Shanta Gold Share Discussion Threads

[alangriffbang] 22/7/2020 07:44

338,I do hope you are not talking about me ,I’ve had nothing removed by Advfn,

[redhill] 22/7/2020 07:43

338

Actually although we never agreed with what AG said at the time he did make some interesting points.
Shanta was in deep trouble before bringing EZ back .Far too much debt and if the price of gold had dropped instead of going up we may not be discussing this today.

The silver stream loan was just one component of our problems .
We do however get some income from our silver.

[338] 22/7/2020 07:13

Glad... I've never agreed anything with AG 😂... and he lives in a bunker without Internet since his username was removed by Advfn... 😂

[338] 22/7/2020 07:06

Well... silver always exists in gold mining... and the value can't be written off when the price hit $50 per oz... later

[338] 22/7/2020 07:03

So, dividend of 0.1p quarterly in 2021 is very realistic... To attract big institutions to buy and hold SHG... 👍

[jc2706] 22/7/2020 07:03

We don't talk about silver for painful reasons. This is one of the areas where I actually agreed with AG.

[338] 22/7/2020 07:00

Potential bonus could come from:
- H2 gold production > 43 koz
- VAT refund
- Silver production

[338] 22/7/2020 06:56

Let's do math on potential margin for H2
Assuming gold production will be 43koz
20koz to be sold at average price $1850 = $37m
23koz to be sold at hedge price $1250m =$28.75m
Total $65.75m
Cash cost 43,000 x $570 = $24.51m

So the potential margin is over $41m

That should be more than enough to pay taxes, explorations in Tanzania and Kenya, depreciation, and other costs

Any other thoughts?

[338] 22/7/2020 06:38

Why Shanta has rarely reported silver mining outputs?...

[32campomar] 22/7/2020 05:48

Gold prices surged to a nine-year high on Tuesday on the back of the European stimulus package and coronavirus surge, ANZ Research's Hayden Dimes said in a note. "The unprecedented stimulus package is likely to push real interest rates even lower, a boom for non-yielding assets such as gold. This also comes amid a new surge in COVID-19 cases threatens to derail the economic recovery as governments ease restrictions," Dimes wrote.As of Wednesday morning during Asia hours, gold hit its highest level since September 2011.

[alangriffbang] 21/7/2020 21:09

Thank you risa5 ,very interesting ,and very well put ,

[338] 21/7/2020 19:05

Thanks risa5

[qs99] 21/7/2020 18:04

Great thanks risa5......gold really motoring now. If it does get to $2,000 what price SHG then? It is not that far fetched given POG momentum etc.....

let's see, but even at $1,800 or so this should be much higher IMO...DYOR

[risa5] 21/7/2020 17:34

Shanta Gold hits net cash

Shanta Gold (SHG) has made it to net cash despite having an arm tied behind its back because of its hedging programme.

The Tanzanian gold miner saw a major uptick in sales in the June quarter and it was able to knocked $17m (£14m) off its gross debt thanks to the high gold price and a fall in all-in sustaining costs.

Even with production still hedged below the spot price, Shanta’s average sales price for the period was $1,663 an ounce (oz).

The company says it will complete its West Kenya project acquisition by the end of September, paying $7m in cash and $7.5m in shares, so this will eat into its cash balance. Seller Barrick Gold (US:ABX) is getting a good deal on the shares: the February deal announcement locked in the shares at 10.5p, a third lower than the current level.

Adjusted cash profits for the quarter were $19m, almost double year-on-year. This figure is adjusted for the impairment that will come from selling some gold at below spot because of its forward sales. As of June 30, the company still had 27,000oz to sell by January at a paltry $1,251/oz. This is around half the rest of the year's production according to its 2020 guidance of 80,000-85,000oz.

Shanta’s share price was up 11 per cent on the news, to 16.3p.

IC View
Shanta has done well operationally this year, and has found itself a more ambitious expansion option than the Singida project in Tanzania. With the gold price climbing consistently since February, their timing looks good too. Buy.

Last IC View: Buy, 9.5p, 8 Apr 2020

[338] 21/7/2020 15:06

Also, I bought ARB as BTC rocketing 🚀😁

[338] 21/7/2020 15:05

QS99,
PoG kicking up again 🚀😁

[qs99] 21/7/2020 14:19

let's hope gold allows another rocket before close of play 338!

[338] 21/7/2020 13:27

🚀
🚀
🚀
🚀

😀

[scoble2] 21/7/2020 13:26

gold price
1,835.23
+17.93+0.99% 20p by Friday

[338] 21/7/2020 13:26

🚀

🚀

🚀

[32campomar] 21/7/2020 13:24

Gold and silver flying, Gold August $1839, silver up 6%!

[plentymorefish] 21/7/2020 12:31

That's better....I would if I could.....

[338] 21/7/2020 12:28

PoG 🚀

[plentymorefish] 21/7/2020 12:24

I can't....I don't have a blue avatar.....and besides, to get a tick up, you need to provide some information, not just ask for a tick up!.....