Shanta Gold trims full-year losses

22nd Apr 2014 07:47

- Reduces full-year losses- Balance sheet strengthened through debt restructuring- Confident it is well positioned to meet future challenges East Africa focused gold producer Shanta Gold said it reduced full-year losses as it continues to boost production volumes and lower costs. Loss before taxation was reduced to $4.3m for the year ended December 31st from a loss of $14.7m the same time a year earlier. Total revenue was $66m, with an additional $22m of revenue relating to the pre-production period which was capitalised. Chief Executive Officer Mike Houston said: "The loss before tax included a full-year of administrative costs and a number of one-off costs associated with the longer term cost reduction strategies. In addition, a significant tonnage of low grade ore mined in the pre-production period was written off." Full-year production came to 64,054 ounces, a touch ahead of guidance of 63,000 ounces, following a strong fourth quarter with an average price of $1,361 per ounce achieved. Chairman Tony Durrant commented: "2013 has been a successful year with operations stabilised and the balance sheet strengthened through debt restructuring. In addition, the growth potential has been enhanced through the upgrade of the resource and the declaration of a reserve at both New Luika and Singida." The New Luika Gold Mine reported gold production of 64,054 ounces, slightly ahead of guidance. "The projects on the extension of the life of mine at New Luika and the Singida mine development are at an advanced stage. The company is at an exciting point in its development and I am confident that it is well positioned to meet the challenges that lie ahead," added Durrant. "The foundations for the continued growth are now in place and management remains focused on continuing to increase the production volumes and lowering cost structures." CJ