SHG

Shanta GoldAIM:SHG Stock Report

Market Cap

UK£152.0m

7D

1.8%

1Y

-20.5%

Updated

16 Sep, 2021

Data

Company Financials +
SHG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends3/6

SHG Overview

Shanta Gold Limited, together with its subsidiaries, engages in the gold production, development, and exploration in Tanzania.

Shanta Gold Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Shanta Gold
Historical stock prices
Current Share PriceUK£0.14
52 Week HighUK£0.10
52 Week LowUK£0.20
Beta0.51
1 Month Change5.46%
3 Month Change-4.92%
1 Year Change-20.55%
3 Year Change192.93%
5 Year Change34.88%
Change since IPO-47.27%

Recent News & Updates

Jul 20
Need To Know: The Consensus Just Cut Its Shanta Gold Limited (LON:SHG) Estimates For 2021

Need To Know: The Consensus Just Cut Its Shanta Gold Limited (LON:SHG) Estimates For 2021

Market forces rained on the parade of Shanta Gold Limited ( LON:SHG ) shareholders today, when the analysts downgraded...

Shareholder Returns

SHGGB Metals and MiningGB Market
7D1.8%-2.3%-0.2%
1Y-20.5%21.1%19.4%

Return vs Industry: SHG underperformed the UK Metals and Mining industry which returned 25% over the past year.

Return vs Market: SHG underperformed the UK Market which returned 19.2% over the past year.

Price Volatility

Is SHG's price volatile compared to industry and market?
SHG volatility
SHG Beta0.51
Industry Beta0.95
Market Beta1

Stable Share Price: SHG is more volatile than 90% of UK stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SHG's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
2005764Eric Zurrinhttps://www.shantagold.com

Shanta Gold Limited, together with its subsidiaries, engages in the gold production, development, and exploration in Tanzania. The company’s flagship asset is the 100% owned New Luika Gold Mine property located in Songwe district of South Western Tanzania. Shanta Gold Limited was founded in 2005 and is based in St Peter Port, Guernsey.

Valuation

Is Shanta Gold undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SHG (£0.15) is trading below our estimate of fair value (£3.54)

Significantly Below Fair Value: SHG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SHG is poor value based on its PE Ratio (10.9x) compared to the UK Metals and Mining industry average (7.9x).

PE vs Market: SHG is good value based on its PE Ratio (10.9x) compared to the UK market (23.8x).


Price to Earnings Growth Ratio

PEG Ratio: SHG is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: SHG is good value based on its PB Ratio (1.2x) compared to the GB Metals and Mining industry average (2.2x).


Future Growth

How is Shanta Gold forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

31.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHG's forecast earnings growth (31.7% per year) is above the savings rate (0.9%).

Earnings vs Market: SHG's earnings (31.7% per year) are forecast to grow faster than the UK market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SHG's revenue (17.8% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: SHG's revenue (17.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SHG's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Shanta Gold performed over the past 5 years?

43.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHG has a high level of non-cash earnings.

Growing Profit Margin: SHG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SHG has become profitable over the past 5 years, growing earnings by 43.3% per year.

Accelerating Growth: SHG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SHG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (140.8%).


Return on Equity

High ROE: SHG's Return on Equity (11.5%) is considered low.


Financial Health

How is Shanta Gold's financial position?


Financial Position Analysis

Short Term Liabilities: SHG's short term assets ($55.1M) exceed its short term liabilities ($21.0M).

Long Term Liabilities: SHG's short term assets ($55.1M) exceed its long term liabilities ($21.4M).


Debt to Equity History and Analysis

Debt Level: SHG's debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: SHG's debt to equity ratio has reduced from 71.6% to 2.6% over the past 5 years.

Debt Coverage: SHG's debt is well covered by operating cash flow (351.2%).

Interest Coverage: SHG's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


Dividend

What is Shanta Gold current dividend yield, its reliability and sustainability?

1.38%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 17 2021Ex Dividend DateOct 07 2021Dividend Pay DateOct 29 202122 days from Ex DividendBuy in the next 20 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SHG's dividend (1.38%) is higher than the bottom 25% of dividend payers in the UK market (1.32%).

High Dividend: SHG's dividend (1.38%) is low compared to the top 25% of dividend payers in the UK market (4%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether SHG's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SHG's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.9%), SHG's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHG's dividends in 3 years are forecast to be thoroughly covered by earnings (10.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Eric Zurrin (40 yo)

4.08yrs

Tenure

US$1,184,000

Compensation

Mr. Eric Zurrin is a Principal of Sandown Bay Resource Capital LLP. Mr. Zurrin has been the Chief Executive Officer of Shanta Gold Ltd. since August 3, 2017 and served as its Interim Chief Financial Office...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD1.18M) is above average for companies of similar size in the UK market ($USD561.61K).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SHG's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: SHG's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.5%.


Top Shareholders

Company Information

Shanta Gold Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Shanta Gold Limited
  • Ticker: SHG
  • Exchange: AIM
  • Founded: 2005
  • Industry: Gold
  • Sector: Materials
  • Market Cap: UK£151.976m
  • Shares outstanding: 1.05b
  • Website: https://www.shantagold.com

Number of Employees


Location

  • Shanta Gold Limited
  • 11 New Street
  • St Peter Port
  • GY1 2PF
  • Guernsey

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 21:33
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.