Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Shanta Gold Ltd - East Africa-focused gold producer - Says that the Competition Authority of Kenya has approved its acquisition by Saturn Resources Ltd. Completion of the buy remains subject to the receipt of regulatory approvals from the Tanzanian Fair Competition Commission, the Tanzanian Mining Commission and the Cabinet Secretary for Mining, Blue Economy and Maritime Affairs in Kenya, and the court sanctioning the scheme at a hearing. Shanta Gold expects it to become effective in the first half of this year.
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Just Read on the the "Shanta news".
What does It mean?
Under my point of view the main driver for rising gold prices (and declining dollar purchasing power) is this one:
https://fred.stlouisfed.org/series/GFDEGDQ188S
So, gold must go upwards. It is inevitable and there is nothing we can do.
The only "healing" to slow down and reduce the "Debt to GdP Ratio" is by means of negative interest rates, that's to say: interest rates below inflation rates for a long time period.
But this kind of macroeconomic scenario is gasoline for gold, silver and commodities.
So, gold must go upwards one way or another, and gold miners price must do the same 3-5 times plus because of the leverage ratio.
Thank Noel, Nick-b, Great to be here.
Please, Keep on correcting my horrible English when necessary.
I've found this 8 min. video that could be interesting for all of us. Take a look because it tells about gold prices to come
https://youtu.be/BQBFQ7g1D8g?si=c-GOgGgGKudS4t8A
The main idea is: as had happen in the past, if gold price goes up then gold/silver mines must unfold 3-5 times gold price increase %.
That goes for allmost any gold/silver miner, but in the case of Shanta there are at least 3 other main drivers that, under normal course, will pump up it's price (with/without gold price increase):
1. Increase in ounces produced, YoY;
2. increase in reserves, yoy;
3. Superpit at Singida.
And Patel knows all about and wants all of that almost for free.
I wish I where wrong, but I think we must get ready and expect the worst case scenario becomes true.
And because of that, and taking into account the idea explained in the 3rd paragraph, do some research in order to find out other miners were to allocate the takeover money, because gold price goes to a bull market.
Cheers.
Gold futures $2,237Today 12:46
A full years worth of gold sales (105,000 ounces) from today at the current $2,200 gold price brings in roughly $230 million revenue and gross profits of $90 million.
The proposed 14.85p takeover price values the company's ongoing operations at $196m (£156m).
Assuming every fund invested is out for themselves and not acting on behalf of the board, the bid has to fail and the share price rerate higher.
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Absolutely; $ 90 M profit equals 9 cent EPS.
$ 9 cent x 0.79 = 0.711 pences.
That's to say, Pastel wants to by our shares at 2.1 PER.
I refuse Mr Pastel.
Have a nice day.
But what about when Gold reaches $ 2,500??
Https://www.mining.com/perseus-extends-orecorp-takeover-bid-to-april/
Perseus wants OreCorp too; so they Pay more than Silvercorp.
SilverCorp refuses to pay more and step down the course. But they are interested in Kenian Gold and Shanta could be a good chance.
At 2,210 $/gold ounce even Fresnillo is going Up (+5.75%) but Shanta price is stuck in the mud as a consequence of Patel's.
I wonder to my self, why did the Board & Patel approve the 0.15 p dividend? Does Patel need some more cash in order to pay the TakeOver?
They are willing to pay only 4 times 2,023 profits. That is not enought. If they want Shanta they must pay the right price that is far above from 14.85 p.
Interesting video:
https://youtu.be/9jmi0IqkyTo?si=1RSOgn88fabc_sc1
Take a look at this...
https://oilprice.com/Energy/Energy-General/Central-Banks-Boost-Gold-Reserves-to-Diversify-from-the-Dollar.html
When is Shanta Board going to update us about Singida and West Kenya drills and reserves/resources?
What are they waiting for?
Patel Takeover does not allow them to not inform about on course mine activities.
Low forces them to be silent about Patel takeover but also their duty is to inform shareholders as usual and in time about mine activity.
So, what about updating???
I wonder to my self: with Gold hovering $1,150 and on the rise, does Patett 13.65 pence takeover make sense for Big investor & Funds?
And I answrrs my self: no, I don't think It does.
So, as a result, I'm keeping my Shanta stake until this bad taste joke ends, and also buying other miners too.
For instance: SilverCrest Metals, Kinross, SilverCorpMetals and Calibre Mining.
Taking about Caliber, they are making some new bonanza grade discoveries; take a look at their home page news https://calibremining.com/