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My top up is showing as a sell... I think a lot of the buys are showing as a sell.
Yes lots of retail "punters" exiting it seems, maybe they expected a bigger divi?
Thanks for the responses. I expect Eric will do some kind of i/v now the results are out, be interesting to see if he mentions anything about the situation and/or his take on it but usually the questions asked on the likely platform (vox markets etc) it's usually just a few lightweight questions and pats on the back all round! I'll keep a close eye on things but after an ok start, we're nearly back to flat. atb
Telegraph : Borrowed from other site, hope this helps.
chipperfrd2 Mar '21 - 10:07 - 40030 of 40041
NOT royalty! The statement says 'Economic Benefit', which is a very different thing.
The current cash flows to the government are already pretty close to 50% of Profit after Tax.
By the time they have taken 6% Royalty, 1% Clearing, 25% Tax and 14% in free-carried attributable profit, the actual split is already close to 50% at the bottom line.
Telegraphist50. That caught my eye as well. They have not made that disclosure in the f/statements before and I do not remember it in the presentation to investors for the accelerated book build. It seems there are at least two ways in which the Govt may take 50%. Firstly, as a free 50% carry or secondly taking 50% of the ‘economic benefits’ which I assume would be after taking account of tax, royalty and clearing fee receipts (so somewhat less). Shanta say the ‘economic benefits’ approach “could” happen (notably they could have been vaguer but were not). Then there is the business of taking a matching payment for any equity or even loan repayment.
I rather fear that now Shanta is in profit the Govt may start to really screw them. The VAT is not a good omen. The VAT audit, which does not seem to have reported, yet was well over half a year ago. Other companies eg Wentworth Resources, Petra Diamonds have had similar problems getting money back which the Govt owes.
I hope I am wrong as I have a decent number of shares in Shanta and in all other respects it is doing incredibly well.
Many of the trades currently showing as SELLS are actually BUYS in the 13.8p region
I think we will take off when we have more rigs drilling, more resources reported, the end of the hedge and the announcement of a Divi.
Oh wait a minute.
What's the view(s) on this part of this morning's RNS? (below my message) it reads to my untrained eye that the Tanzanian government could take a large slice of the profits/business at some point in the future. I know that Acacia had a big fall out with the government and effectively had it's business taken away, what security has SHG got to prevent losing a large slice of future profits or being treated like Acacia were? just wanting to better understand things as I've got quite a few shares here and am scratching my head at the currently lowly SP:
'Tanzanian legislative framework
During 2017, the Tanzanian Parliament enacted several legislative bills, which amended the Mining Act 2010 to provide for an increased government shareholding in mining projects. The amendments entitle the government to a minimum of 16% free carried interest in all mining projects, and the right to increase this commensurate with the value of historic tax reliefs and exemptions enjoyed by the mining company (up to a maximum of 50%). Since the incorporation of its Tanzanian subsidiaries, Shanta has not been the recipient of any preferential tax arrangements in Tanzania nor has it been party to a Mining Development Agreement.
These changes preceded the announcement by Barrick Gold on 20 October 2019 that they had entered into a bilateral agreement to share the future economic benefits from Barrick Gold's mines in Tanzania on a 50/50 basis. It is management's view that a similar arrangement between Shanta and the Government of Tanzania could be required.
On 30 October 2020, the Mining (State Participation) Regulations 2020 were published, which expanded on this free-carried interest and provided that the Government of Tanzania shall enjoy the right to receive a proportionate share from any repayment of equity or loan.
It remains uncertain how the new legislative bills will be interpreted and implemented. To date, with the exception of the increase in royalties from 4% to 6% and the introduction of a clearing fee of 1% which was effective from July 2017, there has been no material impact on the Group. The Company continues to take in-country legal and tax advice to monitor the situation carefully.'
Let's get the weak holders shaken out pre drilling results. Then we will be away imo ;-)
Agree, let’s hope it happens. I’m not holding my breath I’m that one but who knows?.
If/when the VAT is repaid the SP will go up significantly imo
Add to that the VAT reclaim situation, which they seem confident of recovering the $26m owed by the Tanzanian government, which was mentioned on the analysts call today.
The gold stocks I watch regularly are all up 2 or 3 percent this morning so this is barely making headway. I was initially surprised at how many are selling, but they were probably hoping for a much better Divi and are moving on.
Although 0.1 p dividend is a bit smaller than I hoped for I’m taking more as a statement of intent and an indication that the management intend to deliver on there promises or more accurately their aspirations. With the accompanying decent set of results I’m pretty happy with the progress although an improvement in share price would be pretty welcome ,seems something of a slow burner but could be pretty rewarding in the end barring any unforeseen problems. Fingers crossed for some decent drill results.
dont ....typo
I hope SHG didn't end up in a war zone like AAZ
Which I hold as well
It's simply because the market is all sentiment. People are weighing lots of macro factors. If the news stays positive one of the catalysts will rerate the sp. One can never predict which it will be.
Yes its 0.1p or £100 divi for every 100,000 shares which is 0.7% return. Better than high street bank rate at the present time but below any method calculating inflation but it was nothing before.
I can confirm from the results that in the ground gold value was $152M plus $38M in the bank= $190M =£135M so everything else like having production plant and fleet etc is barely valued at £10M. At $1700 gold price average the company after tax should exceed 2020 performance.
My final comment is that the company has many parallels with AAZ except they have less gold but have copper and silver making up the difference. The effective PE after all tax is 10 PE.
Figures looking a bit better than I thought they’d be, does this mean the figures will not be showing red on Stockopedia anymore. Methinks so and when the dividend starts low it can presumably be progressive and constantly on the rise.
Is that one tenth of a penny and not one penny?
Momentous....
Paying its first dividend EVER.
Its the direction of travel that matters more than the amount of its introductory dividend
WHICH WILL INCREaSE
Shanta is now in a strong financial position which will enable us to expand our reserves, increase production and pay dividends. The Company will now start to pay dividends, and a final dividend has been proposed for payment in April 2021.
great news that they are paying a dividend but 0.1 pence is a joke. Not even 1% yield! I was expecting 0.5 at least
This will finally eventually rerate!! No way it’s going to stay at these levels for long esp now that Market knows dividend is set in stone...
GREAT!!!
Paying a dividend is a massive bonus for a miner on AIM