Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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The timing is laughable as well - just when the gold market is really starting to hot up.
Patel obviously wanted to get his offer in before gold makes a big breakout
OK as promised the ten last buyouts (not takeovers) I have in my database. The figures are the premium to the undisturbed price.
FINSBURY FOOD GROUP 24%
DWF 72%
BEST OF THE BEST 34%
BLANCCO TECHNOLOGY GROUP 25%
CIVITAS SOCIAL HOUSING 44%
THE FULHAM SHORE 35%
NETWORK INTERNATIONAL HOLDINGS 64%
XPEDIATOR 46%
DIGNITY PLC 29%
ADEPT TECHNOLOGY GROUP 75%
Looks like we're about to be short changed...
50% for contractual takeover (ie more traditional route) but 75% when you are using a scheme. Here they are using a scheme.
I just bought another 115k @13p. It's another bunch of shares to use to VOTE AGAINST.
This Patel b@stard is dodgy as f@ck. Talk about a fox in the henhouse. How can the board possibly even entertain such an offer from one of its directors. I wonder what he's paying them? It also makes you wonder just how dodgy this deal happens to be.
Broker notes at 21p (with Au @ $1800). Offer knock backs when the sp was higher than the current bid and we didn't have Sing (let alone its upside), nowhere near as many defined oz's, more debt... the list goes on. The current offer was only a 6% premium to the sp pre-offer ffs. We would have made 13.5p within the next couple of weeks. And they make us vote before we get any more assays, and before we get the best quarterly revenue report in the history of the company...? Never in my life have I seen such bald-faced corruption.
Please god let this get voted down or have Barrick or the Chinese come in and bid at least 18p. Anything less is an absolute insult.
Isn't it more like 40% support, from the two major shareholders?
~ 1.05bn shares in issue means every 10m shares voting against is 1%, with 25% needed (if that is correct). Well into the tens of millions voting against based on the below. My 0.5M will also be voting against.
Does anyone know for sure if the bid needs more than 75% to succeed?
I had assumed it was 50%. If it is 75% then it does seem premature to announce this acquisition with only 18.8% support at this stage.
As others are suggesting there may well still be other interested parties sniffing around that could snap Shanta up for 15-16p
I am an actuary who lives and breathes risk, so I'm well aware of the pitfalls of failing to adjust for it.
S&P500 has done 20% in 2 months. It isn't risk free by any means, but given the Feds clear support, how risky is it anyway?
Of course upside is bigger than 5% elsewhere, but upside here is bigger than 5% too. The point you gloss over is in fact the important one; "risk attached". Too many people make the mistake of seeing prices rising and thinking that have missed out whilst simultaneously ignoring the other 10 they follow that have fallen or stagnated.
And for your recor, I have increased my holding by a good size at 12.99 but if remortgaged my house it would move the price to the point the gain wouldn't be a guaranteed 5% any more and it's also a lot of hassle to do so, but I know you were being deliberately obtuse anyway
Clearly being held at this price as always so i would expect some large delayed trades at close
All you really have in AIM is faith in management, and after today you can no longer have any.
I'll hold, and vote no, mostly out of principle. I only invested here recently, at 10p, so it's been a quick 35% (in about 3 months).
They will get the formal offer document out probably mid January (they have max 28 days from today) with a clear timetable. Then it will be 23 days from the date of the offer document to the EGM vote. So around first week of February.
Everyone should remember that they need 75% - but it is 75% of those who do vote - not total number of shares.
Reject and get a counter bid. Ridiculous offer.
Lol. I understand the time value of money, thanks for your derisory, insulting comment though. Speaks volumes about your character
My point stands. The upside in small cap gold miners is bigger than 5% in 2 months, albeit with risk attached. I'm here for the risk.
Are you selling everything you've got, and mortgaging your house, to invest here for the free 5%? And if not, why not?
Are you investing every cent you have in shanta to get this free 5%? And if not, why not? Surely the logical thing to do would be to sell out of absolutely everything you own, mortgage your house, and put it in all here to get the free 5%? No?
Agreed, but what concerns me is if they can pull a stunt like this what's to say they won't rig the vote result at the EGM? Anyone know the date of that please?
Jammin, that's 5% in a couple of months; compounded it's 34% a year and 1867% over ten years. If you can't appreciate that's a good return, you simply do not understand investing
I dont think they are trying to flush out offers, its a little bit conspiracy theory for me.
other gold companies know the sector and wouldnt act like this and would prefer first mover advantage
also the loss (done already) of reputation is massive and wont be good if voted down which it hopefully will be.
A guaranteed 5% isn't THAT attractive. If it were, we'd all be invested in cash instead of risky small cap gold miners.
I'm personally grateful someone is suggesting other gold opportunities, thanks for that. I'd hate to miss out on the gains to be made in the space, and Shanta is clearly too dodgy to consider going forward. If they pull a stunt like this, you can't trust management. End of story
Kipperfoot@11:09 - '..something smells.....very bad...' - like your foot? (lol!)
Possible reason they've held off drilling and talk of expansion? It seemed strange to me that gold was reaching all time highs, everything was looking rosey yet easy doubling of expansion at Singida seemed to be being pushed back, WK progress slowed, search for new CEO non existent.
This has probably been in the works for a while and irritatingly for them the SP isn't at 11p still which would have made the premium look a 'tad' more generous.
Pedro, give it a rest ramping srb at every opporuntiy ffs
13.5p is a given IF and it’s a big IF they secure enough support for a take over. But given the gold price environment and operational successes over the past year shareholders should NOT be voting for this to proceed.
I’ll have to reread it carefully again but on first glance this has only received approximately 20% of shareholder support. In the event it fails I’d suspect an increased offer will come but in the interim the company the liquid assets are increasing at a rate of $10-15 million per quarter.
The IC last issued a Buy recommendation in September:
“Earnings beat from new Shanta Gold mine
The Tanzanian miner is within a whisper of its long-term goal of 100,000 ounces in a year
September 20, 2023
by Alex Hamer
Singida ramp-up beats expectations
Cash profit margin boosted over 10 per cent
Build it and they will come. Profits, that is. Shanta Gold (SHG) finished its new Singida mine in the first half and it has immediately revved up cash flow, avoiding the usual ramp-up dramas and disappointments. The Tanzanian company posted a half-year cash profit of $34mn (£27mn), more than double last year and 11 per cent above broker Liberum’s forecast.
This was a reflection of the higher gold price and production level and lower costs.
Singida is not a massive operation but it took Shanta to record first-half production of 44,771 ounces (oz) of gold and underpinned full-year expectations of around 100,000oz. Singida contributed 10,000oz for the period, and as it only hit commercial production levels in June, the full-year figure will show further increases.
Chief executive Eric Zurrin said there was scope for the mine to grow well beyond its current 30,000oz a year outlook as exploration drilling has restarted this week. “I think it's been underestimated, the potential [of Singida], he said. “The reserve is really small but that’s only because there has been a lack of drilling.”
Shanta’s balance sheet is healthy for a company still working on growth, specifically through the West Kenya project. Capital expenditure in the first half was $15mn, which included $9.5mn at Singida. Work on West Kenya slowed to balance the mine build costs in the first half, but drilling there has restarted. A feasibility study is in prospect and the company will start the application process for mining licences next year.
This gold miner is in a good position to keep growing while paying a dividend. Buy.”
I imagine IC will comment soon on this derisory offer.
I mean that's not true 'on just about every metric' G - srb has around $11m net cash vs $33m mcap. That metric alone disproves your claim.
Still, bit naughty to cross ramp at this point in time.
I think SHG is well undervalued,but this could go on for months and just get 13.5p,whilst the stockmarket rises strongly....SRB is a company that is totally and utterly undervalued on every metric...Cash rich,with huge opportunities,it could even have more cash than the present market cap soon.....Take a look ...