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Agreed, but what concerns me is if they can pull a stunt like this what's to say they won't rig the vote result at the EGM? Anyone know the date of that please?
Jammin, that's 5% in a couple of months; compounded it's 34% a year and 1867% over ten years. If you can't appreciate that's a good return, you simply do not understand investing
I dont think they are trying to flush out offers, its a little bit conspiracy theory for me.
other gold companies know the sector and wouldnt act like this and would prefer first mover advantage
also the loss (done already) of reputation is massive and wont be good if voted down which it hopefully will be.
A guaranteed 5% isn't THAT attractive. If it were, we'd all be invested in cash instead of risky small cap gold miners.
I'm personally grateful someone is suggesting other gold opportunities, thanks for that. I'd hate to miss out on the gains to be made in the space, and Shanta is clearly too dodgy to consider going forward. If they pull a stunt like this, you can't trust management. End of story
Kipperfoot@11:09 - '..something smells.....very bad...' - like your foot? (lol!)
Possible reason they've held off drilling and talk of expansion? It seemed strange to me that gold was reaching all time highs, everything was looking rosey yet easy doubling of expansion at Singida seemed to be being pushed back, WK progress slowed, search for new CEO non existent.
This has probably been in the works for a while and irritatingly for them the SP isn't at 11p still which would have made the premium look a 'tad' more generous.
Pedro, give it a rest ramping srb at every opporuntiy ffs
13.5p is a given IF and it’s a big IF they secure enough support for a take over. But given the gold price environment and operational successes over the past year shareholders should NOT be voting for this to proceed.
I’ll have to reread it carefully again but on first glance this has only received approximately 20% of shareholder support. In the event it fails I’d suspect an increased offer will come but in the interim the company the liquid assets are increasing at a rate of $10-15 million per quarter.
The IC last issued a Buy recommendation in September:
“Earnings beat from new Shanta Gold mine
The Tanzanian miner is within a whisper of its long-term goal of 100,000 ounces in a year
September 20, 2023
by Alex Hamer
Singida ramp-up beats expectations
Cash profit margin boosted over 10 per cent
Build it and they will come. Profits, that is. Shanta Gold (SHG) finished its new Singida mine in the first half and it has immediately revved up cash flow, avoiding the usual ramp-up dramas and disappointments. The Tanzanian company posted a half-year cash profit of $34mn (£27mn), more than double last year and 11 per cent above broker Liberum’s forecast.
This was a reflection of the higher gold price and production level and lower costs.
Singida is not a massive operation but it took Shanta to record first-half production of 44,771 ounces (oz) of gold and underpinned full-year expectations of around 100,000oz. Singida contributed 10,000oz for the period, and as it only hit commercial production levels in June, the full-year figure will show further increases.
Chief executive Eric Zurrin said there was scope for the mine to grow well beyond its current 30,000oz a year outlook as exploration drilling has restarted this week. “I think it's been underestimated, the potential [of Singida], he said. “The reserve is really small but that’s only because there has been a lack of drilling.”
Shanta’s balance sheet is healthy for a company still working on growth, specifically through the West Kenya project. Capital expenditure in the first half was $15mn, which included $9.5mn at Singida. Work on West Kenya slowed to balance the mine build costs in the first half, but drilling there has restarted. A feasibility study is in prospect and the company will start the application process for mining licences next year.
This gold miner is in a good position to keep growing while paying a dividend. Buy.”
I imagine IC will comment soon on this derisory offer.
I mean that's not true 'on just about every metric' G - srb has around $11m net cash vs $33m mcap. That metric alone disproves your claim.
Still, bit naughty to cross ramp at this point in time.
I think SHG is well undervalued,but this could go on for months and just get 13.5p,whilst the stockmarket rises strongly....SRB is a company that is totally and utterly undervalued on every metric...Cash rich,with huge opportunities,it could even have more cash than the present market cap soon.....Take a look ...
To every shareholder, if you want +20p then you have to hold onto your shares and vote against. I'd also strongly suggest you write emails and make calls to the company and Nomad expressing your disgust and this as an obvious stitch up. And the fact we haven't received any assays that are sitting in a lab whilst the company is recommending an offer for less than our sp when the last 2 x approaches were made (ands we didn't have a second mine). By all means state that na offer for 13.5p has been made and rebuffed, but to recommend...? Absolute C@NTS!!!
I suspect the issue lurking in the background is Ketan Patel. His business and political contacts will be crucial to be able to operate in Tanzania. If he is not on board or wants something else he is in an ideal position to get it. Perhaps that is why the two big shareholders are getting out.
Pedro that's just plain dumb. You sold rather than taking 13.5p at the very worst? And you're selling to the same greasy c@nts who have made the offer. I've also looked into SRB and it's nowhere near as good as SHG on just about every metric.
I am disgusted with this offer,,,,,I was going to hold in the hope of an increased offer....but sold...as this could drag on for months and maybe get nothing more....Too many good opportunities to have capital tied up....for goldies SRB is a screaming buy...Chucking off cash and with huge upside....was 115p 3 years ago,now about 36p,despite the gold price and cash in bank getting bigger everyday.
Yes, but they are doubling down on Shanta exposure many times over. I think that they have been planning this for some time. I suspect they wanted to see Singida up and running to derisk their position. Note that the confidentiality agreement kicked in at end June, the first month of Singida commercial production.
The three bids last year were no doubt very unwelcome. It would be interesting to know the indicative bid prices - which were rebuffed as being significant undervalue.
What do most expect with the stock mkt its run by legal mafia
The last full broker note I have access to has from a few months back:
Target price - 21p
Based on POG average of $1800/oz through 2023 falling to $1675/oz in 2024...
This year is $1950/oz and entering 2024 above $2000/oz! They are blowing the metrics for 21p out of the water and now mgmt are sneaking through 13.5p sale?!
This is without doubt one of the most disgusting and obviously corrupt things I've ever seen on Aim. I'm sitting here wondering if it's even happening, and whether I'm having some sort of f@cked up dream...
How in f@ck's sake is any gold company that's debt free, throwing off $80-90m EBITDA @ $2k gold, with millions of defined oz's let alone the millions more still to be added, VALUED AT £142m!!! And the fact we still haven't received any assays on the highest grade +1m oz mine in Africa, and potentially a super-pit resource in Sing...? How in god's name did we knock back offers just 1 year ago for being too low when our sp was higher than this offer? That's without a second low cost mine (running better than forecast)??? And we've also invested how much more money since then??? This cannot be real. It's one of the worst examples of obvious corruption that I've encountered on a UK listed company.
And the article mentioning 'struggling Shanta' - Wtf???!!! This is after all the other articles mentioning Shanta is flying...? Alongside Gold flying!!!
I note Saturn is a Tan based group - Have the Tanz government basically said you take the offer or we're going to take the lot off you...?
I've got 5m shares and I'M VOTING AGAINST. I suggest everyone here makes a phone call to the Nomad and writes emails that are as derogatory as this offer. Disgusted beyond words.
Now for sale below offer price. I wonder if this is a Shanta gold shareholder IQ test.
A year ago we were not producing, indeed didn't have the capability to produce the amount we are now, yet the sp went to 15p. Now we are producing and are debt free and are offered 13.5p...something smells.....very bad...
Crazy really that one of their jobs is to act in the shareholders interest but it's there in black and white that they are selling the whole company just because there isn't enough liquidity for them personally to sell out without impacting share price.
Disgustingly spoilt attitude, we should be in it together, not having them working against our interests to further their own
My interpretation of that comment is get your bids in for Shanta now.
Ketal owns around 4.25% of the company and you can bet Bidco (like the name) is snapping up shares getting sold now.
Basically he should have just said in the RNS, here is a pack of bacon and a few nuts now go do one peasants
it would have been nearer the truth
What a load of shiite that article! Is any part of it remotely accurate?
"Struggling" lol