19th Jul 2018 13:22
LONDON (Alliance News) - Shanta Gold Ltd on Thursday restated its full-year production guidance after gold output improved in the second quarter of its current financial year at its new Luika gold mine in Southwest Tanzania.
The gold producer said quarterly gold production at its new Luika mine increased to 20,544 ounces in the three months to the end of June from 17,663 in the prior quarter.
Quarterly gold sales totalled 19,475 ounces at an average price of USD1,302 per ounce.
Ore production averaged 46,300 tonnes per month from the Bauhinia Creek and Luika deposits, with open pit mining contributing an additional average monthly feed of 19,400 tonnes.
During the period, the company said it achieved new record for monthly underground production. In June, Shanta Gold mined 51,130 tonnes of ore and 8,705 ounces of gold.
In the final quarter, the company launched a cost savings programme, which brought a reduction in all in sustaining costs in the second quarter of current financial year to USD748 per ounce from USD776 per ounce in the first quarter.
Looking forward, the company said it expects to produce between 82,000 and 88,000 ounces of gold in 2018.
"This was a strong quarter for the company, with operations performing to plan, an increase in gold production, and importantly, we continue to reiterate our production guidance for the year," said Chief Executive Eric Zurrin.
"The cost saving initiatives that were executed in the fourth quarter of 2017 are now beginning to have a significant impact on both costs and cashflow," added Zurrin. "The full effect of additional savings executed in the second quarter 2018 will be seen over the coming months."
Shares in Shanta Gold were trading 1.6% lower on Thursday at 5.61 pence each.
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