Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
@ramesh let's not get too excited, this rise will do nicely moving into next week and if we can tap on 7 today it will be a great move. I'm not one for charts but I'm surprised that the technical analysis was that accurate (and glad I chucked what I had left in yesterday) and it looks like we've bounced off the 50 day MA, let's see where we go from here!
@UK2.0 it's on page 3 of the presentation - apologies it wasn't just Eric and Luke owning 9% it's the 'insiders' as you say, the "Management and directors own 9.3% of Shanta Gold". The only one listed as a major shareholder though is Ketan Patel at 5.5% so between the other 5 people shown on the slide it's a total of 3.8% - so the figure you've mentioned for CEO/CFO is probably correct :-) Where was it from, the BB?
The video presentation is now up on Proactive for everyone to see https://www.proactiveinvestors.co.uk/companies/news/922337/shanta-gold-limited-proactive-one2one-virtual-event-922337.html and it's definitely worth a watch
@manifesto just to be clear, no one said the size of the free float was irrelevant, it was said that the conversation around guessing the size was pointless - as noted yesterday it’s an ever changing % and one that we’re never going to know. It’s clear that if the free float is small then the sp is far more likely to move quickly - we ALL know that don’t we, I mean it is a fact after all..?
2/2
West Kenya
- One of the most interesting high grade large deposits in africa 12.6g/t, +1Moz and one of the highest grades in Africa.
- Significant value but transaction needs to complete so that further details can be released and then the market will wake up to the potential
- Liranda corridor covered by ultramafic rocks which act to seal deposits at the surface
- Resource extends to +850m but bulk within 550m of surface
- Isulu starter pit in theory generating enough free cash for underground capex
- Kimingini prospect has all the ingredients to be another Isulu
- Buying Rosterman mine as part of the transaction, which is within 10km of the Isulu project and so they can share infrastructure between them
- Production at the mine was halted back when gold was $35/oz. Here an anomaly indicates the presence of ultramafic rocks which have never been drilled - SHG said it was simply ‘extraordinary’ and had to be reanalysed twice
- Small purchase price for what they believe they’re getting - $7M cash $7.5M shares
- Completion expected within 3-6 weeks, after which they will share all of the project economics
Q&A
I’ve mixed in some of the Q&A answers above, but during this segment one slip of the tongue was that Eric said “we will become victim of their own success and be vulnerable” - again very cagey about a takeover, when the interviewer suggested one Eric said “those are your words not mine” but he definitely didn’t rule it out.
He did in passing mention presenting to IIs, but this was more anecdotal regarding the “unbelievable” Barrick acquisition and given all of the positives above imo it wasn’t something to be concerned about
So a really strong presentation from both Eric and Luke and I’m excited to be here, and continue adding, for the mid to long term.
GLA
1/2
Ok here's my summary:
SHG is Eric’s single biggest personal investment, with about 9% holding between him and Luke, and so they are clearly very motivated to return value to shareholders
In Africa they have a play book that works; indigenising the workforce, working closely with country stakeholders and being good custodians for government.
SHG USP is long hole open stoping - one of the lowest cost operators out there. Estimated 80-85,000 oz this year and Q1 was 20,000 so on track. EBIDTA $75M/year compared to mcap of $114M, so a very undervalued company and risk/reward trade is pretty attractive
SHG has managed Covid very carefully, no production issues - “this quarter we’ve actually umm… things have gone pretty well…” All the producers that have got through this quarter without incident will be doing very well and are probably keeping very quiet about it - I take that as a significant hint for the balance sheet update which “will provide colour as to financial strength that they see from the inside”
New Luika
- Not much said on this project but it’s been SHG’s cornerstone asset for 10years and the costs are down to a level that generates significant cash
Singida
- The next leg for SHG in Tanzania and will take the company to producing 115,000oz/yr
- Going to do it in a way that is focused on returns - instead of next great and gracious mine (which Luika is)
- 86% of reserves come from 3 of the deposits and 91% of oz are within 120m of surface - free dig, traditional open pit.
- High grade further down translates into mine life extension - expecting Singida to be there for the next 10yrs or so
- In advanced discussions and will have catalysts in place in (most likely) Q3. Initially set out plan for IPO but since then a lot has changed, e.g. pog is 40%, and so they are focussed on retaining more of the upside for themselves, potentially bringing it to fruition with current cashflows. However, they did say the IPO is still one option and are having advanced discussions but they will obviously choose the option that is in the best interests of SHG.
The slides are available here https://www.proactiveinvestors.co.uk/upload/SponsorFile/File/2020_06/1592489620_Shanta-Gold-Investor-Presentation-Final-Version.pdf
Wow that was a really strong presentation! I missed a few minutes of Q&A (little one was playing up) but later tonight I'll try and put down some key points that I picked up as a new investor.
As a sidenote there were 105 people watching from 6pm and 91 still watching during Shanta at 7pm. I’d say that’s pretty good going and I'd be surprised if things don't start getting a little more interesting from tomorrow, particularly if that presentation is up and available for everyone to see fairly quickly.
@sjm yeh I'm watching - currently it's 'onthemarket' presenting. Think Shanta are on at about 7pm and I'm happy to make some notes and relay back. Bear in mind I'm pretty new here so a lot of what I summarise is likely to be old news to many of you
@davidpqz umm... because GDR are a cash positive company shortly about to receive significant orders at excellent profit margins... they'll use this money (and the money already in the bank) to fund their other projects rather than dilute the company further. From what I can tell there are no requirements to raise money in the near future
@lb28 I would suggest that AVCTs potential rapid screening test is more easily understood in the current UK climate in terms of getting shops open and getting back to a more normal way of life. Many people still have their blinkers on to the UK easing and until they see the numbers of tests required/ordered in other countries, like India, which are in some serious problems, then they simply don't appreciate the scale and aren't jumping in.
Having said that the volume yesterday was twice what it is now (and we saw a marginal gain), so people are beginning to take positions ahead of sales being announced and it just means having to have patience until they land.
Given today's momentum on low trades then you can see what's likely to happen when serious buying pressure comes in.
@punter if you want to over analyse every detail people say, and you do seem to, then to be fair to @ethio the price reached 194p on 29 May, so if you'd bought in at 180p like he said then you would've been in profit within a week.
There's no problem in you suggesting a sp drop, that would be of interest to everyone, but you need to back it up and I don't see how you have yet - other than saying because it's your target reentry..? People suggesting the price will go up have plenty of information to back up the potential and you full well know that. I'm failing to see the facts that say it's going down to 80p?
There's no need to sit here calling out everyone suggesting massive sps, because most sensible people ignore them too and in fact I couldn't myself anyway because I've already blocked most of them
@magsy my understanding is that, as per a previous RNS, GDR estimates its share of that market to be approximately £38.5M (3.5M UK and 35M globally) - I believe DB put 40-65 in his presentation as an estimate of the overall AIHL market