Shanta Gold Limited (AIM:SHG, OTC:SAAGF) climbed to the top of AIM risers as it revealed a 92% jump in gold production from its operations in Tanzania in its latest quarter as a new mine at Singida came on stream.
Singida contributed 10,065oz following the first gold pour in March out of a total of 29,403oz in the three months to June.
The existing New Luika mine registered a 26% improvement to 19,338oz.
As a result, underlying profits (adjusted EBITDA) jumped 209% to US$23.2mln with lower costs and a strong gold price and with no hedging also helping the bottom line, Shanta said.
Guidance for the current year overall remains 90,000-98,000oz, Shanta added.
Eric Zurrin, chief executive, commented it had been an “outstanding” performance over the past three months from the group.
“With this significant increase in production combined with a better-than-expected cost performance, we have been able to deliver the financial results that we have always said would come with a diversified portfolio.
“Not only is adjusted EBITDA up 209% on Q1 at US$23.2m, Singida is now driving an overall improved liquidity position, adding financial flexibility to the group."
There had also been no safety interruptions this year so far, added Zurrin.
Around 9.25 am, Shanta shares were 1.28p higher at 10.98.