Virtually all goldies are the same due current POG , look at ABG at 140p had a year high of over 400p, investing in the goldies now is a shrewd investment for mid to long term especially as the high flyers maybe starting a downward correction .
Shanta Gold is engaged in gold exploration, development and mining in one of Africa's most significant gold-producing countries, Tanzania. Established in 2001, Shanta Gold was admitted to the London Stock Exchange's Alternative Investment Market (AIM) in July 2005 and is contained in the FTSE sub-sector of Gold Mining.
Strategy Shanta Gold’s strategy is to become a leading East African gold exploration and production company, carving out a distinctive niche in the sector. To meet that objective, Shanta Gold focuses on developing smaller sized gold mining projects which exploit smaller but higher grade gold deposits. Typically, such projects, in an East African context, take c 3 years to evaluate and explore and 1 to 2 years to develop using a relatively simple, lower cost approach to open pit mining as well as to plant construction and operation. Extensive use of contractors for all phases of project development and operation, overseen by experienced Shanta Gold personnel is a feature of the approach. This business model is designed to give higher and faster returns on investment.
Tanzania is the location of all of Shanta Gold’s operations to date although development in other East African countries in the future is an important element of the company’s strategy. Tanzania has attractive characteristics in terms of both the business climate and gold mining tradition. Compared to many other parts of Africa, nonetheless, Tanzania’s considerable gold resources are under-explored and under-developed.
Shanta Gold’s flagship project, New Luika Gold Mine, in the prolific Lupa goldfields in south western Tanzania has followed the principles of Shanta Gold’s development strategy. It now serves as a template for further projects – in Lupa and elsewhere in Tanzania and East Africa. The higher and faster returns on investment generate strong cash flows and this will enable Shanta Gold to accelerate its growth and development.
Increased capacity at the plant from June this year should see Shanta Gold's (LON:SHG) volumes at New Luika improve in the second half, outgoing chairman Walton Imrie told Monday's AGM. The mine began producing last summer and gold sales of over 22,000 ounces have been made to date. "The board remains very encouraged and excited in the longer term growth of the company. We recently announced a five year production plan for New Luika mine which is forecast to produce 430,000ozs of production at 6.3g/t. "The major New Luika ore bodies remain open at depth, with the potential to become an underground mine which, combined with the ongoing revised feasibility study for the Singida project as well as the consolidation of the Lupa Goldfields, gives the company significant opportunity to deliver longer term value for shareholders," he said. Last month, Shanta opted for a number of forward sale contracts in response to the current gold price environment. This will see 30,000 ounces of gold delivered up to December. The sales equate to 43% of the forecast annual production and were secured at an average price of US$1,429 per ounce of gold. "We continue to make constructive progress in relation to restructuring our near term debt and expect to provide further updates shortly," Imrie told shareholders on Monday.
Great potential at this price - don't micro manage this share hour by hour.... in six months time 11p will be a distant memory and those who didn't buy in around these prices will kick themselves... IMO.....Strong Buy......
Every day there is large number of seller and no buyers.........something is wrong some where......if gold cross $1429.....then we can say that SHG has miss higher profit oportunities.............gold price higher then SHG will go down........
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