On Friday, AIM listed Shanta Gold (SHG) announced that director Jonathan Leslie had bought 2.3 million shares which brings his total holding to 15.44 million or 3.34% of the company. Even at the current low price of 12p this purchase is not immaterial. The company is now capitalised at £55.42 million and is just off 12 month lows (10.375p) and well off 12 month highs (34.5p).
The good news as far as technical analysts are concerned in terms of the charting set up at Shanta Gold is that it is very similar in structure to that at another precious metals play I looked at today: Arian Silver (AGQ). The bad news is that if anything, the outlook here is just as poor, or worse.
Post 6 directors of AIM-listed, Tanzania gold producer Shanta Gold (SHG) acquiring an aggregate of more than £185,000 worth of shares at 17.75p each last month I updated that, whilst there remained risks, there looked to be value in the shares but that current gold market sentiment was clearly not helpful and could still see the shares fall in the short-term.
Shares in AIM listed, Tanzania gold producer Shanta Gold (SHG) traded at more than 40p in February 2012 but have since been hit by a combination of a weakening gold price, poor sentiment towards its sector and what October-appointed CEO Mike Houston described as progress “hampered by funding constraints throughout much of 2012 and subsequent plant design weaknesses, which together resulted in startup delays and a production shortfall”.
It was not a good Autumn for AIM listed Shanta Gold (SHG) but the last two RNS statements from the company demonstrate that it is both soundly financed and that, at last, it is delivering operationally. The shares have always had clear latent value it is just that investors have had a number of (utterly valid) reasons for not believing. But the times they are a changing.
Good news today from AIM Listed gold miner Shanta Gold (SHG) – it confirms that it is on track to hit production targets both for the fourth quarter of calendar 2012 but, far more importantly, for calendar 2013 and that will make it a hugely undervalued cash cow. At 18.875p the shares could, in my view, easily double over the next year – even without a surge in the gold price, which I still expect, and here is why.
AIM listed gold producer Shanta Gold (SHG) has announced that it will today raise a minimum $30 million (£18.6 million) via an institutional placing. An accelerated book build will take place today so we do not know the price but I reckon that it will be in the range of17-18p. Yes private investors are being screwed and the share price movement in the days leading up to today stinks like a mackerel’s rectum but the shares, at 17.125p valuing Shanta at £54 million) are still very attractive for the long term investor. Here is why
AIM Listed gold producer Shanta (SHG) is in production and should be generating cash from its New Luika mine in Tanzania At June 30th it had $21 million in the kitty yet on October 5th it announced that it had secured a new $4 million loan facility from a director and was “in discussions with additional providers of working capital financing facilities to meet its short term working capital requirements during the ramp up phase of the New Luika Gold Mine.” What on earth is going on?
