ounces at 12.6 grams per tonne discovered across two deposits. The $7m cash price will come from existing reserves, the Shanta said, and the $7.5m in shares will hand Barrick 6.4 per cent of the company.

The miner’s balance sheet was boosted late last year when the Tanzanian government paid back some of the $20m-plus owed in VAT refunds. Shanta’s share price was up 5 per cent on the news. Buy.

[redhill] 10/2/2020 16:25

Strong finish . 5v1 11.00p-11.50p

[investor73] 10/2/2020 15:41

SHG probably got an exceptionally good deal because Barricks being tied up with thier other mega mergers and aquisitions are stretched too thin to develope these assets.

For example,

"Barrick and Newmont Goldcorp have officially agreed on a JV for their respective Nevada mining operations, in what is now the largest mining venture globally".

Barrick Gold’s $428-million acquisition of Acacia Mining.