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Shanta Gold's profit jumps in H1 2023 on strong production and higher gold prices

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(Kitco News) - Africa-focused gold producer Shanta Gold (AIM: SHG) said today that in H1 2023, the company produced 44,771 oz of gold (H1 2022: 28,947 oz) and generated record revenues of $88.3 million (H1 2022: $51.9 million).

Shanta said that gold production at New Luika exceeded internal forecasts for H1 2023, while Singida delivered above target production during the period from improved gold recoveries and purity.

The company also reported a 140% increase in EBITDA to $33.9 million in H1 2023 (H1 2022: $14.1 million), profit before tax of $22.7 million (H1 2022: loss of $0.9 million), and profit after tax of $12.7 million (H1 2022: loss of $3.1 million).

Shanta explained that the increase in half-year profit was achieved primarily due to strong production at New Luika, the commencement of production at Singida and higher gold selling prices.

CEO Eric Zurrin commented on the results, "Today we have delivered another set of record-breaking results, reflecting the huge effort from the team at Shanta over the first half of 2023.

“We continue to reach new heights at New Luika and Singida, with record half year revenues of $88.3 million. This was driven by a 55% increase in gold production as well as the benefits of a diversified portfolio and strong gold price. As a result, EBITDA was up 140% to $33.9 million.”

“Our strong production performance, underpinned by an improved output from New Luika, drives us closer towards our guidance of 90,000-98,000 oz gold production for 2023, which I am pleased to reconfirm today,” he added.

The company also announced that its Board declared an interim dividend of 0.10 pence per share (H1 2022: 0.10 pence). This will be the sixth consecutive half-year period with a dividend paid.

Shanta Gold is an East Africa-focused gold producer, developer, and explorer. The company operates its New Luika and Singida mines in Tanzania. Shanta also owns the West Kenya project in Kenya.

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