Diottica
06 Jul 2016
Re: Q2 H1 Operations Update I hope the results are good, especially as I recently doubled my holding here - reinvesting part of my CEY sale. One fear I have is that the previous results were 'massaged' to make things look good in order to support the fundraising - no evidence for that, just my cynical nature!If I understand correctly, SHG had (May results announcement) sold forward around 20k ozs of Gold (@ $1,148/oz) and had sold 21k ozs in Q1 2016. Would this mean that remaining gold sales are unhedged or do they sell part hedged/part unhedged? I suspect the latter but whichever is correct this should mean that going forward most sales should be at Gold spot price - providing a $200/oz fillip at current prices (c.$1350/oz).So, hopefully, revenues shoudl improve going forward and we need the company to keep a lid on costs - if not decrease them further.Looking to add further to my holding but being patient......
Taddish
04 Jul 2016
Q2+H1 Operations Update Should be issued in around 2 weeks time.Based on Q1 guidance, performance should be good with low AISC although SHG will have lost out a bit on sales price by agreeing prices well in advance. So hopefully it'll still be a profitable period with significantly higher sales prices projected for Q3 & 4.At around £35m mkt cap, SHG is starting to look very cheap now the undrground fincancing is sorted. Directors bought a shed load of shares too.Tad
Simbr
08 Jun 2016
restructuring of convertible loan SP Angel note out this morning on Research Tree: "Shanta Gold report they have completed the restructuring of their convertible loan. We sat down with management last week to understand the deal...There appears to be significant potential from the exploration and development of extensions to the existing pits and new underground workings. Shanta looks well set on the road to financial recovery with relatively steady gold production and an improved mine plan in place. The team understand so much more about the geology of the license area with the potential to discover allot more high grade gold ore in our view."
Simbrad
08 Jun 2016
SP Angel note out this morning on Research Tree: "Shanta Gold report they have completed the restructuring of their convertible loan. We sat down with management last week to understand the deal...There appears to be significant potential from the exploration and development of extensions to the existing pits and new underground workings. Shanta looks well set on the road to financial recovery with relatively steady gold production and an improved mine plan in place. The team understand so much more about the geology of the license area with the potential to discover allot more high grade gold ore in our view."
vekta
02 Jun 2016
Re: AGM Thanks SS49, very informative. Wonder if they have a buyer lined up for the HFO genset?Vekta
Sunshine49
02 Jun 2016
AGM I've just been to the AGM. There were not many there (just four: Toby Bradbury CEO, the company secretary, the representative for another shareholder, and myself) and it was over in under 25 minutes, and not much was said (no presentation) but here's a few notes. Financial year to 31Dec15 was pushed into the red by amortisation charge of USD 21m. That was provisions of 9m for waste disposal and 12m towards commencing underground working that the company was required to make. Total cost of opening underground mining is budgeted at USD 65m, of which 39m will be spent in 2016. Toby said 65m was relatively cheap for an underground mine. The heavy fuel oil (HFO) power plant is being replaced by a new 7.5MW plant, which will expand capacity. It has a 20y life expectancy and payback is expected in just 4 years, whereas the HFO plant had much shorter life expectancy (and Aggreko are no longer servicing them). (At the last meeting I went to in 2013 they were in the process of buying the HFO which was to cut costs and take them into the future.) Last year was a year of two halves. The previous CEO, Mike Houston who retired April 2015, had got the milling plant installed but it's capacity exceeded the rate of mining, so mining capacity was increased to catch up. Toby was pleased with the cost per ounce, which beat targets and is among the lowest in the industry. Later this year open cast mining comes to an end at Bauhinia Creek and Luika pits and they start underground mining, which will run in parallel with open cast mining from lower grade satellite deposits. The underground mining will see a reduction in workforce, with 174 miners needed for the underground mine, of which only 2 would be expats as there was good availability of workers locally with the technical skills needed. Underground mining needs only a quarter of the workforce of open cast, and the cost per ounce should come down as the grade is higher. Satellite pits are not in production yet but are ready to start producing. Toby said the balance sheet was now cleaner than last year. Recently the deal had been done with Silverback Ltd giving Shanta USD 5.25m up front and Silverback get any silver produced during the next ten years at rates of 90% discount (i.e. they pay 10%) for the first 10,500 oz per month and 80% discount above 10,500 oz. Shanta produce about 1.5 oz silver for every ounce of gold, accounting for ca.2% of revenue. All resolutions were passed.
shugg1e
26 May 2016
Re: Open Offer Personally I thought it was a joke being offer shares @ 6.5p when you can buy them on the open market at 5.75pWhat's going on there?
Diottica
26 May 2016
Re: Open Offer FWIW, my holding (bought at 18p) is small so it still makes sense to take up the offer rather than buy in the market (presently 0.75p below the 6.5p offer price), thereby avoiding the broker fee - assuming you're prepared to commit more funds.IMO there's considerable risks here (mainly debt/financing, albeit this and private placement plus note extension mitigate these) but the positives (low cost, high grade, open areas etc) and potential rewards led me to conclude it was worth adding to my holding.
ajbjasus
25 May 2016
Re: Open Offer Pretty pointless if it's a premium - might as well just buy them cheaper direct !
BeaglePup
25 May 2016
Open Offer I've just seen Subscription Shares appear in my portfiolio on YouInvest. It seems there is to be an Open Offer at a rate of 1 for 8 at a price of 6.5p each. Any views? I can't really decide myself as it's a premium to the current price.GLA, IMHO etc
Simbrad
23 May 2016
"Shanta Gold primarily engages in gold mining, processing and exploration in Tanzania. The open offer has been made after the company issued new ordinary shares to raise US$10.0m earlier this month. The earlier offer received positive response from shareholders, given about US$10.5m was raised. The funding would help Shanta Gold in meeting capital expenditure requirements at the New Luika Gold Mine (NLGM) over the rest of 2016. In addition, the company would be able to execute the Base Case Mine Plan, undertake the underground development of the NLGM and progress with satellite deposit exploration. Moreover, the proceeds from the open offer would strengthen its financial position, enabling further exploration work. Considering the argument mentioned above, we..." Beaufort published a note on Shanta Gold this morning, available for free on Research Tree
George Zibbos
06 May 2016
Disappointing Not good Im out of here now. Serabi looking much better than this @ 4.25 which is the price I bought these at coincidentally
scruffee
06 May 2016
Off loading .. Wonder who that could be?? ....................... Best Wishes.x
Mpg1
23 Apr 2016
Re: Nice update The debt has risen too much here now and there are other miners better positioned. I think gold is going to continue to rise but if this is not the case the SP will get hammered.I've therefore taken a small loss and re-invested into pan American silver (tsx paas).I will continue to look in here as they have done well getting the mine more efficient and production up.Gl
shugg1e
19 Apr 2016
Nice update Had a look at these and they look very cheap and in a great position to take advantage of the new bull market in gold stocksThere is great potential hereThe chart is just starting to turn up
