Q1 2020 PRODUCTION & OPERATIONAL UPDATE20 Apr 2020 08:36
Q1 Highlights
· Gold production of 20,167 ounces ("oz") (Q4 2019: 19,550 oz);
· Adjusted EBITDA1 of US$15.0 m (Q4 2019: US$8.6 m);
· All In Sustaining Costs ("AISC")2 of US$833 /oz (Q4 2019: US$902 /oz);
· Cash operating costs of US$630 /oz (Q4 2019: US$638 /oz);
· Forward sales commitments reduced during the Quarter to 31,265 oz (Q4 2019: 40,000 oz) and post period to 27,304 oz, a 32% reduction from the end of 2019;
· Cash, and available liquidity3 of US$15.7 m (Q4 2019: US$13.7 m);
· Gross debt decreased 7.3% to US$20.4 m (Q4 2019: US$22.0 m);
· Zero Lost Time Injuries ("LTI's"), with no LTI's since Q4 2017;
· Acquisition of Barrick Gold Corporation's Kenyan assets (the "West Kenya Project") announced; closing of transaction anticipated to take place around mid-2020; and,
· West Kenya Project includes NI-43101 compliant Inferred Mineral Resource Estimate of 1,182,000 oz gold grading 12.6 g/t, believed to be one of the highest grading +1 Moz gold deposits in Africa.
Response to COVID-19
· The Songwe region has no reported cases of COVID-19 and Shanta has put in place restrictions on all non-critical business travel;
Shanta was an early adopter of precautionary measures to reduce the risk of infection;
VAT REPAID.......
· VAT receivable increased to US$22.9 m (Q4 2019: US$21.8 m) after a VAT refund of US$0.7 m (set off against corporate taxes);
BUT WE DID help to PRODUCE......
1,480 kg of honey produced in latest beekeeping season, a 64% annual increase;
WOW !!!!!!!!