Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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#SHG, Liberum sees acquisition potential for smaller
gold producers in 2023, as consolidation in sector intensifies
Producers such as Caledonia Mining CALq.L CMCL.N
and Shanta Gold SHAN.L will likely attract "attention" from Chinese or Moroccan buyers such as Managem MNG.CS
dropped to $2004
live spot>>>
https://www.bullionvault.com/gold-price-chart.do
"The bid cannot seem to get beyond 12.50 before it's sold back down" - next time you are at the seaside, watch the waves when the tide is coming in. The hit the beach then run back out - but the tide is still coming in.
Yes it was the same at 10.5, 11, 11.5 and 12..
Eric will need to give Q1 results and also the forecast going forward and excite the market, right now there is no excitement before the forecast of our new mine hasn’t been announced. This is needs to be as a priority in my opinion
But it keeps getting sold into. The bid cannot seem to get beyond 12.50 before it's sold back down
Why would anyone want to sell now with so much upside ahead? Do they know of a better opportunity? If anyone who sold today knows of a better investment, please let us know what it is.
A short while ago I read an article predicting (TA chart analysis) that if gold can get over $2,018 then that level will trigger a much bigger rise. $2,018 has now been achieved, so let's see if he was right.
US inflation coming down, golds time is here now and it will stay higher for longer, Shanta should easily double from here. Load up on these cheap shares
End of Q3 is the big date for SHG, the NLGM / Singida Mines at this point will be producing at known production levels / AISCs that should set the benchmark for medium term production in the next 2 / 3 to 5 years.
The financial ‘collars’ also fall away at this point, and we should have an unhedged clean vessel of a mining company that should be piling up cash and also increasing exploration at NLGM, Singida and WK to expand the resources.
If it all transpires as planned, it’s a matter of when, not if the SP will be much higher assuming AU prices don’t collapse, but that also can go the other way if AU prices continue to rise.
booboouberbear good post! There are more pitfalls when it comes to mining ;)
Just to add to the point about liquidity, Shanta have been running approx $7-8m CAPEX at Singida each quarter up until last quarter and now that the major capital costs have disappeared there should be a significant increase in liquidity, particularly in Q3 once ramp up is nearing peak target production.
PF Builder
I think profit for 2023 will be approx $45-50m, with a AISC of $1250, 85k oz produced, hedges to work off and Q1 being a "steady quarter".
With no mishaps and currently a $150m market cap there is potential for the share price to double this year.
Of course gold needs to stay at this level for such cash generation and profits to be realised and AISC is not breakeven price (so net profit won't be $92m) but given time if gold does stay here we'll easily see 20p minimum.
I'm overweight also here.
They will be literally printing money at this gold price and the increased production figures.
I've done some crude calcs, I posted on Twitter last week when gold was $2024
#GOLD looking to rally again currently $2024. #SHG must be the best gold play out there.
AISC will be circa $1100 with new mine on line
100000 oz per annum
That's $202mil revenue and $92mil profit
I will try to take a look through the issued share capital, but does the company have cheap warrants, CLNs, placing overhang or some other source of potential large seller(s) to clear, before it can go on a sustained rise?
Cash is coming in thick and fast as it is with Q1 averaging around $1900 Oz but yeah, a quarter producing 25000 Oz @ $2000/Oz and we're looking at enormous cash generation that flips the net debt position to net cash.
Significant share price appreciation is inevitable if gold stays above $2000/Oz for the foreseeable.
Been obese here since 10p
For the sake of playing devil's advocate, you must also remember mining is viewed (rightly imo) historically as more risky and volatile to other sectors, its PE Ratios are usually always lower, the company doesn't have a great deal of free cash in hand, it now has to build that back up, it has approx $20m in debt I'd hazard a guess at at this time, and the biggest problem of all imo is the liquidity issues down here in the junior resource sector on AIM, it's awful, not in vouge and weighed down in sentiment by its own terrible historical performance and governance issues.
That said, I agree with you, if it's a good 2or 3 quarters in a row and cash starts to flush back on the balance sheet bringing net debt down sharply, we should bolt higher imo.
If the upcoming Q1 2023 Update is good on all NLGM, Singida and WK fronts, then it should set the scene for a rise to the levels you mention.
I believe until the new mines production numbers are confirmed which should hopefully be in a few weeks time, then Shanta is back at 100,000 plus per annum, this will then attract investors to pile back in, I would load up while the price is cheap and I believe it will be more like 70-80% profit from here within 6 months
Is anybody considering going heavy short term at least? The last week or two has been amazing for gold and the sector but despite that this share has hardly moved at all!! I’m not talking about risking life savings, just selling recent winners to load up at this price here and maybe sell for 20-25% in six months. Can anybody else figure out why it’s not 15-16p already?
Gold price going higher already Shanta should start to make ATH’s another 5% plus today me thinks. Maybe 13.5p finish
https://www.axios.com/2023/04/11/newmont-sweetens-its-golden-megamerger-offer-for-newcrest
I fully expect it at some point this year, there is going to be a lot of gold mining consolidation IMO, the management will hold out but there's always a price and we are cheap...
Could be a new takeover bid arriving, lots of articles on Shanta being a target
Stack of sells gone through. 12.75p proving a tough nut to crack. Let's see the buyers come back in please