12th Aug 2019 10:25
(Alliance News) - Shanta Gold Ltd on Monday reported an interim loss, despite a rise in production helping to drive solid revenue growth.
Shanta, which mines from Tanzania's New Luika gold mine, posted a pretax loss of USD4.1 million for the six months to June, after a USD8.4 million profit the prior year.
This came despite an 8.7% rise in revenue to USD53.6 million. The firm's cost of sales, however, increased 30%, and annual depreciation climbed 54% to USD16.6 million.
However, first-half all-in sustaining costs fell 3.6% to USD730 per gold ounce, tracking below annual guidance of between USD740 and USD780 per ounce
Shanta's first half production rose 11% on the year before, to 42,230 ounces of gold, while during the half the company also set a quarterly record for tonnes milled. Production guidance for 2019 of 80,000 ounces to 84,000 ounces has been reiterated.
"In first-half 2019 we have continued to see steady operational performance at the New Luika gold mine and remain on track to deliver both full-year production and costs within guidance," said Chief Executive Eric Zurrin.
"This has been achieved with an exceptional safety record which by the end of first-half 2019 had reached 2.9 million man-hours without an loss-time injury."
Looking ahead, Shanta is progressing with the USD20 million initial public offering in Tanzania of investee Singida Resources PLC. Since the end of June it has started production at Ilunga underground ahead of schedule, and it is also planning further drilling at Ilunga.
Shanta shares were 4.6% lower on Monday morning in London at a price of 9.22 pence each.
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