The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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Correction - China's business IS business.
Quotation - "Change is coming that hasn't happened in 100 years and we are driving this change together." - Xi Jinping "I agree." - Putin
... and I think ending the dollar's status as the reserve currency will be part of that change. If they can collapse the dollar, then the US will not be able to afford war.
To quote Gerald Celente - America's business is war. China's business in business.
"conspiracy crap" - would anyne care to tell me what in that Zero Hedge piece is conspiracy crap.
"China And Brazil Strike Deal To Ditch The US Dollar"
https://www.zerohedge.com/markets/china-and-brazil-strike-deal-ditch-us-dollar
I have just come across this - on Bloomberg, do they write conspiracy crap?
"O’Neill Urges BRICS Bloc to Expand, Challenge Dollar’s Dominance" (Jim O'Neill, former chief economist Goldman Sachs Group Inc)
https://www.bnnbloomberg.ca/o-neill-urges-brics-bloc-to-expand-challenge-dollar-s-dominance-1.1901781.amp.html
"Google has banned ZeroHedge, a far-right website that often traffics in conspiracy theories, from its advertising platform over policy violations"
You need to be careful of your sources mick-b.
In the years that I been reading Zero Hedge I have seen it report many stories that the BBC tried to keep hushed up, but eventually they became so huge that the BBC could no longer keep them suppressed. Zero Hedge led the way.
Zero Hedge is a truther site - don't fall for that "right wing" bluff. It is meant to put people off so that they don't get the chance to know about lots of things.
https://twitter.com/shanta_gold/status/1641738783895715841?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet
Re: the conversation on this yesterday. See link of shanta tweet. Great arial photo of the leaching heaps at Singida, looks to be a coverage of 60/70% to me. And I'm still sticking to full 85 Oz per day production at or near end of May based on this.
"In the same way Sterling was reduced in stature after being the once undisputed global currency of trade"
When we had the World's largest Empire (one third of the World)
Everything changes.....back to stardust (atoms)
USA ended WW2 having made huge gains (profits) supplying the Allies with most of their arms
In the same way Sterling went 'nowhere' in the 19th and 20th Century, the Dollar will go the same, it will still exist, but it will be vastly diminished in its role as Kingping Global Hedgmony. In the same way Sterling was reduced in stature after being the once undisputed global currency of trade.
Taking all the conspiracy crap away, it's a natural progression, the Greenback at the Global Reserve backstop was forged, at a moment of opertunism by the USA out of the chaos of WW2 and Bretton Woods sealed Europe's fate in its moment of weakness, the BRICS aren't going to keeping giving the USA its 'exorbitant privillage' to quote an old French Leader, they shouldn't either, they've gone from a rounding error of Global GDP players, to serious players, if you think they are going to keep all of that hard earned growth hinged solely on the dollar, and all the counterparty risk that goes with that you have to think again.
All fiat currencies throughout history have eventually failed, and I see the $ as no different imo.
So much has been printed it has lost much of its purchasing power (over 90% if I remember rightly) and the Brics nations dont want to hold dollar assets anymore.
This week was the first time LNG has been paid for in yuan -
https://oilprice.com/Latest-Energy-News/World-News/China-Settles-First-LNG-Trade-In-Yuan.html
This marks a turning point i believe, and there will be much more trade in non dollar currencies going forwards.
I see this as a slow motion train crash for the $......as Hemmingway said, "Slowly at first, then all of a sudden"
Hold for Gold!
2WM
Beware of your sources ......
https://www.businessinsider.com/who-is-zero-hedge-finance-blog-that-spread-coronavirus-misinformation-2020-2?r=US&IR=T
https://www.nbcnews.com/tech/tech-news/google-bans-two-websites-its-ad-platform-over-protest-articles-n1231176
Google has banned ZeroHedge, a far-right website that often traffics in conspiracy theories, from its advertising platform over policy violations
"The dollar isn't going anywhere" - I can understand you saying that. In fact, just three days ago Forbes magazine had this - "Could The U.S. Dollar Collapse?"
https://www.forbes.com/sites/qai/2023/03/29/could-the-us-dollar-collapse/
The article takes the view that U.S. dollar’s special status as the global reserve currency, makes a collapse highly unlikely.
This is why that Brazil \ China deal is so significant. It is is just one example of the movement away from using the dollar, thus threatening the dollars status as the world's reserve currency.
Saudi Arabia recently stated that it is open to accepting other currencies in exchange for its oil, as a potential catalyst for massive de-dollarisation.
The Chinese have the "Belt and Road" initiative, and the Shanghai Co-operation Organisation now includes 60 per cent of the world's population.
Many Asian, African and Latin American countries are starting to trade using Chinese Yuan.
Russia and China are setting up a alternative to SWIFT.
"MAJOR Countries Dumping The Dollar For This New Currency!" - Robert Kiyosaki"
https://www.youtube.com/watch?v=-PowbE7YYpE
Also, that Forbes article concedes that, "for the U.S. dollar to collapse would take something pretty major. Like, a WWIII type situation."
Could that be happening? Events in Europe are looking like the build up to WW3. If you study the history of the long, slow build up to WW1 the similarities are stark.
Even if this is not the start of WW3, the war in Ukraine is destroying the economies of the US, the UK, the EU and Russia. The solitary winner is China, and China has already bought control of many essential companies and much of the infrastructure in the West.
The USA is now spending $1 trillion a year on arms and armaments. The USA is now fighting to preserve the dollar’s status as the world’s reserve currency. If the USA loses the fight, and ownership of the world’s reserve currency, then the USA will fall far.
Don't be misled by the title of this article - "US Dollar Collapse Predictions: The Dollar is on its way out" - he is not saying it going to happen, he gives a well-balanced, in-depth review of the predictions of dollar collapse and in the long discussion, he says - "This does not mean that the US dollar will lose its reserve assets tomorrow, but it is on the way out".
https://crowdwisdom.live/politics/us-dollar-collapse-predictions/
I will plagiarise his words as my point to end with - this does not mean that the US dollar will lose its reserve status tomorrow, but it is on the way out.
The dollar isn't going anywhere. However, if gold can hold where it is now Shanta should have plenty of room to rise.
"China And Brazil Strike Deal To Ditch The US Dollar"
https://www.zerohedge.com/markets/china-and-brazil-strike-deal-ditch-us-dollar
... and Brazil isn't the only country moving away from the dollar. Dollar collapse is coming and gold should rise.
"Change is coming that hasn't happened in 100 years and we are driving this change together." - Xi Jinping
"I agree." - Putin
Exactly ! Capex falling and gold price rising !!! And producing more - perfect storm
"Saving a lot of capex on Singida"
Correct all that cost will now disappear and instead Singida (once at full rate in a month or two) will be producing a tonne of positive cashflow - a double whammy.
Not raising the dividend just yet is sensible I reckon, doubt it's connected to WK.
Yesterday at 08:45, I posted "The gold pour is priced in. When the RNS comes out, the sp will drop due to a rush of selling."
It is happening as I predicted, but it doesn't need to go down much further to tempt me to ignore the concern I expressed in my previous posting and buy.
At this price, it is looking tempting.
As a believer in the long term future of SHG, I'm sitting here with cash ready to buy more, but one thing is making me wonder if I dare chance more cash on it, and that is knowing what happened to the Ashanti mine in Ghana.
The story is told in this BBC 2 documentary. The person who posted it says it was originally broadcast on 25 July 1999. I thought it was from the 1980s - but that doesn't matter.
"The Mayfair Set - Part 2: "Entrepreneur Spelt S. P. I. V." "
https://www.youtube.com/watch?v=zpeoRKi8exk
At 32m 42s - the story of the Ashanti mine, at the time, the world's richest gold mine and how it was stolen by crooks, City spivs, and crooked politicians.
I'm not saying that Kenya today is like that, although my personal opinion is that something like that is what happened to Acacia.
You might also find Part 1 interesting - what the SAS did for the British economy
The Mayfair Set: Who Pays Wins (1/4 BBC)
https://www.youtube.com/watch?v=b_kE8GczzuA
Saving alot of capex on Singida ! News will sink in soon enough
Rerate ahead
There is likely to be a leg up on Q1 results next month which should be good. I think the excitement of a new operational mine and the prospect of significant cash flow is being tempered by the fact that we do not yet know about WK which will soak up a great deal of cash.
Notably Eric did not raise the dividend (I thought he would) and they doubled the Stanbic overdraft facility in January from $5m to $10m which perhaps is indicative that they are trying to free up as much future cash for WK as possible. Contra wise they did not fully draw down on the Stanbic $20m term loan facility seemingly taking only $17m of it.
the pour up to now made it by the skin of its teeth....hence the SP, they will have to improve greatly over the next 2 months for a rerate....in fact todays news is just what the market knew all along....
As I thought, the share price has not given Shanta Gold credit today on the pour which was welcomed this morning. A lot of miners not getting an expected pick up in price. Shanta has significantly de-risked on production and not all miners are in that position.
Yes, he said that on a proactive investor interview I'm sure, they have sized the leach heaps way in advance of the 30/35k Oz the mine plan specifies for future expansion.
Re: processing capacity, I believe they said the plant has been over-spec'd to allow future increases in production above the 30-35koz range, given there is a large amount of unexplored ground at Singida.
They need to be producing at 85 Oz per day to get to 32K Oz per year. They are off to a flyer at 35 Oz per day as of yesterday.
AU isn't a complicated element / process to leach up to full strength (Nickle for example is and can take up to 2 years to leach), gold typically takes 2 months to reach full concentration in the heaps.
My baseline is they'll be at full strength / 32K Oz per year / 85 Oz per day by the end of May.
Thank you for sharing your estimation. it looks fairly conservative and I wouldn't be surprised if Singida guidance is higher given the details released recently;
From the 13th February update the Run of Mine stockpile at Singida was 13,581 oz and "equal to approximately 4 months of processing". Now we are six weeks on the RoM must be in the region of 5-6 months equivalent. This would also suggest Singida can now process 10,000 ounces each quarter assuming consistent grades, which is more than "previous LoM plan guided for approximately 32,000 oz pa".
The tricky part is calculating how quickly operations will ramp up as this will affect 2023 Singida guidance. The first full year of Singida production in 2024 will likely be higher than the 32koz mentioned in the annual results.