Shanta Gold sees "encouraging" results during first half

1st Sep 2014 15:30

Shanta Gold, a gold production and exploration company, saw its revenue go up after good results in its drilling projects during the first half.While the company said the gold price is expected to remain "volatile" over the remainder of 2014, the results at a drilling programme at Bauhinia Creek and Luika are "encouraging".Revenue rose in the first half to $58.3m compared to $14.7m last year.The company recorded a profit before tax of $7.7m against a loss of $1.4m in the first six months of 2013.Earnings per share rose to 0.884 cents against a loss of 0.31 cents the year before.Cash and equivalents rose to $15.5m from $12.8m the year before.Chief executive Mike Houston said: "Results for the half year are pleasing not only from the perspective of a positive production and cost performance but also the fact that the company is generating a healthy operating cash flow. "The New Luika Life of Mine Extension and Expansion Project is progressing well with the initial results from the recent drilling programme both on and off-mine encouraging".Spangel analysts said: "These look like good results from Shanta with the first profit achieved since the company went into commercial production at the New Luika mine. "We look forward to hearing the results of the mine and plant extension in the next quarter."JF