East Africa-focused gold miner Shanta Gold is three months ahead of its plan to reduce costs by $7-million on an annualised basis.
Since announcing its target to reduce annualised costs by a further $2-million in January, the Aim-listed company has achieved an additional $2.1-million of recurring cost reductions, taking the total annualised cost reductions achieved to $7.2-million.
The cost reductions are the result of renegotiated contracts with suppliers and the elimination of nonessential general and administrative expenses.
The full benefit of the cost reductions will be realised in the third quarter of the year, the company announced on Tuesday.
According to CEO Eric Zurrin, these further cost reductions cement Shanta Gold’s position as one of the lowest cost producing gold mining companies in Africa and form part of its overriding strategy of maximising value for its shareholders.