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A steady as you go update, building towards Q1 next year and a return to full production. Everything for me is gearing towards 2023 with both NL and Singida in production and WK much further along the development curve to gain the value from this share.
Basscadet - that would indeed explain your reaction ;) No worries.
Magoo - perhaps...but I think whoever had that expectation hadn't really been paying attention! The AISC aren't really a concern to me since it's obvious they'd be much higher during this brief period and then go back to a good level afterwards. VAT situation seems as good as could be expected (hardly expected them to receive it all overnight - that would be living in a dreamland). As I say...personally I think there was very little of note in the RNS and all much of a muchness. We've just been in a period where we've known for ages that things would be poor, and are coming towards the end of that.
Apologies RichTheNewbie I was mistaking 2021 guidance with 2022 for some reason.
rich, I think the expectation was to have better grades this quarter. Have we gone past the low grade interval thus maintaining the target production in Q4 or is it going to be another disappointment? Cash flow does not look amazing right now, with AISC very high, VAT returns not escalating as hoped and the cost of exploration and Singida infrastructure having an impact
Basscadet - surely production being the same as usual next year (rather than lower like this year) is a good thing!?
I don't really understand most of the reactions here. It's been fairly obvious there was going to be a poor few quarters and start to ramp back up next year. Just a case of getting them out of the way before things improve (and most of it is probably now out of the way if the guidance that's maintained is correct).
Simply because production guidance is the same for next year. The market might start reacting to other data points in which case I'd be wrong but right now I think that's what it's focussing on.
Why would you forget the shares....just when they'll be exiting their worst period and into an exciting period with production ramping back up, more exploration drilling than ever, ? If anything it's the time to do the opposite!
The grade being 2.23g/t this quarter but good amounts mined/milled just shows they've not yet got back to the higher grade area(s) which was to be expected.
The throughput has been rising so now just a case of getting those higher grade areas back in the mix (and third mill coming online in Q1 2021).
Exploration going very well here but barring a large spike in the gold price we can forget the shares for now and come back same time next year for the start of the Singida ramp up.
Porcupine South mineral resources were updated during the Period to include the western extension with an overall increase of 345 kt @ 1.75 g/t for 19 koz contained. At least they replaced mined out gold for the quarter (in ground value $600,000). It has to be a good Q4 for January to hit all the targets. Being 3 weeks in they are at least confident of doing it.
"Our outlook remains positive as we work towards our five-year plan and ambition to become a 100,000+ oz gold producer by 2023."
We have a long way to go.
VAT return was puny
Guidance remains the same for next year too
As expected. Production not yet risen lots. Guidance maintained though which should mean that it’s a stronger Q4 (need 17koz+ to be within it). Was to be expected as they pretty much spelled out previously they weren’t going to have got back to higher grade areas yet. So that should be the final weak period out of the way and things will start to ramp back up.
thanks, I also received the invitation. Investors chronicle gave it for monday, looks like they got it wrong..
Trading update is tomorrow, just had an invitation from Investor Meet Company:
SHANTA GOLD LIMITED will be holding a Q3 Production & Operational Update meeting on 21st Oct 2021 at 10:30am BST.
Watch out for the RNS first thing.
Yes but it won't be even quarters as they were still working their way to the ore at the start of the 3rd quarter.
Quarterly Production Results are set for week commencing 18th October, previous quarter was 19th July so could be tomorrow.
Production so far this year is 28,842 oz and companies full year production guidance is 60,000 – 65,000 oz so I make that 15,579 to 18,709 oz to keep within their projection using equal production for final quarters for calculation. After the problems in last quarter personally will be satisfied if they meet guidance
https://www.shantagold.com/investors/events-calendar/
Don't need to tell me that...as I said it makes no sense to me ;)
Yes......I wasn't asking how production works....what I don't understand why your expectations are higher than the company's?
Great if their production comes in well above expectations, but it seems to be a bit of a straw man tactic to say you're expecting higher production than the company's forecasts, and then follow up with a spurious need for a cash raising if these inflated expectations you generated aren't met.
It is the ore milled that determines production. I am expecting a 10% increase in the quarter, with a corresponding increase in production.
It is still all about grade. Hopefully some uplift in mined grade as well although stockpile grade has dropped off.
What level of cash generation it leads to is key though, that is what will determine share performance
18oz=18koz obviously.
They mined 220k+ oz in Q2 and generated 14.2koz of gold.
Furthermore the expectations for the year are 60-65koz following the zone issue so, as alluded to by the previous poster, that's 60to65 - 29koz (produced in Q1+Q2 roughly), ie 31-36koz for H2, or 15.5koz to 18koz.
Generating 18oz would be at the absolute top end of expectations and with production previously predicted to ramp back up this year you'd expect Q4 to be better than Q3.
Therefore I'd expect 15koz, give or take 500oz, and anything more than that being a bonus.
Don't know where you've got the need for fundraising from - makes no sense at all to me.
If they have crushed 220k tonnes of ore, I could not expect less than 16k ozs of gold for quarter probably nearer 18k ozs.
Cash is king, spend must be maintained to deliver 5 year plan, need to see in excess of $24M and some kind of positive momentum in generation to avoid nasty surprise fundraising.
If the projected gold production for the second half of the year is 33361 and at the last update they were still working their way through to the main gold ore body then i expect them to report at the maximum 15000 oz - 16000 oz.
Lets hope the update is good then .
17/18K Oz would be a real result, but as long as the progress is there to take us back to the full 80K Oz annual production we can overlook the smaller details.
Magoo,yes should see new highs for year imho