Proactive Investors - Run By Investors For Investors

Shanta Gold firing on all cylinders as Q2 production touches new record

Shanta Gold appeared to be firing on all cylinders after it reported record first quarter production from the New Luika mine in Tanzania.
Shanta Gold firing on all cylinders as Q2 production touches new record

Shanta Gold (LON:SHG) appeared to be firing on all cylinders after it reported record second quarter production from the New Luika mine in Tanzania.

It unearthed 21,940 ounces of the precious metal in the second quarter, up 8% on the prior three months, while sales were 22,400 ounces at US$1,307 an ounce. The group said all in sustaining cash costs were US$959.

The group has revised its production guidance: it said output will be 80-83,000 ounces this year compared with its previous forecast of 80,000 ounces.

Shanta expects all sustaining costs to be in the order of US$900 to US$1,000.

In a wide-ranging update, the AIM-listed company said its elution-electro-winning plant commissioned in May is “operating well” with recoveries up to 86% in June.

Meanwhile, the commissioning of a crushing and screening circuit is scheduled for the end of August.

Shanta also confirmed the New Luika life of mine extension and expansion study is on course for completion later this quarter, while the Singida mine development feasibility study is “progressing”.

It has also revealed some positive drill results at New Luika.

Financially, the firm is well set. It has cash balances of US$15.5mln, while cash flow from operations was US$7mln in the period under review. Net debt stands at US$46mln.

Chief executive Mike Houston said: "I am pleased with both our production and cost performance for the quarter. 

“The benefits of the elution-electro winning plant are already apparent even at this early stage and with the commissioning of the new crushing and screening circuit the company will have a robust plant that can cope with future throughput increases enabling us to change our guidance for gold production to between 80,000 and 83,000 ounces for the full year.

“Good progress has been made on the development front with management focusing on progression of the New Luika Life of Mine extension and Singida projects in a manner that will deliver value for shareholders while not compromising our financial stability."

View full SHG profile View Profile

Shanta Gold Limited Timeline

Newswire
October 18 2018

Related Articles

zeolite mine
September 14 2018
Zeolite may not be the most well-known mineral but it has wide applications, such as use in animal feed, as a pozzolan in cement and as an additive to soil, which could be used for cannabis plants
1517846055_Cradle-Mine.jpg
September 17 2018
Cradle Arc is ramping up copper production at its Mowana project, and further expansion is on the cards
A view of DRDGOLD's flagship Ergo asset in Johannesburg
April 30 2018
The South African miner’s appeal lies with the gold bull as bullion prices seen moving north

© Proactive Investors 2019

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