Shanta Gold Ltd (LON:SHG) booked revenue of US$73mln from gold production at its mine in Tanzania during the six months to June 30, 2020, up from the US$53.6mln booked in the corresponding period in 2019.
All-in sustaining costs ran at US$817 per ounce. Profit before tax was US$15.3mln.
The company also moved into a net cash position, with cash at period end amounting to US$2.1mln.
Gold production during the period rang in at 42,383 ounces.
“Looking ahead,” says broker Shore Capital, “Shanta reiterated full-year 2020 guidance of 80-85koz at US$830- 880/oz AISC. An announcement on financing discussions for Singida’s development is expected during Q3 2020. However, we are most looking forward to the scoping study on the potentially transformative West Kenya project, the acquisition of which was completed earlier this month. To quickly re-cap, consideration for the acquisition comprised US$7m in cash, a 2% Net Smelter Return (NSR) and 54.65m Shanta shares priced at 10.4977p/share (US$7.5m). In addition, Shanta may have to pay up to US$4m of cash to settle liabilities and to reflect “certain working capital items”.
The shares rose by just under 6% to 17.45p.