Shanta Gold poised to perform under new Tanzania regulations
Shanta Gold Ltd.
14.74p
17:15 19/04/24
East Africa-focussed gold producer, developer and explorer Shanta Gold announced an operations update on Tuesday, following the results of its business review which was initiated in July in light of the recent changes to the Tanzanian mining legislation, as well as its senior management team.
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The AIM-traded firm said it would now deliver on New Luika Gold Mine underground production ramp-up in the 2017-2018 year, along with an estimated $5m per annum run-rate reduction in costs.
It also said it would internalise its “core competencies”, and realign its management incentives.
Shanta also said it would launch a refocussed exploration strategy and re-evaluate the development of the Singida Project, including the financing thereof.
“I am pleased to announce that following the company's business review, Shanta is now well-structured to deliver long term value for all its shareholders,” said chief executive Eric Zurrin.
“The new value enhancement and cost saving initiatives will create a stable platform from which the company can prosper and grow sustainably under the new Tanzanian mining legislation.”
Shanta would boast a leaner cost structure, have a focus on increased cash generation, develop “greater” internal Tanzanian leadership and deliver reduced financial risk, Zurrin explained.
“This will position the company favourably to achieve its long term objective of becoming a mid-tier African gold producer.”