Shanta Gold Ltd (AIM:SHG, OTC:SAAGF) hailed record-breaking first-half results as it reaped the benefit of its new mine opening at Singida in Tanzania.
Revenues jumped 70% to US$88.3 million in the six months to June 2023 as gold production rose by 55% to 44,770 ounces due to Singida chipping in from March and better recoveries and purity at the existing New Luika mine, also in Tanzania.
As a result, pre-tax profit came in at US$22.7 million from a loss of US$0.9 million this time a year ago while underlying profits (EBITDA) jumped 140%.
Eric Zurrin, chief executive, said: "Today we have delivered another set of record-breaking results.
"We continue to reach new heights at New Luika and Singida, with record half-year revenues of US$88.3 million."
Zurrin also highlighted a step-change in the amount of exploration being carried out by the AIM-listed junior.
"During the period, we commenced targeted exploration programmes at Singida to unlock nearly 75% of additional resources not currently in the mine plan and outline new targets, as well as undertaking further exploration and infill drilling at West Kenya.
“Our strong production performance, underpinned by an improved output from New Luika, drives us closer towards our guidance of 90,000-98,000 oz gold production for 2023, which I am pleased to reconfirm today.”
Zurrin added cash flow was also strong with net cash at the end of the period of US$25 million allowing it to declare an interim dividend of 0.1p.