Shanta Gold Ltd reiterated that it expects production to pick up again in 2022 after technical issues at its New Luika mine in Tanzania in the early part of 2021.
Production forecasts for this year are in a range of 68,000 to 76,000oz, at a sustaining cost of US$1,050 – 1,250 per oz, compared with 55,300oz in 2021, the miner said in a statement.
Lower production and sales affected 2021 revenues, which dropped to US$103.6mln from US$147.4mln although a 20% rise in the price Shanta received for its gold to US$1,801 per ounce helped to offset this.
Profits for the year dropped to US$1mln from US$39mln, with a net loss after tax of US$7.2mln.
Shanta added that construction of the new Singida mine in Tanzania is now 45% complete and will largely be finished by the end of 2022 with the first pour scheduled for early in 2023.
Exploration at its West Kenya acreage has also delivered consistently encouraging high-grade drilling results, it said, including spectacular visible gold and the company remains confident production will rise to 100,000oz early in 2023.
Eric Zurrin, chief executive, added: "Despite the initial challenges we faced as a company during 2021, I am pleased to report that Shanta ended the year in a strong position, with reporting in line with revised guidance and operations across all three assets positively poised for the coming year.
"Our exceptional safety record and stable financial performance have once again provided a platform from which the company is now able to grow substantially, with Shanta on a clear path to becoming a +100,000oz producer by early 2023.”