Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
Golden boy Eric had $927000 last year even with low production and big losses, part time Luke $798000.
The year before they took $1454 000 and $1256 000 respectively.
Its a huge reward of faith by renumeration committee which is now questionable. How they judged that financial targets where hit in 2021 and reward that element is beyond me.
Who told you Shandong approached Shanta?
IMO, it was other way around!
WHY and Why now! Surely to early to get best result for shareholders. But to be fair Eric probably had a plan in the interests of shareholders.
What comes next could be interesting. Plan B?
Did we not pay $15m for WK in shares and cash and accept a 2% kick back to brick on all gold sales only 27 months ago. Gold was in strong uptrend mid $1900's then.
Valuation today, possibly double with a bit of a fair wind.
ThePublican77,
I think you have much more research to do before you jump in here at 8p.
It is all about cash and Shanta getting into a profitable position again. Liquidity ain't cash.
Can the loan be extended? What security can they offer?
Having just paid off their 6 month short term loan, seems they are back at it again.
Whoever claims future sales as liquidity? What is restricted cash and can it be used?
Financial position is the next red flag.
Buy at the placing ........5p
Tony
I suspect that Ketan Patel is not interested in the money.
His concern will be for the communities that Shanta operate. He is likely to be more interested in protecting the employees, growing the farming structure, schools and hospitals. I cannot see a scenario where he would support a sale unless Shanta was going bust and a take over was the better of 2 evils.
He originally kept his family shareholding at 10% of issued equity. Unfortunately although he supported the company with cheap loans in times of need eventually the placings took over to keep Shanta going.
Look into Export Holdings if you want to understand the ethos.
The publican
I hope I have read this right, not hugely comfortable that I have influenced you.
I try and be factual and thought provoking but of course we are reliant on pieces of a jigsaw to build a picture. Sometimes they are upside down and difficult to see.
I hope Shanta keeps improving lives of Tanzanian people
We all are guilty of hanging on production numbers presumably because guidance is given on ozs and all in costs.
Yet if we invest in a proper FTSE company we are interested in profit and surplus cash that lead to dividends.
Shanta report quarterly liquidity and debt, OK I would prefer to know cash but it is what it is.
This quarter we paid back some 6 month bank loan with our new $20M loan meaning debt rose by 15. 7M and yet liquidity fell to levels below June when we needed the loan and indeed most quarters haved ended with liquidity higher than now.
That is after the much heralded boost from mining the crown pillar. Can they really finance the completion of Singida from this level of cash?
The executives have a plan no doubt, is it refinance in some way, promote a sale to the Chinese or hold firm in the hope of a turn in production, markets or some VAT.
Best to follow your own intuition me thinks, only 2 years on from a pump and raise.
A piece about our seller, did a mega deal once
https://www.mining-technology.com/uncategorized/newsextract-resources-agrees-for-24bn-chinese-takeover-offer/
Very small position now, did have far too much in here 10 years ago. Now rarely invest outside 250.
As for valuation, it is a tough one isn't it. If gold was 2000, it is totally different to 1650.
Singida was to be the first mine and it got pushed back for a decade until gold spiked. Until it is producing a profit it is a not significant. I do not believe we know the terms of the mining license and hence how much goes to tanzania or shareholders.
New Luika is a good plant and on its own in a good district. We needed the neighbouring Helios licenses to extend life of mine but pulled out of a deal and probably have tendered for them but its all quiet. Stopped exploring there to save cash as reported today. Unclear if energy prices allow a profit there at present but good infrastructure. The balance sheet is a guide to value of plant I guess. Exploration licenses held are overvalued on balance sheet imo.
Kenya is a serious asset though, although very little is in the public domain. A valuation would be simpler when a preliminary feasibility study is produced because so little is known about Kenya mining and infrastructure.
Throughout my decade here this company has been very up and down but a market capitalisation of £100M comes and goes. I doubt the market gets it that wrong most of the time.
On your last one, board conflicts, I guess they have always been there. Some very good original and subsequent guys have been lost. When we lost our 2 UK directors in Heber and Davis, I found transparency was lost too and it was hard to maintain trust.
When the pump started Eric stated
"Whilst discussions are continuing with each party, there can be no certainty that an offer will be made, nor as to the terms on which any offer might be made. Further announcements will be made in due course, as appropriate. In the meantime, Shanta shareholders are advised to take no action"
Why advise no action!
Then later the same day, we get cash only offers times 2.
Proper amateur bizarre comments for a CEO on $1.5M a year
The publican
Leslie our CFO is on 75% salary since 1st May as he is pursuing his other directorship in "mine finance".
I believe our executives wish to sell as the company cannot finance its growth now that new luika shows its age and grades fall off, gold price falls and costs rise exponentially. It has been a bit of a perfect storm and options are limited.
Jonathan Leslie was a strategic advisor to the board in 2013/4/5 ish the and from memory sat on the board without voting rights.
Tony
The problem I have is that cash is king.
Where has it gone?
We have drawn down a $20m loan and it has gone into thin air in 1 quarter.
Need $12m for Singida and they don't generate cash. Guidance for 2022 and 5 year plan is not realistic, today different excuse but it does not add up.
These highly paid executives have history of pumping the share price pre placing and daddy is selling.
MickR
You said
Ketan Patel holds more than 4% of SHG shares and I do not think he will entertain a bid less than 25p.
Come on, Ketan is a founder member and as a director chairs the sustainability committee. He has achieved great things here and at export holdings in raising the standard of living for East Africans. I have no doubt that he does not want the Chinese taking this over. He certainly does not need money himself, I imagine he would vote against any offer.
But on current performance who is going to give them a loan which they "hoped to complete in the coming weeks" as stated in the Q1 results.
You are correct though a rerate is probable but it will be up or down depending on what and if any options are open to them. Could drag it out a while yet.