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No end in sight to the downward pressure...into the 6p trading range now...
Don't know about intervention. Looks like just the same old obsession with rates imo. Even if they're just talking small percentages the market always seems to react as if it's going to be a 5% rise overnight!
There's clearly intervention going on in the USD$, it's extreme strength doesn't make a great deal of sense, oddly is badly damaging the PM and BM markets, but not making any difference to the O&G or Agriculture Commodity Markets?
You've got to assume there central bank action going on in the background to create a strong dollar to help curtail inflation, if there ever comes a dollar correction of 10/20% they'll be enormous problems.
NT to buy any size so far for me this morning
unbelievable this stock (a lot of POG-miners)) trades on such a low level ... threre is an reaction on every $$$ the POG goes down ..completely without sense ... even at POG 1700 or 1600$ Shanta makes money ... this all is already priced in ... in my opinion POG will see 2000$+ in 2-3 years ...
When the money printing stops?
That will be years away if ever.
time to buy is when people are at their most despondant.. I am very bullish on gold this year as bank rate increased and bond yields will remain negative. The strength of the dollar is a headache but all things being equal I expect gold to do well when the money printing stops ...
All that buying last week and now marked down, dumped. Glad I kept away now. Market is generally poor anyway, aside from some Footsie 'value' shares
Is it an overhang or is it being shorted, whichever its a car crash for the SP
Great time to buy and scaling nicely.. with next year guidance up nearly 50% on this year it is a patient bargain now
Looks like the bottom drawer is waiting to open for this one. Very dissapointed as it looked to be very promising when i bought in. Can only hope that gold price moves up this Year to get Company back on track.
Based on the trades looks like a sizeable overhang still exists
CD
Yes I was aware of the Chinese New Year trend but we have not seen a decent gold rally into it. It does not make sense to do another placing. The company would be far better off doing a loan if it were necessary without being forced into a hedge arrangement. I have been going through the numbers and lets say $20M was sought in year from production. Lets assume an average price of $1700 and they hit 70,000 ounces. Lets assume the AISC overruns by 31 December and is $1350. this gives $24.5M cash flow. Taxes etcetera take away $12M. However the Tanzania government is using tax owed to off set a lot of VAT. Lets assume half comes back. If 60% pre-stripping is held over to Q1 2023. The company delivers without a placing. For January the average price is over $1800. Similar may occur in February. A dip in gold price later averages numbers lower. However, gold often responds higher in a stagflation environment so it can also go higher. I have looked at the numbers as well as ratios. The company has spent $10.9M on Singuida last year. The crushing circuit is at least all bought in. Tony
Hope to see you back as an investor CD in Q4 if we see Shanta hitting your expectations. All the best Tony
Patryk221 and all readers out there,
I recall some classics when it comes to Directors selling. Its when family members who are on the Board that sell that you hit that button right away and apply that as a golden rule. Directors do lousy buys and sells as well as good ones. The price actually did go higher after Eric sold. He also got a lot of shares in January as part of his pay rewards and it is reasonable to take some of that off the table. He was after all spending some of his pay after delivering good results after several years.
The real issue was made clear by Eric in his July presentation when he said that he was highly focussed on the VAT discussions and it was taking up a lot of his time and it was VAT, VAT and VAT. Shanta was badly hurt in not getting its VAT rebates in 2017 to 2019. Tanzania has said to the world it was being investor supportive and making the nation attractive to invest money. They are slowly delivering in their response to Shanta Gold. The show case I mention before is in part Shanta receiving back over paid taxes and seeing the impact later when it is done. The economy in Tanzania is on 5.5% GDP growth and it buzzing. They received a $320M International COVID support grant in November. Its quite possible for Tanzania to make more VAT repayments to Shanta if they want to. If they do an extra mill for current production could be bought and in turn it makes more money and pays back more tax to Tanzania, and the time line for Singuida can made more secure as to when $10M is spent on stripping before they get to gold production ore.
Finally the book value price is 0.76 against a Shanta life time average of 1.1 times. The book value increases every time reserves and resources exceed what is mined out. So we are at a phase where 100,000 ounces could be uplifted with in the ground value when perhaps only 25,000 to 30,000 ounces get removed. This is a big deal as further price drops against increase resources create an incredibly low book value price on the stock. As I mentioned the other day, its time to hold low PE stocks with low book values under 1.0 multiples. I recall Lloyds bank hitting 0.25 when everyone thought it might go under in the financial crash. The book value trade on Shanta in 2020 was 2.8 times. We are holding a smashed up stock already. If the markets blow up this one has done it before all the others follow. What is key however is that Tanzania delivers its promises on VAT rebates otherwise we all lose further and they do as well ad if they do support the company Shanta will be an investor safe haven as we head into 2023. This happens when the Tanzania Government works with the Shanta in a constructive partnership and I hope this is possible as it is win win as a result for all stakeholders. Tony
When directors sell one needs to sell as well, 10 years of wait for the gold price to climb and here we are 7.8p gold was at around 1400usd when the SP was this low… yet Shanta is in way better position than it was back then…