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(Alliance News) - Shanta Gold Ltd on Thursday said full-year production at the New Luika gold mine in Tanzania beat its target output range, with annual tonnes milled rising to a company record, and added that it expects to "soon" be in a net cash positive position.
For the year ended December 31, production rose by 3.2% year-on-year to 84,506 ounces, edging above the 80,000 ounces to 84,000 range.
Annual tonnes milled rose 10% to 702,336 tonnes, a company high.
In the fourth quarter alone, output fell by 14% quarter-on-quarter to 19,550 ounces from 22,726 ounces, Shanta said.
For 2020, Shanta expects annual production between 80,000 ounces and 85,000 ounces, with all-in sustaining costs costs of between USD830 to USD880 per ounce.
All-in sustaining costs came in at USD779 per ounce in 2019, within its USD740 to USD780 range.
In 2019, Shanta's net debt was trimmed to USD14.3 million from USD20.7 million the year before. It is setting its sights on achieving a net cash positive position in 2020.
Chief Executive Eric Zurrin said: "The company has achieved a number of important objectives in 2019, with gold production exceeding guidance and net debt expected to soon move to net cash.
"Mine life at New Luika continues to be a priority and the board have approved a significantly increased exploration budget for 2020 as we look to upgrade resources and identify new ounces. The company is well-positioned for another strong year and we anticipate entering a net cash position during 2020 as our deleveraging strategy enters its final phase."
Shanta's exploration budget will get a 65% boost in 2020, rising to USD5.0 million.
Shanta shares were 1.4% lower at 10.25 pence each in London on Thursday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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