Shanta Gold, the East Africa-focused gold producer, developer and explorer, has reported a quarterly gold production of 21,288 ounces for the fourth qyarter, an increase of 17% on the third quarter.
Annual gold production for 2017 was 79,585 oz (2016: 87,713 oz), consistent with guidance of approximately 80,000 oz.
Total ore mined during the period from underground production was 143,092 tonnes, an increase of 88% on Q3.
Quarterly gold sales totalled 20,217 oz at an average price of US$1,272 /oz, compared to an average spot price of US$1,277 /oz.
Gold sales for 2017 totalled 79,938 oz (2016: 86,331 oz) at an average price of US$1,263 /oz, compared to the average spot price of US$1,258 /oz.
The company increased its cost saving target from US$5m to US$7m per annum on an annualised basis (excluding impact of new mining method at Luika), which is expected to be executed by Q3 2018.
Annual guidance for 2018 is 82,000−88,000 oz at AISC of US$680-730 /oz.
Eric Zurrin, chief executive officer, said: "We are pleased to report a strong final quarter of 2017. The company expects to continue reducing its net debt and restructuring the business to deliver improved, sustainable cash flows going forward. With this in mind, we have increased our annual cost saving target to $7.0 m from the previous $5 m target. "These initiatives are expected to result in another year of deleveraging and management expects to be in a position to evaluate the dividend policy during the fourth quarter of 2018 in preparation for subsequent financial periods."
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