Liberum starts Shanta Gold at 'buy', says shares are 'cheap' at spot prices

They also called attention to the outfit's efforts to develop the recently-acquired West Kenya resource, which with 1.2m ounces of gold at a grade of 12.6 grammes per tonne was, in their opinion, a "bargain".

Indeed, an upcoming scoping study would outline its potential.

More generally said the analysts: "Management’s efforts over the past few years mean that the company can deliver on many fronts simultaneously. That should drive a re-rating from very low multiples."

Liberum added that the company, whose shares were trading on an estimate 2021 price-to-earnings multiple of 4.2 at then current spot prices were "cheap".

Furthermore, they argued that "there is little to blunt a strong market outlook for gold."

The group was also almost net cash and its hedges were set to fall away before the end of the year.