18th Apr 2019 11:17
LONDON (Alliance News) - Shanta Gold Ltd on Thursday said it is on track to meet its annual guidance following a 27% rise in first quarter production from its New Luika gold mine in Tanzania
The East Africa-focused precious metal producer said gold output in the three months to the end of March was 22,374 ounces, up from 17,663 ounces the year prior, and comfortably on track to meet annual guidance of between 80,000 ounces and 84,000 ounces.
The increased quarterly output led to earnings before interest, taxes, depreciation, and amortization of USD11.4 million, up 25% from USD9.1 million in the first quarter of 2018.
Meanwhile, all in sustaining costs of USD701 per ounce were lower than annual guidance of between USD740 and USD780 per ounce.
Average head grade totalled 4.5 grams per tonne for the first quarter, 3% higher than average grades processed during 2018.
Bullion available for sale increased to USD2.5 million from USD1.5 million at the end of the fourth quarter of 2018.
"I'm pleased to report on an exceptionally strong start to 2019. In terms of production we have had our best opening quarter in three years," said Chief Executive Eric Zurrin.
"This strong start to the year puts us in an excellent position to achieve full year guidance on both costs and production as well as to be in a net cash position midway through next year," added Zurrin.
Shanta Gold shares were trading 1.7% lower on Thursday at 6.68 pence each.
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