A cool five-and-a-half months after 2016 finished, Shanta Gold (SHG) has published results for the year. While historic in market terms, these figures contained more positives than negatives: all-in sustaining costs of $661 (£519) an ounce were well below forecasts, as was record gold production of 87,713 ounces (oz). Both numbers helped to juice cash flows in a year when capital expenditure hit $54.6m, up 85 per cent on the prior period.
Much of that outlay went on developing underground production from Shanta's New Luika mine in Tanzania, which moved to production just last month. In parallel, Shanta is busy replacing its mined ounces with new resources; with 515,000 oz sitting in the revised mine plan and an additional 683,000 oz elsewhere.
All of this has tightened a cash position that has been partly relieved by $12.3m raised in two post-period financing deals. The main bone of contention is a $12.5m VAT payment currently sitting with the Tanzanian government, and which Shanta says it is owed. Until this is refunded, the Singida project has been placed on hold.
Analysts at Peel Hunt forecast adjusted pre-tax profits of $6.6m and EPS of 0.5¢ this calendar year, up from $0.1m and 0.4¢ in 2016.
SHANTA GOLD (SHG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 7.5p | MARKET VALUE: | £44m | |
| TOUCH: | 7.3-7.8p | 12-MONTH HIGH: | 13p | LOW: 6.1p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 13.5¢* | NET DEBT: | 56% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | nil | -14.7 | -4.4 | nil |
| 2013 | 66.0 | -4.4 | 0.2 | nil |
| 2014 | 115 | 16.6 | 1.9 | nil |
| 2015 | 95.7 | -18.1 | -3.7 | nil |
| 2016 | 107 | -4.3 | -1.5 | nil |
| % change | +12 | - | - | - |
Ex-div: na Payment: na £1=$1.27 *Includes intangible assets of $23.3m, or 4¢ a share | ||||
