Shanta Gold Share Discussion Threads

[davethehorse] 29/12/2021 11:56

Due a tick up soon..

[338] 29/12/2021 10:02

Hopefully, Eric can confirm soon (in The Q4 update) that the worst is over... and NLGM is ready to produce gold over 17,500+ oz per quarter steadily from Q1 2022

[338] 29/12/2021 09:57

Redhill, I agree with you... Current lower gold output from NLGM is due to lower grade being processed rather than bad management...

[lowtrawler] 29/12/2021 09:55

RH, I'm sure 1 of our mining experts will be along to explain why it doesn't quite work the way you think. The next 18 months are going to be key. If we can avoid further slips at NLGM and Singida, we should finally head over 20p.

[redhill] 29/12/2021 09:29

Plat Hunter

Not really. If you make up lost production in the first half of next year then you are no worse off overall. In normal quarters they blend lower grade ore with higher grade ore. This quarter they have used a lot of lower grade ore in production so why not use mainly higher grade ore next time.

[plat hunter] 29/12/2021 08:58

By that logic Redhil, gold miners are better off just leaving in the ground for tomorrow and the best companies in the world will be explorers as you know, at least it's still in the ground for later ;-P

[redhill] 28/12/2021 14:59

On reflection though this problem with the emulsions was not as bad as i first thought.

Yes they have had to process lower grade ore for a month or so but the gold they were going to process hasn't gone away.

If they are smart they should process this higher grade ore and not mix it with lower grade for the next quarter thereby making up the production shortfall for this current quarter.

The plan next year was to to produce 74213 oz from NLGM but now we could possibly be looking at 80000oz.

Let's see what guidance they come up with in January.

[lowtrawler] 28/12/2021 13:37

Kennyp52, there have only been 2 company issues hurting the price this year and they are the first for several years. Hitting rock could be considered bad luck. The supplier issue for emulsions are clearly a management issue. Until the emulsions, I had considered Shanta to be one of the better managed juniors. The next 18 months will demonstrate one way or another.

[lowtrawler] 28/12/2021 09:19

RH, SHG is by far my largest holding and I firmly believe we should be trading over 20p but there are reasons to be cautious.NLGM needs developed into new seams which is often not straightforward. Singida needs brought into production and mine builds often hit last minute snags. WK is taking a lot of management resource away from these developments. I'm anticipating a bumpy ride over the next 18 months If management can successfully navigate the next 18 months without issue, they will have earned their pay and their reputation should go through the roof.

[source] 28/12/2021 09:09

Seems a terrible deal...agreement is valid till March 2026! With volume commitment till Dec 2022!Still a long way to go there actually & a bad decision for shareholders. Regards

[redhill] 27/12/2021 09:47

What is there to say about it. The silver stream agreement was taken out in 2016 when the Company was desperate for finance. Almost done & dusted now.

The share price will recover after a bad year for production in 2021 which i believe is the first year since production begun that problems have been encountered at a mining level.
The directors have done a very good job in clearing the mountain of debt Shanta had and pushing forward with expansion plans.

A good deal of the recent fall off in the share price is due to a change of direction by a large institutional share holder who is/has offloaded a substantial amount of shares.

[mhin2] 26/12/2021 23:34

Anybody have thoughts on this (from August 2021 report), which Zurrin has been quiet about.



(a) Silver Stream
The Company entered into a silver streaming agreement (“SSA”) with Silverback Limited (“Silverback”), a privately held Guernsey-based investment company, under which Silverback paid the Company an advanced payment of US$5.25 million on closing. Silverback will also pay the Company an ongoing payment of 10 per cent of the value of silver sold at the prevailing silver price at the time of deliveries which will be made annually. The SSA relates solely to silver by- product production from New Luika with minimum silver delivery obligations totalling 608,970oz Ag over a 6.75-year period from April 2016 until December 2022.

There is a requirement to settle any shortfall in silver delivery from the minimum obligation in cash. The term of the SSA is 10 years from April 2016 until March 2026 during which time the Company will sell silver to
Silverback and receive ongoing payments of 10% of the silver sold at the prevailing silver price. However, the Company has no minimum ounce obligations after 2022. The liability is calculated using the forward silver price and interest at the effective rate is imputed interest. The SSA includes a clause under which the percentage of the Company’s silver production that it is obliged to deliver to Silverback can be reduced in the event of a capacity expansion to the processing plant at New Luika. Such an expansion occurred during H1 2021 and the Company’s ongoing commitment to Silverback has been reduced to reflect this.

[mhin2] 26/12/2021 23:03

Fallen of a cliff 3-4 times since Oct.2020...in the meantime directors have sold at a significantly lower price than money raising....but significantly higher than current price. The data indicates the directors are not to be trusted... any future fundraise will not ignore this.

Seems as if Eric is better at flirting with Katie Pilbeam at proactive investors than he is at looking after the interests of PI's...I make the assumption that insiders are insiders (and have advance knowledge), and that is how the world works.

[alangriffbang] 24/12/2021 12:21

juju happy Christmas to you and everybody that posts on here,if GGP can do it we can,

[davethehorse] 24/12/2021 12:17

Topped up too, hopefully a gift for 2022. GLA

[chipperfrd] 24/12/2021 11:54

Happy Christmas guys. All the best for 2022.
Chip

[nielsc] 24/12/2021 11:28

Redhill,I just said thank you MR Market and topped up my SHG holding. Merry Christmas Cheers,Niels

[redhill] 24/12/2021 11:25

The market valuation of this Company is ridiculous. $117 million at present.

In 2020 the Company's revenue was $147 million with a gross profit of $56 million.

Yes gross profit will be down in 2021 but the market is meant to be forward looking and this level of valuation cannot continue for much longer.


Rant over. Merry Christmas to all holders and a prosperous 2022

[redhill] 24/12/2021 11:03

Please don't juju. You will still be moaning when they hit 30p !

[richgit] 24/12/2021 10:39

WHO Director-General Dr. Tedros admitted on camera that countries are using boosters to “kill children.”

[juju44] 24/12/2021 09:47

The dog is handing out the Christmas pressies. I will still consider buying at 5

[alangriffbang] 23/12/2021 17:50

amazoner happy Christmas and don’t forget us all on here next year,

[amazoner] 23/12/2021 14:28

probobloy shonto can reach 25p by xmas 2025