Shanta Gold H1 revenue, output drop as profit trebles

East Africa-focused gold miner Shanta Gold has raked in revenue of $57.8 million from the sale of 31,977 oz in the first half of 2021, which was 21% lower compared to $73 million generated from 44,018 oz sold a year earlier.
It said the average realised price from gold sales was $1,807 /oz from the previous $1,533 /oz.
The drop in revenue reflects a decrease in ounces sold, partially offset by a higher average selling price.
The company’s profit after taxation, however, trebled to $3.1 million in the first half compared to $1 million in 2020.
Shanta’s gold production dropped to 28,842 oz in the first half of 2021 from 42,383 oz, the previous year due to lower than anticipated grades from underground mining.
The company said its annual production guidance for 2021 was between 60,000oz and 65,000 oz.
“Whilst we are disappointed that our [first half] gold production and sales are lower than last year, our strong fundamentals of net cash, low debt and consistent operating cashflow attest to the company’s robust financial health, and I’m delighted to announce an interim dividend of 0.10 pence per share proposed for payment in October 2021,” said Shanta chief executive Eric Zurrin. 
“We are also pleased to confirm that we have received $4.2 million in VAT offsets during [the first half] and a further $2.1 million VAT cash refund post-period as we work with the Tanzanian government to clear the outstanding balance.”

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished