Shanta meets full year targets

28th February 2020 By: Tasneem Bulbulia - Senior Contributing Editor Online

Aim-listed Shanta Gold recorded a successful full year to December 31, delivering on all of its operational targets, CEO Eric Zurrin said on Friday.

The company's focus remained on its flagship asset, the New Luika Gold Mine (NLGM), located in south-west Tanzania, throughout the year.

The asset produced 84 506 oz of gold, which was ahead of guidance and achieved against the backdrop of an uncompromised safety record, enthused Zurrin.

Shanta’s targeted on-mine exploration activities continued to produce encouraging results and the company has increased its exploration budget to $5-million for this year.

“Financing for Singida is expected to be secured in the coming year and the company's growth pipeline has been extended significantly following the acquisition of the high-grade West Kenya project from Barrick Gold. 

“Having reduced our net debt by 55% in 2019, we now have the financial flexibility to continue pursuing value accretive growth opportunities for our shareholders,” Zurrin said.

Revenue was $112.8-million at an average realised gold price of $1 377/oz.

Adjusted earnings before interest, taxes, depreciation and amortisation were $47.7-million, up 4% from 2018.

Shanta expects to produce 80 000 oz to 85 000 oz of gold this year, at an all-in sustaining cost of $830/oz to $880/oz.