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.
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.
