LONDON (Alliance News) - Shanta Gold Ltd Monday said it increased gold production and sales in the first quarter of its new financial year, albeit at a lower average sales price per ounce.
The East Africa-focused gold production and exploration company said it produced 20,254 ounces of gold in the first quarter ended March 31, a 3.5% increase on the previous quarter, boosted by high plant availability, coupled with the processing of softer ore, albeit at lower grade, from the Luika open pit, which enabled 132,198 tonnes of ore to be milled.
Gold sales increased during the quarter to 22,059 ounces, but at an average price of USD1,297, lower than the average price of USD1,320 in the fourth quarter of last year.
"Performance for the quarter was ahead of expectations with record gold production on the back of higher throughput resulting from increased plant availability. The higher gold production has helped in managing costs and offsetting some delays being experienced at our plant improvement projects," said Chief Executive Mike Houston in a statement.
Shanta Gold said its mining performance for the quarter was "satisfactory", despite high rainfall, which its said adversely affected its Bauhinia Creek operation. It said its focus remains on improving mining efficiencies as tonnage demand increases.
Shanta Gold said the the elution/electro-winning plant is scheduled for commissioning by the end of May, whilst the crushing/screening plant is now expected to be commissioned by the end of July.
It said that both projects are expected to be completed within the total budget of USD9.4 million. Expenditure on the projects during the quarter was USD6 million, with the remaining balance to be spent in the second quarter, it said.
Shanta Gold shares were up 2.8% at 14.90 pence per share Monday morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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