By Christian Moess Laursen
Shanta Gold, an East Africa-focused gold miner, has announced that its third-quarter gold production remained high, just slightly behind the record output of the previous quarter. The company achieved this through solid operational performances at both of its gold mines in Tanzania, while also making significant improvements in costs.
Production Highlights
- New Luika Gold Mine: Produced 18,271 ounces during the quarter, meeting internal forecasts. Production was stable and consistent, continuing the positive trend from the second quarter.
- Singida Mine: Produced 9,664 ounces during the quarter, exceeding internal third-quarter forecasts by 15%. Production remained stable and consistent, with all three months achieving over 3,000 ounces per month.
- Group Gold Production: Total gold production across Shanta Gold’s two operating mines reached 27,935 ounces, in line with expectations. This strong performance increases confidence in meeting the company’s stated guidance of up to 98,000 ounces.
Cost Improvements
- Adjusted Operating Costs: Achieved $713 per ounce in the quarter.
- All-in Sustaining Costs: Achieved $899 per ounce in the quarter.
- Both operating costs and all-in sustaining costs were better than budget by 40% and 37%, respectively. This improvement was driven by strong gold production and consistency in gold grades, as well as good recovery and lower-than-budgeted operating costs.
Price Analysis
- Gold Prices: Remained strong during the period, resulting in an average selling price of $1,930 per ounce ($1,949 per ounce in the second quarter).
Shanta Gold continues to demonstrate its commitment to delivering impressive results in gold production while effectively managing costs. With stable and reliable operations and favorable market conditions, the company is on track to meet its production targets.