Shanta Gold's Q3 has been another solid quarter for the company, setting it up to deliver at the top-end of production guidance for the year and once again improving its position on costs with a further reduction in target AISC to US$690 - 740 /oz, from US$730 - 780 /oz.
"On our projects, the underground development progressed well during the quarter and remains on schedule for first ore production in Q2 2017," said CEO Toby Bradbury in a statement.
"We are also now actively working on the Ilunga reserve evaluation which we expect to add significant life to New Luika with its additional high grade resources.
"Outside of New Luika, our advanced stage Singida project delivered exciting drilling results in the quarter and is progressing well towards commissioning the pilot plant in Q2 2017.
"On our financial performance, it is very satisfying to see our debt reducing whilst we also fund such a significant capital program. This is reflective of the strong cash generative capacity of our business."
- Quarterly gold production of 20,580 ounces ("oz") (Q2 2016: 23,896 oz);
- Quarterly gold sales of 23,426 oz at an average price of US$1,301 per oz ("/oz"), compared to average spot price of US$1,335 /oz (Q2 2016: 26,134 oz at an average price of US$1,246 /oz);
- Cash costs for Q3 of US$387 /oz (Q2 2016: US$429 /oz) and All in Sustaining Cost ("AISC") of US$621 /oz (Q2 2016: US$664 /oz); and
- No lost time injuries for the Quarter.
GUIDANCE FOR 2016:
- Annual production guidance maintained for 2016 of 82,000 - 87,000 oz;
- Lowered AISC guidance to US$690 - 740 /oz, from US$730 - 780 /oz; and
- A revised Mine Plan is being generated to incorporate the Elizabeth Hill Reserve and the recently upgraded Ilunga Resource which will extend mine life and is targeted for completion in Q1 2017.