How it's doing
in the first quarter of 2020 it produced 20,167 ounces of gold from its Tanzanian operations, up from the 19,550 ounces produced in the previous three months.
In its first-quarter production update, Shanta also said its earnings rang in at US$15mln, and cash and available liquidity were boosted to US$15.7mln.
Plans to float its Singida gold mining asset in Tanzania on the Dar es Salaam stock exchange are progressing.
The gold miner wants to raise US$20mln to develop Singida, with the IPO documents now lodged with the Tanzanian authorities.
Shanta will retain at least 51% ownership of Singida and will operate the project with the money to be used to start production and for exploration to expand the resource.
Newly published project economics suggest production will average 26,000oz per annum for an initial six-year period.
Singida will cost US$16mln to get up and running and a further US$3mln in working capital but the investment is expected to pay off as the project has a net present value of US$31mln and an internal rate of return of 67%.
A life project cash cost of US$794/oz is well below the price of gold.
Shanta sees “significant further upside” for the project with substantial resources – around 344,000oz – currently sitting outside the project economics.
What the boss says: Eric Zurrin, chief executive
''Our balance sheet's in the best condition it's been for six or seven years .... by the end of June Investec will no longer be a lender - that's a milestone as Shanta has never not had a secured lender in its producing history''.
Watch the interview
- Details of Singida IPO
- More VAT repayments from Tanzanian government
- Gold price continues to rise
- Resource upgrade from drilling at New Luika satellite deposits
Production above 100,000oz takes Shanta to next level in league of miners
Additional acreage around New Luika and Singida can boost output even more