Latest forecast is for 2019 production to rise to between 80-84,000oz
Shanta Gold Limited
The New Luika Gold Mine (100% owned) is a low cost, established, cash generative operation boasting high grade resources rarely found around the world. Shanta is focused on delivering maximised sustainable value for shareholders from this mine, and other assets in its portfolio, through meticulous expert management throughout the business.
Alongside New Luika, Shanta owns Singida, an...
| EPIC: | SHG |
| Market: | AIM:SHG |
| 52-week High/Low: | 7.20p / 4.00p |
| Sector: | General Mining - Gold |
| Market Cap: | £49.21 m |
| Website: | www.shantagold.com |
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Big Picture – A Deep Dive Examination of 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.
Overview
Operations Overview
With its abundance of natural resources, thriving economy and booming tourism industry, Tanzania is an attractive country for business and investment.
Gold mining has been prominent in Tanzania for more than a century making it Africa's fourth largest gold producing country. Nonetheless, the country remains comparatively under-explored.
Shanta Gold's portfolio of properties includes mining licences held at both New Luika and Singida.
New Luika Gold Mine
The New Luika Gold Mine is located in the Lupa Goldfield of southwest Tanzania. Our flagship asset delivered 87,713 ounces of gold in 2016. Underground ore was produced from the first stope in the Bauhinia Creek deposit in May 2017 and the mine has now successfully transitioned from an exclusively surface mining operation to one that is predominantly underground.
Singida Project
Singida is an advanced stage exploration and development project with a mining licence granted in 2012. Drilling results from an exploration programme to expand the understanding of the deposit in 2016 have increased the Company’s confidence that, subject to an updated Feasibility Study, Shanta will be able to significantly add to its production of low cost ounces, at a competitive capital cost.
Exploration
The Lupa Goldfield is the second largest goldfield in Tanzania outside of the Lake Victoria Goldfield. From 1935 to 1959 an estimated 650,000 ounces of gold were extracted from the area.
Through its Tanzanian subsidiaries, Shanta Gold holds over 1,560 km2 of prospective exploration ground with a further 101 km2 under application in the Lupa Goldfield.
Board of Directors
Anthony Durrant
NON-EXECUTIVE CHAIRMAN
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.
Eric Zurrin
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.
Luke Leslie
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).
Ketan Patel
NON-EXECUTIVE DIRECTOR
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.
Robin Fryer
NON-EXECUTIVE DIRECTOR
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.
Keith Marshall
NON-EXECUTIVE DIRECTOR
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.
Shanta Gold was admitted to the London Stock Exchange’s Alternative Investment Market (AIM) on 11 July 2005.
As at 20 July, 2018 there were 778,889,782 ordinary shares in issue. No ordinary shares are held in treasury.
Major shareholders are those with shareholdings of 3% or more. As at July 9, 2018 these were disclosed to be:
|
Shares No. Million |
% of Company held |
|||
|---|---|---|---|---|
| 1. | Odey Asset Management |
147,045,785
|
18.9
|
|
| 2. | Majedie Investments |
76,415,030
|
9.9
|
|
| 3. | Sustainable Capital Limited |
58,220,463
|
7.5
|
|
| 4. | River & Mercantile Asset Management | 52,750,000 | 6.8 | |
| 5. | Ketan Patel |
43,667,957
|
5.6
|
|
| 6. | Hargreaves Lansdown Asset Management |
38,661,037
|
5.0
|
|
| 7. | Jonathan Leslie | 30,566,579 | 3.9 | |
| 8. | JPMorgan Securities | 28,331,751 | 3.6 | |
| 9. | City Financial |
26,000,000
|
3.3
|
|
| Total | 501,658,602 | |||
Tanzania registered office
Shanta Mining Co. Ltd
202, 2nd Floor, Renaissance Plaza,
Plot No. 498, Haile Selassie Road,
Masaki
P.O. Box 79408
Dar es Salaam,
Tanzania
Tel:+255 22 2925148-50
Fax: +255 22 2925151
Email: [email protected]
www.shantagold.com
Guernsey registered office
Anson Court
La Route des Camps
St Martin
Guernsey GY4 6AD
Contact numbers
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
Sausmarez Street
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:
TAVISTOCK
1 Cornhill London
EC3V 3ND
Tel: +44 (0) 207 920 3150
Contact: Charles Vivian / Jos Simson / Barney Hayward
Email: [email protected]
Solicitors:
UK AIM:
Memery Crystal
44 Southampton Buildings
London WC2A 1AP
GUERNSEY:
Carey Olsen
8-10 Throgmorton Avenue
London
EC2N 2DL
Principal Bankers:
UBS
Place Pury 5
2000 Neuchâtel
Switzerland
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