Shanta Gold (LON:SHG) more than quadrupled the cash generated from its New Luika mine in its latest quarter.
The amounted generated from its mining operations rose to US$13.1mln from US$2,8mln in the first three months.
Cash in Total at the end of the quarter was US$30.5mln (US$16.3mln). Net debt was US$44.5mln at the end of the half.
Shanta has just started work on an underground operation at New Luika (in Tanzania) that aims to have 70% of mined underground by next year.
Total costs of the development have been put at US$38mln.
Production in the June quarter totalled 23,900oz (24,340), with sales of 26,100oz at a higher than spot price of US$1,246 per oz. All-in-costs were US$664 per oz.
For the full year, Shanta maintained its production guidance at 82,000-87,000oz with the forecast for all-in-costs reduced to US$730-780 per oz.
Toby Bradbury, chief executive, said the first half benefited from a higher gold price and lower costs.
“With the transition to underground mining at the New Luika Gold Mine, the second half will sustain mill throughput of slightly lower grade ore as planned ensuring full year production guidance is maintained.
“Our objective continues to focus on dependable low cost and sustainable production and delivery of gold at an AISC of below $780 /oz which results in exceptional cash generation."