Shanta Gold Limited (AIM:SHG, OTC:SAAGF) said it increased production by 11% in its latest quarter with new mine developments at West Kenya and Singida said to be making good progress
The East Africa-focused miner, which recently received three bid approaches, said output in the third quarter of 2022 was 19,532 ounces though it now expects total production for 2022 to be at the bottom of its 68,000-76,000 ounces guidance range.
In a statement, Eric Zurrin, Shanta chief executive, said: "The team has once again delivered a very strong operational performance, with production up 11% on the previous quarter. In addition to this, drilling at West Kenya and construction work at Singida are both progressing well, and we remain on track for first gold pour at Singida in March 2023.“
Shanta said its underlying profits for the quarter were US$10.9mln (Q2: US$11.9mln) excluding operating expenditure at West Kenya and Singida.
Zurrin added: “We continue to maintain a healthy cash position, boosted by the drawdown of the US$20 million loan facility, and we are using this to accelerate growth in Shanta's portfolio.
"As we soon transform into a +100,000oz producer in Q1 2023, with a diversified asset base and an enhanced balance sheet, I am confident in the growth opportunities available to Shanta."