leadf
logo-loader
viewShanta Gold Limited

Shanta Gold eyes net cash position as production exceeds forecast

For 2020, Shanta expects to produce between 80-85,000oz at a sustainable cost of US$830-880/oz.

Shanta Gold Limited -
New Luika is in Tanzania

Shanta Gold Limited (LON:SHG) comfortably beat its 2019 production forecast even with reduced output from the New Luika mine in the fourth quarter.

The Tanzania-based miner produced 19,550 ounces (oz) of gold in the last three months taking the yearly total to 84,500oz, 500oz better than the top of the guided range.

Head grade in the last three months was 3.8 grammes per tonne (g/t) compared to 4.5 g/t in the previous quarter, while costs were also affected by an overhaul of its power station generator.

For 2020, Shanta expects to produce between 80,000-85,000oz at a sustainable cost of US$830-880/oz.

Eric Zurrin, Shanta's chief executive said the strong cash flow currently being generated will clear the group's debts fully during the year.

"The company has achieved a number of important objectives in 2019, with gold production exceeding guidance and net debt expected to soon move to net cash.

“Mine life at New Luika continues to be a priority and the board have approved a significantly increased exploration budget for 2020 as we look to upgrade resources and identify new ounces," he added.

Quick facts: Shanta Gold Limited

Price: 17.815 GBX

AIM:SHG
Market: AIM
Market Cap: £151.17 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Shanta Gold Limited named herein, including the promotion by the Company of Shanta Gold Limited in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Morning Report: Touchstone Exploration reports significant discovery at...

Headlines from the Proactive UK newsroom. Touchstone Exploration (LON:TXP) has made what it says is a significant crude oil discovery on the Ortoire exploration block, onshore Trinidad. Logs from the Cascadura-1 well indicate 1,037 feet of oil pay, which far exceeds pre-drill expectations...

on 16/12/19

2 min read