Shanta Gold (AIM:SHG OTC:SAAGF) sets new highs with soaring revenues in the first half.

Shanta Gold Ltd (AIM:SHG, OTC:SAAGF) reported unprecedented first-half results, attributing its success to the recent inauguration of the Singida mine in Tanzania.

Revenue surged by 70% to US$88.3 million for the half-year ending June 2023, with gold output increasing by 55% to 44,770 ounces. This growth was influenced by contributions from Singida since March, alongside improved extraction efficiency and quality at the existing New Luika mine, located in Tanzania.

This upward trajectory resulted in a pre-tax profit of US$22.7 million, a significant leap from last year’s loss of US$0.9 million. Meanwhile, the underlying profits (EBITDA) saw a staggering rise of 140%.

Eric Zurrin, the CEO, commented: “Our current results are a testament to record-setting achievements. The performance at New Luika and Singida has been phenomenal, reflecting in the half-year revenue record of US$88.3 million.”

Zurrin also pointed out a noticeable increase in exploration activities by the AIM-affiliated company. “In this period, we embarked on specific exploration initiatives at Singida, aiming to tap into roughly 75% of the additional resources not presently considered in the mining strategy and to identify new prospects. We’re also diving deeper into further exploration and detailed drilling in West Kenya.

“With a robust production rate, bolstered by the enhanced output from New Luika, we’re on track to achieve our forecasted gold production range of 90,000-98,000 oz for 2023, a projection I’m happy to reinforce today.”

Concluding, Zurrin emphasized the firm’s robust financial health, with a net cash position of US$25 million by the end of this period, which paved the way for an interim dividend declaration of 0.1p

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