The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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West Kenya High Grade Phase 2
and Regional Drilling Results
All looks good to my untutored eye?
Over 95,000 ounces of resource ounces to add in Q1.
Only a takeover will give investors a fair price.
West Kenya is going to be a monster for us !
I am very happy with the way SHG is going but as the Colonel says funding is the key question?
No. Hope this helps ;)
Funding WK only becomes an "issue" (if you even want to call it that) once we get to the DFS Stage and the decision to mine.
As Viable pertinently points out, EZ is now talking about a high grade 5m+ Oz resource, thats Gieta territory, and I seriously doubt SHG will ever have the capital to start building that kind of mine and start digging those kinds of holes. That's Tier 1 territory.
This will almost certainly IMO go down a farm-in route where a major will come in to lend us a hand. No issues there as maximum value will be gotten via that route.
Yup. Greatland Gold became a billion pound company that route (albeit they've pulled back a bit in recent times) despite having given away 70% of their asset (essentially).
Difference being though, that they were in a much weaker negotiating position, having never generated any revenue, and Shanta will have lots of cash coming in when they're deciding on, or negotiating, a route to market for WK, and won't have to jump at the first offer.
So where did this so called eye watering $160 million capex figure come from as i have seen nothing about that in any interview or statement ?
That's from Shanta's own scoping numbers Redhill (just guesstimating the costs).
By the time it comes around to starting to spend on that Shanta will already be producing from both NGLM and Singida.
They don't even have a pre-feasibility study yet, let alone a bankable feasibility study, and as BooBoo says, it may well end up being partnered if a giant resource is shown (and, if not, I'm sure they could get it project-financing, on top of Shanta's cash flow at the time, which will be significant, assuming the gold price hasn't tanked).
No i appreciate that and just wondered how that figure could have been arrived at. Just pure guesswork and a lot depends upon how they wish to start up. There is plenty of gold easily accessible without having to build an underground mine at first.
SHG just tweeted an interview with EZ, so for those not on Tw*tter:
https://pbs.twimg.com/media/FFgtqUKXoAENYOs?format=jpg&name=4096x4096
https://pbs.twimg.com/media/FFgtruvWUAAvDAQ?format=jpg&name=4096x4096
https://pbs.twimg.com/media/FFgttNHXsAEbiQQ?format=jpg&name=4096x4096
Nothing really new except we now know the crushing plant capacity and the mill capacity which i don't believe has been mentioned before.