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Gold & silver

Shanta Gold full year numbers show increased revenues and lower costs

Shanta has boosted revenues from increased production at New Luika

Shanta Gold Limited (LON:SHG) turned in revenues of over US$107 mln during the year to December 2016 on production of 87,713 ounces of gold from its New Luika gold mine in Tanzania, up from the US$95.7 mln posted for 2015 on production of just under 82,000 ounces.

The average realised gold price was higher and earnings rose significantly, from US$31.9 in 2015 to US$50.2 mln this time round, while cash generated from operations rose to US$50.1 mln from US$31.8 mln).

Meanwhile, all in sustaining costs dropped significantly, to US$661 per ounce, from US$834 per ounce.

Overall losses fell to US$8 mln from US$17.3 mln as Shanta invested US$54.6 mln back into the business.

Cash and cash equivalents stood at US$14.9 mln at year end, with net debt at US$44.2 million.

Shanta also announced the appointment of Keith Marshall as non-executive director. Marshall has long years of experience in the mining industry, including a stint as President of the famous Oyu Tolgoi mine in Mongolia.

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