The Investment Doctor
Long/short equity, value, debt, base metals

The Turnaround Of Shanta Gold Is Almost Complete And 2014 Will Be Full Of Catalysts

Introduction

In this article I'll have a closer look at Shanta Gold (OTC:SAAGF), a producing company whose primary asset is the New Luika Gold Mine in Tanzania which is set to produce 80,000 ounces of gold this year. I will start by providing a brief background of the New Luika mine and the company's next project in the pipeline, Singida.

Thereafter I will calculate the present fair value of New Luika by calculating the net cash flows and what effect the debt repayment will have on these cash flows. I will also explain the risks which go hand in hand with an investment in Shanta Gold, which will result in my investment thesis at the end of this...

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