Higher grades at one of the main deposits at its New Luika mine in Tanzania helped Shanta Gold Limited’s (LON:SHG) underlying profits jump 21% in 2018.
Gold production for the year was 81,872oz against guidance of 80,000oz as the higher grades at Bauhinia Creek meant fourth-quarter output rose to almost 24,000oz.
WATCH: Shanta Gold sets new records in fourth quarter as exploration remains key focus
Eric Zurrin, chief executive, said the fourth quarter had seen a number of new operational records while net debt of US$32mln was the lowest in six years.
"This is despite not receiving any VAT refunds in 2018 and with continued investment across our operations,” he said
"Exploration remains a key priority for Shanta and we have doubled the budget for 2019.
“Shanta's drilling programme will commence in the next few months starting with Bauhinia Creek high-grade underground targets."
Annual guidance for 2019 is 80,000−84,000 oz at sustaining costs of US$740-800/oz.
For the year just ended, cash costs were US$538 /oz and AISC of US$731 /oz.