Shanta is a low cost, high grade East Africa gold miner which is transforming from a single asset to a multi-asset producer. Sales in 2019 were $113 million dollars, the market cap is £173 Million, its largest shareholder is Odey Asset Management which holds 17.7% of stock.
Shanta were speaking at the Hardman Mining Investor Forum 11.11.2020, held in partnership with London South East. The CEO Eric Zurrin and the CFO Luke Leslie both joined us to run through the corporate story.
And the share price has been pretty handy too, having gone up by almost 500% in the last three years.
Shana's Eric Zurrin tells us Shanta has been listed on AIM for 15 years and been been producing gold for the last eight. "We have produced and sold just under 1 billion dollars of gold over our history. We are profitable and now have three assets in two countries, Tanzania and West Kenya in East Africa, with over three million ounces of gold contained in the ground.
"We've now transitioned from a value only story to a value and growth story. At the current gold price we are generating about $100M of Ebitda, which has us trading on about 1.7x Ebitda. We have a net cash balance of about $35M, and by the end of the year we will be unhedged.
"I would argue you will be hard-pressed to find a company as attractive on similar fundamentals and valuation".
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Shanta Gold (SHG)