17th Sep 2013 08:55
LONDON (Alliance News) - Shanta Gold Limited Tuesday said it significantly narrowed its losses in its first half year as the New Luika Gold Mine brought first production to the company.
The newly producing gold miner, with operations in Tanzania, said its pretax loss significantly narrowed to USD1.4 million from USD7.0 million for the six months to June 30.
The company made its first sales totalling USD14.7 million as the New Luika Gold Mine moved from development to commercial production in April. The site produced 26,336 ounces of gold and the company achieved an average gold price of USD1,408 per ounce during the period.
Shanta Gold said its operating loss also narrowed by 25%, to USD4.0 million from USD5.4 million as revenues offset increased costs, administrative expenses and further exploration costs.
The company said that although it is only in the early stages of production, it expects further plant upgrades in early 2014, which it expects will increase output and improve its cost structure.
"The first half of the year has seen Shanta Gold make significant progress at both a corporate and operational level. The company is well positioned to deliver an increased output profile and a more competitive cost structure in the second half of the year and beyond," Chief Executive Officer, Mike Houston, said in a statement.
Shanta Gold shares were trading flat Tuesday at 14 pence.
By Tom McIvor; [email protected]; @TomMcIvor1
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