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Will Shanta remain at 12.8p to 13p. This depends on whether a higher offer is made for the company. If RNS notices appear from Endeavour, Gold fields, Centamin for example, then the share price would rise as a result of competitive accumulation.
We all need to see what awaits us on 2 January. In the meantime gold and gold miners may drift back somewhat to energise a 10% plus rally later in January.
I have moved 2/3 of my Shanta in Serabi. Therefore someone will probably come in snd bid LARGE for shafta gold. Serabi I had back in 2030 at 86p. Looking at the metric and recent trading updates it looks, as good a proposition now as it did back then. Trading update due, I believe, mid Jan. It definitely feels as though money may be moving in there from here. Yes I’m sorry guys but you have to look after yourself and like everyone else I am completely dissolutioned here. My take is as others Q1 could be good for gold and having held for 10-15 years i don’t want to miss out because i am stuck in Shafta.
It's on the Canadian market but WRLG.V looks very positive.
They picked up Pure Gold's assets which were once valued at £1B for next to nothing.
Do your own research of course.
1755. Agree Shanta is gonna be stuck or very limited in movement for months whilst the gold bull levitates most other miners. Serabi is an excellent choice to move cash to which I am doing.
Serabi has 2 underground 8-10 g/t mines in NE Brazil.
Production currently being lifted from 33k oz pa to 60k oz pa with the development of the second mine.
SP is 43p giving a Mkt Cap of £32 million which means it is massively undervalued.
ST target sp 100p. Six bag in time is possible.
Aisc $1500 and falling so cash increasing Q on Q
Net cash of $9 million.
JV with Vale for exploration of many copper targets on large land package. Vale is 100% funding.
Massive exploration potential for both gold (Serabi) and copper (Vale/Serabi).
They will need to change the name of the company from Shanta to Shafta....as well.
As a consequence of the takeover, Shanta price is going to be stuck for months.
I don't want to lose the coming Gold bull trend. I'm not going to sell shanta but put new money in a Shanta like miner. And Serabi could be the right place. What do you think about Serabi?
Any other proposal?
Saturn are not stupid.
Tanzania mines that are functioning have 595,000 proven reserves. They are priced at $140 per ounce. This gives a value of $83.3M. The resources at a conversion of 50% to reserves amount 1M ounces at the proven reserve rate and the net value is $140M. The West Kenya resources without a mine valued at just $40 an ounce as indicated resource are valued at $45M. The grand total value is $268.
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That's to say: Shanta makes 7% profit per buried ounce.
But if Shanta unearth those ounces they will make at least 15% profit per ounce.
And gold is heading to $ 2,500/ounce in few months and reserves updates expected in a few weeks for both Tanzania and West Kenia.
This takeover is unfair.
On the other hand, Barrick sold west Kenia under these conditions:
"The project is estimated to hold 1.18 million ounces (Moz) of gold grading 12.6 grams per tonne (g/t).
Valued at a total purchase price of $14.5m and a 2% net smelter return (NSR) will be with Barrick over the life of mine"
https://www.mining-technology.com/news/shanta-gold-acquires-arricks-gold-project-kenya/
The Shanta reserves and resources in Tanzania are based on $1350 gold price where as Ore Corp is based on $1750 gold price!
Taking out this year's production from 2022 figures.
Tanzania mines that are functioning have 595,000 proven reserves. They are priced at $140 per ounce. This gives a value of $83.3M. The resources at a conversion of 50% to reserves amount 1M ounces at the proven reserve rate and the net value is $140M. The West Kenya resources without a mine valued at just $40 an ounce as indicated resource are valued at $45M. The grand total value is $268M.
The company should not offer a discount as the grade of ore is well above the Ore Corp grade that is below 2.2g/t and is priced as being economic to mine at a far higher gold price.
$268M for Shanta is 25.4 cents a share or 20.3p. All those who have said 20p valuation for Shanta including Eric himself are completely and totally correct.
The company has a claimed reserve but hardly no resources. The reserve is listed as probable.. 2.6M ounces as probable reserve is minus 10% on costing. 2.34M ounces at $80 per ounce with no functioning mine plus $16M = $203M. The reserves require both open pit and underground mine and so it is at 15% discount. The costing to build the mine are probably optimistic. The inferred ounces require substantive drilling.
As the company have not published drill results for both Tanzanian mines my vote is becoming a No. The data is crucial in providing an accurate valuation of the company.
My holding along with Mrs holding is 2.2M shares. I doubt we will get the courtesy of an RNS tomorrow to change that position.
I'm waiting to see what the refinancing deal is on HZM before taking any position.
I don't understand this kind of URL: https://*****************/gmb9wdf56ta4ettiidpegs
Is It a right URL? Does It really runs?
https://*****************/gmb9wdf56ta4ettiidpegs
This is worth digging into as the offer is for an almost identical price as Shanta's offer ($170m USD in this case). Also Tanzanian based...
Ambitious plans for a 240k oz project, no debt and $16.1m cash as of last update but it's going to cost Ore Corp hundreds of millions to reach production and by that time (mid-late 2025) Shanta will have generated $100m+ cash!
How are the two companies valued the same at this time?
Gorden
Welcome too..
SXX had run out of funds and to proceed with it's massive underground fertiliser mine (in a
National park) has to accept a low ball offer of 5.5p from mining giant AAL. That's entirely different to Shanta who have little debt.
Strangely enough their are rumours that AAL are considering selling off all/part of this mine
(Woodsmith Project) as it's costing many more billions and many more years to construct.
''I hope I'm wrong but the ceo will have struck a deal with the company purchasing it''
Agreed! I'd even go as far to say that 'the board' will be getting more than 13.5p a share for any of their holdings in a nice little 'side deal' as a sweetener (All in my own opinion of course!)
Whole thing stinks!
''but let's say the patel's are already pretty thick with the tanzanian government''
imo i think that's already a dead cert ****goestheeasal!
it's africa, and most of their government officials are corrupt! (which is why i only have 39,100 shares (£5k) invested in shanta but hold over 2m shares in ggp - as australia is far a far more secure jurisdiction!)
(in any case you can be damn sure that 'greasy kebab shop owner' looking mofo patel has the 'right people' in his pocket!)
whatever happens (counter bid or no) we pis are never going to see the full benefit of our investment and are about to get royally shafted!!! 😒😡🤬
would personally be wary of self proclaimed multimillionaires spending all day on lse boards claiming large holdings thinking they’re big shots
usually the case they have 1/10th or less of their claimed holdings
1.5m my ****
bell.
Like the handle name Gordon. Welcome aboard.
Publican off topic,
Speaking of rainbows, Rainbow rare earth is due a very important RNS on the back end pilot production in Florida USA (possibly in January). A good result adds 40% value to the project. A second RNS on Brazilian laboratory analysis on stacked gypsum containing rare earths is due at some point as well. This could add further value. Apologies for mentioning it, but one for a watch list despite falling rare earth prices in the Chinese market. Tony
Hi just signed up . But been a holder in this for years now. I was heavily in a company called serious minerals based in Scarborough and that got bought out by aal.lse for 5.5p a share. This reminds me of that time. I hope I'm wrong but the ceo will have struck a deal with the company purchasing it amd he will.more than likely have a nice little job out of it too. The AIM is literally the wild West. But hoping I'm wrong here and we get another bigger offer. I feel short changed by these scoundrels
Hardly anyone is at work in the city markets and in mining company communication offices. The Shanta contact email box was not operational yesterday afternoon. I doubt if anyone is picking up the phone either. Until we get past 1 January, the market is somewhat false. The only exception is gold as a number of countries join BRICS on 1 January. It appears both Tanzania and Kenya are planning to join BRICS in the future.
I think the share price will be higher than 13.5 long before the voting commences (beginning of January is likely). Main reason is game theory - once we break through 13.5, the "NO" vote is essentially guaranteed, and the share price will follow its natural laws. There is also a high probability for better offers, which is not priced in.
Why is the price so low now? Main reason is that some people assumed 13.5p TO is a done deal, and are moving money to the other gold stocks in anticipation of the seasonal Chinese NY rally. I think that is an unwise thinking. The reward-to-risk is much higher in SHG at the moment, for the reasons I explained earlier.