Shanta Gold climbed 13% on an upbeat second-quarter update that attracted plaudits from the City.
Liberum said it had been an excellent quarter for the Tanzania -focused gold miner, especially the new Singida mine, which it described as a "perfect start-up" and delivering beyond expectations on recoveries (97.3% in the second quarter versus New Luika peak of 92% in 2017).
“Understandably, management is now questioning whether the life of mine recoveries may have been underestimated (Liberum estimate of 90% in line with New Luika historic average).”
At New Luika, high-grade ore was delivered steadily from underground to the plant.
Grades of up to 3.13g/t in the second quarter versus 2.52g/t in quarter one, driving the majority of the 26% quarter-on-quarter lift in production, and the corresponding 17% q-o-q fall in the all-in sustaining costs to $1,181/oz.
Shares rose by 1.28p to 10.98p.