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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Shanta Gold is up 30% in less than three months: time to take profit

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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Shanta Gold (SHG:AIM) 11.85p
Gain to date: 31.2%
We made African gold miner Shanta Gold (SHG:AIM) one of our key picks for 2023 in the expectation of higher gold prices and with the hope strong operational progress from the company could offer gains over and above those enjoyed by the precious metal.
WHAT HAS HAPPENED SINCE WE SAID TO BUY?
Both parts of our investment case have paid off. Gold prices have gone higher, with the latest leg up driven by a crisis in the banking sector. Prices recently moved above the $2,000 per ounce mark for the first time in a year as investors sought out its safe haven credentials.
For its own part Shanta remains on track for first production from its Singida project any day now and has announced positive news on reserves and resources for its Kenyan and Tanzanian assets.
Less positively, production for the fourth quarter fell short of expectations at 65,200 ounces versus the lower end of previous guidance at 68,000 ounces. Power issues and reduced availability of equipment affected the company in the final three months of 2022.
WHAT SHOULD INVESTORS DO NOW?
As the fourth quarter production miss shows, Shanta is still exposed to operational risks. With gold’s recent strength helping to lift shares well above our entry point we think it would be worth investors booking profit.
A 30%-plus return in three months is beyond our initial expectations. Therefore, it is time exit in our view. Investors looking to remain exposed to gold could consider switching into iShares Gold Producers ETF (SPGP) which we recently added to our regular Great Ideas portfolio.
This ETF tracks a diversified basket of larger gold miners meaning the risk of being tripped up by individual company failings is heavily mitigated.
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Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.
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