http://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Sun, 22 Apr 2018 08:11:41 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Shanta Gold trims production and cuts debt ]]> http://www.proactiveinvestors.co.uk/companies/news/195347/shanta-gold-trims-production-and-cuts-debt-195347.html Shanta Gold PLC (LON:SHG) reduced production from the New Luika gold mine in Tanzania in its latest quarter as its focus remained on cost-cutting.

Output in the three months to March was 17,663 gold ounces against 21,288 in the previous quarter, though this was in line with the annual target of between 82-88.000oz said the company.

New Luika recently started underground production and Shanta is focused on reducing debt incurred establishing below surface work.

READ: Shanta Gold delivers profits of US$4.7mln as production rings in at 79,585 ounces

Net debt fell to US$37.5mln after an operating cash inflow of US$7.1mln, which is the lowest borrowing level since the end of 2012, Shanta said.

Shanta is also owed US$16.2mln in VAT repayments, while talks are ongoing with the government over sustainability and local involvement in New Luika.

Underlying profits [EBITDA] were US$9.1mln in the quarter, with sales of 17,691oz at a price of US$1,329 per oz.

Cash costs rose slightly to US$599 per oz with all-in-sustaining costs also higher at US$776 per oz.

Eric Zurrin, chief executive said: "The reduction in underground tonnes compared with the previous quarter was in line with the Revised Mine Plan implemented last year.

“Pleasingly, with the government's approval of the tailings storage facility during the period, all major project work required for the underground mine is now complete and operational.

“Continued deleveraging of the balance sheet remains a high priority and, supported by a performing gold price, the production schedule for the remainder of the year puts us on track to make significant headway."

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Thu, 19 Apr 2018 08:52:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/195347/shanta-gold-trims-production-and-cuts-debt-195347.html
<![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180419070005_13610208/ Thu, 19 Apr 2018 07:00:05 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180419070005_13610208/ <![CDATA[RNS press release - Q1 2018 Production and Operational Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180419070002_13610156/ Thu, 19 Apr 2018 07:00:02 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180419070002_13610156/ <![CDATA[News - Shanta Gold delivers profits of US$4.7mln as production rings in at 79,585 ounces ]]> http://www.proactiveinvestors.co.uk/companies/news/195028/shanta-gold-delivers-profits-of-us47mln-as-production-rings-in-at-79585-ounces-195028.html Shanta Gold Ltd (LON:SHG) booked a profit after taxation of US$4.2mln for the year to 31 December 2017, against a loss of US$8mln in the corresponding period a year ago, as production continues apace at the New Luika mine in Tanzania.

Average realised gold prices rose to US$1,263 per ounce, and net debt fell to US$39.5mln, a drop of US$4.7mln.

READ: Shanta hits encouraging gold grades in drilling at Singida

Shanta’s costs did rise, and operating cash flow was down, as mining at New Luika transitioned underground.

"We are pleased to report a set of full year results that reflect a sustainable transition to underground mining at New Luika, as well as a new management strategy of cost control and optimisation,” said chief executive Eric Zurrin.

“Considerable inroads have been made into reducing the net debt position and the continuation of this is central to plans for restructuring the company's balance sheet. Recording a profit in 2017 for the first time wouldn't have been possible had the underground operation not been transitioned to on time and within budget and our efforts to optimise the company's recurring cost base will be a key driver towards improving future cash flows. Our priorities for 2018 remain focussed on continued low-cost operational excellence, balance sheet deleveraging, and targeted growth."

Shanta has set production guidance for the current year of between 82,000 and 88,000 ounces of gold at all-in sustaining costs of between US$680 and US$730 per ounce.

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Mon, 16 Apr 2018 08:47:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/195028/shanta-gold-delivers-profits-of-us47mln-as-production-rings-in-at-79585-ounces-195028.html
<![CDATA[RNS press release - Final Results for the year ended 31 December 2017 ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180416072502_13604799/ Mon, 16 Apr 2018 07:25:02 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180416072502_13604799/ <![CDATA[RNS press release - Notice of Results ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180412101113_13602052/ Thu, 12 Apr 2018 10:11:13 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180412101113_13602052/ <![CDATA[News - Shanta hits encouraging gold grades in drilling at Singida ]]> http://www.proactiveinvestors.co.uk/companies/news/194504/shanta-hits-encouraging-gold-grades-in-drilling-at-singida-194504.html Shanta Gold Ltd (LON:SHG) has hit more gold at its Singida project in central Tanzania.

The company conducted exploration and resource infill reverse circulation during the first quarter of 2018 to test down-dip and down plunge continuity of high grade mineralised shoots below the current designed pits.

READ: Shanta Gold reports strong final quarter for New Luika Gold Mine with gold production up 17%

The aim is to update the resource and move it up the inferred to the measured and indicated categories.

Assay results for the first 15 holes have been received and are currently being modelled.

Encouraging mineralised drilling intersections achieved include: 10 metres at 20.82 grams per tonne gold from 138 metres, including 3 metres 57.13 grams.

The company also hit 5 metres at 10.35 grams, and 8 metres at 5.96 grams.

"Singida is an important project in our portfolio that gives us the opportunity of a second producing gold asset,” said chief executive Eric Zurrin.

“These positive drilling results have the potential to enhance the current project economics at Singida as well as improve the prospects of expanding the project beyond the current scope of construction."

 

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Mon, 09 Apr 2018 09:22:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/194504/shanta-hits-encouraging-gold-grades-in-drilling-at-singida-194504.html
<![CDATA[RNS press release - Singida Gold Mining Project Exploration Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180409082519_13596067/ Mon, 09 Apr 2018 08:25:19 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180409082519_13596067/ <![CDATA[RNS press release - Director Dealing and Issue of Equity ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180316070004_13569275/ Fri, 16 Mar 2018 07:00:04 +0000 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180316070004_13569275/ <![CDATA[Media files - Shanta Gold all about growth in 2018 after strong Q4 ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/8639/shanta-gold-all-about-growth-in-2018-after-strong-q4-8639.html Fri, 19 Jan 2018 12:30:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/8639/shanta-gold-all-about-growth-in-2018-after-strong-q4-8639.html <![CDATA[News - Shanta Gold reports strong final quarter for New Luika Gold Mine with gold production up 17% ]]> http://www.proactiveinvestors.co.uk/companies/news/190218/shanta-gold-reports-strong-final-quarter-for-new-luika-gold-mine-with-gold-production-up-17-190218.html Shanta Gold Limited (LON:SHG) has reported a strong final quarter of 2017 for its New Luika Gold Mine, in Southwest Tanzania, with gold production of 21,288 ounces, an increase of 17% on the third quarter.

In a fourth quarter production and operational update, the East Africa-focused gold producer and explorer said its annual gold production for 2017 was 79,585 oz, consistent with its guidance of approximately 80,000 oz. The group said its annual guidance for 2018 is 82,000−88,000 oz.

WATCH: Shanta all about growth in 2018 after strong Q4

Shanta said 2017 gold sales totalled 79,938 oz, down from 86,331 oz a year earlier, at an average price of US$1,263 per oz, compared to an average spot price of US$1,258 /oz.

Eric Zurrin, Shanta’s chief executive officer, said: “The Company expects to continue reducing its net debt and restructuring the business to deliver improved, sustainable cash flows going forward. With this in mind, we have increased our annual cost saving target to US$7.0mln from the previous US$5mln target.”

READ: Shanta Gold publishes first resource for Singida

He added: “These initiatives are expected to result in another year of deleveraging and management expects to be in a position to evaluate the dividend policy during the fourth quarter of 2018 in preparation for subsequent financial periods."

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Thu, 18 Jan 2018 07:58:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/190218/shanta-gold-reports-strong-final-quarter-for-new-luika-gold-mine-with-gold-production-up-17-190218.html
<![CDATA[RNS press release - Q4 Production and Operational Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180118070006_13500425/ Thu, 18 Jan 2018 07:00:06 +0000 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180118070006_13500425/ <![CDATA[RNS press release - Appointment of Numis as Nomad & Sole Broker ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180117070005_13498812/ Wed, 17 Jan 2018 07:00:05 +0000 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180117070005_13498812/ <![CDATA[News - Shanta appoints Luke Leslie as Chief Financial Officer ]]> http://www.proactiveinvestors.co.uk/companies/news/189636/shanta-appoints-luke-leslie-as-chief-financial-officer-189636.html Shanta Gold Ltd (LON:SHG), the East Africa-focused gold producer, developer and explorer, has appointed Luke Leslie as chief financial officer.

Leslie is already a director of Shanta and was already serving as CFO on an interim basis. He also serves on the board of Kincora Copper (CVE:KCC), the Mongolian explorer. He’s previously worked with UBS and Accenture.

READ: Shanta Gold publishes first resource for Singida in Tanzania

"On behalf of the Board, I am extremely pleased that Luke has agreed to become Shanta's CFO on a permanent basis,” said Shanta chief executive Eric Zurrin.

“Luke's background in operational turnaround, strategy and M&A has already improved the company's capital investment decision-making process and lowered the company's cost base, delivering annualised savings of US$8.7mln."

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Mon, 08 Jan 2018 08:08:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/189636/shanta-appoints-luke-leslie-as-chief-financial-officer-189636.html
<![CDATA[RNS press release - CFO Appointment ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180108070004_13487705/ Mon, 08 Jan 2018 07:00:04 +0000 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180108070004_13487705/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180103110733_13483692/ Wed, 03 Jan 2018 11:07:33 +0000 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20180103110733_13483692/ <![CDATA[RNS press release - Change of Registered Office ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171229070002_13479762/ Fri, 29 Dec 2017 07:00:02 +0000 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171229070002_13479762/ <![CDATA[RNS press release - Blocklisting Six Monthly Return ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171222130708_13476464/ Fri, 22 Dec 2017 13:07:08 +0000 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171222130708_13476464/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171214170255_13466349/ Thu, 14 Dec 2017 17:02:55 +0000 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171214170255_13466349/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171208083631_13458859/ Fri, 08 Dec 2017 08:36:31 +0000 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171208083631_13458859/ <![CDATA[RNS press release - Analyst site visit ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171206070005_13455225/ Wed, 06 Dec 2017 07:00:05 +0000 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171206070005_13455225/ <![CDATA[Media files - Shanta Gold publishes first resource for Singida ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/8393/shanta-gold-publishes-first-resource-for-singida-8393.html Tue, 21 Nov 2017 08:16:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/8393/shanta-gold-publishes-first-resource-for-singida-8393.html <![CDATA[News - Shanta Gold publishes first resource for Singida in Tanzania ]]> http://www.proactiveinvestors.co.uk/companies/news/187492/shanta-gold-publishes-first-resource-for-singida-in-tanzania-187492.html Shanta Gold (LON:SHG) has published a first resource at Singida, one of its two main deposits in Tanzania. 

The junior operates the New Luika mine but Singida, in the centre of the country, is at a much earlier stage of development.

WATCH: Shanta Gold publishes first resource for Singida

The Australian standard JORC resource of 728,000oz stems from 12.3mt at a grade of 1.84 g/t. The cut-off grade was 1.0 g/t.

Of that, measured and indicated resources, the most certain resource category, were 5.11 Mt, grading 2.09 g/t gold or 345,000 oz.

Gold Tree 1, at the centre of three mining licences at Singida, contains 111.000 oz at 3.14 g/t gold.

READ: Shanta Gold sees sharp increase in underground production at New Luika

Eric Zurrin, Shanta’s chief executive, said it had also identified a number of other targets at the project that might increase both the potential size and amount of Measured & Indicated resource ounces.

Added to the resources already identified at New Luika, Shanta now has 2mln ounces of gold delineated in Tanzania.

Shanta added it has reduced costs by US$5mln at New Luika (in the south west) through renegotiating contracts with suppliers and lowering staff numbers.

READ: Shanta Gold says new bank still working on due diligence after Tanzania changes

So far, 45% of Shanta's supplier contracts have either been reviewed or replaced

Shanta is also targeting higher recoveries through the installation of an additional pre-leach tank with commissioning scheduled for the end of June 2018.

A change to the underground mining method will lower costs by an estimated US$3.6m in 2018.

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Mon, 20 Nov 2017 08:36:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/187492/shanta-gold-publishes-first-resource-for-singida-in-tanzania-187492.html
<![CDATA[RNS press release - Singida JORC Resource Estimate & Operations Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171120070005_13436532/ Mon, 20 Nov 2017 07:00:05 +0000 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171120070005_13436532/ <![CDATA[RNS press release - VAT Refund Received ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171108085420_13424401/ Wed, 08 Nov 2017 08:54:20 +0000 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171108085420_13424401/ <![CDATA[RNS press release - Holding(s) in Company ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171024083419_13406720/ Tue, 24 Oct 2017 08:34:19 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171024083419_13406720/ <![CDATA[News - Shanta Gold sees sharp increase in underground production at New Luika ]]> http://www.proactiveinvestors.co.uk/companies/news/185866/shanta-gold-sees-sharp-increase-in-underground-production-at-new-luika-185866.html The ramp-up of production continued in the third quarter at Shanta Gold Limited’s (LON:AHG) New Luika gold mine in Tanzania.

As a result of new underground workings, the total ore mined underground shot up to 75,996 tonnes from 41,096 tonnes in the previous quarter.

READ: Shanta Gold restructures to adjust to Tanzania legislation changes

Gold production in the quarter dipped to 18,225 ounces (oz) from 19,657 oz in the second quarter, with the company seeing some grade variability in an isolated western section of Bauhinia Creek. In the fourth quarter, the grade is expected to improve as the company is now operating from two stopes.

Shanta has previously indicated that full-year gold production would be at the lower end of a guidance range of 80,000 – 85,000 oz at an all-in-sustaining-cost (AISC) of US$800 -  US$850 an ounce; on Thursday morning it indicated it expects full-year guidance would settle at around 80,000 oz at an AISC of US$800 an ounce.

In the third quarter the AISC rose to US$822 an ounce from US$735 in the preceding quarter, with the rise partly explained by higher royalties and a new clearing fee, which bumped up the AISC by US$39.

Gold sales in the quarter were achieved at an average price of US$1,267 an ounce, compared to an average spot price in the quarter of US$1,279 an ounce.

READ: Shanta Gold says new bank still working on due diligence after Tanzania changes

"Shanta's new strategy of focussing closely on cost control, operational improvements and shareholder returns was implemented in September 2017, accelerated by the recent legislative changes in Tanzania. The senior management team and I are confident that we are positioning the company in a much stronger direction for the future and all our staff are committed to achieving the goals we've set,” said Eric Zurrin, chief executive officer of Shanta.

"Not only are we are targeting annual savings of US$5mln, we are also adjusting our capital expenditure priorities. These priorities include a reduction in capital expenditure as the company moves past legacy capital-intensive projects at New Luika, and the ramp-up of the underground operation reaches its completion. Pleasingly the ramp up continues to proceed as planned, indeed the total ore mined underground almost doubled from that of the previous quarter,” he added.

Resources specialist SP Angel noted “production came off slightly on lower grades from underground, which are expected to improve through Q4/17 helping the company to hit its 80koz and $800/oz in AISC annual target”.

“On a positive side, management cost cutting programme is expected to see target AISC come at the lower end of the previously targeted range. Operations remained FCF [free cash flow] negative during the quarter, although the situation is due to change in 2018 following completion of underground development works,” SP Angel’s John Meyer said.

Shares in Shanta rose 1.2% to 3.29p in the morning trading session.

--- adds broker comment and updates share price ---

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Thu, 19 Oct 2017 11:21:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/185866/shanta-gold-sees-sharp-increase-in-underground-production-at-new-luika-185866.html
<![CDATA[RNS press release - Q3 2017 Production And Operational Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171019070004_13401635/ Thu, 19 Oct 2017 07:00:04 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171019070004_13401635/ <![CDATA[News - Shanta Gold says new bank still working on due diligence after Tanzania changes ]]> http://www.proactiveinvestors.co.uk/companies/news/185788/shanta-gold-says-new-bank-still-working-on-due-diligence-after-tanzania-changes-185788.html Shanta Gold Limited (LON:SHG) said Investec Bank is continuing due diligence on the potential impact of changes to the mining and fiscal regime in Tanzania.

Investec has offered a new US$50mln loan facility that will replace the gold miner’s existing US$40mln arrangement with EXIM Bank.

READ: Shanta on track for 80,000 ounces and unlikely to be deflected by political rumblings in Tanzania

Part of the new money has been earmarked to pay back US$15mln of convertible loan notes, which have a 13.5% coupon.

At September 30, Shanta said it had total liquidity of US$13.6mln including a cash balance of US$8mln and access to the undrawn unrestricted Exim Bank facility totalling of US$5.6mln out of US$7.5 mln.

Shanta said it would provide a further update on the debt restructuring to shareholders and the holders of the loan notes by 31 March 2018.

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Wed, 18 Oct 2017 08:29:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/185788/shanta-gold-says-new-bank-still-working-on-due-diligence-after-tanzania-changes-185788.html
<![CDATA[RNS press release - Update on Debt Restructuring ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171018070003_13400179/ Wed, 18 Oct 2017 07:00:03 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171018070003_13400179/ <![CDATA[RNS press release - Board Changes ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171006150557_13389234/ Fri, 06 Oct 2017 15:05:57 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171006150557_13389234/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171003130001_13384392/ Tue, 03 Oct 2017 13:00:01 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20171003130001_13384392/ <![CDATA[News - Shanta on track for 80,000 ounces and unlikely to be deflected by political rumblings in Tanzania ]]> http://www.proactiveinvestors.co.uk/companies/news/184136/shanta-on-track-for-80000-ounces-and-unlikely-to-be-deflected-by-political-rumblings-in-tanzania-184136.html In recent months it’s been a bit of a bumpy ride for investors in Shanta Gold Limited (LON:SHG), as political rumblings in Tanzania have taken the shine off an otherwise admirable gold mining growth story.

Shanta’s on track to produce around 80,000 ounces of gold this year from its New Luika gold mine, including new underground workings, and might even have gone higher if the company had felt confident enough to initiate trial mining at Singida, potentially an even bigger project than New Luika.

But although plenty of work at Singida will happen in the coming twelve months, early production is on hold until there’s a bit more clarity about the new business environment in Tanzania.

In terms of African mining, Tanzania is a relative latecomer. Mining there was only really opened up to the global economy in the 1990s, and after a generation or so it’s now undergoing a deep review of approaches to the sector.

WATCH: Shanta Gold now leaner and stronger as they respond to changes in Tanzania

Major operator Acacia Mining (LON:ACA) has been hit with a billion dollar tax bill, Petra Diamonds (LON:PDL) has had diamond shipments held up and the word corruption has been bandied around by politicians a fair bit.

There’s also been a general hike in the royalty rates on gold production, which is likely to cost Shanta in the region of an extra US$3 mln per annum.

But Shanta has met that news head on with the robust declaration that it will in turn find US$5 mln per annum in cost savings in order keep the profit and loss account looking healthy.

And chief executive Eric Zurrin is sanguine when pressed on how it feels to be operating in a country which is currently out of favour with investors.

READ: Shanta Gold restructures to adjust to Tanzania legislation changes

“The important thing is to recognise that the operations are sound and robust,” he says. “We must focus on running the business and how we sustain ourselves through the trough of the political cycle.”

It looks bad now for all companies operating in Tanzania, but investors with long memories will remember the damage done to the Zambian mining industry by government intervention in the 1970s. This is nothing like that. This is nothing, even, like the complex set of variables which pertains in South Africa.

Rather, it’s simply a national government asserting itself on the issue of just who exactly it is who is in control of the natural resources in the ground.

After all, there’s more than one type of risk, as Zurrin himself points out.

“A year ago, investors in Shanta faced the risks associated with us taking our operations underground,” he says.

And that risk has now been almost completely ameliorated.

“Here we are in September 2017 with four and a half kilometres of underground development completed and we are ramping up production. We have four shafts and two declines. We are producing at the planned grades and there has only been one lost time injury since mining started.”

The picture is clear: this is a company that knows how to get the job done in Tanzania. There is gold coming out of the ground, cash coming in, extensive social and outreach programmes in place and skilled jobs for 188 locals.

The company’s debt is likely to drop by more than US$20 mln over the next couple of years, such that the discussion will turn to one about optimal levels of gearing rather than repayment schedules.

All told, this is a company that’s set fair. There’s even a US$15 mln VAT repayment due to come in from the government, the same government that’s causing such ructions for the likes of Petra and Acacia.

Will sentiment get worse before it gets better? Probably. But Shanta is now a company with a valuation of less than three times earnings, with a strong track record and a good operating outlook.

It looks likely that some form of partnership deal will be done on Singida, but that won’t be the crux of any forthcoming re-rating.

The company’s shares are slightly off their August lows, but a full-blown recovery based on fundamentals is likely to be gradual rather than sudden. Still, there’s a strong probability though that the upside from here will be considerable as the political risk slowly dissipates over time.

 

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Mon, 18 Sep 2017 10:39:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/184136/shanta-on-track-for-80000-ounces-and-unlikely-to-be-deflected-by-political-rumblings-in-tanzania-184136.html
<![CDATA[Media files - Shanta Gold now leaner and stronger as they respond to changes in Tanzania ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/8051/shanta-gold-now-leaner-and-stronger-as-they-respond-to-changes-in-tanzania-8051.html Thu, 07 Sep 2017 15:38:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/8051/shanta-gold-now-leaner-and-stronger-as-they-respond-to-changes-in-tanzania-8051.html <![CDATA[News - Shanta Gold rejects claims from Canadian firm Helio over lapsed merger ]]> http://www.proactiveinvestors.co.uk/companies/news/183547/shanta-gold-rejects-claims-from-canadian-firm-helio-over-lapsed-merger-183547.html Shanta Gold PLC (LON:SHG) has rejected claims from Canadian peer Helio Resource (CVE:HRC) that a termination of their merger agreement was invalid.

The two companies have neighbouring properties in Tanzania and agreed a merger in June.

Since the deal was announced, though, there has been a new Finance Act introduced in the country that has raised taxes and royalties while other legal changes mean the government can now renegotiate mining contracts and insist upon more local ownership.

READ: Shanta Gold pleased with progress at New Luika but legal changes mean an end to the Helio acquisition

Shanta concluded this amounted to a material adverse effect and used it to terminate the deal.

"The position, and advice, remains that it had clear and compelling rights to terminate the arrangement agreement and that it was validly terminated," the AIM-listed miner said.

Helio disagrees and said as far as it is concerned the the arrangement agreement remains in effect and it will take all commercially reasonable actions required to complete the transaction.

Richard Williams, Helio's chief executive, said: "We strongly disagree with Shanta Gold's assertion that the recent changes to Tanzania's mining laws amount to a material adverse effect as defined in the arrangement agreement and reject their opportunistic attempt to walk away from their obligations.

“We believe that combining Shanta Gold and Helio continues to make sense for both companies and are disappointed that our partner in this transaction chose to take this drastic step without any prior discussions."

Under the original agreement, Shanta agreed to buy Helio in June through a share-based transaction worth US$5.6mln.

Since then it has changed its chief executive and yesterday unveiled a cost-cutting drive to offset the impact of the fiscal changes in Tanzania.

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Wed, 06 Sep 2017 14:54:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/183547/shanta-gold-rejects-claims-from-canadian-firm-helio-over-lapsed-merger-183547.html
<![CDATA[RNS press release - SHANTA GOLD RESPONSE TO HELIO RESOURCE CORP ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170906133135_13353876/ Wed, 06 Sep 2017 13:31:35 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170906133135_13353876/ <![CDATA[News - Shanta Gold restructures to adjust to Tanzania legislation changes ]]> http://www.proactiveinvestors.co.uk/companies/news/183428/shanta-gold-restructures-to-adjust-to-tanzania-legislation-changes-183428.html Gold miner Shanta Gold Limited (LON:SHG) has launched a US$5mln cost cutting programme to offset increases in royalties and tax in Tanzania.

The government in the African country has passed new mining laws and a finance act recently that hasincreased royalty payments on gold exports to 6% from 4% and imposed a 1% clearing tax.

Shanta said the changes will cost it an extra US$3mln annually or US$39 per oz of gold, a sum the new cost savings will offset.

READ: Shanta Gold starts to adjust to changing backdrop in Tanzania

The company operates the New Luika mine in Tanzania, where underground mining has just got underway, and most of the costs will be saved through a reduction in external contractors working at the mine.

Shanta added it had paid US$67mln to the government since the mine was commissioned in 2013 and is owed US$15mln in VAT repayments.

In total, US$150mn has been spent constructing New Luika but spending should fall from now on, allowing the company to repay borrowings over the next two years, Shanta Gold said.

New Luika is on track to produce the bottom end of the 80,-85,000 oz guidance issued previously for the current year, at an all-in sustaining cost of US$800-850 while to 2023. total production should be 514,000oz.

READ: Shanta Gold pleased with progress at New Luika but legal changes mean an end to the Helio acquisition

Elsewhere, Shanta said it would evaluate the financing required to develop Singida, another gold asset in Tanzania, before making a decision on what to do next.

Management team changes were also announced with Scott Yelland promoted to chief operating officer, Luke Leslie to interim CFO while Honest Mrema will become general manager of the New Luika mine.

Eric Zurrin, Shanta’s chief executive, said that following the review the business is now well-structured to deliver long term value.

“The new value enhancement and cost saving initiatives will create a stable platform from which the company can prosper and grow sustainably under the new Tanzanian mining legislation.

“Shanta will boast a leaner cost structure, have a focus on increased cash generation, develop greater internal Tanzanian leadership and importantly deliver reduced financial risk.”

 

 

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Tue, 05 Sep 2017 07:43:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/183428/shanta-gold-restructures-to-adjust-to-tanzania-legislation-changes-183428.html
<![CDATA[RNS press release - Operations Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170905070101_13351647/ Tue, 05 Sep 2017 07:01:01 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170905070101_13351647/ <![CDATA[RNS press release - Management Appointments ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170905070003_13351580/ Tue, 05 Sep 2017 07:00:03 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170905070003_13351580/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170830120153_13345836/ Wed, 30 Aug 2017 12:01:53 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170830120153_13345836/ <![CDATA[News - Shanta Gold pleased with progress at New Luika but legal changes mean an end to the Helio acquisition ]]> http://www.proactiveinvestors.co.uk/companies/news/182653/shanta-gold-pleased-with-progress-at-new-luika-but-legal-changes-mean-an-end-to-the-helio-acquisition-182653.html Tanzania-focused gold producer Shanta Gold Ltd (LON:SHG) continues to ramp up operations at its New Luika gold mine, as it reviews its business plan amid changing legislation in the African country.

As well as posting latest half year figures, the miner revealed it had terminated a previous arrangement to buy Helio Resource Corp, which owns land next to New Luika, for US$5.6mln because of last month's legal changes.

Gold shipments now attract higher royalty rates of 6%, up from 4% previously, and a clearing fee of 1% has been applied.

READ: Shanta Gold happy with production but assessing Tanzania legal changes First half loss before tax narrows

As reported previously, Shanta has repeated its output guidance for 2017 of between 80,000 and 85,000 gold ounces and ASIC (all in sustaining costs) of between US$800 and US$850 per ounce.

Production in the first half was 40,073 ounces compared to 48,237 ounces in the same period last year, leading to revenues of US$52.7mln (2016: US$55.7 mln).

In the six months, the firm sold 41,234 ounces of the yellow metal at an average price of US$1,257 per ounce, compared to average spot price of US$1,239 per ounce.

The loss before tax narrowed to US$649,000 versus a loss of around US$3mln in the same period last year.

The firm has cash of US$13.8mln and forward sales agreed for July to December this year, of 37,000 ounces at an average price of US$1,278 per ounce.

READ: Shanta Gold chief executive steps down in management reshuffle Tanzania continues to undergo period of uncertainty

Eric Zurrin, now chief executive after Toby Bradbury stepped down, told investors: "Progress at New Luika has continued to be extremely pleasing.

"Underground development has now reached 4.4 kilometres in just over 13 months which is a testament to the skills and professionalism of the entire team. The transition to the underground mine remains on track and continues to be de-risked as more stopes are opened up and critical equipment arrives at site."

He also noted that a completed US$14mln share placing provided increased financial flexibility and reduced outstanding working capital requirements.

"Tanzania continues to undergo a period of uncertainty and Shanta is responding with proactive decisions around its cost structure.

"The company will update the market in due course with details of its ongoing and one-time efficiencies and cost improvements. Tanzania remains one of the fastest growing countries globally and Shanta is well positioned for the longer term," concluded Zurrin.

Second half expected to be much better

John Meyer, at SP Angel, said that the good operational results had been weighed down by legislative changes and challenges with claiming back VAT receipts putting pressure on free-cash-flow (FCF) generation.

The second half however is expected to be much better as capital investments are due to come down significantly while production is forecast to benefit from increased share of high grade underground ores, he added.

Shanta shares gained 7.69% on the day to 3.50p.

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Fri, 18 Aug 2017 07:37:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/182653/shanta-gold-pleased-with-progress-at-new-luika-but-legal-changes-mean-an-end-to-the-helio-acquisition-182653.html
<![CDATA[RNS press release - Termination of Arrangement Agreement ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170818070003_13334268/ Fri, 18 Aug 2017 07:00:03 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170818070003_13334268/ <![CDATA[News - Shanta Gold chief executive steps down in management reshuffle ]]> http://www.proactiveinvestors.co.uk/companies/news/181904/shanta-gold-chief-executive-steps-down-in-management-reshuffle-181904.html Toby Bradbury, Shanta Gold Ltd’s (LON:SHG) chief executive, is to step down from the company with Eric Zurrin, currently chief financial officer, to take over.

Changes to the regulatory regime for miners in Tanzania are set to make it a much less friendly place to operate and the focus going forward will be on cost control, Shanta said.

Shanta operates the New Luika gold mine in Tanzania, where the government has recently passed laws giving it the power to renegotiate contracts, more control over ownership and has also imposed a 1% clearing charge on gold shipments out of the country.

READ: Shanta Gold happy with production but assessing Tanzania legal changes

Tony Durrant, chairman, thanked Bradbury for his contributions to Shanta as CEO over the last two and a half years.

"Under his tenure the company has made significant steps forward, particularly in demonstrating New Luika to be a sustainable, robust and reliable, low-cost gold producer."

Bradbury will retire in September following a handover period, though Zurrin takes over immediately.

The miner produced 40,073 ounces (oz) of gold in the first half of 2017 at an all-in sustaining cost of US$755 /oz.

Production in July has been maintained at those levels, Shanta said today, and it remains on track to meet full year guidance of 80,000-85,000 oz at sustainable costs of US$800-US$850/oz.

Zurrin said: "The company's assets at New Luika and Singida are of high quality and the exploration rights across the Lupa Goldfield remain extremely exciting and prospective. Our vision remains to demonstrate and deliver on the true potential value of our assets."

Shares eased 4% to 3.75p.

--adds detail, share price--

 

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Thu, 03 Aug 2017 08:05:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/181904/shanta-gold-chief-executive-steps-down-in-management-reshuffle-181904.html
<![CDATA[RNS press release - Chief Executive and Director Change ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170803070008_13317713/ Thu, 03 Aug 2017 07:00:08 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170803070008_13317713/ <![CDATA[RNS press release - Change of Registered Office ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170731114436_13313175/ Mon, 31 Jul 2017 11:44:36 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170731114436_13313175/ <![CDATA[News - Shanta Gold happy with production but assessing Tanzania legal changes ]]> http://www.proactiveinvestors.co.uk/companies/news/181120/shanta-gold-happy-with-production-but-assessing-tanzania-legal-changes-181120.html Shanta Gold PLC (LON:SHG) has started to review its cost base in Tanzania after recent changes to the finance and mining laws in the country.

As a result, Shanta expects that its next gold shipment will see royalty rates increase to 6% from 4%, while a 1% clearing fee has already been implemented.

The changes have not affected production. Output from the New Luika mine in the three months to June was 19,657 ounces (Q1 2017: 20,416 oz), which was ahead of budget, and keeps it on track for annual production of between 80,000 - 85,000 oz.

READ:Shanta to seek clarity as Tanzania introduces new 1% clearing fee

Sales totalled 17,982 oz at an average price of US$1,249 per oz, while cash costs were US$559/oz (Q1 2017:US$553/oz) and All-in-Sustaining-Cost of US$735/oz (Q1 2017:US$768 /oz).

Over the quarter, Shanta generated cash of US$13.1mln and closed the period with net debt of US$43.3mln.

Shanta has gradually started to shift operations underground at New Luika and grades so far from the first commercially produced ore have been consistent and high at 7.41 grams per tonne (g/t).

Last month a deal was tied up to take control of the company that owns that acreage next door to New Luika.

Toby Bradbury, chief executive, said:"The Q2 2017 production result has far surpassed our projections whilst the underground mine ramped up.  

"Good progress continues to be made at the underground mine which remains on track, with first stope ore and commercial production declared as of 1 June 2017.  

"Shanta, as a result, sits on a stronger platform, notwithstanding the latest developments in country in regards to the new Finance Act and the number of legislative Bills recently enacted as Laws by the Tanzanian Parliament. 

“As we have mentioned previously, we continue to seek advice on the legislation, as we assess its potential impact and further updates will be provided as appropriate."

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Wed, 19 Jul 2017 08:16:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/181120/shanta-gold-happy-with-production-but-assessing-tanzania-legal-changes-181120.html
<![CDATA[RNS press release - Q2 2017 Production And Operational Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170719070004_13299728/ Wed, 19 Jul 2017 07:00:04 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170719070004_13299728/ <![CDATA[RNS press release - Update on Tanzanian Legislative Changes ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170705100325_13284637/ Wed, 05 Jul 2017 10:03:25 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170705100325_13284637/ <![CDATA[RNS press release - Result of Annual General Meeting ]]> http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170703122049_13281763/ Mon, 03 Jul 2017 12:20:49 +0100 http://www.proactiveinvestors.co.uk/companies/rns/903/LSE20170703122049_13281763/ <![CDATA[News - Shanta to seek clarity as Tanzania introduces new 1% clearing fee ]]> http://www.proactiveinvestors.co.uk/companies/news/180107/shanta-to-seek-clarity-as-tanzania-introduces-new-1-clearing-fee-180107.html Shanta Gold Limited (LON:SHG) has told investors it will seek advice after the Tanzanian government approved a new law that will impose a 1% clearing fee on all mineral exports from the east African country.

Under the new Finance Act, the government will also set up clearing houses at international airports, mines and border points where the value of shipments will be officially verified.

AIM-listed Shanta’s New Luika gold mine is located in the south western part of Tanzania, while it also has several prospecting licences in the country.

Tanzania’s response to Acacia saga

By introducing the new clearing fee, Tanzania is looking to bag a bigger share of the revenues from the east African country’s natural resources. It also allows it to keep a closer eye on exactly how much is being exported and by whom.

The government hopes that a more vigorous export process will also reduce the possibility of situations like what is alleged to have gone on at Acacia Mining PLC (LON:ACA) from happening again.

A recent audit launched by President John Magufuli accused Acacia of exporting ten times more gold from Tanzania than it had declared and the miner was subsequently banned from exporting gold-copper concentrate from its two mines in the country.

For its part, Acacia has always denied wrongdoing and its majority shareholder Barrick Gold Corp (NYSE:ABX) agreed to stump up some compensation earlier this month to settle the dispute.

The new law comes into effect from tomorrow (1 July), while there is also a separate proposed legislation which is due to be debated by Parliament.

The legislation recommends changes to the legal framework governing the natural resources sector in Tanzania, Shanta said.

Shanta shares edged 2.3% lower in early deals to 5.25p.

--Updates for sahre price and additional info--

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Fri, 30 Jun 2017 08:05:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/180107/shanta-to-seek-clarity-as-tanzania-introduces-new-1-clearing-fee-180107.html