Shanta Gold Ltd (AIM:SHG, OTC:SAAGF)’s strong run of form is continuing, says house broker Liberum, with both of its operating mines in Tanzania delivering above expectations in its latest quarter.
Guidance for the year to end December 2023 was reiterated at 90-98,000oz of gold production, but Liberum expects the company to come in just over the top of that.
The new mine, Singida, was the standout on continuing excellent gold recoveries of 97.4%, it added, “which bodes well for Life of Mine lift in expectations”, added the broker.
Despite the increased spend on exploration (West Kenya), Shanta also deleveraged with net debt at US$4.9 million, from US$8.7 million three months earlier.
'Buy' with a target price of 21p is the house view.