https://www.engineeringnews.co.za

Shanta to enter net cash position in 2020

16th January 2020

By: Creamer Media Reporter

     

Font size: - +

East Africa-focused gold miner Shanta Gold says it is well-positioned for another strong year, after having exceeded its production guidance for 2019.

It produced 84 506 oz of gold in the 12 months to December 31, above the guided 80 000 oz to 84 000 oz.

All-in sustaining costs (AISC) for the year, at $779/oz, were also in line with guidance of $740/oz to $780/oz.

During the last quarter of the year, Shanta's New Luika mine, in Tanzania, was successfully connected to the Tanzania Electric Supply Company's (Tanesco's) power grid, following the construction of the required infrastructure.

The connection to the grid is expected to give the mine access to low-cost power supply that could help Shanta access lower-grade ounces by lowering overall costs. The connection to the grid also diversifies the mine's available power sources.

The mine will initially draw 10% of its power requirements from the Tanesco grid and this might increase to 25% at a later date.

By December 31, Shanta's net debt stood at $14.3-million, the lowest in the company's history.

Shanta said the decrease was achieved as a result of prudent cost containment and a strong gold price.

“The company has achieved a number of important objectives in 2019, with gold production exceeding guidance and net debt expected to soon move to net cash," CEO Eric Zurrin commented in a release published on Thursday.

The gold miner expects to produce between 80 000 oz and 85 000 oz of gold this year, at an AISC of $830/oz to $880/oz. The higher AISC will mainly be driven by the reintroduction of higher-cost supplementary openpit mining from the Shamba pit.

Meanwhile, the company has set its exploration budget for this year at $5-million, an increase of 65% year-on-year. Exploration remains focused on the existing mining licences, as well as regional targets in the Lupa goldfield.

 

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

ABB Electrification
ABB Electrification

Electrifying the world in a safe, smart, and sustainable way, ABB Electrification is a global technology leader in electrical distribution and...

VISIT SHOWROOM 
EKATO Africa
EKATO Africa

Established in 1933, EKATO is the world leader in agitation technology, supplying agitators for processes and applications such as chemicals and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.054 0.636s - 140pq - 2rq
Subscribe Now