Shanta Gold recorded adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) of $16.1 million in the first quarter of 2024 compared to $21.8 million in the fourth quarter of 2023.
The decline in adjusted EBITDA was attributed to a $10 million decline in revenue across New Luika Gold Mine (NLGM) and Singida in Tanzania due to 6,188 fewer ounces sold in the first quarter compared to the preceding quarter.
This, it said, was offset by a $4.3 million reduction in costs due to lower royalty and selling costs coupled with lower head office administrative expenses, resulting in a net decrease of $5.7 million compared with the fourth quarter.
Meanwhile, the group’s quarterly output was 21,676 ounces (oz) compared to 27,865 oz in the fourth quarter.
NLGM contributed 13,022 oz, which was below internal forecasts due to low feed grades, low gold recoveries, and heavy rains impacting crushing and milling.
Singida produced 8, 654 oz exceeding internal forecasts. Its production was stable with all three months achieving over 2,800 oz per month due to good feed grades and recoveries.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
