Shanta Gold Ltd (LON:SHG) has successfully shored up its debt position while staying on track to meet its production and cost targets for the year.
The Tanzania-focused miner and explorer paid down nearly a quarter of its debt in the third quarter, shrinking net debt to US$20.7mln, down 50% over the past year, while its cash balance ticked up to $5mln.
Shanta said its adjusted EBITDA came in at US$16.5mln, a 60% rise from the second quarter.
The AIM-listed miner continued to improve production at its New Luika gold mine, with the 22,726 oz unearthed up 14% compared to the second quarter, with an increased average head grade of 4.5 grammes per tonne.
Its forward sales were cut slightly by 2,000oz to 43,000oz.
Chief executive Eric Zurrin said Shanta is on track to meet its full-year guidance, noting that net debt is “now the lowest it has been in over six years”.
"We plan to announce a new resource update shortly which will highlight how we can add low cost gold ounces to our future production and extend the mine life of New Luika," he added.
Shanta Gold also owns a 51% stake and will operate the mining projects of gold company Singida Resources PLC, which has announced its intention to float on Dar es Salaam stock exchange.
Shares got a 5% boost to 8.43p in early trading on Thursday.