Aim-listed Shanta Gold on Thursday posted an 11% year-on-year increase in gold production to 42 230 oz for the first half of this year.
The East Africa-focused gold producer, developer and explorer’s production for the second quarter, at 19 856 oz, was, however, lower than the 22 374 oz produced in the first quarter.
Nevertheless, Shanta remains “comfortably” on track to meet its yearly guidance of 80 000 oz to 84 000 oz at an all-in sustaining cost (AISC) of $740/oz to $780/oz.
During the second quarter under review, Shanta achieved an AISC of $773/oz, while the year-to-date AISC reached $735/oz – below full-year guidance.
The group achieved an all-time daily throughput record during the quarter with 177 647 t milled.
Meanwhile, the company posted a 22% decrease in gross debt to $30.1-million, after a $4.9-million partial buyback of outstanding convertible loan notes.
Net debt was down 11% to $26.9-million during the second quarter, while cash operating costs stood at $564/oz.
Earnings before interest, taxes, depreciation and amortisation fell from $11.7-million in the first quarter of the year to $10.5-million in the second quarter of the year.
Meanwhile, underground exploration drilling results released during the period showed the best historical intersected grades and widths since production began at New Luika, Shanta noted.
“New high-grade intersections are outside existing mineral reserves and will be incorporated into the mine plan,” the company said in an update to shareholders.
Drilling at Bauhinia Creek Central has converted 126 787 oz of inferred resources, grading 3.15 g/t, into 83 543 oz of indicated resources, grading at 7.85 g/t, and added new inferred resources of 58 553 oz, grading 4.79 g/t.