20th Jul 2023 12:00
(Alliance News) - Shanta Gold Ltd on Thursday celebrated the addition of the Singida gold mine in Tanzania to its portfolio, following a "record" quarter of production.
Shanta Gold is an East Africa-focused gold producer, developer and explorer. Its East African assets are comprised of the New Luika gold mine and the Singida gold mine in Tanzania, and the West Kenya project in Kenya.
Shares in the company were trading 13% higher at 10.95 pence each in London on Thursday at noon.
For the three months ended June 30, Shanta reported group gold production of 29,403 ounces, up 92% from the first quarter. At Singida, gold production totalled 10,065 ounces, following first gold pour on March 30.
Net debt fell 54% to USD8.7 million from USD19.0 million the previous quarter.
Adjusted earnings before interest, tax, depreciation and amortisation were USD23.2 million, up from USD7.5 million.
Looking ahead, Shanta reiterated its group production guidance for the year of between 90,000 and 98,000 ounces of gold.
"The group's record performance over the last quarter has been outstanding, with the 92% increase in production figures alone demonstrating the immediate clear benefits of having added Singida to our asset portfolio," said Chief Executive Officer Eric Zurrin.
He added: "With this significant increase in production combined with a better than expected cost performance, we have been able to deliver the financial results that we have always said would come with a diversified portfolio. Not only is adjusted Ebitda up 209% on Q1 at USD23.2 million, Singida is now driving an overall improved liquidity position, adding financial flexibility to the group."
By Holly Beveridge, Alliance News reporter
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