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The Shanta Gold share price jumps at the UK open

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(Kitco News) - Shanta Gold (SHG:LSE) shares have performed well at the UK open after the company posted revenue of US$147.4 million vs the 2019 reading of US$112.8 million at an average realized gold price of US$1,495 per oz.

This led gross profit to hit US$56.7 m (2019: US$14.4 m) and the firm showed an operating profit of US$43.8 m vs 2019: US$5.1 m.

Profit after tax hit US$17.2 m again an increase from the 2019 loss after tax of US$9.5 m. This led Shanta to proposed a final dividend of 0.10 pence per share, which will be payable in April 2021.

The company had Gold production of 82,978 ounces, within 2020 guidance of 80,000 oz - 85,000 oz.

The 2021 guidance is approximately 80,000 oz at AISC4 of US$900 - US$950 /oz on a like-for-like basis and US$1,050 - 1,100 /oz including development costs, in line with the World Gold Council definition. Forecasted gold production to increase throughout the year due principally to the ramp-up of the third mill and forecasted increase in grade, resulting in production being weighted approximately 55% towards the second half of 2021.

Shanta CEO Eric Zurrin stated "2021 presents huge opportunity for Shanta as we continue to strengthen our core operations at New Luika, progress mine construction at Singida that began in Q4 2020 and continue the drilling campaigns underway at our high-grade West Kenya project. Exploration remains core to demonstrating value and growth within our portfolio to support long-term returns to shareholders and I look forward to providing drilling updates this month across all three assets.".

Looking at the daily chart the share price bounced off the 12.75 per share support level and could move higher to the blue internal trendline. If the level breaks the eventual target for the bulls could be at the blue horizontal line closer to 20.50 per share.

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.