Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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I'm overweight also here.
They will be literally printing money at this gold price and the increased production figures.
I've done some crude calcs, I posted on Twitter last week when gold was $2024
#GOLD looking to rally again currently $2024. #SHG must be the best gold play out there.
AISC will be circa $1100 with new mine on line
100000 oz per annum
That's $202mil revenue and $92mil profit
I will try to take a look through the issued share capital, but does the company have cheap warrants, CLNs, placing overhang or some other source of potential large seller(s) to clear, before it can go on a sustained rise?
Cash is coming in thick and fast as it is with Q1 averaging around $1900 Oz but yeah, a quarter producing 25000 Oz @ $2000/Oz and we're looking at enormous cash generation that flips the net debt position to net cash.
Significant share price appreciation is inevitable if gold stays above $2000/Oz for the foreseeable.
Been obese here since 10p
For the sake of playing devil's advocate, you must also remember mining is viewed (rightly imo) historically as more risky and volatile to other sectors, its PE Ratios are usually always lower, the company doesn't have a great deal of free cash in hand, it now has to build that back up, it has approx $20m in debt I'd hazard a guess at at this time, and the biggest problem of all imo is the liquidity issues down here in the junior resource sector on AIM, it's awful, not in vouge and weighed down in sentiment by its own terrible historical performance and governance issues.
That said, I agree with you, if it's a good 2or 3 quarters in a row and cash starts to flush back on the balance sheet bringing net debt down sharply, we should bolt higher imo.
If the upcoming Q1 2023 Update is good on all NLGM, Singida and WK fronts, then it should set the scene for a rise to the levels you mention.
I believe until the new mines production numbers are confirmed which should hopefully be in a few weeks time, then Shanta is back at 100,000 plus per annum, this will then attract investors to pile back in, I would load up while the price is cheap and I believe it will be more like 70-80% profit from here within 6 months
Is anybody considering going heavy short term at least? The last week or two has been amazing for gold and the sector but despite that this share has hardly moved at all!! I’m not talking about risking life savings, just selling recent winners to load up at this price here and maybe sell for 20-25% in six months. Can anybody else figure out why it’s not 15-16p already?
Gold price going higher already Shanta should start to make ATH’s another 5% plus today me thinks. Maybe 13.5p finish
https://www.axios.com/2023/04/11/newmont-sweetens-its-golden-megamerger-offer-for-newcrest
I fully expect it at some point this year, there is going to be a lot of gold mining consolidation IMO, the management will hold out but there's always a price and we are cheap...
Could be a new takeover bid arriving, lots of articles on Shanta being a target
Stack of sells gone through. 12.75p proving a tough nut to crack. Let's see the buyers come back in please
key resistance level here, if it closes here or higher its sky blue into 20s IMO
12.69p BUY
If we gain strength heading into the quarterly results I have a good feeling on what they results will bring, I too have just topped up my ISA and done a Bed & ISA to take my full allowance up for the 2023/2024 tax year.
Here's to good times at SHG!
Agreed, I cant believe that we had increased production 50% but the SP hadn't moved.
I made sure I loaded up big time this week.
Feels like the market is finally starting to see true value.
20p+ is true value here
Could be a takeover bid coming up or that huge BUY this morning?! Seller has cleared out now and we move up
whatever that 2m shuffle was seemed to have released the brakes.....
about time we head into the 20s IMO, 2k gold and just increased production by 50%
All IMO
12.50p BUY
Constant buying at the moment, they will have to let the brakes off sooner or later.
Just topped up £20k into my ISA with this years allowance.
Happy to leave that in there for the foreseeable future.
They will start to increase divis profits increase.
Still massively undervalued, a big disconnect with the SP
Looks an MM error, deleted immediately
12.25p ...that's a sell order over the past week I wager...
Shanta is definitely one to watch for a potential acquisition, and I think this could be the year!
https://www.proactiveinvestors.co.uk/companies/news/1010435/newmont-newcrest-and-the-reasons-to-be-upbeat-on-gold-miners-1010435.html
Viable
You do realise that Rosterman is no longer held by Shanta.
We hold 4 licenses but 3 Kenyan licenses have lapsed/ recinded/conditions for purchase not followed through. (Take your pick)
See annual results 2021 or 22. Also alot of Tanzanian licenses not renewed oover last 2 years.