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Valuing in the ground assets.
Shanta existing producing mines. 365,000 probable reserves plus 40,000 proven reserve ounces.
$100 x 365,000 + $140 x 40,000 = $42.1M enterprise value. The g/t at 3.05 is economic at $1350 gold price.
Resources value at 1 million ounces approx adds $20M to the enterprise value.
Singuida has 218,000 reserve ounces valued at $21.8M. It has 180,000 measured ounces valued at $5.4M and 700,000 inferred at $7M = $34.2M on the enterprise value.
West Kenya has 378,000 ounces as resources and is worth $15.1M ($40 taken as having higher grade). The inferred resources has a value of $16M.
The in the ground enterprise value of all assets is $62.1M + $34.2M + $31.1M = $127.4M or £102M.
It is reasonable that plant value is greater than any on-going or slight build up in debt.
The company is therefore trading at worse at its in the ground value which is equivalent to fire sale prices. Companies usually trade at 1.5 times to 2 times the in the ground value of its assets where it has a functional mine and especially if it was to add a second mine.
Other factors are the security of the asset, can the asset be mined out commercially, does the team have plenty of experience and are they reputable and competent with delivery and do the projects offer scale in production volume. I believe Shanta scores well on many of these aspects.
@ 11:36 - Unfortunate comparisons. Chalk and cheese.
It would have been fairer, taking a more regional slant, to assess related subjects around Lake Victoria. Admittedly Bulyanhulu and Geita are farther along the road than Bushi/Isulu and Ramula. Yet their extent is still to be determined at 550+ m. I am expecting the resource to mirror the two Tanzanian mines.
The latest grades don't suggest any diminution. If anything the opposite applies. (13.8 m @ 46.69 g/Au is the highlight and a mere 160 m subsurface. Combined with previous results it's hardly surprising to see EZ's continuing enthusiasm.)
In the meantime we are through the New Luika shear zone and there are probably more Singida pix in the photo gallery. And I still rate Ramula plate formation as exceptional, and possibly our next open pit starting point.
GGP was a Billion pound company and halved in price.
Just like Shanta has halved.
All smaller explorers/producers are well down in price.
HUM is in a war torn country were even the French has pulled out. Russian mercenaries, ISIS, al-Qaeda ....they are all fighting in Mali
WHY RISK IT !!!
Condor gold are not a producer to date and have no revenues just funded by raises- apple and pears spring to mind in that sort of valuation comparison. Greatland is selling the family silver in shares to hang on to a promise. End
More great grades giving credence to the project, it's going to be something special given time. Once we get closer / into 2023 this company should take off IMO in terms of SP.
Interestingly the gold COMEX spot price and 1 month futures price went into backwardation today, doesn't happen often...
wow.. gold up 0 .9% and news like this and still this share is stuck ... frustrating for sure but holding on for at least 14p still :)
seller on the book again ...sadly
The in ground price of gold at the present time valuation is 10.5p for this stock share so this is incredibly undervalued.
Spectacular .....
" and one showcasing grades of 46.7 g/t across a width of 14 metres at less than 150 metres vertical depth, these results are indicative of the vast potential with spectacular grades that West Kenya offers in the Shanta Gold growth story."
The resources alone thus far recover the initial payment for WK. Once the drilling programme is completed, the additional new resources converted and inferred resources added should recover all the mining costs incurred by the company.
Yet another undervalued and expanding miner? This looks like further confirmation that Kenya has something special.