Shanta Gold PLC (LON:SHG) reaffirmed production guidance for the current year as revenues and cashflow jumped sharply.
The Tanzania-focused gold miner generated revenues of US$113mln (US$104mln) in 2019 as production rose to 84,500oz.
Underlying profits rose 4% US$47.7mln, though swaps contracts meant there was a pre-tax loss of £1.2mln and an after-tax loss of £9.5mln.
Eric Zurrin, chief executive, said production form the New Luika mine was ahead of guidance and achieved against the backdrop of an uncompromised safety record.
"Our targeted on-mine exploration activities continue to produce encouraging results and we have increased our exploration budget to US$5mlm for 2020.
“Financing for Singida [another project in Tanzania] is expected to be secured in the coming year and the company's growth pipeline has been extended significantly following the significant post-period acquisition of the high-grade West Kenya Project from Barrick Gold.
"Having reduced our net debt by 55% in 2019, we now have the financial flexibility to continue pursuing value-accretive growth opportunities for our shareholders."
Production for 2020 is forecast at 80,000 - 85,000 oz at sustaining costs of US$830-US$880/oz.