Shanta Gold’s (LON:SHG) production recovered strongly in the second half of 2015 after another record quarter at its New Luika mine in Tanzania.
New Luika’s output rose to 29,139 ounces in the three months to December, 19% higher than the previous quarter, to take the total for the year to 81,873oz.
That compared to a forecast of between 72-77,000, though still below the previous year’s 84,000 oz.
Shanta expects to exceed that this year, however, with the production forecast for 2016 between 82,000 - 87,000 oz at a sustaining cost of between US$750-US$800 /oz.
That would be well below 2015’s average sustaining cost of US$845 /oz (US$941 in 2014).
Cash costs also fell in the final three months to just US$401 per oz and US$595 /oz on a sustaining basis.
Gold sales also hit a record in the last three months, with 29,228 oz sold at an average price of US$1,087 per oz.
For the year overall Shanta sold 80,622 oz at an average price of US$1,163/oz.
Net debt at the year-end fell to US$41.1mln due to improved cash generation.
Shanta added it had forward sales of 30,000 oz contracted over the current six months to June at an average price of US$1,129/oz.
Toby Bradbury, chief executive said it been twelve months of sustained operational improvement.
“Production and cost forecasts set in April 2015 have been exceeded, with more ounces being produced at a greater margin.
"As reported in April, 2015 was to be a year of two halves reflecting a fundamental redesign of operations to deliver maximum and optimised value.
“New Luika's true value and potential are becoming increasingly clear and we remain confident of delivering a sustainable, strongly cash generative business with real scope to extend its mine life.”