Make Kitco Your Homepage

Shanta Gold forecasts an increase in gold production

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - In Shanta Gold’s latest (SHG:LSE) update, the company announced gold production figures of 82,978 oz, slightly above the 2020 guidance of 80,000 - 85,000 oz.  The firm also stated they are now unhedged and fully exposed to the gold price. The firm reported an adjusted EBITDA of US$63.8 m vs 2019 adjusted EBITDA of US$47.7 m and an unrestricted cash balance of US$41.6 m vs Q3 US$6.7 m.

Looking forward, the company forecasted gold production to increase throughout the year following ramp-up of the third mill, resulting in production being weighted towards the second half of 2021. This now means the company expects to produce approximately 80,000 ounces of gold in 2021.

Eric Zurrin, Chief Executive Officer said "Shanta is a free cash flow generative, multi-asset East African gold producer with exciting prospects for reserve and production growth within its portfolio. The Company is operating drilling campaigns at each of its three projects and expects to increase group reserves during the course of the year. Exploration is likely to be the primary driver for creating shareholder value in the coming years. Shanta achieved its core objectives for 2020, with gold production and costs in line with guidance, and produced another industry-leading safety performance.".

Looking at the share price it seems investors took the news slightly negatively. The daily share price fell around 3% but the wave high of 19.50 is still the one to look out for. If the bearishness continues the purple support level is at around 16.00. Beyond that, the red support line at 12.75 has been a major pivot zone for the stock. 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.