Toby Bradbury, Shanta Gold Ltd’s (LON:SHG) chief executive, is to step down from the company with Eric Zurrin, currently chief financial officer, to take over.
Changes to the regulatory regime for miners in Tanzania are set to make it a much less friendly place to operate and the focus going forward will be on cost control, Shanta said.
Shanta operates the New Luika gold mine in Tanzania, where the government has recently passed laws giving it the power to renegotiate contracts, more control over ownership and has also imposed a 1% clearing charge on gold shipments out of the country.
READ: Shanta Gold happy with production but assessing Tanzania legal changes
Tony Durrant, chairman, thanked Bradbury for his contributions to Shanta as CEO over the last two and a half years.
"Under his tenure the company has made significant steps forward, particularly in demonstrating New Luika to be a sustainable, robust and reliable, low-cost gold producer."
Bradbury will retire in September following a handover period, though Zurrin takes over immediately.
The miner produced 40,073 ounces (oz) of gold in the first half of 2017 at an all-in sustaining cost of US$755 /oz.
Production in July has been maintained at those levels, Shanta said today, and it remains on track to meet full year guidance of 80,000-85,000 oz at sustainable costs of US$800-US$850/oz.
Zurrin said: "The company's assets at New Luika and Singida are of high quality and the exploration rights across the Lupa Goldfield remain extremely exciting and prospective. Our vision remains to demonstrate and deliver on the true potential value of our assets."
Shares eased 4% to 3.75p.
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