Big picture - Why invest in Shanta Gold Limited
Shanta Gold Limited Snapshot
Shanta Gold, through its wholly owned companies including Tanzanian subsidiary, Shanta Mining Company Limited (SMCL) (“Company”), is engaged in gold mining, development and exploration in Tanzania –one of Africa's most significant gold-producing countries. Shanta Gold was admitted to the London Stock Exchange's Alternative Investment Market (AIM) in July 2005 and is contained in the FTSE sub-sector of Gold Mining.
The Company is focused on building a portfolio of high quality, low cost gold assets in Tanzania through exploring and developing its gold resource properties. The Company currently has one producing property, the 100% owned New Luika Gold Mine located in the Lupa Goldfield district in south-western Tanzania; one project in development stage, 90% owned Singida, located in Central Tanzania; and exploration properties covering over 1300 km2 in the under explored ex-colonial mining areas of the geologically rich Lupa Goldfield surrounding the New Luika Gold Mine as well as 65 km² of prospecting licences at Songea in south-western Tanzania.
The Company's operations are located in Tanzania, which has attractive characteristics in terms of both the business climate and gold mining tradition. Compared to many other parts of Africa, Tanzania’s considerable gold resources are under-explored and under-developed.
New Luika Gold Mine
The low-cost New Luika Gold Mine, which is located in the Songwe District of South Western Tanzania approximately 700km south-west of Dar es Salaam, achieved its first commercial production in 2012.
The ore bodies at New Luika comprise high grade (>6 grammes per tonne of gold), medium grade (3 – 6 grammes per tonne of gold) and low grade (1 – 3 grammes per tonne of gold) ore which average 3.9 grammes per tonne of gold.
The processing is metallurgically simple and conventional involving proven crushing and milling techniques with carbon-in-leach gold extraction delivering robust gold recoveries (average 91% recovery).
The high quality of the resources combined with tight operational control, makes New Luika one of the lowest cost gold mines in its peer group and on the global cost curve.
- Ikungi Administrative District, Singida Region, central Tanzania
- Three prospecting licences covering approx 52 km2
- Three mining licences covering 30 km2
- One of the mining licences is wholly owned by Shanta Mining Company Ltd (SMCL); a portion of another is owned 90% by Shanta with the balance held in a Joint Venture with GL Jossue & JB Joel Limited. The third licence is held by the Joint Venture in the same proportion.
- Ownership of the prospecting licences is 100% with Shanta Mining.
- During FY2017 the pilot mining project was put on hold. A JORC resource of 12.3 million tonnes at 1.84 g/t for 728koz was declared in late 2017. An exploration campaign is being planned for 2018 at Singida.
Board of Directors
Mr Durrant has had a long and distinguished career in the global natural resources sector, having formerly been the Global Head of Metals & Mining at UBS Investment Bank. He is currently Chairman of the Investment Advisory Committee of New York based Arias Resource Capital Management, which manages private equity funds investing in Latin American mining. Mr Durrant brings significant experience in capital markets and natural resources. Mr Durrant has longstanding links to East Africa.
CHIEF EXECUTIVE OFFICER, DIRECTOR
Eric Zurrin has 15 years’ experience in mining and investment banking, previously with UBS Investment Bank in London. Eric re-joins Shanta having previously worked across a range of roles with Shanta including as interim CFO in 2015/2016 leading the financial restructuring and as a Commercial Analyst advising the former CEO in 2013. Eric is a Canadian national and has worked and lived in North America, the UK, Asia and Africa. Eric completed his Bachelor of Commerce (Accounting) in Canada.
INTERIM CHIEF FINANCIAL OFFICER
Luke is a mining investor with a background in Mergers & Acquisitions. Luke is the Chairman of Kincora Copper (KCC:TSE), a Canadian listed company focused on the discovery of large copper projects along Mongolia's Southern Gobi copperbelt. Luke was previously Co-Head of Trafigura-Origo, a member of UBS Investment Bank's Corporate Finance team and a management consultant with Accenture where he specialised in post acquisition integration and cost reduction strategies. Luke is a non-Executive Director of Moly World, a private molybdenum and tungsten developer and was recently on the Board of REBgold (RBG:TSX) prior to its merger with Aquila Resources (AQA:TSE).
Mr Patel was a founder of Shanta Mining Company Limited (now a subsidiary of Shanta Gold) in 2001 and is a member of the Audit and Sustainability committees, chairing the Sustainability committee. He has worked extensively in trading organisations in the UK and since 1986 has traded agrocommodities internationally. Mr Patel has extensive commercial interests in Tanzania and is a senior director of Export Holdings (Pty) Ltd and Managing Director of the Sea Cliff and White Sands Hotel in Dar es Salaam.
Mr Fryer is a chartered accountant and US certified public accountant and chairs the company’s Audit committee. He had a long and distinguished international career with Deloitte where he led the global mining and metals industry practice. Mr. Fryer has advised some of the world’s largest mining companies, including several Africa-based companies.
Mr Marshall is a mining engineer with over 35 years’ experience in the sector enabling him to accumulate a wealth of technical and managerial expertise with the last fifteen years spent in senior mine leadership roles. Mr Marshall’s last two operational roles were both with Rio Tinto, with whom he has worked for 22 years, as Managing Director of the Palabora Mining Company in South Africa and as President of the Oyu Tolgoi Project in Mongolia. He chairs the company’s Remuneration committee.
Stock & Share Information
Shanta Gold was admitted to the London Stock Exchange’s Alternative Investment Market (AIM) on 11 July 2005.
As at 23 June, 2017 there were 765,805,808 ordinary shares in issue.
Major shareholders are those with shareholdings of 3% or more. As at June 23, 2017 these were disclosed to be:
% of Company
|1.||Odey Asset Management||
|3.||River & Mercantile Asset Management||
|5.||Brooks Macdonald Asset Mgt||
|5.||Hargreaves Lansdown Asset Mgt||
|6.||Sustainable Capital Limited||
Tanzania registered office
Shanta Mining Co. Ltd
202, 2nd Floor, Renaissance Plaza,
Plot No. 498, Haile Selassie Road,
P.O. Box 79408
Dar es Salaam,
Tel:+255 22 2925148-50
Fax: +255 22 2925151
Email: [email protected]
Guernsey registered office
La Route des Camps
Guernsey GY4 6AD
Tel: +44 (0) 1481 231 936
Fax: +44 (0) 1481 234 300
Secretary and Registered Office:
PROVIDENT TRUSTEES (GUERNSEY) LIMITED
PO Box 240, Suite A
St Peter Port House
St Peter Port
Guernsey GY1 3PG
Tel: 01481 726300
Contact: William Hunter
Nominated Adviser and Broker:
PEEL HUNT LLP
(Nominated Adviser & Broker)
Moor House, 120 London Wall
London EC2Y 5ET
Tel: +44 (0) 20 7418 8900
Contact: Ross Allister / Richard Crichton / Chris Burrows
Financial Public Relations:
1 Cornhill London
Tel: +44 (0) 207 920 3150
Contact: Charles Vivian / Jos Simson / Barney Hayward
Email: [email protected]
44 Southampton Buildings
London WC2A 1AP
8-10 Throgmorton Avenue
Place Pury 5