Shanta Gold Limited (LON:SHG) has reported a strong final quarter of 2017 for its New Luika Gold Mine, in Southwest Tanzania, with gold production of 21,288 ounces, an increase of 17% on the third quarter.
In a fourth quarter production and operational update, the East Africa-focused gold producer and explorer said its annual gold production for 2017 was 79,585 oz, consistent with its guidance of approximately 80,000 oz. The group said its annual guidance for 2018 is 82,000−88,000 oz.
Shanta said 2017 gold sales totalled 79,938 oz, down from 86,331 oz a year earlier, at an average price of US$1,263 per oz, compared to an average spot price of US$1,258 /oz.
Eric Zurrin, Shanta’s chief executive officer, said: “The Company expects to continue reducing its net debt and restructuring the business to deliver improved, sustainable cash flows going forward. With this in mind, we have increased our annual cost saving target to US$7.0mln from the previous US$5mln target.”
He added: “These initiatives are expected to result in another year of deleveraging and management expects to be in a position to evaluate the dividend policy during the fourth quarter of 2018 in preparation for subsequent financial periods."