As the market value of gold mining companies around the world rises, Shanta Gold Limited, an East Africa-focused gold producer, developer, and explorer, has seen a significant rise in the market value of its shares and market capitalization in recent months.
This recent market action has resulted in a million-dollar increase in the stake of Ketan Patel, a leading Tanzanian gold magnate who owns a controlling stake in Shanta Gold Limited, a company he founded in 2001.
According to data compiled by Billionaires.Africa, the market value of his 4.22-percent stake in the gold mining company has increased by more than $2.2 million in the past 81 days, as investors rush to buy shares.
The million-dollar increase in the market value of his stake can be directly attributed to a 57.5-percent increase in Shanta Gold’s shares, which have risen from £0.068 ($0.0871) per share at the end of January to £0.106 ($0.1372) at the time of writing.
The surge in the company’s shares can be attributed to the sustained rise in gold prices on the global commodity market, as well as investors’ renewed buying interest in gold mining companies as the need to hedge portfolios against negative market dynamics or inflation arises amid economic fallout exacerbated by Russia’s military aggression in Ukraine, a crisis that has lasted nearly two months.
The market value of Patel’s 4.22-percent stake in Shanta Gold has increased from £2.99 million ($3.9 million) on Jan. 31 to £4.71 million ($6.07 billion) at the time of writing as a result of the upward share price movement on the London Stock Exchange.
This equates to a total gain of £1.72 million ($2.22 million) for the multimillionaire businessman, who is one of Tanzania’s wealthiest men.
According to experts, the recent increase in the price of gold will put Shanta Gold on track to generate higher earnings and profit from an increase in revenue as a result of the pricing benefit from gold sales.
The East African-focused gold producer increased its profit by 210 percent in the first half of its fiscal year 2021, from $1 million to $3.1 million. Earnings growth in the triple digits can be attributed to tax adjustments made during the period.
