Shanta Gold Share Discussion Threads

[redhill] 07/12/2021 11:25

338

It's Tuesday! lol

[lowtrawler] 07/12/2021 10:57

space_bob, they have been moving resource from inferred to indicated - a requirement to obtain funding and give confidence on the mine plan. As you say, no significant increase to the value they paid but it is moving things along. In 18 months, we could have a Funding Statement and secured funding for a build. It is only then any real change in value will occur. I doubt it will reach £95m until in production though.

[space_bob] 07/12/2021 10:46

West Kenya is not worth £95 million - it's worth the £7 million which Shanta paid. Remember the previous owners spent £150 million drilling it (same holes Shanta are now drilling and announcing regularly) and then sold it on for peanuts. It's a long long way from producing anything.

[plat hunter] 07/12/2021 10:32

"Why should they use more than one supplier if that supplier has been dependable in previous years."Because you need to be in cotrol of your own business and not blowing in the wine at the mercy of another business.Very basic stuff

[jasper2712] 07/12/2021 10:30

Another piece of bad luck. People need to remember we are still struggling to get supply chains up and running after a global pandemic. Why should they use more than one supplier if that supplier has been dependable in previous years. This is a small glitch which will be solved. The gold will still be in the ground so it will be there for another day. Loss in revenue isn't $17.5m !!
The long term fundamentals are still there so a good time to add in my opinion

[redhill] 07/12/2021 10:24

Lowtrawler

I agree. Eric needs to do an interview and produce monthly production numbers for a while.

[lowtrawler] 07/12/2021 10:22

I remain heavily overweight in SHG and so today's announcement with resulting price fall is very painful. I have previously been very comfortable to allow the share price to drift as I have considered SHG to be well managed and controlled while operating a conservative strategy. Ultimately, I have been confident they would deliver against plan and the share price would respond accordingly.

I was able to ignore the rock hit from earlier in the year as bad luck. This latest announcement is clearly a management failure. It calls into question my belief in management to deliver against plan. The fact they have communicated the failure in such a poor manner only adds to the concern. Until they explain what happened and the action they have taken to prevent recurrence, we cannot know if they will run into further management failures.

If they deliver against plan over 2022, confidence will start to be restored but it is going to take time and SHG cannot afford any more bad luck or management failures.

[juju44] 07/12/2021 10:22

I may have a bet at 5p

[plat hunter] 07/12/2021 10:21

So where's the emergency stockpile then??

[redhill] 07/12/2021 10:16

Plat Hunter

Buying local content. Could be that there are not too many suppliers about.

[redhill] 07/12/2021 10:14

davethehorse

You will only get shafted if you sell but that really depends upon your time scale for holding.

[plat hunter] 07/12/2021 10:12

Why would you not stockpile this emulsion???Looks like a bit of school boy error. Only one supplier and no stockpile for emergency use.

[davethehorse] 07/12/2021 10:12

And holders will get shafted again....

[redhill] 07/12/2021 10:11

West Kenya has to be worth more than $95 million on its own. Shanta is a sitting duck for a takeover offer!

$25 million in the bank and about $22 million owed in VAT.

[plat hunter] 07/12/2021 10:07

"2021 guidance of approximately 80,000 oz at AISC4 of US$900 - US$950 /oz on a like for-like basis and US$1,050 - 1,100 /oz including development costs, in line with the World Gold Council ("WGC") definition;"Now looking at 50k a cut of 37.5% and increase in costs of circa 57%Mcap of 95 million... People will be right in saying that the problems are out of the way and this is now cheap but others with similar stories are cheaper and this possibly has further to go yet.

[ericfreh] 07/12/2021 09:59

So if I expect gold price to go up again then cool beans

[juju44] 07/12/2021 09:51

Red , gold price took the share price up not management competence

[kennyp52] 07/12/2021 09:50

Jeez .. when you have an issue that drops current year forecast from ….

“ 60,000 to 65,000 ounces to a range of 55,000 to 57,000 ounces” .. as a result of a short term problem ( they state ) that has been FIXED then they DO need to reiterate future production .

That is up to 10k ounces lost at the extremes which is circa $17.5m .. Redhill .. your $1m loss as a result of this hiccup just shows your stupidity .

[ericfreh] 07/12/2021 09:49

Bought at 9 first time today ,will hold for a year thanks