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Africa-focused gold miner Shanta reports revenue of $114M in 2022; eyes to become 100koz producer

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(Kitco News) - Africa-focused gold producer Shanta Gold (AIM: SHG) today reported gold production of 65,209 oz in 2022, up 18% from 2021 and 4% below the annual production target of 68,000 oz.

All-in sustaining costs (AISC) for the year were US$1,271/oz, within the AISC cost guidance of US$1,150-1,275 /oz set for 2022 and a 6.4% decrease on the 2021 AISC.

The company said the decline in AISC was as a result of more ounces produced and "rigorous cost management" during a year impacted by global inflation.

The company's revenue for the year from sales of gold amounted to US$114.1 million, compared to US$103.6 million in 2021, a 10.1% increase attributable to increase in gold ounces recovered.

Shanta sold 63,695 oz of gold in 2022 (2021: 57,517 oz) with all sales completed at spot price, with an average selling price of US$1,791 /oz during 2022 (2021: US$1,801/oz).

The company said that operating profit for the year amounted to US$6.0 million (2021: US$4.7 million), adding that the increase being mainly attributable to a combination of more revenue being earned in the period and less expenditure relating to the West Kenya project in 2022 when compared to 2021.

Shanta also reported loss for the year attributable to the equity holders of the parent company of US$2.3 million (2021: loss of US$6.2 million).

The company added that at New Luika, 2023 annual production guidance has been set to approximately 66,000 – 72,000 oz at an AISC of US$1,200 – 1,300 /oz.

Shanta said that the production guidance for the Singida gold mine will be released following the commencement of commercial production, however the current life of mine plan guides for approximately 32,000 oz pa.

"The completion of construction at the Singida gold mine is fast approaching having been kept on track and on budget throughout the year. Singida will transform Shanta into a 100,000 oz/pa gold producer with a diversified resource base whilst group-wide resources have increased to 3.7 Moz from 1.2 Moz five years ago," the company said in a press release.

Shanta Gold is an East Africa-focused gold producer, developer and explorer. Alongside its Tanzanian assets, the New Luika gold mine and the Singida gold project, Shanta also owns the West Kenya project in Kenya with defined high-grade resources and prospecting licences. 

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