JOHANNESBURG (miningweekly.com) – London-listed Shanta Gold on Tuesday reported a profit after tax of $800 000 for its first year of production ended December 31, while its loss before tax stood at $4.4-million.
The company’s revenue for its nine operational months, from April to December, amounted to $66-million generated from 48 453 oz at an average price of $1 361/oz, with an additional $22-million of revenue relating to the preproduction period having been capitalised.
Meanwhile, an operating loss of $3.2-million was incurred during the year under review, compared with a loss of $10.6-million during the prior year.
"I am encouraged by the company's performance in 2013 where we had nine months' reportable production. However, the loss before tax included a full year of administrative costs and a number of one-off costs associated with the longer-term cost reduction strategies. In addition, a significant tonnage of low-grade ore mined in the preproduction period was written off,” Shanta CEO Mike Houston commented.
Further, Shanta’s total borrowings at December 31 amounted to $64.3-million compared with $40-million at the end of the prior year, with cash and cash equivalents of $14.6-million at year-end resulting in net debt of $50-million.
Meanwhile, gold production of 64 954 oz at the company’s New Luika gold mine, in Tanzania, was slightly ahead of guidance with the successful plant optimisation having delivered its targeted output of 1 275 t/d by the end of the year.
The New Luika plant upgrade was on track and expected to be completed during the second quarter of 2014.
The mine’s production guidance for the year stood at 80 000 oz, with an all-in sustaining cost guidance of $900/oz to $1 000/oz.
Further, during the period the company’s growth potential had been enhanced through the upgrade of the resource and the declaration of a reserve at New Luika and its Singida operation, in central Tanzania, Shanta chairperson Tony Durrant pointed out.
“The projects on the extension of the life-of-mine at New Luika and the Singida mine development are at an advanced stage. The company is at an exciting point in its development and I am confident that it is well positioned to meet the challenges that lie ahead," he stated.