Proactive Investors - Run By Investors For Investors

Costs tumble at Shanta Gold's Tanzanian mine

Development of Ilunga deposit brought forward by more than a year
gold
Ilunga will now come on stream in 2019

Production costs tumbled at Tanzania-based gold miner Shanta Gold PLC (LON:SHG) in the last three months with further savings expected over the remainder of the year.

Shanta will shift operations at New Luika completely underground from the end of August as sufficient ore has been stockpiled to enable the open pit fleet to ‘stand down’, said chief executive Eric Zurrin.

READ: Shanta meets US$7mln cost reduction target three months early

Shanta produced 20,544 ounces in the three months to June, up from 17,663oz in the previous quarter, while operating costs dropped to US$505 per oz from US$595.

On a sustaining basis, costs were US$748 per oz, but are expected to drop to within a range of US$680-730 by the year-end.

Sales over the quarter amounted 19,475oz at a price of US$1,302.

Zurrin added the company has decided to move forward the start of underground production at the Ilunga deposit by more than a year to mid-2019, with final permitting by the end of this year.

Net debt rose to US$38.1mln (US$37.5mln), while VAT owed to the company is now US$17.9mln.

"The cost saving initiatives that were executed in Q4 2017 are now beginning to have a significant impact on both costs and cash flow. The full effect of additional savings executed in Q2 2018 will be seen over the coming months, said Zurrin

"We are continuing the development programme at Singida following the announcement of a new JORC resource estimate, which included a 56% increase in Measured resource."

View full SHG profile View Profile

Shanta Gold Limited Timeline

Newswire
October 18 2018

Related Articles

Drill rig
November 20 2018
The gold exploration and development company is focused on Mali and Ghana in West Africa
Gold fragments
October 11 2018
SP Angel said the company could be “one of the top-yielding precious metals producers on the London market”
Shanta Gold
December 05 2018
Shanta expects production to top 100,000 ounces of gold a year once its Singida project in Tanzania comes on stream in 2020

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use