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SHG is by far my largest holding.
Others I hold are AAZ,POG,CEY,PUR,SOLG,TSG
and FRES my silver play.
FYI
PUR is supported by some key strategic investors experienced in building multi-billion dollar gold mining companies. Pure Gold's largest shareholder is mining titan AngloGold Ashanti with 14%. The second and third largest shareholders are Eric Sprott and Van Eck Associates Corporation, holding 10% and 5.7% respectively.
https://www.proactiveinvestors.co.uk/companies/news/919303/pure-gold-mining-set-on-building-canada-s-next-iconic-gold-mine-919303.html
Mick-b, yes but doesn't it carry a pretty valuation to go with it, considering it hasn't even started production yet. Shanta, by contrast, is an established producer that has gone through the teething (been through the mill in fact) problems. No position in either, but both are of interest.
V Safe play is PUR.
Canadian mine due to start operations soon......end of 2020.
100,000 + ounces/yr with huge areas under current exploration.
disclosure...an investor
Hi Miagi,
That’s some good research and a fair point. However, it depends where you sit. Are you looking to take a longer term view here and hopefully grab some divi’s or is it a short/medium term trade. It’s the later for me.
My favourite for a longer term investment that will likely pay a divi is PUR. My intention being to spread the risk and flip into that one over time. It’s got shiny new tyres! ATB
Trek
T50 - any share board that I post on is of potential interest as an investment (just as it is for almost everyone who posts) - I stress "potential". The price must be right, the tyres must have tread etc.
Is it not a primary function of these BB? To discuss ideas about the company and hopefully arrive, as close as possible, at the truth of the matter. I am "going on about it" a bit, because it is a question that not one poster on here has supplied an adequate answer to and it is a very important question because of its implication for Shanta's profit (loss of) and management decision making, as previously discussed. In addition, I can't abide it when posters try to massage the facts (not you).
Miagi365 - at that point, I sell or avoid. What I don’t do is hang around a car with bald tyres constantly kicking them, wondering why they’re bald and wondering if the tread will reappear. There must be a reason you’re interested in Shanta and doing your due diligence is fair enough. However, you talk about blind trust yet you’re seeking opinion & answers from anonymous people on a bb who could, and often are, talking their own book. I’m invested here and am fine with how things are currently progressing. If/when that changes, I’ll be out. I’ll leave you to carry on doing your due diligence and wish you atb whether you choose to invest or not.
CD, I am always open to persuasion and your last post was a great deal more so than the previous couple. When you say "worst case scenario"they put the 27koz into H2, you are inferring there is a way around it, even though the hedge expires in Jan 2021? At $1850, SHG are losing out on $400/oz across half a year - more if the gold price remains higher. It's big money. Yes, they are still making plenty of money, yes there's plenty of other stuff going on too, but it is a BIG deal - we're talking $17m (at $1850). Why they added these last 6 months of hedging remains a mystery. IF they extend it into next year, that will be very interesting indeed.
Telegraphist - it has been my experience observing a great deal of companies, and reading expert opinion (IC, analysts, FT, stockopedia) on them, that if something is opaque (difficult to explain), it is almost always a red flag, with very few exceptions. You are talking about blind trust there, which is nuts. Is that truly your viewpoint on this?
It always makes me laugh when posters here **** off how companies choose to go about their business. Of course, mistakes are made and incompetent people are sometimes allowed to **** things up. However, in the vast majority of cases, businesses are run to be a success and run by people specialized in their field. With due respect to anyone here, what makes you think you know better than the senior management team of this business? I'm sure the reasons and details and execution of the hedge have been well planned and thought through and we may never get to know some important background information that made it put in place at the price/terms it was etc, etc. I know who my money is one, hence, long and strong. CD, I don't like 'blowing smoke' but I do enjoy the detail and rationale in your posts, please keep it up! Atb everyone and have a great weekend!
Mr Bond, is that salt stinging then? When did I say I despised the company?! Keeping things real - they made a terrible decision on the hedging (bordering on insane) and that should not be brushed under the carpe; I still see no rational explanation for it. Clearly, they seem also to have made some other good decisions that have helped turn the company around, aided in no small way by the gold price of course. The fact that they are evidently capable of making good decisions makes me wonder even more about who benefits from the hedging deal...
CD's figures needed a reality check - surprised I need to really as CD is a knowledgable guy and knows how to do basic calcs I'm sure. Makes you wonder if he's trying to pump the stock!
Why isn't the big buyer swooping in now?
Miagi, why are you even on this board if you despise the company so much?
CD, I need to spread a bit of reality salt on your figures from yesterday: H2 production will be of the order of 42k oz gold (bringing total to 84k oz within the re-iterated 2020 guidance). Of that 42k oz, 27k oz are hedged at $1250 (that's a whopping 64%). The average sale price for 42koz will be (assuming a generous $1850/oz averge spot): ((42-27)*1850+27*1250)/42 = $1464/oz. Full year guidance for AISC is $830-880, re-iterated in the Q2 update, so let's take $850. That's a profit margin of $614/oz - not looking so chipper versus the $750 for mines with terrible AISCs of $1100. What were management thinking - abysmal decision making there.
Morning Colonel,
I have to agree with you on self funding Singida, unless of course Eric is able to achieve project level funding with a relatively low coupon over a short repayment period. In this case, with the potential extra revenue from anticipated gold margin improvements in 2021, doing what you suggest with Barrick would be very prudent. Whatever happens, next year is set to be transformational for us imo.
Drake,
Yes i think you are right, just found these while looking up smaller gold firms and glad i did, looks like they will of paid debt by end of the year and if gold prices hold with AISC of $830 they are looking at $1200 per Oz @ 85K oz a year that's a $100M
Defiantly a low looking forward P/E (providing gold holds) if gold goes mad from here they could make more profit than the current market cap next year
1. Shanta does have a hedge arrangement that other gold miners do not have so hence why Shanta does not always increase in value at the expected rate.
2. Pertains to gold as an asset. Those who hold physical gold know what the value of other assets they want priced in gold ounces. So back in August 2011 that asset in mind may be 310 ounces of gold. In December 2015 it was 850 ounces of gold and today it might now be 380 ounces. The point I am making is that at some point gold holders swap into other assets as the amount of gold they have to give up is just too much of a bargain for the alternative they want. When they do so the drop in gold prices is quite sharp. Before anyone takes 380/310 and multiplies against the gold price to obtain a peak, it does not give the correct answer as the other asset desired may be depreciating or the currency it is held in falls so the gold peak is usually quite a bit lower.