Shanta Gold is “firmly back on track” after a second-quarter which saw a 54% lift in gold production, beating estimates by 21%.
The AIM-listed mining company, which predominantly operates in Tanzania, reiterated its year-end production guidance of 68-76koz, though analysts at Liberum have lifted their expectations to the upper end of that range.
Underlying earnings (EBITDA) for 2022 are expected to increase by 121% on a year-on-year basis.
Liberum said: “Production was up 54%, from admittedly low levels, but should be up again in subsequent quarters, further pushing down unit costs and boosting FCF (free cash flow).”
A mining site in Singida, central Tanzania, is expected to commence operations in March 2023.
SHG was up 2.9% to 885p on Thursday July 21.