JOHANNESBURG (miningweekly.com) – Aim-listed Shanta Gold has beat its 72 000 oz gold production guidance for 2015, producing 81 873 oz for the year.

The East Africa-focused gold producer noted that this came on the back of record quarterly production of 29 139 oz at its New Luika gold mine, in Tanzania, in the three months to December 31, up from the 24 532 oz produced in the previous quarter.

Shanta also reported record quarterly gold sales of 29 228 oz at an average price of $1 087/oz, compared with the average spot price of $1 103 /oz, while sales for the year reached 80 622 oz at an average price of $1 163 /oz.

The miner had a cash balance of $19.1-million, with cash generated from operations in the fourth quarter amounting to $17.3-million and $34.9-million for the year.

Capital expenditure during the quarter reached $6.2-million, down from $7.3-million spent in the third quarter, owing to cash costs for the quarter being $401/oz, compared with $453/oz in the third quarter.

All-in sustaining costs (AISC) for the quarter were $595/oz, also lower than the $608/oz reported in the third quarter. AISC for the year were just below the guidance of $850/oz, at $845/oz.

“New Luika's true value and potential are becoming increasingly clear and we remain confident of delivering a sustainable, strongly cash-generative business with real scope to extend its mine life.
 
"We continue, as a matter of course, to seek value improvements in our operations, while progressing exploration within and surrounding our mining licence.

“Alongside the New Luika mining operations, development of the underground [mine] is the major focus for the year and this will provide the foundation for an evolving and increasing mine life,” CEO Toby Bradbury said in a statement.

Shanta was targeting output of 82 000 oz to 87 000 oz at an AISC of $750/oz to $800/oz for 2016.