Shanta posts record gold production results in Q2 2023

East Africa-focused gold producer Shanta Gold recorded a strong production and operational performance during Q2 this year posting a record 29,403 ounces being a 92% increase compared to the company’s Q1 production results.

According the company’s Q2 production results, New Luika mine posted 19,338 oz, up 26% from Q1 while Singida mine posted 10,065 oz with its first gold pour recorded on 30 March 2023.

The New Luika Gold mine produced 19,338 oz during the Quarter, exceeding internal Q2 forecasts by 5%.

“Production was stable with all three months during the Quarter achieving over 6,000 oz. This was mainly due to improved equipment availability, better power reliability, consistent grades mined in the Luika UG stopes as well as consistent ore development grades achieved,” the company said in a statement.

At the Singida Gold mine, 10,065 oz were produced in the period with 4,036 oz being produced in May alone.

This was an increase of 19% compared to budgeted Q2 production. Higher than anticipated recoveries, gold purity in ore, and percentage recovered from gravity, contributed to higher than expected production.

“Going forward, management will monitor the pre-production estimates for gold purity, gravity recoveries, and gold recoveries which may be revised higher in the life of mine model based on actual results being achieved,” the statement said.

Commenting on the record results, our CEO, Eric Zurrin said, “The Group’s record performance over the last quarter has been outstanding, with the 92% increase in production figures alone demonstrating the immediate clear benefits of having added Singida to our asset portfolio.

“With this significant increase in production combined with a better than expected cost performance, we have been able to deliver the financial results that we have always said would come with a diversified portfolio. Not only is adjusted EBITDA up 207% on Q1 at $23.1m, Singida is now driving an overall improved liquidity position, adding financial flexibility to the Group.

“I am delighted to report that the Group’s operations continue to be delivered on the bedrock of an outstanding safety record, with zero LTIs and a TRIFR rate of 0.00 year to date. We are confident that this superb operational performance will continue and as such we have reiterated 2023 Group production guidance of 90,000 – 98,000 oz gold. The future is exciting for Shanta with our two producing assets delivering record results, and yet with room for further growth at Singida and West Kenya, we are confident in the long-term prospects for shareholders.