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Inflation is an important point, Ontarget, based on other costs from other miners, we may be looking at 10 / 15% annual increases in labour / material costs at the moment, that’s going to have an impact.

It will probably be the case that progress on WK / Singida will be slowed down in order for cashflows to “catch up” with expenditure, that may cost us 6 months of progress into 2023, it’s not a major issue if you can see it out from a personal investment perspective, beyond that, who really knows what’s for the macro conditions, the way the world is just about anything could happen, I would worry ourselves greatly beyond what is out of our control.

It’s a slow build-up from here, but I can see great things once we get to this point in 12 months and the investment case to 100k+ becomes clearer.

Despite what the price action is showing, SPDR (the world’s largest gold ETF) and central bank gold reserves demand are all surging to multi decade highs.

16 year high (all time record in fact) in terms of SPDR and 32 year high in terms of central banks gold reserves…

https://www.moneyweb.co.za/mineweb/worlds-top-gold-etf-sees-holdings-surge-in-bullish-demand-sign/

https://www.eurasiareview.com/20012022-central-banks-record-gold-stockpiling-oped/

It should be, yes, but if the last 13/14 years have shown us anything it’s that the US Fed and all other Central Banks have a pandora’s box full of manipulation to use regarding keeping AUX down (a soaring bullion market would destabilise their own FIAT and create inflation havoc) and the support of the USD$ and all other currencies interrelated to keeping the idea of Bretton Woods alive that the US Greenback is the currency of last resort.

Agree, it’s a bit of a “bring out the dead” RNS, put in the drawer and add when you have the chance, returns will be 2023 onwards IMO. Looks like a big chunk of cash came off in December for the delivery of the high end value goods at Singida, they’ll need to manage cash for H1, which probably means slowing up on WK and Singida slightly, but it’s all manageable. Timeframes for a substantially higher SP is 12 to 18 months for me.

Considering the market gyrations, you wonder if this is another “gun to the head” moment by the Markets to Central Banks, it will be interesting if they even get one interest rate rise off at this point, let alone multiple ones.

Tornadotony,

Agree, IMO when push comes to shove the whole talk of raising interest rates in western economies is just jawboning, central banks have no intension of meaningfully raising interest rates as the impending crash in markets and main street would be all consuming, they will let inflation go on the hope it comes back through its own volition, and keep asset prices pumped up, of course if that goes wrong it will make the remedial measures and the fallout even worse by pursing that strategy. Massive stakes.

Incredible price movements (upwards) across the whole commodity markets today, oil, metals and agriculture, this despite substantially rising bond yields / interest rates of late, which is, to most, counterintuitive.

Suggestions of some economists I follow that this could be the early stages of “flight to hard assets”, that the stock market bubble has burst and with it the 10s of trillions printed these last two years will now come out and find a home in the commodities market as a flight to safety to protect against inflation (with real interest rates also being deeply negative). If it continues it could get very nasty, very quickly.

A lot of the larger institutions (especially the US ones) have been offloading gold stocks they accumulated during the early part of the pandemic. They are now probably also the same ones shorting gold on COMEX.

They'll be an update outlining Q4 2021 production on Thursday 20th Jan. So not long to wait. You'd expect a comment this point on 'issues solved' or 2022 production downscaled.

Some pretty interesting volume here for a early January trading day with no news?

https://asia.nikkei.com/Spotlight/Datawatch/Central-banks-accelerate-shift-from-dollar-to-gold-worldwide

Didn’t get a great deal of attention this, but gold held by Central Banks rose to it’s highest in 31 years, despite what they may say to their citizens faces, what they do behind their backs is another matter, clearly they wish to ‘de-sensitise’ themselves from dollar issues in the future.

It's going to be a tough few months for small caps.

Western economies across the board are now in recessions when stripping out real rates and inflation. Its going to take a tough few years of allowing inflation to eat our debts away while hoping the markets don't notice and freak out at some point.

Governments and Central Banks will put all their attention in ensuring markets and currencies don't crash (50/50 if they are successful in that) and that probably will mean a tough stretch for our end of the market.

Re: US Federal Reserve...

From “transitory” to steeper taper and 3 rate hikes in 2022 in 4 weeks flat. How is that for the foremost macroeconomic policy thinkers of our generation? They have as much of a clue as what is going on as our current crop of politicians do (i.e. none).

Impossible to know what happens going in to 2022. But the Bond Markets aren’t buying large interest rate hikes, and nor do I as it would IMO trigger a massive deflationary recession and maybe even a depression, and a market rout to boot, even with 3 rate hikes in 2022, real rates would still be negative 6%+ in the US. Looks like inflation is here to stay for a considerable time as the alternative is too ghastly to even contemplate with these debt levels. But then, what happens with the reaction to Omicron and deficits / debt levels? Someone at some point will have a serious sovereign debt and currency problem you’d think.

The market tonight has taken this news with AUX actually strengthening!

Great historical reference, Tony, and like Pearl Harbour, yesterday was clearly very well planned a long way out. Yesterday as far as I can tell was the largest volume traded in a single day in SHG history going back through old charts, so you can reasonably assume the delude of buys from yesterday were shorts being closed out, a nice 20% skim for someone in the know.

Yes, the drop is completely out of proportion to then news, but this is AIM and you have to expect all disappointing news to come with a hammering, and this hammering was clearly set up before the actual news dropped, again, AIM being AIM.

Cash and available liquidity of US$24.7 million at 30 November 2021 against cash and available liquidity of US$27.5 at end of Q3 (end of Q2: US$28.0 m). It’s hardly the disaster you paint, it is what it is, it’s mining, and tells us once they get through their difficulties there is positive cash flow ahead. Of course it's all your own perspective, I am invested and think the better, you are out and want to be proved right.

It does indeed, someone always knows something more than us. Sadly, just another "**** happens" moment in mining. Cash is great and the storm will pass.

Hard to know what happens from here, US Stocks and Crypto have taken a hammering in the last 24 hours, despite what the US Fed maybe saying publicly about tapering / tightening the markets don’t believe it and Treasury Yields are plunging across the boards given a AUX a 1% pop yesterday. With Omicron who the hell knows what is going to happen, countries seem to be closing down their economies and asking questions later on the matter. If the world start shuts it’s inter-country supply chains again over the winter via lockdowns, etc. then prepare for fuel to be thrown over the inflation fire.

Funding WK only becomes an "issue" (if you even want to call it that) once we get to the DFS Stage and the decision to mine.

As Viable pertinently points out, EZ is now talking about a high grade 5m+ Oz resource, thats Gieta territory, and I seriously doubt SHG will ever have the capital to start building that kind of mine and start digging those kinds of holes. That's Tier 1 territory.

This will almost certainly IMO go down a farm-in route where a major will come in to lend us a hand. No issues there as maximum value will be gotten via that route.

Yet more fabulous results from WK, it a formidable trio of projects at differing stages that SHG have now and has exceptional long term prospects.

Being invested in a gold miner / developer / explorer such as this has to be looked at through a long enough horizon to expect decent returns, for me I expect to see a good return on my investment as we proceed through 2023 with NLGM / Singida both producing and WK much further a long the development curve. But it may take longer, which is also fine.