Shanta swings to loss, reiterates guidance
East Africa-focused Shanta Gold has reported a loss of $5.70-million for the six months ended June 30, despite revenue increasing in line with more ounces being sold and a marginally higher average selling price.
The after-tax net compares with a profit of $7.1-million in the corresponding period last year.
The miner’s revenue increased from $49.3-million to $53.6-million in the six months under review, generated from the sale of 41 049 oz of gold at an average price of $1 306/oz. The cost of sales, however, increased by 30% to $28.95-million and depreciation charged increased by 53% to $16.56-million.
Shanta produced 42 203 oz at an all-in sustaining cost (AISC) of $730/oz in the half-year, which placed the gold firm on track to deliver its full-year production and costs within guidance. The yearly guidance is estimated at between 80 000 oz and 84 000 oz, at an AISC of $740/oz to $780/oz.
Shanta Gold, headed by CEO Eric Zurrin, confirmed on Monday that it would continue exploration drilling at its New Luika gold mine, with drilling expected to result in the replacement of 2019 reserve depletion at $2/oz exploration cost.
Wholly-owned subsidiary, Singida Resources, meanwhile, would proceed with a targeted $20-million minimum equity offering through an initial public offering (IPO) on the Dar es Salaam stock exchange.
IPO proceeds would finance the upfront capital to bring the project into production and provide additional funds for exploration, the miner said.
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