Tanzania: Shanta's Gold Output Up 27 Per Cent in Q1

SHANTA Gold output has increased by almost 26.5 per cent in quarter one of this year against similar period previous year. The country-focused gold miner produced 22,400 ounces in Q1 this year against 17,700oz of Q1 last year.

The gold output in Q1 of this year is the highest so far. The miner produced 20,415oz in Q1 of 2017, according to Shanta's Q1, 2019 Production and Operational Update.

The report said that the miner is on track to produce between 80,000-8 4,000 ounces of gold this year after the first quarter saw output rise by 26.5 per cent on quarterly basis. Shanta added that it expects to be debt-free by the middle of next year.

Underlying earnings in the quarter (EBITDA) were 11.4 million US dollars, a 15 per cent increase of the previous three months.

The miner, that plans to rise Singida mine working capital through domestic IPO, said in 2018 it had contributed 8 6 million US dollars to the government of Tanzania.

Some 99 per cent of Shanta workforce are locals and has an extensive Corporate Social Responsibility (CSR) programme across all major disciplines.

On tax refunding it said "discussions on refunding or offsetting the current VAT receivable of US$23.6 million continue."

Shanta announced late last month that is to list on Dar es Salaam Stock Exchange (DSE) in an effort to raise 20 million US dollars for the development of its Singida Gold Mining project.

An IPO prospectus was submitted to Capital Market and Securities Authority (CMSA) and the DSE, the company said.

The funds would provide upfront capital to bring the project to production and which is expected to take Shanta Gold's overall gold output to 100,000 ounces a year.

Shanta said it would retain 5 1 per cent ownership of Singida post the IPO. It would also be the operator of the project.

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