By Christian Moess Laursen
Shanta Gold, an East Africa-focused gold mining company, is confident in meeting its full-year production target despite a slight decline in output in the third quarter. Although production fell from the previous quarter’s record high, the stable quarterly result has boosted the company’s confidence.
Production and Costs
In the third quarter, Shanta Gold produced 27,935 ounces of gold, down from 29,403 ounces in the previous quarter. However, the company remains on track to achieve its full-year target of 90,000-98,000 ounces.
Costs have also improved during this period, with cash operating costs dropping to $757 per ounce from $904 per ounce. Additionally, all-in sustaining costs have decreased to $1,023 per ounce from $1,181 per ounce. These figures align with the full-year target range of $1,200-$1,300 per ounce.
Gold Prices and Earnings
Despite the decline in production and costs, gold prices remained strong, resulting in an average selling price of $1,930 per ounce in the third quarter. This slight decrease from the previous quarter’s average selling price of $1,949 per ounce has not significantly impacted Shanta Gold’s performance.
However, adjusted earnings before interest, taxes, depreciation, and amortization fell to $19.0 million from $23.2 million due to fewer gold ounces sold during the three-month period.
