Shanta Gold

Tuesday, 25th May 2021 12:21 - by Moosh

I have been an investor in Shanta Gold (LSE:SHG) since January 2019 and continue to be as the company takes a three-pronged approach to boosting its future as it progresses focusing strongly on its projects at New Luika and Singida, Tanzania, and with the recent West Kenya acquisition.

I am happy with the way its chief, Eric Zurrin has been handling things financially and operationally, alongside the money man, Luke Leslie. They have a long history of working together and it’s obvious they are in tune with each other in relation to creating a long-term solid fundamental story for SHG.

For anyone new to the company, the reliable money maker here is at New Luika gold mine. Drilling campaigns continue in and around this area to prove up and replace used resources. Singida project is also underway with mine construction which is being funded from gold sales from New Luika, and drilling is also continuing here to look for new reserves. Drill results have been filtering through from West Kenya over the last few months and a further update this morning presented the market with some impressively high gold grades (at least I found them impressive compared to plenty of other sets of results I have seen over the years from various companies).

Above: Two year chart

There is still plenty of drilling planned for the rest of 2021, so I think SHG is definitely one to keep on a watchlist if recent newsflow has been anything to go by. The company issued a maiden dividend this year and as current projects complete over the next few years, I would expect a steadily growing dividend to be forthcoming to keep the long-termers happy. The company has stated it is fully funded for the West Kenya campaign until 2023.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.