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Market analyst Rajan Dhall talks about the financial market Watch here

Market analyst Rajan Dhall talks about the financial market


Shanta Gold Share Chat (SHG)



Share Price: 5.875Bid: 5.75Ask: 6.00Change: 0.00 (0.00%)No Movement on Shanta Gold
Spread: 0.25Spread as %: 4.35%Open: 5.875High: 5.875Low: 5.875Yesterday’s Close: 5.875


Share Discussion for Shanta Gold


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RetiredBanker
Posts: 318
Off Topic
Opinion:No Opinion
Price:5.875
All depends on Capital Expenditure
Today 16:38
The future could indeed be bright for Shanta.
On the surface 80k+ oz gold sales annually with Gold @ $1200+ and AISC at <$900 should mean this is trading on a p/e less than 2 !!!
But when Shanta need $10-50mm of capital investment the company swings from being highly lucrative to being dead in the water depending on which end of that wide range the capex actually is.
For my part I see any period of sustained stability as offering the chance for significant sp rise.
The Helio investment seems to be very worthwhile as any additional scale will make capex a smaller part of revenue
I'd love Mr Odey to get a ten bagger on this latest fund raising, if I'm able to come along on the ride !
 
ArielArrow
Posts: 9,328
Off Topic
Opinion:No Opinion
Price:5.875
Spotify
Sat 19:10
I can see no reason why this couldn't eventually do 20p again, get the right conditions, sentiment and pog rising, not out of the question, maybe not next week but before 100 years.
Spotify
Posts: 1
Off Topic
Opinion:No Opinion
Price:5.875
Never again
Sat 10:33
Read all you guys posts with great interest...and a large slice of hope!!
Bought in here yrs ago when it was 19p, 24p and even 30p, so have written this one right off.I know if I live another 100 years I'll never get my investment back.
I should've cut my losses a year or so back when it hit the dizzy heights of 12p but hey, hindsight and all that. When I consider that at the time I bought in this Co was an explorer/prospector only, I look at it now as a producer, hitting targets, expanding fields,
Highly rated by brokers, cost-effective.........yet a SP of under 6p.
If I needed a lesson on the pitfalls of.AIM then this is it.
Can anyone seriously ever envisage this hitting 20p again???
Daisan
Posts: 2,706
Off Topic
Opinion:No Opinion
Price:5.875
RE: RNS' - Acquisition, Debt & Plac..
Fri 09:46
SLP is a slightly different beast but a consistent cash generator. Good company that deserves to be supported.

I like HUM as well although they are at the riskiest stage for investing. It is as a company moves towards the last stages of production that I find the share price can get a knock. I believe that this is due to the fact that the exploration 'dreamers' have bowed out with their profits so the focus is purely on achieving production rather than future cash flows. This means any delay (and this is a very common occurrence) can hit the share price disproportionately. In the long run, however, provided the number of shares in issue remain constant, this should prove to be a good investment particularly as it has the additional Liberian asset which should attract takeover interest at some point.

Comparing HUM with SHG is somewhat difficult. I think Shanta has the better short to medium term potential for improving production beyond the stated annual targets with the pilot in Singida and the additional potential around New Luika but HUM has the greater upside production potential currently with the two sites. From my perspective there is little to choose between New Luika and Yanfolila but Dugbe has more significant potential than Singida.

Also when comparing the two, bear in mind that Enterprise Value is the best way of doing so (so include debt). But in terms of share price potential, a significant amount of (supportable) debt can actually be a good thing in a time of rising gold prices.

A bit long winded I am afraid but in conclusion, I like all three companies - SHG (medium term appreciation), SLP (relatively low risk, stability) and HUM (long term appreciation).
Chickenlicken1
Posts: 53
Off Topic
Opinion:No Opinion
Price:5.875
placing
Fri 08:51
As i recall. the last fundraising was open to all investors but it demonstrated the risks to the business as the price fell below the offer price and little was raised. Foolish to do that twice. the salary sacrifice, which i have never seen from a company where it wasn't urgently required, is a positive sign that the management team are aligned with shareholders. if and when the gold price picks up and VAT refunds resume this will be a distant memory.
Visitor
Posts: 173
Off Topic
Opinion:No Opinion
Price:5.875
RE: RNS' - Acquisition, Debt & Plac..
Fri 07:14
Daisan and RB - you've both highlighted my main frustration of mine which is at this "transitory" depressed SP and knowing the long-term positives of the Company, I would have liked to have participated in this placing, but was given no chance to do so.

Whilst I'm still very positive on the long-term of Shanta, particularly following the debt restructuring, acquisition, Singida, main New Luika Capex behind us etc. etc., I hold a substantial amount of shares and would have added to my holding over the next months, but now it has left somewhat of a bitter taste and I'm holding back. No doubt if it stays at these levels I will add though, let's see!

Funnily enough two others I'm considering adding to are SLP (platinum group metals with low costs, market cap of only £27m with some $16.5m in the bank, no doubt more now once Q2 results released in July) and HUM, which Olderandwiser just mentioned. Although very hard to compare miners versus miners when factoring all items like grades, region, tax regime, net debt/ cash, reserves, AISC, life of mine etc, HUM's Market Cap is £91m (double Shanta's) and although it plans to produce circa 132 p.a. in first year, mine plan is based on 107k p.a. thereafter. You have to remember though HUM's portion is 80% (85K p.a.). As it's still in development with 59% Project complete, still risk associated prior to production and at this stage it's hard to work out what their net debt position will be once they achieve production.
Visitor
Posts: 173
Off Topic
Opinion:No Opinion
Price:5.875
RE: RNS' - Acquisition, Debt & Plac..
Fri 07:13
Daisan and RB - you've both highlighted my main frustration of mine which is at this "transitory" depressed SP and knowing the long-term positives of the Company, I would have liked to have participated in this placing, but was given no chance to do so.

Whilst I'm still very positive on the long-term of Shanta, particularly following the debt restructuring, acquisition, Singida, main New Luika Capex behind us etc. etc., I hold a substantial amount of shares and would have added to my holding over the next months, but now it has left somewhat of a bitter taste and I'm holding back. No doubt if it stays at these levels I will add though, let's see!

Funnily enough two others I'm considering adding to are SLP (platinum group metals with low costs, market cap of only £27m with some $16.5m in the bank, no doubt more now once Q2 results released in July) and HUM, which Olderandwiser just mentioned. Although very hard to compare miners versus miners when factoring all items like grades, region, tax regime, net debt/ cash, reserves, AISC, life of mine etc, HUM's Market Cap is £91m (double Shanta's) and although it plans to produce circa 132 p.a. in first year, mine plan is based on 107k p.a. thereafter. You have to remember though HUM's portion is 80% (85K p.a.). As it's still in development with 59% Project complete, still risk associated prior to production and at this stage it's hard to work out what their net debt position will be once they achieve production.
Olderandwiser
Posts: 6,352
Off Topic
Opinion:No Opinion
Price:5.875
RE: RNS' - Acquisition, Debt & Plac..
Thu 19:40
How does SHG compare with Hummingbird Resources, now that it is about to go into production at the rate of 126k p.a. starting in mid-December?
Daisan
Posts: 2,706
Off Topic
Opinion:No Opinion
Price:5.875
RE: RNS' - Acquisition, Debt & Plac..
Thu 17:16
Ah, yes. That is annoying. I tried the same with the same result. The game has ever been difficult for the private investor.

To look at it another way, they found it very easy indeed to raise $14m and you would hope that this was sufficient to see them through to positive cash flow.

If they can finally get the VAT back that should boost enormously the exploration and development efforts.

On the negative side, these surprise placements tend to put investors off.
nigelbut
Posts: 48
Off Topic
Opinion:No Opinion
Price:5.875
None too happy....
Thu 16:29
...about this aspect either. I have 205,000 of these (@11p or so) but not offered anything at all at placement.




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