Shanta Gold Share Discussion Threads

[qs99] 02/3/2020 08:47

no sooner said than done.....wonder if R&M are finally out of this now? Hope so, so the drip drip drip of sells stops

[qs99] 02/3/2020 08:41

Back through 10p shortly then?

[jc2706] 02/3/2020 08:38

Nielsc,

They stated that the hedge was reduced by 3000oz in January in the last RNS.

[jc2706] 02/3/2020 08:37

338,

I don't pay as much attention to profit as cash. Running down the hedge is obviously happening but will reduce cash generation compared to the situation where the hedge wasn't present.

[qs99] 02/3/2020 08:17

wasn't hedge at 37,000 in last RNS at end of Jan? Merely going by another 3.5k each month for rest of Q1....just a guess....whatever they end up doing it is heading in the right direction DYOR

[338] 02/3/2020 08:09

JC2706,
running down the hedge will reduce provision... which will increase profit going forward when PoG going up

[nielsc] 02/3/2020 08:07

QS99,Q3 reduced by 2000ozQ4 reduced by 3000ozHedge at 40k ozWhat was the indication they would reduce it by 10k oz in Q1?That would be half of production for the quarter. Would mean they would get an average price of around $1400 or so.Cheers,Niels

[qs99] 02/3/2020 07:57

be good when hedge is below 30,000 which may well be at that rate in Q1.....if that means a bit of a "hit" so be it....let's see how it pans out....DYOR

[jc2706] 02/3/2020 07:54

Be aware, based on the last RNS they have clearly started running down the hedge with an indication that 3000oz had been closed in January. As this is almost half monthly production, the average achieved price will reduce accordingly.

[338] 02/3/2020 07:41

Yes QS99,
Q1 production update should reflect much higher realise gold price. Perhaps shanta will generate $3m - $4m higher revenue if the gold output is not less than Q1 2019 👍

[qs99] 02/3/2020 07:30

Gold back heading north

[338] 01/3/2020 22:45

Italy reports a 50% increase in confirmed coronavirus cases
By Jay Croft, CNN

Updated 2044 GMT (0444 HKT) March 1, 2020

[nielsc] 01/3/2020 22:18

US$6t wiped off global stock markets in the last 6 days. Total value of gold in the world is around US$10t.Some of that money exiting stocks will find its way in gold and silver at some point.Cheers,Niels

[338] 29/2/2020 21:48

These migrants will definitely affect European communities


Syria war: Turkey says thousands of migrants have crossed to EU

Turkish President Recep Tayyip Erdogan says 18,000 migrants have crossed Turkish borders into Europe after the country "opened the doors" for them to travel.

The number is expected to hit 25,000 to 30,000 in the coming days, he said.

[338] 29/2/2020 21:40

The market can drop further if Trump's response insufficient


Coronavirus: first death in USA

Trump says the administration is considering other travel restrictions

[chestnuts] 29/2/2020 20:57

qs99

I dont think lowering interest rates will help the uk economy infact it will have the opposite effect, The central banks have no ammunition left. i think the only way the central banks will kick start the economy is by giving every one £2000k and they have to spend it with in 1 month.

[qs99] 29/2/2020 19:32

think a few days maybe of more hedgies getting cash back on their gold margin calls.....that has driven fall if you read the market reports on gold....DYOR.....with emergency rate cuts in the offing IMO gold will be back through $1,600.....let's see

[fitton] 29/2/2020 16:57

I don't think Shanta will be greatly influenced by a large fall in the gold price.A proportion of there production is hedged at about $1250 ash so they are still not getting the full benefit from the current gold price.Even if gold fall to $1250 they have all in costs of about $850.I would like to see at least another year with gold over $1500 so that Shanta can get rid of the debt.

[chestnuts] 29/2/2020 16:48

I think this week as been all about marginal people closing their positions, and as the pyramid collapse it will take the banks down as debt wont be able to be payed back, and i am afraid Trader is probably correct but at some point gold will fly and so will gold stocks and i will add when this becomes a reality not sure at what price, THe fed will try and hold up the Dow but as the world grinds to a stand still every one will panic and is panicing, i hope every one as stocked up on food and toilet rolls.

[jc2706] 29/2/2020 16:37

Personally I think that GGP is the most overvalued gold stock on the market currently but I am aware that others view this differently.

[alangriffbang] 29/2/2020 14:49

I think it will be cheaper to buy next week because I think gold has further to fall ,i too bought a month ago ,but want to hold more ,GGP looks very interesting long term as well ,

[shieldbug] 29/2/2020 14:29

Fitton - completely agree. I bought in a month or so ago exactly on the basis that the company is clearing its debt which means that once debt free there will be no need to hedge in future. Once the company is debt free they will be able to both pay a dividend and develop new resources. The reason to buy now is that the company still has debt, still has the hedge, still has outstanding VAT repayments, still pays no dividend. All of these are reason to make the stock cheap today and reason for the stock to rise in future. If you don't trust the management to do these things don't hold the stock.

[fitton] 29/2/2020 11:02

My understanding is that the hedge was part of the requirement with the terms of the loan and not poor management.The loss is irrelevant, the big picture here is debt has been reduced from $31.5m to $14.3m and is probably currently about $12.3m.The short term stock market sell off has done nothing more than create a fantastic buying opportunity.Everyone is welcome to there opinion but there seems to be a lack of understanding regarding the hedge.Shanta are doing very well and any company that has reduced there debt by 55% in one year and are going to be debt free by the end of this year, producing the large amount of cash they are is a clear buy at the current valuation.The company could well be paying a dividend of anything unto 1p a share sometime in the next year, that's 11% at the current share price.

[davethehorse] 29/2/2020 11:01

Gold no better than equities, sell out into cash

[jc2706] 28/2/2020 22:35

And yet the diatribe continues.