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"The actual legal/tax case against Acacia is pure BS - everybody knows that" - talco, please note.
Thank you all for your great comments.
Hi Noel!
That's about right. Clashing personalities and local politics also contributed to Acacia's woes.
Now, of course, President Magufeli has to smash Acacia to pieces just to prove that he is master in his own house. The actual legal/tax case against Acacia is pure BS - everybody knows that. But this is not a question of right and wrong, but of strength and weakness.
I've just had a recollection. Correct me if I am wrong, but long before there was any suggestion of cheating on the exports, the Tanz gov't hit ACA with a tax bill - not the huge one they face now, but still a substantial one.
ACA said they didn't owe the tax. Eventually, it went to court. The Tanz court ruled ruled that the company did not owe the tax - it had paid all the tax it was due to pay.
Then the Tanz gov't comes out with the accusation of ACA exporting ten times as much as declared. To me, that is suspicious.
As I say, this is just from my recollection, I don't have the time to look it up, so please do correct me if I am wrong.
"maybe trying to swindle gov out of tax revenues" - do you believe that?
I have to admit that I got so fed up with the Acacia situation that I sold out and haven't bother to keep up to date with the news - but tell me - has the company admitted to wrong doing? The last I read, they were pleading their innocence.
If the company has admitted to swindling the gov't, then you have a point, but if the company is still claiming to be innocent, then tell me - how did they get away with exporting ten times more than admitted - ((ten times was the figure in the Tanz gov't's accusation, so I read)
The drilling samples are independently analysed, so we know the ore grades - so I doubt that the ore was ten times as rich as declared. The energy bills and other costs reveal how much mining has gone on - so I doubt that the company produced ten times as much ROM output as declared.
What is the capacity of the processing plant?
This is all documentary evidence that can prove ACA's innocence. What evidence has the Tanz gov't supplied?
If you prefer to believe politicians rather than mining company executives, you must never read the news.
Did anyone listen to the conference call? I can’t find it on the website yet. Did VAT come up?
If Shanta are on such good terms with government & are sure VAT will come back, perhaps a nod in the right direction for shareholders would be for them to start repaying current amounts, with only the backlog still owing rather than have it keep mounting up more & more. And wasn’t there talk of offsetting it against tax on profits?
yes they did good works.
but why are they in bad books with the gov?
maybe trying to swindle gov out of tax revenues,not a good ploy to enhance yourself with ruling gov
Hochschild is another good company.
Today, Hochschild put out production results. Like the SHG report, HOC's was all good news and the share price has gone up a touch.
Isn't that how the market should work? A company's share price goes up on good news.
You lot are crowing about how good the RNS was, but has the SHG sp gone up?
However, there was a £31.5K buy of SHG, so it might soon lift a little.
Someone has written - "at cost of $2/oz is fantastic!" I'll save my exclamation mark for when the share price gets to 12p - so that means I won't be using it, certainly not this year.
You are worse dreamers than I used to be.
If the VAT gets repaid - that's a big if. imho - it ain't gonna happen.
Quote - "i think they are working on having good relations hence help for farmers,help for schools,i know it has nothing to do with getting gold out of the ground ,but in a country like they are operating in it is very important to be seen as a company willing to have a social and financial contribution for the benefit of the community.
small thing i know but they are on the radar of the gov and has won awards for there work."
Just look at al the good work Acacia did, and at one time on top of its regular giving, because there was a drought in the region where it operated, the company shipped in 400 tons of food and distributed it to locals - and what sort of reward did all that generosity get from the Tanz gov't - I don't need to answer that. You know.
yes agree tiger the big one is if and when deal is done.
relationship between acacia and got is beyond repair as far as i can see.
relationships have to be built up with got
still be nice to recieve vat refund (most of shantas debt could be wiped out)
i think they are working on having good relations hence help for farmers,help for schools,i know it has nothing to do with getting gold out of the ground ,but in a country like they are operating in it is very important to be seen as a company willing to have a social and financial contribution for the benefit of the community.
small thing i know but they are on the radar of the gov and has won awards for there work.
with the gov onside i believe it would make recovery of vat a little bit easier.
even if vat is never recovered the way they are paying down there debt speaks volumes for the company ,
all in all i think the share will do very well over the next 12 months and i for one will add as funds become available.
just my opinion
gla
Nothing wrong at all with Shanta - excellent results.
But this is Tanzania. Everybody is scared by the Acacia saga. That's why this share is so "undervalued".
If the Acacia dispute does get resolved (that's quite a big IF), then I'd expect Shanta's share price to double in a few weeks.
It was phrases like this that caused me to buy in to SHG quite a few years ago.
• "comfortably on track"
• "best historical intersected grades"
• "New indicated ounces are significantly higher grade"
• "Zero Lost Time Injuries"
• " Gross debt down 22%"
• "Cash operating costs of US$564 /oz, significantly below industry average"
SHG has been saying that sort of thing for quite a few years. It is a good company but why is the sp so low?
This report is full of good news, but let's see how it affects the share price. I doubt that it will rise enough to make me change my cynical attitude - but I hope I am wrong about that.
p.s. why is the sp so low - imho we will never get the VAT back.
Q2 2019 PRODUCTION & OPERATIONAL UPDATE
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, announces its production and operational results for the quarter ended 30 June 2019 (the "Quarter", "Q2" or the "Period") for its New Luika Gold Mine ("NLGM" or "New Luika"), in South Western Tanzania.
Q2 Highlights
· Gold production of 19,856 ounces ("oz") in Q2 (Q1: 22,374 oz) and 42,230 oz for the half year ("H1"), comfortably on track to meet annual guidance of 80,000-84,000 oz and up 11 per cent ("%") on H1 2018;
· Underground exploration drilling results released during the period showed the best historical intersected grades and widths since production began at New Luika;
· New high-grade intersections are outside existing mineral reserves and will be incorporated into the mine plan;
· Drilling at Bauhinia Creek ("BC") Central has converted 126,787 oz of Inferred Resources grading 3.15 g/t into 83,543 of Indicated Resources grading 7.85 g/t and added new Inferred Resources of 58,553 oz grading 4.79 g/t;
· New indicated ounces are significantly higher grade than the achieved 4.5 g/t blended mill feed and present the opportunity to blend these ounces with lower grade feed into the plant for additional ounces;
· At a cost of US$2/oz, the Company has replaced all depletion expected from 2019 gold production;
· Zero Lost Time Injuries ("LTI's"), with no LTI's since Q4 2017. Zero Recordable Injuries (TRIFR of 0.00) during Q2;
· EBITDA (before non-cash loss on unsettled forward contracts) of US$10.5 m (Q1: US$11.7 m);
· Gross debt down 22% to US$30.1 m (Q1: US$38.7 million ("m")) following US$4.9 m partial buyback of outstanding convertible loan notes;
· Net debt down 11% to US$26.9 million ("m") (Q1: US$30.3 m);
· All In Sustaining Costs ("AISC")1 of US$773 /oz and year-to-date AISC of US$735 /oz, below annual guidance of US$740-780 /oz;
· Cash operating costs of US$564 /oz, significantly below industry average;
· Tonnes ("t") milled of 177,647 t, a new all-time daily throughput record during the Quarter and in line with the Company strategy for maximising New Luika's net present value;
· Gold spot price at six-year high at end of the Period; the Company has flexibility to defer settlement of forward sales for full exposure to the spot gold price; and,
· Total cash and liquidity of US$8.9 m (including US$3.3 m of bullion).