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Shanta Gold Limited

Shanta Gold is an East Africa-focused gold producer, developer and explorer. The Company is focused on its flagship asset, the New Luika Gold Mine (New Luika), located in southwest Tanzania.

EPIC:	SHG
Market:	AIM:SHG
52-week High/Low:	8.65p / 4.00p
Sector:	General Mining - Gold
Market Cap:	£62.20 m
Website:	www.shantagold.com

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Big Picture – A Deep Dive Examination of Shanta Gold Limited

Shanta Gold Limited looks to step up a level as Singida moves forward

March 29 2019

Latest forecast is for 2019 production to rise to between 80-84,000oz

Shanta Gold Limited Snapshot

Current statement

STRATEGY AND BUSINESS MODEL

The Board seeks to maximise value for all our shareholders whilst ensuring continuity and consistency through sustainable and responsible mining.

Our primary asset (“New Luika”) transitioned to a predominantly underground operation and entered commercial production in June 2017. Our objective is to quickly repay the Company’s debt and to reward shareholders for their patience using the cash generated from this project.

We implement a disciplined and modern approach to driving operational efficiencies across the organisation, a philosophy embraced by the entire Shanta team. This ensures that Shanta runs an efficient operation without compromising on growth opportunities as we continue to build on strong foundations to take the Company forward.

With the underground mine at New Luika fully established, exploration activities are currently being conducted in three distinct areas:

Targeted locations with the existing mining licences adjacent to the existing reserves at our Bauhinia Creek and Ilunga deposits;
Within the economic circle of New Luika; and,
Regionally, utilizing prospective exploration ground held by the Company within the Lupa Goldfield.

The roll-out of this exploration programme is designed to ensure longevity for the Company’s existing operations.

Current operations

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.

Click here for more information.

Management

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.

Major Shareholders

Stock & Share Information

Shanta Gold was admitted to the London Stock Exchange’s Alternative Investment Market (AIM) on 11 July 2005.

As at 7 March, 2019 there were 787,303,086 ordinary shares in issue. No ordinary shares are held in treasury.

Major shareholders are those with shareholdings of 3% or more. As at 7 March, 2019 these were disclosed to be:

			Shares No. Million	% of Company held
1.	Odey Asset Management		147,045,785	18.7
2.	Sustainable Capital Limited		94,640,510	12.0
3.	Majedie Investments		73,699,442	9.4
4.	River & Mercantile Asset Management		52,750,000	6.7
5.	Ketan Patel		43,667,957	5.5
6.	Hargreaves Lansdown Asset Management		42,338,872	5.4
7.	Jonathan Leslie		30,566,579	3.9
8.	Bank of New York		27,765,116	3.5
Total			512,474,261	65.1

FTSE Index:		FTSE AIM All-Share
FTSE Sector:		Mining
FTSE Sub-sector:		Gold Mining
Country of Share Register:		Great Britain
Share code:		SHG.L
ISIN Number:		GB00BOC6R828

Contact information

Address

Shanta Mining Co. Ltd
202, 2nd Floor, Renaissance Plaza,
Plot No. 498, Haile Selassie Road,
Masaki
P.O. Box 79408
Dar es Salaam,
Tanzania

Contact numbers

Tel:+255 22 2925148-50
Fax: +255 22 2925151
Email: [email protected]
www.shantagold.com

Corporate Information

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