Member Info for Deepsurvey1

Oh dear!

LRM's SP is like clockwork, rising and falling every year at the same time on ever increasing highs. A very solid growth share indeed.

The company looks great from every perspective, but to see one of the boss's sell all his holding shows there is something wrong. It may be nothing to do with Shanta but there is no explanation!

I like that Shanta's product is sold in strong US Dollars and all its costs are in cheaper local currency

Forward selling at a fixed price means Shanta can plan the mine expansion without stopping and the growth cycle accelerates, no doubt Shanta will take full advantage of the strengthening gold price and If they get it right we could see the mother of all hedging deals about to come off. Gold is still rising at $1291.50

We have everything. Production just ahead of expectations, growth, cash generation, profits generation, a company emerging from exploration and development to full blown production at a time when the gold price is going up. All just before a re-rate.

The decoupling of the Swiss Franc from the Euro in preparation for massive money printing to stimulate the european economy was the shock event of the day. How much luck can you have just before a company re-rating.

That's about what I've found, subject to currency exchange rates at the time of calculation. Pre tax Profits for year ending 2014 to be reported in April 2015 of $25million equates to just over £16million. Forward guidance for 2015 to be reported in April 2016 of $40 million, at today's gold price and currency exchange rates equates to about £27million.

Forward guidance on costs and sales shows a $40 million profit for 2015. That figure will rise substantially as the gold price rises. Our market cap should be in the half billion range in the not too distant future.

With large stable production as the backdrop to Shanta the news to follow over the next 3 months will be company changing. A resource increase from the new exploration drilling and mine life extension. Fourth quarter results. Full year production results for year ending december 2014 and confirmation of the very large maiden profit. Of course the value of that profit is in US Dollars which has increased over the last year by 15% relative to other main currencies in the dollar index. The gold price is increasing and a Maiden dividend is in the offing. Wowcha!!!

The gold price is doing all the talking up to $1230 in Asia markets overnight. The ever increasing higher and higher lows since November show that whatever is driving the price isn't stopping anytime soon. Looking very very good.

This is the first year Profits go from minus to plus $25million for the year ending December 2014 to be reported in April 2015. That means the P/E ratio drops to an unsustainable level and the share price will re-rate upwards between 5 and 10 times. Shanta is now producing shed loads of cash.

This is an indication of the pent up demand, small breakouts before the surge in the new year. Then up we go.

According to the markets we should see gold start to rise from here then drop around May time in readiness for a strong rise, but it all depends on the dollar. Shanta is looking very good.

And here comes all the economic meltdown news on cue over the next month.

It's nice to know Shanta has a lot of its gold hedged at a decent price and has enough un- hedged to take advantage of the subsequent upswing. This next down dip is the cue to get ready for the large upsurge.

This is the first major action by the incoming CO and a huge vote of confidence in him and Shanta from the Gold industry. lending reduced from 6.5% to 4.9% above Libor. It also shows institutions know which way gold is going, that's up. All in costs to produce an ounce of gold are going down, with the cost of loans is down and energy costs down. The production facilities are nearly brand new and very efficient and we have a very good management team.

We should see a sizeable dip in the gold price just before all the bad economic data comes in and the catastrophic forecasts regarding the derivatives market(whatever they are)Then up we go in Ste Carte movements. Its going to be quite volatile.

Oil futures have slipped to $59 for January February and March 2015. All good for gold.

Shanta is an absolute dream of a gold producer at the moment, just nicely positioned. The dollar needs to weaken for gold to go up, which it's starting to do. The rising US dollar was down to a stable economy not reliant on oil. I have been told that if you add the oil companies who operate outside America with home grown production they are the worlds biggest producer by a long way. Reports seem to suggest that If the oil price goes near $55 a barrel and stays there for any length of time the already weakened US dollar will plunge and America will slip into recession. Not good for the world economy but very good for gold. We could see remarkable gains for gold and silver over the next few weeks and months.