19th Apr 2018 13:12
LONDON (Alliance News) - Shanta Gold Ltd on Thursday said that a fall in production and sales volumes in the first quarter of 2018 was in line with the revised mine plan implemented last year.
The East Africa-focused gold explorer said its gold production amounted 17,663 ounces for the three months to the end of March, representing a decline versus 21,288 ounces of gold produced in the fourth quarter of 2017. This was due to the decline in its mining profile following the reduced mine plan.
Shanta Gold sold 17,691 ounces of gold during the period, compared with 20,217 ounces sold the quarter before. The average price stood at USD1,329 per ounce, up from USD1,271.
The company mined a total of 142,784 tonnes of ore, slighly below 143,092 mined in the prior quarter.
Shanta Gold said it is continuing to reduce its debt to increase financial flexibility and higher free cash flow going forward. It had USD11.7 million in cash and USD49.2 million debt at the end of the period. At the end of 2017, the company posted cash balance of USD13.6 million and borrowings of USD53.0 million.
The group said its cost reduction programme brought the first effects in 2017. It now targets to save UDS7.0 million per annum on an annualised basis.
"The reduction in underground tonnes compared with the previous quarter was in line with the revised mine plan implemented last year. While this resulted in less ounces being produced in the period, the company remains on track to achieve our previously stated guidance of 82,000 to 88,000 ounces in 2018," said Chief Executive Eric Zurrin.
"Continued deleveraging of the balance sheet remains a high priority and, supported by a performing gold price, the production schedule for the remainder of the year puts us on track to make significant headway," Zurrin added.
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