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Under my point of view the main driver for rising gold prices (and declining dollar purchasing power) is this one:
https://fred.stlouisfed.org/series/GFDEGDQ188S
So, gold must go upwards. It is inevitable and there is nothing we can do.
The only "healing" to slow down and reduce the "Debt to GdP Ratio" is by means of negative interest rates, that's to say: interest rates below inflation rates for a long time period.
But this kind of macroeconomic scenario is gasoline for gold, silver and commodities.
So, gold must go upwards one way or another, and gold miners price must do the same 3-5 times plus because of the leverage ratio.
Thank Noel, Nick-b, Great to be here.
Please, Keep on correcting my horrible English when necessary.
I've found this 8 min. video that could be interesting for all of us. Take a look because it tells about gold prices to come
https://youtu.be/BQBFQ7g1D8g?si=c-GOgGgGKudS4t8A
The main idea is: as had happen in the past, if gold price goes up then gold/silver mines must unfold 3-5 times gold price increase %.
That goes for allmost any gold/silver miner, but in the case of Shanta there are at least 3 other main drivers that, under normal course, will pump up it's price (with/without gold price increase):
1. Increase in ounces produced, YoY;
2. increase in reserves, yoy;
3. Superpit at Singida.
And Patel knows all about and wants all of that almost for free.
I wish I where wrong, but I think we must get ready and expect the worst case scenario becomes true.
And because of that, and taking into account the idea explained in the 3rd paragraph, do some research in order to find out other miners were to allocate the takeover money, because gold price goes to a bull market.
Cheers.
Probably because I don’t know what I’m doing! I got into Shanta around 5 years ago at 5p.I was hoping for over 20p in a shorter timeframe but we are where we are.Early days for KEFI so hoping for similar share price increase (or more)in a three to five year time period.Not interested in any income just growth.
LOL ... "should" ... welcome in the reality
Crystal. I notice that KEFI rates as a Walter Schloss 'New Lows' Screen(Bargain Stocks)
Crystal. What attracts you to KEFI ? Looking at their specs, it appears to be all jam/maybe sometime in the future. No revenue, no profits, and just enough cash to be able to buy a small terraced house in Grimsby (prior to the recent share placement to raise more dosh). The political stability in Ethiopia is fragile, though Saudi ok. There quite a number of Gold mining companies that are benefiting in real terms today from the recent price/oz rise e.g. HOC, CEY, MTL, PAF, RSG, SRB, & WPM. Other than maybe profits in the future, the only other positive is the recent director buys.
It’s put me right off miners on AIM.I ‘ve been in Shanta for a few years so not losing out,but this whole process has put me off.I have also taken a punt on KEFI.Wonder if that will pan out the same way.
"If the Patels get their evil way and this bid is accepted and the company sold" - they got it on the cheap and we lost out on our just rewards. I was in TSG when it was taken in a very similar way . It had a huge gold-rich property, high grades, low cost of production, it had everything going for it and just as came out of the development phase and started paying a dividend, someone stepped in, the board recommended the takeover and if I recall correctly, we didn't even get the chance to vote. That stunk.
If the Patels get their evil way and this bid is accepted and the company sold,is there any way we can find out what happens to the company in the future after we’ve been been paid and Shanta taken off AIM.I cannot understand why these funds are piling in at the last minute for a potential small uplift.If Shanta is sold on in the near future for a far greater sum than we were offered how can we find out. All seems so fishy.
Hi 1755, don't worry about it at all. Your English is very good. Glad to have you on this board.
Beautiful Barcelona.....lucky man.
Most of us only speak one language so you're well head of the rest of us.
So please don't apologise as your post was completely understandable.
But maybe your valuation of 70 pence is a little too much.
Cheers 🍻
.
In a bull market gold miner should be valuated a 10xPER.
This means that Shanta should be priced at $ 0.90 or 70 pences, not at 14.85 pences.
Gold futures $2,237Today 12:46
A full years worth of gold sales (105,000 ounces) from today at the current $2,200 gold price brings in roughly $230 million revenue and gross profits of $90 million.
The proposed 14.85p takeover price values the company's ongoing operations at $196m (£156m).
Assuming every fund invested is out for themselves and not acting on behalf of the board, the bid has to fail and the share price rerate higher.
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Absolutely; $ 90 M profit equals 9 cent EPS.
$ 9 cent x 0.79 = 0.711 pences.
That's to say, Pastel wants to by our shares at 2.1 PER.
I refuse Mr Pastel.
Have a nice day.
But what about when Gold reaches $ 2,500??
Profits increasing due to rising gold prices and strong demand. Debt free company
This year should be very good for Shanta and I expect slow and steady rise in share price IF the bid fails.
Been here since I bought at 10p last August. I could sell now and make 45% profit but I want to wait :)
A lot of analysts predict the price of gold to reach $2400 per Troy ounce by the end of 2024. That means even bigger profits for Shanta than the $90 million. Let's face it, gold is going to shine this year
The_shareminator -----
Or put another way, the proper offer should be around 17.5p per share on current values would you agree?
Correct!!!!!!!
A full years worth of gold sales (105,000 ounces) from today at the current $2,200 gold price brings in roughly $230 million revenue and gross profits of $90 million.
The proposed 14.85p takeover price values the company's ongoing operations at $196m (£156m).
Assuming every fund invested is out for themselves and not acting on behalf of the board, the bid has to fail and the share price rerate higher.
I'd be in favour, subject to costs, to investigate the actions of the BOD, not least in connection to the legal charges of this opportunistic action being foisted on we shareholders..
Hi, thanks for Thomas Grace's email. I have sent him the message sent to me by Hargreaves. There may not be anything he can do apart from verify that information with HL but it's important that he knows about it.
And now we wait.
Maybe we can persuade Mog24 to forward that "...secure message from HL stating that it was Shanta that had told them to nullify the previous votes..." to thomas.grace@thetakeoverpanel.org.uk
Posting again, in case Mog24 spots it.
Should the bid fail, with the recent rise in gold price I can't see the SP falling back much, if at all. This whole debacle has been suppressing the price, so perhaps it will go up, rather than fall?
There are also some reports due in the near future, that should show some good results.
What do we think will happen when/if the bid fails? I assume a small temporary fall back in share price but surely should be positive news soon.
Apologies metis20, I had meant to say Mog24!
Hail, Caesar. I pinned many hopes on SHG, knowing Rosterman/Lihranda, Mbeya/Saza, and Singida/Mang'onyi to a lesser extent. Also, recalling junior days wandering Commissioner Street and Chamber of Mines/Chamber of Commerce similar behaviour and treatment would have been quickly exposed. What a heist here.