IOMINVESTCOM
17 Nov 2016
Interesting silver news....not just gold. 17 November 2016Shanta Gold Limited("Shanta Gold", "Shanta" or the "Company"
US$5.25 million silver streaming advanced payment receivedShanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, announces it has received the advanced payment of US$5.25 million as part of its silver streaming agreement ("SSA", as announced 6 May 2016.As previously stated the Company will also receive an ongoing payment of 10 per cent. of the value of silver sold at the prevailing silver price at the time of deliveries.way of reminder, the SSA relates solely to silver by-product production from the New Luika Gold Mine with minimum silver delivery obligations totalling 608,970 oz Ag over a 6.75 year period.The Company produced 121,682 ounces of silver in 2015 resulting in approximately 2 per cent. of annual revenue
Diottica
03 Oct 2016
Re: Singida Singida's drill results released today - only a weekend overdue - and make good reading.There appears to be some slippage in starting the pilot project at Singida - this is said to have been rescheduled for Q2 2017 (versus Q1 2017). I'm also a bit disappointed not to have had a full update on resources. In Shanta's Q2/H1 2016 results (17/8/16) it was stated:"The Company intends to provide an updated Resources and Reserves statement at the end of Q3 2016 to be incorporated into an updated mine plan."Perhaps that will come shortly or when the Q3 2016 results are released. I think Shanta previously said the updated mining plan won't appear until Q1 2017 but updated Resources would be valuable. What I'm also keen to know is how has the mining at New Luika and BC gone in Q3 (both open pits now depleted?); is there sufficient mineable ore at the other pits (Elizabeth Hill etc) or new underground pits at Luika/BC to keep production/cashflow going until Q2 2017 (i.e. another 3 months than originally planned - there should be but confirmation would be nice); are they still hedging production into Q1 2017; did the Silver streaming deal get signed or binned etc ?Still, must remember my glass is half-full 
wookie77
26 Sep 2016
Singida Initial drill results due "before end of september"
Taddish
24 Sep 2016
Proactive Investors Nice article [link]
Diottica
08 Sep 2016
Re: SF Peterhouse - video on SHG and oth... and another video at:[link] chat after the updated resources. Seems the fully updated mining plan will be early 2017.
shugg1e
08 Sep 2016
Re: O/T - fao Taddish hummingbird are good the other two steer well clear of.DYOR
Diottica
08 Sep 2016
O/T - fao Taddish TaddishYou mentioned that you were interested in looking at other PM miners. Whilst I'm waiting for the mainstream PM miners to correct meaningfully (if ever!) I've been looking at what might be termed 'special situations' i.e. high risk/high reward situations, similar to Shanta perhaps. I've taken a dip into the three below - only modest (0.5% each of my portfolio) but will add as my understanding/events develop or prices fall.1) Alacer (TSE:ASR) - gold miner in Turkey2) Hummingbird Resources (HUM) - explorer in Mali, Liberia3) Kingsrose Miner - new producer in Indonesia with a plumbing problem!DYOR etc, these are suggestions for investigation with the realisation that any investor could be wiped out DioP.S. If you're interested in other commodity plays and have time for research then I'd recommend looking at Uranium and Fertilizer's -both sectors are in downturns, near lows etc etc (like Gold was) but are, imo, fundamental to the future (nuclear power and growing food). IMHO there's no rush - both will take 12m+ to turn but worth getting familiar with the key players e.g. Uranium - Cameco, Denison, Energy Fuels*, Fission, NexGen, Paladin*, Uranium Energy, Ur-Energy and many moreFertilizers - Agrium Inc, Potash Corp, Yarra, CF Industries, Terra Nitrogen, PhosAgro, Syngenta etc* I hold shares
Diottica
07 Sep 2016
Re: On its way at last...? Yes, very positive news, though I see it as a bit of a teaser before the full update of resources and revised mining plan due by month end. Then we'll have Q3 results and, imo, a much better feel for whether Shanta is going to be able to finance itself through 2017 AND have surplus cash (from FCF). If the POG holds up/improves then the sp should rise.The icing on the cake for me would be a decision not to proceed with the Silver streaming deal - literally selling the family silver for a pittance!
sasa43
07 Sep 2016
On its way at last...? Excellent RNS out this morning (huge boost in resource & higher grades) is what drives a re-rate and if we see the usual Autumn upturn in AU, holders should be well in here....sasa.
Diottica
03 Sep 2016
Re: SF Peterhouse - video on SHG and others Another video at:[link] is mentioned about 9m20secs in. Interview is with Angelos Damaskos, co-founder (with the late Jim slater) of the Junior Gold fund ([link] I just need to get back to being frustrated at the lack of any (meaningful) correction in the PM miners for longer than 5 minutes so that I can invest further! Perhaps Janet Y will raise rates this month....or perhaps USA will elect a sociopath in November (guaranteed with the two nominees?) and shares in general will fall...?? LOL
Taddish
18 Aug 2016
Re: Shanta Gold recovery on firm footing I agree with the technicals and suspect we'll see a dip before breaking through 10p. The company is doing as well as could be hoped and looks to be playing the sensible game of expensing, rapidly depreciating some capital items. Whilst this is making the P&L look worse (reporting a loss), it's reducing net debt and therefore de-risking the next year or two. 2017 should indeed be the year that the P&L bottom really gets going.The relatively limited minelife, based on the current drilling results, is the other thing that's will limit the SP. So definitely a strong hold for me and will add at 8.5 given the chance.Tad
wookie77
18 Aug 2016
Re: Shanta Gold recovery on firm footing They raised their price target yesterday to 20p! Fantastic value here.....< Back to listBroker Forecast - finnCap issues a broker note on Shanta Gold LtdSource: SMWfinnCap today reaffirms its buy investment rating on Shanta Gold Ltd (LON:SHG) and raised its price target to 20p (from 12p).
IOMINVESTCOM
18 Aug 2016
Shanta Gold recovery on firm footing Shanta Gold recovery on firm footingPeel Hunt is sticking with its ‘buy’ rating on Shanta Gold (SHAN) as the gold miner continues its recovery.Analyst Michael Stoner has a 9p target price on the shares, which were trading at 9.6p yesterday. But he said that target price was based on a conservative $1,190 an ounce long-run forecast for the gold price. With gold trading at $1,344, the target price rises to 14.6p ‘leaving plenty of value on the table for investors’.Stoner added that the miner was now firmly on the road to recovery. ‘In 2015 Shanta set about a plan to fix the operational and financial stress that faced the group. It has undeniably fixed the open pit operations and is now moving to secure the longevity of low-cost gold production at the New Luika mine, with a transition to underground mining,’ he said.‘The financial pressure has also been lifted with outstanding operational performance and a rising gold price both adding to the cash generation, which in turn builds financial headroom for the underground development project.’[link]
Diottica
14 Aug 2016
Re: Valuation and Price One further observation. Whilst, imo, Technical analysis and charts aren't going to drive the sp, compared to fundamentals, you may recall that we needed to go through 8.5p to keep the positive trend going - higher highs and higher lows. Well, as the chart below shows, with the sp having recently risen to c.10p, that trend has continued. I'd suggest support at around the 7p level. Any fall below 6.5p would have me concerned.
Diottica
11 Aug 2016
Re: High risk - reward? Right, from previous post we have 2016 sales of $104,253,502.From that we have to deduct total costs to give an approximation of how much cashflow (financings aside) SHG will generate this year.The BCMP published Sep 2015 gives AISCs for 2016 of $817 (open pit) and $691 (underground mining), averaging $807. The company has more recently given guidance that AISC should be towards the lower end of the revised guidance of $720-780. But let's be prudent and take $780 (compared to 2015 AISC quoted at $845 or calculated by me at $907). This seems realistic given AISC in Q1 was stated as $600 and $664 in Q2. So, total AISC costs will be:87,000oz x $780 = $67,860,000Deduct that from sales of $104,253,502 gives us $36.4m.Now, given that it's not clear what capex the company considers 'sustaining' (and is thus, included in the AISC figure) it is difficult to judge what the final free cash flow (from which debt can be repaid) will be. Total capex in 2016 is given (BCMP) as $45,562k, the two largest items being underground development $21.5m and Power plant $11.2m.In the worst case scenario none of the capex is included in the AISC, so the $36.4m cashflow calculated earlier won't cover the $45.6m to be spent. But, we do know from the quarterly reports that capex to date has been $12.6m (Q1 $5.6m, Q2 $7.0m) and new financings taken were $24.2m ($5.2m u/g equip., $9.1m Power station, $10m final drawdown of Investec loan). I've ignored the capital raising as this was fully used to pay off the Con. loan note holders.Given the above we can deduce that of $45.6m capex, $12.6m has been financed externally, leaving $33m to be financed by cashflow and/or the surplus new financings ($24.2m - $12.6m =$11.6m). I worked the cashflow out at $36.4m, so even in a worst case scenario I am satisfied that SHG should be OK to the year end. More realistically, much of that capex may have been included in the AISC figure, so actual free cash flow will be much healthier. We should also remember that if the Silver streaming deal concludes (imminent) then that will yield another $5.25m in cash. The latter may increase the AISC (silver may have been deducted as a by-product credit) but the amount is modest (~c.2% of total revenue).In the podcasts, the CEO said that for the time being cashflow will be accumulated i.e. stored as cash, rather than used to repay debt (other than contractual reductions I assume). This to ensure that there's sufficient cash to meet the additional costs to complete the u/g mines (BC and Luika) in H1 2017 and fund the start of Singida operations.The BCMP gives capex of $10.6m and $11.3m in 2017 and 2018 respectively, with AISCs of $786 and $712. Given that, and assuming no disasters (plant breakdowns, gold grades sharply lower than anticipated etc) then SHG should be throwing off free cash from 2017, enabling debt to be reduced.The next key milestones will be the Q3 results and updated resource statement due by end Q3. If they're good then I'll think about increasing my holdings as a potential high risk stake in advance of a re-rating next year as the market recognises SHG is over the worst, gold price permitting. Additional milling capacity may help matters - investors like to see increasing production, but perhaps we'll get that from higher gold grades.Apologies, if my train of thought/calculations don't flow but this forum's restrictions on layout and formatting don't assist clear presentation. Thoughts, criticism, fact corrections are all welcome.
