Shanta Gold Limited (LON:SHG) reported higher revenue and earnings as the New Luika gold mine produced above expectations through 2018.
New Luika produced some 81,872 ounces of gold, above guidance for 80,000 ounces.
WATCH: Shanta Gold CEO on Singida financing and looks ahead to further exploration
Revenue was reported at US$103.8mln, up from US$101.5mln in the prior year, while earnings (EBITDA) increased by 21% to US$47.7mln and operating profit rose by 75% to US$19.3mln. Net profit amounted to US$8mln.
Net debt reduced by US$8mln, to US$31.5mln. Shanta had US$9mln of cash and equivalent.
The company set production guidance for 2019 at 80,000 to 84,000 ounces.
"2018 was a transformational year for Shanta, both operationally and financially,” said Eric Zurrin, Shanta chief executive.
“It was the company's first full year of underground mining at our flagship New Luika Gold Mine, from which the company produced 81,872 oz of gold, above revised guidance of approximately 80,000 ounces and at AISC of US$730 per ounce.”
In early afternoon trading, shares in Shanta Gold were 2% higher at 5.15p.
-- Adds share price --