Shanta Gold Ltd (AIM:SHG, OTC:SAAGF) has reported steady production in its latest quarter as its new mine in Tanzania, Singida, exceeded production expectations again.
Total production in the three months to end September 2023 was 27,935 ounces, with New Luika output at 18,271 oz and Singida at 9,664 oz or 15% above forecasts.
Underlying profits were US$19 million, down from the previous three months due to higher costs and higher investment at New Luika, which is also in Tanzania.
Net debt reduced 44% to US$4.9 million at the end of the quarter compared to three months earlier.
Eric Zurrin, chief executive, said production in the third quarter had “materially” increased his confidence Shanta will hit guidance of up to 98,000 oz of gold this year.
“Our newest mine Singida continues to perform strongly, with 9,664 oz produced during the quarter, exceeding internal Q3 forecasts by 15 per cent.
“Production [at Singida] throughout the quarter remained above 3,000 oz per month, whilst operating costs and AISC were materially better than budgeted.”