Aim-listed Shanta Gold produced 23 942 oz of gold from its New Luika mine, in Tanzania, in the fourth quarter last year – a 21% increase compared with the third quarter.
Production was achieved at a cash cost of $514/oz and an all-in sustaining cost (AISC) of $701/oz.
The average head grade for the quarter was 4.7 g/t gold, which is 12% higher than the average quarterly grades for the prior quarters.
The mine milled a record 60 304 t in December and a record 172 902 t in the fourth quarter, while a new all-time record was also set for tonnes mined from underground, at 157 952 t, in the fourth quarter.
The company’s debt was also as its lowest level in six years in the fourth quarter, at $31.5-million, down from $35.1-million in the third quarter.
Shanta produced 81 872 oz of gold for 2018, which was above the 80 000 oz guidance set for the year.
The company achieved earnings before interest, taxes, depreciation and amortisation of $45-million, which is 21% higher than in 2017, despite revenues having increased by only 2%.
Shanta milled an all-time record of 639 679 t for 2018.
Meanwhile, Shanta is on schedule with underground preproduction development at Illunga, with first development ore expected in March, which is ahead of the original mid-year target.
A campaign has progressed to 50% completion to evaluate Shanta’s regional licence potential across the Lupa goldfields.
Drilling at Quartzberg was progressing well, while drilling was planned to start at Bauhinia Creek – a high-grade underground deposit – by mid-year.
Shanta’s 2019 exploration budget has been doubled to $3.6-million.
The company has set its 2019 production guidance at between 80 000 oz and 84 000 oz, at an AISC of between $740/oz and $800/oz.