(Sharecast News) - Analysts at Liberum started coverage of Shanta Gold at 'buy' with a target price of 23.0p, highlighting the miner's ability to deliver capital efficient near-term growth and its solid dividend.
They also called attention to the outfit's efforts to develop the recently-acquired West Kenya resource, which with 1.2m ounces of gold at a grade of 12.6 grammes per tonne was, in their opinion, a "bargain".
Indeed, an upcoming scoping study would outline its potential.
More generally said the analysts: "Management's efforts over the past few years mean that the company can deliver on many fronts simultaneously. That should drive a re-rating from very low multiples."
Liberum added that the company, whose shares were trading on an estimate 2021 price-to-earnings multiple of 4.2 at then current spot prices were "cheap".
Furthermore, they argued that "there is little to blunt a strong market outlook for gold."
The group was also almost net cash and its hedges were set to fall away before the end of the year.
17 Sep 2015 09:45
Shanta Gold finds more minerals at Elizabeth Hill, on track to hit production targets
(ShareCast News) - Shanta Gold's share price rose after the company announced it is likely to meet its full year trading targets in south-west Tanzania, as well as an increase in minerals at the Elizabeth Hill prospect. The East Africa focused gold producer revealed production and costs at the New L
Read more