about this sp, now selling for under 10p, with forward sales at well above today's gold price, the sp is still falling alarmingly. going forward with projected all in costs this year at $1100 and forecast at $1000 next year there is not much margin left if gold drops down to $ 1050 as is being predicted.
Mike, it could be just the general doom and gloom. If I was making a market in SHG, I would be walking the price down too. Even if they pour just 30,000oz in the first six months, that will be roughly £18m revenue (30koz x ($1400-800)). We should be looking at a maiden profit for the full year of about $28, or 8c per share (5p). WIll the sp be this low after half-year results are published? I don't think so. Get a few of these in stock and knock them out in August.
Really, what more could you want in a gold producer? Not only do they tell you how much gold they sell on a more or less monthly basis, but they also tell you how much it costs to produce and how much they are getting for it!! Arithmetic on the current production figures alone says this is a strong buy. Then add in buying by directors an IIs, plus their exploration licences.... what more could a PI want??
suprised given shg has forward sales of gold at near $ 1400 per oz that the sp keeps falling, they are obviously not being given any credit for their decision to bank those prices, at the moment that looks a good decision given the price of gold. cant understand why we are at this price.
Mike, if you read the rns, you will see that 6,000oz were sold in April and May. By my calculations, there must have been 5,500oz sold at $1,429. Taking the remaining 19,500 at $1,429, plus 9,000 at $1,367 arrives at the new average $/oz in the rns, I think they made a mistake when they stated they had 30,000 left to sell. I think they should be saying 28,500.
Doesn't matter too much. The half year results will show a maiden profit, based on my figures.
The ramp up in production at the New Luika Gold Mine is progressing satisfactorily with the upgraded crushing circuit commissioned in late June and the Company expects a substantial increase in throughput from July. The Company will be providing an update on its first half operating performance towards the end of July 2013.
more news to follow shg are giving a solid position an looking to a bigger picture ,ceo is giving background sales an working on ramp up production july could be very interesting with the new crusher unit in full flow gl all atvb
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.