Tanzanian mining mogul Ketan Patel’s shares in Shanta Gold Ltd. have risen by $3.14 million (£2.21 million) in 61 days.
Shanta Gold is an East Africa-focused gold producer with an operational base in Tanzania.
The company has two defined ore resources in Tanzania and holds exploration licenses covering approximately 1,100 square kilometers.Â
The recent gains in Patel’s stake were triggered by market forces and buyer actions resulting in a 43-percent surge in the company’s share price.
Since early April, the share price of Shanta Gold on the London Stock Exchange has increased from $0.17 (£0.12) on April 1 to $0.24 (£0.17) as of midday today, June 1.
A small-cap* stock, the company has returned tremendous value to shareholders.
Despite its valuation, Shanta Gold’s market capitalization has surged from $173 million (£123 million) on April 1 to $248 million (£175 million) today. Therefore, it has secured a market value gain of about $74.3 million (52.4 million) for its shareholders in just 61 days.
Patel is a substantial shareholder in the gold exploration company. He is also the founder of Shanta Mining Company Ltd., a subsidiary of Shanta Gold.
The businessman holds 44,274,017 shares, or 4.22 percent of the total equity in Shanta Gold. His shares have increased in market value by about 43 percent since April 1.
With the recent gains, the value of Patel’s stake has increased from $7.34 million (£5.18 million) to $10.48 million (£7.39 million) between April 1 to June 1.
This translates to an overall increase of $3.14 million (£2.21 million) for the Tanzanian businessman.
In addition, Patel received a final dividend of $0.0014 (£0.001) per share on his stake in Shanta Gold in April.
*Small-cap stocks are shares of companies with a market capitalization of less than $2 billion. Ordinarily, a company with a market capitalization of between $300 million and $2 billion.
