Steve more tip of the year17 Mar 2023 19:26
For that I noted a growing gold producer with macro reasons for confidence on reducing inflationary cost pressures and the gold price; Shanta Gold (SHG) at a 10p offer price.
It has since announced increased 2022 gold production of 65,209 ounces and reserves and resources, including now 1.755 million ounces at 5.55g/t reported for the West Kenya project and strong preliminary indications for mining there. In the nearer-term, there is the Singida project expected to add to production imminently – transforming Shanta into a +100,000 oz gold producer with a diversified asset base.
The shares have responded up to a current 11.5p to buy, but a little above £120 million market cap continues to look much too harsh an appraisal for a company forecast to grow pre-tax profit towards $20 million this year and above $40 million next, with further potential and net debt at the half-year $1.5 million. Still a Buy