SHANTA DELIVERS RECORD QUARTERLY PRODUCTION RESULTS
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer announces its production and operational results for the quarter ended 30 June 2023 (the “Quarter”, “Q2” or the “Period”) for its East African assets, comprising of New Luika Gold Mine (“NLGM” or “New Luika”) and Singida Gold Mine (“Singida”) in Tanzania and West Kenya Project (“West Kenya”) in Kenya.
Q2 2023 Highlights:
· Record gold production:
o Group: 29,403 ounces (“oz”), up 92% from Q1
o NLGM: 19,338 oz, up 26% from Q1
o Singida: 10,065 oz, first gold pour on 30 March 2023
· Net debt of US$8.7 million (“m”), down 54% from US$19.0 m in Q1;
· Adjusted EBITDA3 of US$23.2 m, up 209% from US$7.5 m in Q1;
· Better than expected Operating Costs and All in Sustaining Costs (“AISC”)2:
o NLGM: US$904 /oz and US$1,181 /oz
o Singida: US$579 /oz and US$736 /oz
· No gold hedging – 100% exposed to spot gold price;
· Cash, and available liquidity1 of US$25.0 m at 30 June 2023 (Q1: US$11.5 m), including US$4.0 m undrawn (Q1: US$1.5 m) from the Working Capital facility;
· Outstanding safety record: TRIFR rate of 0.00 in Q2 and 0.00 YTD; zero LTIs;
· Reiterated 2023 Group production guidance of 90,000 – 98,000 oz gold.
Eric Zurrin, Chief Executive Officer, commented:
“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 209% on Q1 at US$23.2m, 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.”
Note: 1. Available liquidity has been derived as unrestricted cash, the sale value of doré available for sale at the end of the Period (net of royalties and expected selling costs).
Note: 2 AISC figures published include development costs, in line with the WGC definition
Note 3: Adjusted EBITDA is earnings before interest, tax, depreciation, and amortisation which has been derived as operating profit exclusive of depreciation/depletion of tangible assets, amortisation of intangible assets and exploration expenditure at the West Kenya Project totalling US$0.7 million. Adjusted EBITDA includes normalised financial contribution from Singida since 1 April 2023 for purposes of comparability, with commercial production achieved 1 June 2023.
Analyst conference call and presentation
Shanta Gold will host an analyst conference call and presentation today, 20 July 2023, at 12:00pm BST. Participants can access the call by registering via the link below.
https://secure.emincote.com/client/shanta/shanta004/vip_connect
The presentation will be available for download from the Company’s website: www.shantagold.com. A recording of the conference call will subsequently be available on the Company’s website.
Investor Conference Call
Shanta Gold is hosting a live investor presentation via the Investor Meet Company platform today, 20 July 2023, at 1:00 pm BST. The presentation is open to all existing and potential shareholders and questions can be submitted any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet Shanta Gold via: https://www.investormeetcompany.com/shanta-gold-limited/register-investor
Investors who already follow Shanta Gold on the Investor Meet Company platform will automatically be invited.
