Shanta Gold third quarter output hits record level

(ShareCast News) - East Africa-focused gold producer, developer and explorer Shanta Gold said it produced a record 29,139 ounces of gold in the final quarter of 2015, with full year production beating expectations.The company, which owns the New Luika Gold Mine in Southwest Tanzania said it sold 29,228 ounces of gold in the quarter at an average price of $1,087 an ounce.Shanta said annual guidance for 2016 was production of 82,000 - 87,000 oz at and its plan for 2016-2020) guidance is for five year average production of 84,000 oz at average all in sustainable cost of $695 /oz.Gold sales for 2015 were 80,622oz at an average price of US$1,163 oz, compared to average spot price of US$1,160oz, Shanta reported.Full year gold production for 2015 was 81,873oz, beating guidance of 72,000 - 77,000 and against 2014's output of 84,028oz.All in sustaining cost for the full year were $845oz against guidance of US$850-900 and 2014's $941.The company said it had quarterly cash balance of $19.1m against $11.2m in the previous quarter. Cash generated from operations was $17.3m in the period against $13.2m in the previous quarter and $34.9m for the year.It added that it had arranged forward sales from January to June 2016 of 30,000 oz at an average price of $1,129 /oz."Shanta's Q4 performance has rounded off a year of sustained operational improvement. Production and cost forecasts set in April 2015 have been exceeded, with more ounces being produced at a greater margin," said chief executive Toby Bradbury."As reported in April, 2015 was to be a year of two halves reflecting a fundamental redesign of operations to deliver maximum and optimised value.""New Luika's true value and potential are becoming increasingly clear and we remain confident of delivering a sustainable, strongly cash generative business with real scope to extend its mine life. "We continue, as a matter of course, to seek value improvements in our operations while progressing exploration within and surrounding our mining licence. Alongside the New Luika mining operations, development of the underground is the major focus for 2016 and this will provide the foundation for an evolving and increasing mine life."