Shanta Gold, a gold producer focused on East Africa, reported a 140% increase in earnings before interest, tax, depreciation, and amortisation (EBITDA) to $33.9 million in the first-half (H1) of 2023, up from $14.1 million the previous year.
It said the growth in production was due to the Singida Gold Mine in Tanzania initiating gold production during the period, along with higher-than-expected gold production at the New Luika Gold Mine (NLGM) also in Tanzania and a consistent increase in the selling price of gold.
Shanta’s revenue for the period was $88.3 million, generated from the sale of 45,402 ounces. This is a significant increase compared to the previous year, during which they sold 27,751 ounces for $51.9 million. The average price of gold sales increased from $1,870/oz in H1 2022 to $1,938/oz in H1 2023.
The output growth was attributed to Singida contributing 10,065 oz during the period and NLGM's strong performance due to improved equipment availability, power reliability, and consistent grades mined from Luika underground stopes.
Shanta chief executive Eric Zurrin expressed confidence in the growth potential of their portfolio.
“During the period, we commenced targeted exploration programmes at Singida to unlock nearly 75 per cent of additional resource not currently in the mine plan and outline new targets, as well as undertaking further exploration and infill drilling at West Kenya which we believe will uncover further significant resources and make new discoveries,” he said.
“In the meantime, our strong production performance, underpinned by an improved output from New Luika, drives us closer towards our guidance of 90,000-98,000 oz gold production for 2023.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
