Shanta Gold Limited (AIM:SHG, OTC:SAAGF) reported a 54% jump in gold production in the three months to end-June versus the first quarter and reiterated its full-year output guidance of 68,000 to 76,000 ounces.
It produced 17,527 ounces of gold from its New Luika mine in Tanzania, up from 11,408 ounces in the first quarter and 23% higher than in the second quarter of 2021. Production was 15% higher than planned for the quarter, it noted.
Gold production in June of 7,538 ounces was the highest monthly production in more than 12 months.
“At New Luika, the initial Crown Pillar mining has been delivered safely resulting in production being up 54% in Q2 vs Q1, which exceeded our internal expectations,” said chief executive Eric Zurrin.
New Luika is the company’s sole producing mine at present.
Construction at the Singida project, also in Tanzania, was 63% complete at the end of June and is on track for first gold production in March 2023, the company said.
“Singida will transform Shanta Gold into a +100,000 oz/pa producer with a diversified resource base,” said Zurrin.
Singida construction is fully funded through to first production.
Shanta had cash of about US$14.5mln at end-June 2022. It reported EBITDA of US$11.9mln, excluding operating expenditure at West Kenya and Singida totalling US$3.6mln.