Shanta Gold swings to profit after price boost

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East Africa-focused gold miner Shanta Gold swung to a first-half profit after it benefited from higher prices for the precious metal, seen as a safe-haven investment during the pandemic.

Pre-tax profit for the six months through June amounted to $15.3m, compared to a loss of $4.1m on-year.

Revenue rose to $73.0m, up from $53.6m, amid a slight rise in production to 42,383 ounces.

Shanta Gold reiterated its full-year output guidance of 80,000-to-85,000 ounces.

'Entering a net cash position in the first half was a major achievement for Shanta and followed sustained deleveraging over a number of years,' chief executive Eric Zurrin said.

'New Luika gold mine remains on track to deliver production and costs within annual guidance and this has been achieved with a continued exceptional safety record.'

'With the stronger gold price environment, the company remains focussed on value-driven opportunities alongside maintaining sustainable and cost-efficient operations at New Luika gold mine.'

'With the acquisition of the West Kenya project now complete Shanta has diversified its East-African portfolio with a highly complementary asset that significantly bolsters the company's growth pipeline.'

At 8:54am: (LON:SHG) Shanta Gold Ltd share price was +0.25p at 16.75p