Quick Portfolio Review – Q1 has been pretty poor for me – up 1.3%. vs 9% for the FTSE All share.
This is despite being up at various points. My general policy of not runing a stop loss has hurt me. It might be time on my more liquid holdings to consider putting stop losses in. This is very much a function of where we are in the cycle – likely near the top / end and not a general policy. Whilst some people would say that not having stop losses is irredemably reckless I would disagree.
Continue reading “Porfolio Review Q1 2019”
Opened a very small, c1.2% portfolio weight position in Shanta Gold.
Shanta is a London-listed Tanzanian small cap production company. It has a 33m GBP market cap and is trading at a forward PE of around 2.6 / historic of 3.2 or EV/EBITDA of c2. (source).
The company is a standard, small, gold producer. It has a good cost base – cash cost c $505/oz / all in cost of c$750/oz. There appears to be lots of opportunity in its holdings to expand production. They have just released an RNS valuing their Singida project at c $31m USD at a (highly optimistic) 8% discount rate. They say they will develop it at no cost to existing shareholders – as the company is worth c$44m Equity and c$35m net debt this is potentially significant – even if we say it’s only worth c $20m.
Continue reading “Shanta Gold #SHG – Multiple catalysts, multiple risks, low valuation”