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The only problem with that statement is I remember last year when the share price was in free fall all the way down to circa .12 pence and there were posters on here who were confidently telling others to sell up just prior to this because the share price would be worthless ...Since then there has been a tepid recovery to the .30s but not worthless ..It is the posters who are encouraging others to panic who need to examine their own conscious before telling everyone else what to do because they seem to think they have superior knowledge of what will happen to the value off the share price !!!
If one was trying to take a balanced view of the RNS the good part is that there is a clear plan with a time table for when the first gas 2025 will be coming out is clearly shown in this RNS ...But what is also shown in brackets is ( subject to funding ) ..
what does this mean ??? A Share dilution ???..If this was clearly spelt out this would give new potential investors the confidence to invest in what potentially could be a multi bagger .... Surely the money could be borrowed to fund West Newton when one considers the potential revenue that would be returned back to the company ...
Yes the share price did have a smallish drop today but off course the sharp recovery in the price off Gold did not take place until this afternoon after what may have potentially look like the price of Gold going into free fall a little bit earlier .. .. possibly some shareholders either paniced and sell or sell in anticipation off a further fall in the price of Gold and/ or the Shanta Share price ...Even if there was no dramatic rise in the price off Gold in the near future I would think Shanta as with many Gold companies will still have a decent profit margin at these levels which should give solid support to the share price unlike other sectors such as Retail etc...where the risk to their profit margins are much higher in these uncertain economic times we live in ...
Yes ...real wealth destruction is taking place in the USA at the moment with the decline of the S and P 500 and the Nasdaq etc...with other world stock markets following in the same direction .. Hopefully Gold Miners such as Shanta can decouple from this debacle as the price of Gold has held solid so far in 2022 ..
Off course ..I realize holding shares in Shanta ( or any other company ) does not come without downside risk and you have every right to point out all the negatives and dangers ...But here is something positive about Shanta ... Simply Wall Street seem to think Shanta Gold is over 90 % undervalued and should have a fair value share price off around.... £1.41 pence ...Do you think they are wrong ??? ...Is your judgement better than theirs ????
You mention many moving parts with potential dangers for Shanta ( or more admittedly the Share Holders ) however moving forwards they did announce a 5 year plan last July on massively increasing production which shows there is confidence in this company shown by the board in expanding the business ....Also the price of Gold seems to be in a long term uptrend which off course is crucial to companies like Shanta to achieve their objectives ...Compared to many different sectors in these uncertain economic times I would think this is one of the least risky sectors to hold shares in when compared to other sectors ..( I mean just look at Retail where profit margins will be hammered this year ) .
.. However each investor must make their own choice on where they feel confident to place their hard earned money ...
Recent Hawkish comments from the Chairman Powell off the Fed saying that they will raise interest rates to whatever it takes to control inflation seems to have hit the price off Gold yesterday but the yellow metal maybe starting to recover some off it's losses ...But do these Central Bankers know what they are doing or really have any control over inflation ??? ....From the U S A to the UK or the European Central Bank they cannot seem to decide what is the best level going forward for interest rates or aknowledge to what effect quantitative easing has contributed to the loss of purchasing power off fiat money ... The next 12 months is very unclear but the world economies could be heading for a very difficult period because off poor policy choices by the Central Bankers ...
Interesting to read some of the messages about Shanta Gold recent preformance ...But it must be remembered the share price preformance has to be taken into context with the whole Gold Mining Sector ...Over the last month Shanta Gold has fallen circa - 18 % ...But Pan African has fallen -14%... ..Solgold - 34% .... Harmony Gold - 28 % etc ...An exception is Scotgold at + 1 % but even this has pulled back from recent gains ....Have the people who sold out in this sector panicked ??? Gold is currently back above $1850 dollars an ounze ....That means companies like Shanta have no financial issues as the strong Gold Price means they will have a strong cash flow and be able to take on debt to expand their business which means the debt is being used on a good way ...For myself I am happy to stay here in this strong stable company during the uncertain economic times we live in ...
Gold has recovered to almost $1900 dollars an onze after a sequence of events that have played out in the last 24 hours ...The Fed in the USA have announced a 1/2 point rise in interest rates ...but not the shock and awe 3/4 points that some were expecting ...This has caused the rise of the dollar to come to an abrupt halt which means that Gold is regaining upwards traction ... Hopefully a double whammy of a rising Gold Price and well timed financial results for Shanta next week should give the share price a boost ...
The price of Gold experienced a sharp drop earlier... but has made quite a decent recovering later in the day ....which has possibly helped the Shanta Gold share price make a decent recovery later during the trading day ... With what looks like solid support around the 10 pence area hopefully the upwards momentum for the share price will continue throughout 2022...
Despite the strong dollar the Gold Price has picked back up again after the recent minor dip ...With still so much Economic / Geo Political uncertainty ..( just this morning news is out that Russia has cut gas supplies to Poland and Russia ) ...could we soon be facing another head towards $2000 per ounce ??
Assuming no further fall in the price of gold possibly 10 pence is the end off the current downward trend for Shanta ...The Gold Price is holding up quite well one one considers the dollar is at an approximate two year high...
Yes ...I was expecting a 20 % plus Hummingbird Resources Style Drop ( it happened yesterday ) this morning on reading the early bad post and had a pleasant surprise to see the early gain ...Hope we can stay in green for today !!!
I saw a U K made YouTube Video on the correlation between the Gold Miners and the price off Gold which showed that apart from some short periods the relationship between the two is very close ..... Nobody is panicking to sell off in the Gold Market so hopefully at some point this will be reflected in the Gold Miners ...
Some of the Gold Miners including Shanta are down as part off the general sell off in shares ... However unlike the price of oil which is down , where it would be understandable that shareholders in BP / Shell etc will be selling out the same conditions do not apply to the Gold Miners at the moment ... Hopefully the share price will recover when the panic is over as the fundemdals off Shanta Gold have not changed ...