Aim-listed Shanta Gold finished the 2022 financial year with 18% higher gold production, at 65 209 oz, with strong operational progress having been made across all three of the company’s assets.

Output came from the New Luika gold mine, in Tanzania, with the Singida gold project in the same country nearing first production in the coming weeks.

The Singida project will increase the group’s production by at least 45% to about 100 000 oz/y.

The third asset, the West Kenya project, in Kenya, continues to deliver encouraging assay results including 67 visible gold intersections since drilling in the area started in January 2021.

Shanta has continued with exploration work at new and existing targets, including Miruka, Anomaly 22 and Kimingini, this year.

At New Luika, Shanta continues working on extending the current reserve life of the mine, having added 92 500 oz of contained reserves in 2022.

This while exploration work has also significantly enhanced the Singida project’s upside potential.

Meanwhile, the company posted gross profit of $25.4-million for the year ended December 31, 2022, which is slightly lower than gross profit of $26-million posted in 2021.

Both adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) and operating profit were higher at $29-million and $6-million, respectively, compared with adjusted Ebitda and operating profit of $25-million and $4.7-million in the prior year. 

Shanta reports that its average selling price for gold in 2022 at $1 791/oz was lower compared with the average selling price of $1 801 in 2021.

The board has proposed a final dividend of $1.3-million, or 0.1p apiece, which will be approved by shareholders at a yearly general meeting in April.

CEO Eric Zurrin comments that 2022 was a successful year for Shanta, as 2023 will also likely be, with all three assets offering serious growth opportunities.

The company has set its yearly guidance for New Luika at between 66 000 oz and 72 000 oz, and will release guidance for the Singida mine once it starts with commercial production.