Member Info for BPat890

Markets are forward looking so as long as there are no unknowns in the FY results they aren’t likely to rock the boat. Investors will be more interested to know the outlook for production this year, how quickly Kourroussa is progressing, weather initiatives to reduce cash costs are beginning to bear fruit and signs the balance sheet will return to health.

Nice find! 10% yield at current share price, almost (and soon to be) inflation beating :)

UK markets could return to favour if the economic outlook improves later this year. Latest economic forecasts point to inflation reducing to 3% by year end (however unlikely that seems). Even if inflation is stuck at 4-5% rather the markets will still bounce from current levels. At that point yields across UK dividend paying stocks will appear more attractive, uncertainty reduced and rate tightening should be behind us.

FRES remains the largest silver producer in the world so regardless of short term market uncertainty and general sector weakness it will be better positioned to weather the current headwinds.

If I may borrow the tainted phrase, current weakness in the share price is ‘transitory’ .

London markets are more susceptible to weakness in the global banking and financial sector which has been a recurring theme for the past 12 months. The knock on effect coupled with persistent inflation, rate tightening, political turmoil and economic uncertainty (are we or aren’t we headed to recession..) leaves UK listed majors out of favour at the current time.

Most UK related issues won’t affect this company directly and much of the weakness can probably be blamed on shrinking margins and the uncertainty operating in Mexico now and in the future.

Okay and it was reported 8 working days later, is there not a precedent for reporting sooner? Hopefully they make an exception with this company given its outlook otherwise we won’t rise nearly as fast as those around us. Looking better today with 12s on the screen

The TR1 update is in relation to sales made on or before April 24th isn’t it or have I read that wrong?

It would make sense if our persistent seller was River and Mercantile LLP, they appear to be focused on companies with valuations of less than £100m. So maybe Shanta’s recent price action encouraged the fund to reduce, regardless of improving company fundamentals and the outlook for gold

‘The Company will aim to achieve long-term capital growth from investment in a diversified portfolio of UK micro cap companies, typically comprising companies with a free float market capitalisation of less than £100 million at the time of purchase’

https://www.trustnet.com/factsheets/t/kzfc/river-and-mercantile-uk-micro-cap

2023 forecast
Production of 95,000 ounces gold at an average gold price of $2,000/oz (rounding up) and with an AISC of $1,250/oz (rounding up).

Shanta are not only profitable, they are making more profit every week now than at any point in the company history. Certainly not loss making. You’ll see in the next financial update at HY

Is that right? It’s just grazed $2,082.80

14p inbound tomorrow!

Yes this company is awash with cash, last year or year before they bought up the shares quite quickly so expect it’s all done well before September

When does serica next go Ex div?

Exactomentoo HarChris this is a great price to fill one’s boots!!

Look at futures this evening? Almost an all time high

$2,045

Bonkers - thanks I can’t find a link but that makes sense! So many ducks lining up and a golden goose holding the gun

Check the gold futures, up to $2024 suddenly! Stocks like HUM up 20% now. This is surely about to reverse up big time!!

Oh nice update too!

Kouroussa Gold Mine processing plant has reached the practical completion stage, and has entered the commissioning phase towards achieving first gold pour this quarter, Q2 2023.

· Practical completion on priority systems at the Kouroussa processing plant has now been achieved, allowing the commissioning phase to begin.

· Pre-operational and cold commissioning is currently underway and, once completed, will move to the hot commissioning phase, followed by the first gold pour this quarter, Q2 2023.

· Sufficient ore feed tonnes are on the ROM pad for commissioning, with mining activities accelerating to provide increased ore feed tonnes on the ROM pad for first gold pour followed by name plate production.

Dan Betts, CEO of Hummingbird, commented:

"Kouroussa is on track to pour first gold within the current quarter, and the start of commissioning of the processing plant is a significant step forward in achieving this objective. As we begin the commissioning phase to bring Kouroussa online, we remain heavily focussed on safety at this busy time. Additionally, operational readiness and the transition to daily operations is a key part of this phase as we look not just to first gold, but to ramping up production to name plate capacity, moving the Company to being a +200,000-ounce, multi-asset, multi-jurisdiction gold producer."

Gold futures touched $2018 briefly! Fallout from the banking crisis?

@terminator - That’s a dead link for me, all the latest news is on the company website.

@gavin - agreed, it’s overblown! They made the same amount of profit after tax as the year before even though production came in lower so things aren’t as bad as they seem

https://thevault.exchange/?get_group_doc=293/1676445762-SENSUnauditedInterimFinancialResultsforPanAfricanforthesixmonthsended31December2022-ShortFormAnnouncement15Feb2023.pdf

Nice rise today and a small mention in this article which appeared on my suggested read list

https://www2.deloitte.com/uk/en/pages/energy-and-resources/articles/uk-mining.html

Quarterly Activities Report looks very positive, even reducing the AISC in this high inflation environment and not long to go before cash and liquid assets is worth more than debt on the balance sheet.

· Quarterly production (gold poured) of 92,259 ounces (oz), the sixth consecutive quarter of increased production

· All-In Sustaining Cost (AISC) of $1,453/oz for the Quarter, a 6% reduction from the December quarter benefiting from a build up of stockpiles at both Syama and Mako

· Quarterly gold sales of 88,151oz at an average realised gold price in line with the average spot price of $1,890/oz compared to 93,326oz at an average realised gold price of $1,817/oz in the previous quarter

· Cash generation of $16.2 million excluding debt, interest payments, working capital and other movements

· $25 million was repaid on the Group's term loan facility, and $5 million was repaid on the Revolving Credit Facility (RCF)

· Net Debt of $19.9 million (down 37% from $31.6 million), including Cash and Bullion of $75.8 million. Available liquidity (Cash, Bullion and undrawn RCF) of $155.8 million

· Ore Reserves and Mineral Resource Statement released on 8 March 2023 indicating a 15% (0.6Moz) increase in Ore Reserves to 4.6Moz and an 18% (1.7Moz) increase in Mineral Resource to 11.2Moz of gold, both net of depletion

· Syama North Mineral Resources increased to 3.2Moz, and Ore Reserves increased to 854koz

· Syama North prefeasibility study (PFS) on track, with expected outcomes to be available mid-2023

· On track for full year guidance for 2023 of 350,000oz at an AISC of $1,480/oz

With you there uberbear, not worried in the slightest. Did anyone else read the Bens Creek update this morning? So much uncertainty surrounding sales, commodity pricing and the sort over recent weeks but the company have batted away all the dodgy claims with a very upbeat statement and that’s despite the price of Met Coal being down!

For Shanta producing more gold than ever before at near record high prices the next quarterly update and Half Year results simply have to peak interest here.