Shanta Gold (LON:SHG) - 31.4p/£56m
It explores gold in Tanzania. The company looks bad on valuation metrics (loss-making, PBV 11.9), although it does have net cash of £1.5m. What caught my attention was recent director buying at 29.5p, for £43k. A management statement last month looked good, too: "The Company is delighted with the
drilling results achieved in the 2010 RC programme and the likely positive
impact these will have on the New Luika Gold Mine resource and the mine's
financials. The improved accuracy of our DTM will ensure successful
implementation of the mine plan and achievement of our goals, significantly
adding to shareholder value."
A broker comment looks positive, too: “The average enterprise (EV) per resource ounce is valued at around $159/oz with Shanta valued at just $63/oz,”
Worth a punt.
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Shanta Gold Ltd is a Guernsey-based company engaged in gold exploration and gold production investment in Tanzania. The Company's subsidiaries include Shanta Gold Holdings Limited, a holding company; Chunya Gold Holdings Limited; Shanta Mining Company Limited, Mgusu Mining Limited and Nsimbanguru Mining Limited, engaged in exploration and mining; Chunya Resources Limited, and Songea Resources Limited. Shanta Gold Ltd's major shareholders are Aurora, Export Holdings Limited, Lynchwood Nominees Limited and Redmayne (Nominees) Limited, among others. more »
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Yep, worth a punt. Except I don't think it is a punt at 19p with a market cap of £33m.
They have recently raised £15.1 million in a placing at 18p and several directors bought shares at 28p a month ago : http://www.investegate.co.uk/Article.aspx?id=20110614123000H3271.
This is interesting :
New Luika Gold Mine is expected to produce 175,000 - 190,000 ounces over the
first three years at an average grade of 3.5/3.8Au grams per tonne at an average
cost of US$560 to US$610 per ounce from December 2011.
http://www.investegate.co.uk/Article.aspx?id=20110711070000H9775
Gold price is close to $1600/oz
Pretty cheap for a £33m market company with £15m cash IMO.
To include the £15m cash, the shares in issue, post funding, will be 264.5m which at 19p gives a market value of £50m
Placing shares listed today - the chairman picked up more shares 694,444, Walton Imrie now has a beneficial
interest in 10,090,056 ordinary shares representing 3.81%
http://www.advfn.com/p.php?pid=nmona&article=48450184
Nice rise today :
Up another 10% today.......Gold above $1600 now, Shanta is still very cheap.