Shanta Gold Share Discussion Threads

[338] 21/5/2020 12:27

kenny52,
The hedge has reduced by almost 4koz in the first 3 weeks in April... So it's fair to predict another reduction of 8koz or more in May and June to further bring down to 19koz by end of H1

Otherwise, Shanta will generate more cash... So both approaches go to a right direction for shareholders 👍

[jc2706] 21/5/2020 10:11

Ok. Since there is an insistence in rehashing old discussions and it is the one post that juju44 makes other than 'why share price not go up?', the hedge was in two parts. One was exactly the right thing to do as it guaranteed the repayment of their loans. The other was more debatable as it was effectively a speculative play on the gold price.

As to why the share price is not rising, I would hazard a wild guess that it is because buys are not out weighing sells. A glance at the 13th February may be an indicator as to where some of the selling is coming from. As to why others are selling in what appears to be a significant gold bull market, who knows?

One thing I would say is that the hedge covers 20k+ oz of gold. This is about a twentieth of their reserves so, in the scheme of things, not a great deal.

[redhill] 21/5/2020 09:53

kennyp52

If indeed they could have got the provider to agree to a limit there would have been a higher cost involved with the deal.

At the time it was taken out it seemed the prudent thing to do.
No point at harping on about it.

We made a loss last year as we amortised a great chunk of mine expenditure not solely due to the hedge.

Also the share has risen over 100% in the last year.

[qs99] 21/5/2020 09:50

I agree, that they should have tried to release more of the hedge earlier but the hedge was put in place for the right reasons. Management of it thereafter questionable. Personally I think management are doing pretty well at the moment and the new deal should provide some very material upside and away from TNZ where the VAT issue I totally agree has been nuts.

[juju44] 21/5/2020 09:35

Agree total fek up

[kennyp52] 21/5/2020 09:19

QS99 and 338 ... what facts are you basing your comments on as a I will be the first to be relieved that this is being dealt with . This is my research ...

Forward sales commitments reduced during the Quarter to 31,265 oz (Q4 2019: 40,000 oz) and post period to 27,304 oz, a 32% reduction from the end of 2019;

So 27k ounces still have to be sold at the hedge when POG is $1737 . If the hedge was not in play or at least limited to , say , $1450 ( extreme ) which it could quite sensibly have been negotiated then the board would not have cost us $8M just on what they still have to honour let alone what they have lost us on that already sold . We made a loss last year ! You call this a great move ?

[kennyp52] 21/5/2020 09:17

Ok guys .. why then is the share price not rising ? What other factor is there ? The last RNS started they had not substantially dealt with the hedge ... they were still going to take the current price and reserve . That means at some stage gold worth $1700+ has to be given away at the hedge price . They could have dealt with this at $1350 ; then $1450 but no ... they are building up a problem taking short term cashflow and building up liability . Deferring the issue has lead to even higher lost opportunity costs if POG holds . Anyone that thinks the behaviour of the board on this issue has been good and has not impacted the confidence in the share is frankly deluded . I like the look of Shanta , the fundamentals are on the whole good but this hedge is still weighing on it IMO . What else is holding it back ? POG ? 🤣

[338] 21/5/2020 09:10

The hedge could be under 20koz by end of H1

[qs99] 21/5/2020 08:24

Indeed, pack it in, re-read the last 12 months of posts re the hedge ffs.

By end of H1, the hedge number should be way down IMO and is slowly becoming immaterial to SHG IMO. DYOR etc.

POG holding up well so it can make hay at the same time.

[jc2706] 21/5/2020 08:23

How many times has this been rehashed?

[space_bob] 20/5/2020 23:27

Hindsight is always 20/20.
At the time that it was taken out, it was an insurance policy against the company potentially going bust.

[kennyp52] 20/5/2020 23:05

How much of the hedge has been cleared now ? Poor , if not incompetent , decision to not cap the price when they did the agreement . Who the hell advised ? This is the main reason IMHO why this share continues to lag .

[redhill] 20/5/2020 18:16

Well the 349000 has gone now !

[qs99] 20/5/2020 14:13

4th time lucky then! Must have cleared loads of sales lines by now....!

[zcaprd7] 20/5/2020 14:00

This is the 4th attack at 12p resistance...

[338] 20/5/2020 10:29

seems like the gold production from big miners can't meet the increasing demand

[risa5] 19/5/2020 20:22

Gold getting stronger as $ start getting weaker.

[juju44] 19/5/2020 09:26

Say it as it is man

[jc2706] 18/5/2020 21:55

Ha! It didn't even take until tomorrow!

[juju44] 18/5/2020 21:40

Shanta was never one to warm the heart

[qs99] 18/5/2020 21:39

Think the DOW was opening sharply up and so gold was sold off....IMO

[risa5] 18/5/2020 21:24

O/T, AAZ
It has pledged to pay out 25% of its free cash flow as dividends in two equal half-year payments.
hxxps://johnsinvestmentchronicle.com/new-holding-anglo-asian-mining-funded-by-sale-of-iomart/

[redhill] 18/5/2020 17:55

Was there a big dump of paper gold earlier ?