Member Info for 1755

2025 is far away and Basel III could be delayed once again.

So let's focus on Shanta production, AISC figures and reserve updates.

Hi Noel,

it's relevant to define what the BIS is. And, as you well know, the BIS is the CB of the CBs all over the world.

Some quarters ago, the BIS updated gold from Tier 3 category (that's to say risky asset, witch makes no sense as gold has been the genuine form of money and value reserve for centuries) to Tier 1 (riskless asset, that's to say the same grade as TBonds and US $, that are trustfull alo over the world).

The question is why should BIS do that?

Bank Reserves are typically made of TBonds and US $.

To have physical gold in the balance sheet implies get no income from it (neither dividends, neither interest) just expenses (hauling, storage, surveillance, security, etc.). So why should banks want to have gold as a new kind of reserve in it's balance sheet?

The reason why is to expect and get ready for some kind of future downturn in the value or purchase power of TBond/Dollar or bank panic.

Just in this cases, to have physical gold in the balance sheet makes sense as it will act as a hedge-lever against TBond-Dollar losses or bank panic

That shift in banking regulations is unusual and exceptional, because it implies that TBonds and US dollars are not as trustfull as they were (because of 30 trillion US debt)

Basel III is just a recommendation for commercial banks by now, but it would become an obligation and came into force by 2025 if goverments all over the world decides so.

And if Basel III comes true by 2025, gold price must rise Up.

Take a look

https://wolfstreet.com/2023/09/18/congrats-america-%f0%9f%a5%82we-made-it-government-debt-spikes-past-33-trillion-1-6-trillion-since-debt-ceiling-2-2-trillion-from-year-ago/

That's not bab for Shanta.

This os going to be good for gold: Basel III:

https://www.proactiveinvestors.com.au/companies/news/966473/the-basel-iii-regulations-and-what-do-they-mean-for-gold-966473.html?rel=scroll

https://www.moodysanalytics.com/regulatory-news/jul-12-23-implementation-status-of-final-basel-iii-reforms-varies-across-globe

Any questions???

Investors presentacion:

https://youtu.be/OMFDKhSWbvY?si=H9DD1MYUZjzx1us4

Reckon a bid of 20p would be enough, which effectively pays for itself in less than 4 years without any extra production from Singida or value ascribed to WK. Crazy valuation.

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20 p? Why you want to give away your money?

Interesting reading.

https://www.kitco.com/news/2023-08-15/Is-the-world-on-the-cusp-of-Bretton-Woods-3-0-52-years-after-Nixon-closed-the-gold-window.html

So, what's "price action" telling you about Shanta Price and Gold Price?

Yes, you're right: we are all absolute beginners compared to the City dudes. So, what's telling you the Shanta Gold Chart? Will we make money in here some day?

By the way, what's your point about gold price chart? Is it going to boom or to sink?

!

Yes, you're right. Shanta Value is $550M: 250M comes from the NPV of 2 operating mines, and 350M comes from WK Project which has 1,75 M ounces at $100 per ounce.

However at the moment "Mr. Market" only pays £103M for the whole stake. That's WK buried gold equals 0 for Mr. Market as WK produces 0.

Maybe H1 result release, if there are some profits, could pump up the stock price, although august and september tend to be terrific boring mounths for the stock market.

With 100K ounces output, gold hoovering around $2K and $700 AISC, let's suppose that Shanta earns $30M and pays $10.5M in dividend. That's more or less $1 cent per share or 0.79 pence x share or 7.9% dividend yield and 5xPER.

That's for next year and beyond but for current the output is expected to be around 90K ounces.

WK project has no impact in Shanta current stock price because buried gold value is 0 because it produces 0.

Only in case of takeover WK will have some value and such value will be around $100 per ounce, that's 5% gold price, or any other kind of valuation.

For instance, Barrick sold WK 3 years ago to Shanta in $14.5 M and 2% life-of-mine net smelter return royalty

Shanta has valuated its WK proyect in 340M. That's, more ot less, 5% gold price.

I mean, "buried gold" at any "greenstone project".

is valuated at 5% gold Price.

So, if WK resources soars, let's say from 1,75 M to 3M ounces, WK value will be 700 M.

And the NPV of NLGM & Singida is 250 M.

So, why Shanta is so absurdly undervalued?

Has to do witch Tanzanian-Kenian Goverments

Silver Corp has come into a Merge witch Ore Corp, an auxie miner who has a permit at Lake Victoria greenstone belt.

Ore Corp is constructing a mine expected to start producing in 2nd half 2.025 about 250K onz per year at 2gr/ton during 10years.

Tanzanian Governent has 16% capital in the new mine.

https://orecorp.com.au/projects/tanzania/nyanzaga-project

The idea in here is the lower gold/ton vs Shanta WK project

Interesting: the Lake Victoria greenstone belt and the location of shanta WK Project.

https://elements.visualcapitalist.com/the-history-of-the-lake-victoria-goldfield/