JOHANNESBURG (miningweekly.com) – The major redevelopment of Aim-listed Shanta Gold’s New Luika mine, in Tanzania, between January and May, as well as the volatile gold price, resulted in a drop in the company’s revenue to $31.9-million in the six months ended June 30, compared with $58.3-million in the first half of 2014.
The company recorded losses before and after tax of $10.3-million and $8.3-million respectively.
While the redevelopment invariably impacted production – output decreased to 28 180 oz from 42 194 oz in the comparative period in 2014 – and cash at hand, production was restored to budgeted levels from June.
Shanta had grown its resource base in the six months under review, publishing a New Luika mine Joint Ore Reserves Committee-compliant resource and reserves update and a resource definition drilling update from Elizabeth Hill.
“The optionality and scalability of the operational improvements established in the first half will offer material reductions to future mining costs and we remain on track to deliver full year production of 72 000 oz to 77 000 oz at an all-in sustaining cost of $850/oz to $900/oz,” CEO Toby Bradbury commented.
The company expected the gold price to remain volatile for the remainder of the year.
However, it has already sold forward at least 60% of the forecast production for the remainder of the year at an average price of $1 222/oz.