SHG announced that they could be paying a dividend - what great news, so why has there been a lack of interest. The share price is now a touch below what it was before the announcement and no one apart from me has bothered to comment on here.
What's up? Do people not believe the board means what they say? Is Tanzania to risky after what the government did to the mining industry?
Let's hope that this time next year we are collecting our dividend, a well deserved reward for hanging on in the face of all the risks.
At 5p and roughly 768m shares on issue, the market cap is now £38m. Latest published financials (H1 2017) show a reduction in pre-tax loss to just £0.7m, so all things being equal, we could expect a small profit in H2. Such a recent rise in the share price must be more than simply a continuation of this profit trend. The CEO share purchase is relatively small, so I discount that too, although it could well be a sign that the company has achieved a breakthrough in its dealings with the local government. This week's analyst presentation emphasising the efforts SHG have made to contribute to and comply with Tanzania's government demands, and by implication the uplift in profit that would accrue should the government decide to treat SHG more fairly at last.
The most obvious question on seeing the presentation is how close SHG are to getting MDA status and preferential tax treatment. We can only guess how they answered it.
Taddish, I don't understand why so little interest, perhaps we're a bit off the radar. Another 6 weeks or so before the results come out, hopefully these will be good especially after the record gold production last year - fingers crossed!
It's not unreasonable to look for a dividend but it's maybe a few years off yet. I think Shanta is in a far better position than most miners on aim. They have just produced more than their target gold production and sold it for a profit. So we have an operating mine producing gold, selling gold for an operating profit and the overall debt is being reduced. I think we have to take that as being positive.
I have read the glowing report on Shanta. Since my stock purchase in 2010 my holding is now valued at 50% of cost. I have also been unable to find the word ' Dividend' in the report. Am I being unreasonable?
US$5.25 million silver streaming advanced payment received
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, announces it has received the advanced payment of US$5.25 million as part of its silver streaming agreement ("SSA"), as announced 6 May 2016.
As previously stated the Company will also receive an ongoing payment of 10 per cent. of the value of silver sold at the prevailing silver price at the time of deliveries.
By way of reminder, the SSA relates solely to silver by-product production from the New Luika Gold Mine with minimum silver delivery obligations totalling 608,970 oz Ag over a 6.75 year period.
The Company produced 121,682 ounces of silver in 2015 resulting in approximately 2 per cent. of annual revenue
Singida's drill results released today - only a weekend overdue - and make good reading.
There appears to be some slippage in starting the pilot project at Singida - this is said to have been rescheduled for Q2 2017 (versus Q1 2017). I'm also a bit disappointed not to have had a full update on resources. In Shanta's Q2/H1 2016 results (17/8/16) it was stated:
"The Company intends to provide an updated Resources and Reserves statement at the end of Q3 2016 to be incorporated into an updated mine plan."
Perhaps that will come shortly or when the Q3 2016 results are released. I think Shanta previously said the updated mining plan won't appear until Q1 2017 but updated Resources would be valuable. What I'm also keen to know is how has the mining at New Luika and BC gone in Q3 (both open pits now depleted?); is there sufficient mineable ore at the other pits (Elizabeth Hill etc) or new underground pits at Luika/BC to keep production/cashflow going until Q2 2017 (i.e. another 3 months than originally planned - there should be but confirmation would be nice); are they still hedging production into Q1 2017; did the Silver streaming deal get signed or binned etc ?
You mentioned that you were interested in looking at other PM miners. Whilst I'm waiting for the mainstream PM miners to correct meaningfully (if ever!) I've been looking at what might be termed 'special situations' i.e. high risk/high reward situations, similar to Shanta perhaps. I've taken a dip into the three below - only modest (0.5% each of my portfolio) but will add as my understanding/events develop or prices fall.
1) Alacer (TSE:ASR) - gold miner in Turkey
2) Hummingbird Resources (HUM) - explorer in Mali, Liberia
3) Kingsrose Miner - new producer in Indonesia with a plumbing problem!
DYOR etc, these are suggestions for investigation with the realisation that any investor could be wiped out :-)
P.S. If you're interested in other commodity plays and have time for research then I'd recommend looking at Uranium and Fertilizer's -both sectors are in downturns, near lows etc etc (like Gold was) but are, imo, fundamental to the future (nuclear power and growing food). IMHO there's no rush - both will take 12m+ to turn but worth getting familiar with the key players e.g.
Uranium - Cameco, Denison, Energy Fuels*, Fission, NexGen, Paladin*, Uranium Energy, Ur-Energy and many more
Yes, very positive news, though I see it as a bit of a teaser before the full update of resources and revised mining plan due by month end. Then we'll have Q3 results and, imo, a much better feel for whether Shanta is going to be able to finance itself through 2017 AND have surplus cash (from FCF). If the POG holds up/improves then the sp should rise.
The icing on the cake for me would be a decision not to proceed with the Silver streaming deal - literally selling the family silver for a pittance!
Shanta is mentioned about 9m20secs in. Interview is with Angelos Damaskos, co-founder (with the late Jim slater) of the Junior Gold fund (http://www.juniorgold.co.uk/).
Now I just need to get back to being frustrated at the lack of any (meaningful) correction in the PM miners for longer than 5 minutes so that I can invest further! Perhaps Janet Y will raise rates this month....or perhaps USA will elect a sociopath in November (guaranteed with the two nominees?) and shares in general will fall...?? LOL
I agree with the technicals and suspect we'll see a dip before breaking through 10p. The company is doing as well as could be hoped and looks to be playing the sensible game of expensing, rapidly depreciating some capital items. Whilst this is making the P&L look worse (reporting a loss), it's reducing net debt and therefore de-risking the next year or two. 2017 should indeed be the year that the P&L bottom really gets going.
The relatively limited minelife, based on the current drilling results, is the other thing that's will limit the SP. So definitely a strong hold for me and will add at 8.5 given the chance.
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