Member Info for ICB888

A 33% rise on volume of 17 million so where is the RNS. What have you heard ?

The markets verdict is positive. Currently Up 13.5% at 0.105 on volume of 12 million.

Following on from that very upbeat interview with Eric it is worth remembering what the House Broker who is endorsing the 13.5p offer just a few weeks later:

“ Shanta Gold Ltd (AIM:SHG, OTC:SAAGF)’s strong run of form is continuing, says house broker Liberum, with both of its operating mines in Tanzania delivering above expectations in its latest quarter.

Guidance for the year to end December 2023 was reiterated at 90-98,000oz of gold production, but Liberum expects the company to come in just over the top of that.

The new mine, Singida, was the standout on continuing excellent gold recoveries of 97.4%, it added, “which bodes well for Life of Mine lift in expectations”, added the broker.

Despite the increased spend on exploration (West Kenya), Shanta also deleveraged with net debt at US$4.9 million, from US$8.7 million three months earlier.

'Buy' with a target price of 21p is the house view.”

Just think about that 21p becoming 13.5p a few weeks later when the Board want to endorse a low bid, which they have yet to formally table. If they hadn’t announced the bid when they did the share price would almost certainly be well above 13.5p probably on the day the bid was announced. I would like to hear the Directors explain how they are acting in the best interests of the shareholders and how the broker can drop his valuation, when the CEO has told us the last quarter should be the best ever and “we are very cheap”. It’s a shocking state of affairs.

It is good to see the funds raised at the end of last year being put to use on the ground to commence a new drilling program. As has been pointed out the current lower lithium price is not relevant to CTL but has been used to pull down the price of all lithium companies. It’s what the lithium price is likely to be in 2025/26/27 that is important. CTL is right at the forefront of Chile’s new approach to lithium mining and the process by which it will be mined. CTL is not far away from proving its new technology on the ground. Once that has been proven the sp should start to seriously rerate and CTL will be looked at by some of the big boys who may be very interested in acquiring it.

Peterm35

Would you be so kind as to provide a link to the recommended offers section of IC as I can’t find it online or in the magazine.

The markets have had a bad week as most city workers and CEO’s won’t return from the Caribbean or the Ski Slopes until this weekend. Next week everyone will be back at work and we will return to normal volumes of trading across the market. Announcements will restart as unless it’s bad news companies don’t want to release it onto a quiet market.

CNR is simply drifting lower on low volumes as we await bid news. Weakness in the share price in recent days tells you absolutely nothing.

Berenberg’s Buy recommendation with a 9p target whilst down from their previous 17p is still a 50% increase on the current sp and they are at pains to stress it is very conservative:

“ Our modelling assumptions are conservative and we think that Jubilee is likely to benefit from more near-term cash flows from the project, which we calculate has an attributable NPV of USD84 million," Berenberg said. NPV stands for net present value.

Due to a mixture of weaker commodity prices and some operational headwinds, mainly in Zambia, Jubilee has struggled to meet more optimistic market estimates, the German lender said.

"We think that our rebased numbers now provide a conservative estimate for what we think Jubilee can deliver in the coming years, with upside to this, particularly in the form of chrome (expanding from c1.6mtpa currently to c2mtpa, subject to board approval) and, with this, additional PGM volumes," it said.

Also, Berenberg sees more organic and inorganic upside in Jubilee's copper business, though its estimates are conservative.”

Personally I think Berenberg are positioning themselves so that as the copper project gets going and the SPV moduals come on line and prove their profitability, they can regularly increase the target price. We all know 9p is ridiculous and I feel sure Slater has a much higher target. Even with a 2% increase in his holding at this sp level he will be along way from break even at 9p.

Investors Chronicle has this afternoon published its Ideas for 2024 where I they select 5 shares in different categories as their ideas for 2024. In the Special Situations category they have selected Energean (ENOG) with this comment:

“ In the case of Energean (ENOG), the Israel-Hamas war has cast a dark – but ultimately sentiment-driven – geopolitical shadow over its cash-generating offshore gas assets. Eventually, the market should catch up.”

Good to see this endorsement that we have picked a well respected partner. Personally I think their deal with Chariot will further enhance their prospects.

Scalpmaster

I think your logic is flawed regarding the level of the offer. CHAR is at its lowest level for some time having fallen sharply in December since the ENOG deal was announced. I feel sure the offer was made prior to the ENOG deal when the sp was considerably higher. I find it hard to believe an offer was made below the sp at the time. I don’t think AP had anticipated the question about the offer, hence the delay in answering. He hadn’t intended to ever mention the offer but when asked a direct question in a public forum he realised he had to be honest.

Massive vote of confidence by our largest shareholder Slater. Not just using the placing to maintain their 10% holding but increasing it by another 2% to over 12%. If that’s not a strong buy signal I don’t know what is.

Todays drop is not as large as it appears because they spiked the price higher on the uncrossing trade and that was the closing price 9.98p when the actual trades were at 9.5p.

Mark Child, CEO of Condor Gold Commented:

"Wholly owned, fully permitted, construction ready gold mines with potential production of 150,000 oz gold per annum, in major Gold Districts, with the land and a new SAG Mill package purchased and a construction period of only 18 months are rare. To date there are eight companies under NDAs, five non-binding offers received and three site visits completed. Companies under NDAs have access to a virtual data room, which includes all drill data, technical studies to Feasibility Study level, details of permits to construct and operate a mine and financial models. Although none of the non-binding offers have progressed to firm proposals to date, the Company is in advanced discussions with 2 gold producers The sales process is taking longer than anticipated, but the Board is anticipating that further progress will be made in the New Year. Investors will be updated in due course."

Let’s hope we get updated on the advanced discussions with 2 gold producers soon rather than later. Many commentators think this is going to be a very good year for gold with new all time highs being established. You would think that a gold miner in advanced negotiations would want to seal a deal quickly before the gold price soars.

Absolute rubbish the shares haven’t dropped 20% they are down 2.9% on a poor day for markets following yesterdays rise.

“ Jubilee announces that at the General Meeting ("Meeting") held at 11 a.m. today (1 p.m. South African time), Wednesday, 03 January 2024, the resolution proposed at the Meeting was passed with the requisite majority votes.

On 15 December 2023, the Company announced details of a conditional placing of new ordinary shares in the Company ("Ordinary Shares"), by way of the issue of new ordinary shares in the capital of the Company (the "Placing") to new and existing eligible investors.

Accordingly, 236 363 636 new Ordinary Shares have been issued and allotted in connection with the Placing and are expected to be admitted to trading on AIM at 8.00am on 4 January 2024 ("Admission"). Following Admission, the total number of Ordinary Shares in issue will be 2 974 493 617.

The Company does not hold any shares in treasury and, therefore, the number of voting shares in issue in the Company will be 2 974 493 617. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company's share capital pursuant to the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.”

Placing shares approved to be issued tomorrow. JLP now has the cash to proceed at pace with the with the SPV. All systems go to accelerate to first copper from the modules.

United

Who said it was a great day? I said it was a positive day which after the share price weakness at the end of 2023 is in my view positive news as we await the news that should land any day as soon as the government find their pen. As you think this is a smelly dog why are you spending time on this bb posting garbage about a share you presumably don’t own. I am a long term investor in AEX and as it happens She’ll.

A positive start to 2024 Up 9.7% to 0.85p with buys exceeding sells 3.5/1. Number 30 on the Leaderboard.

The final trade of the day bodes well for tomorrow a 275000 Buy at 0.9p, as it was the largest trade of the day at at the highest price. 32 trades in total today.

A positive start to the year Up 3.9% on volume of 1 million. Clearly something wrong with LSE as it’s only showing 1 trade.

Are you seriously suggesting that the modules might not work?. I think we can be sure that IRH have done full due diligence before they agreed to make a significant financial commitment to fund the SPV and hence the modules.

Very positive start to the year to see TRR Up 3% on the back of an award of bonus shares to Directors and management at 33p. TRR is a very well managed company and in my opinion the CEO is very impressive in the regular presentations he makes. TRR seems to have suffered last year from weakness in the lithium price which is perverse because the lithium asset’s currently produce no income and won’t for sometime. The gold assets on the other hand are producing good income and should do very well in the widely expected continuation of the bull run in gold.

The IC last issued a Buy recommendation in September, the fifth article IC have written in 2023:

“Earnings beat from new Shanta Gold mine

The Tanzanian miner is within a whisper of its long-term goal of 100,000 ounces in a year

September 20, 2023

by Alex Hamer

Singida ramp-up beats expectations

Cash profit margin boosted over 10 per cent

Build it and they will come. Profits, that is. Shanta Gold (SHG) finished its new Singida mine in the first half and it has immediately revved up cash flow, avoiding the usual ramp-up dramas and disappointments. The Tanzanian company posted a half-year cash profit of $34mn (£27mn), more than double last year and 11 per cent above broker Liberum’s forecast.

This was a reflection of the higher gold price and production level and lower costs.

Singida is not a massive operation but it took Shanta to record first-half production of 44,771 ounces (oz) of gold and underpinned full-year expectations of around 100,000oz. Singida contributed 10,000oz for the period, and as it only hit commercial production levels in June, the full-year figure will show further increases.

Chief executive Eric Zurrin said there was scope for the mine to grow well beyond its current 30,000oz a year outlook as exploration drilling has restarted this week. “I think it's been underestimated, the potential [of Singida], he said. “The reserve is really small but that’s only because there has been a lack of drilling.”

Shanta’s balance sheet is healthy for a company still working on growth, specifically through the West Kenya project. Capital expenditure in the first half was $15mn, which included $9.5mn at Singida. Work on West Kenya slowed to balance the mine build costs in the first half, but drilling there has restarted. A feasibility study is in prospect and the company will start the application process for mining licences next year.

This gold miner is in a good position to keep growing while paying a dividend. Buy.”

I imagine IC will comment soon on this derisory offer. I can only assume they are waiting for the formal offer document to be issued in January. We can only hope that if they do issue a formal offer they will increase it substantially in view of the very clear shareholder opposition to a bid at 13.5p. I think most shareholders believe SHG would be 20p+ during 2024 if it was just to continue doing what it’s doing now. We need some other gold companies to bid this much closer to 20p.