(MENAFN- ProactiveInvestors - UK) Tanzania-focused Shanta Gold (LON:SHG) said it is confident of hitting its 2014 production guidance of 80,000 ounces of the precious metal as it revealed last year's output marginally exceeded forecasts
It came in at 64,054 ounces, around 1,000 ounces ahead of projections, while production in the final four three months was 19,581 ounces, a quarter on quarter rise of 3.6%
All-in sustaining cash costs of US$1,049 an ounce were also bang in line, and they could fall as low as US$900 an ounce this year, according to the company's guidance, which it is confident of hitting
Shanta sold 61,887 ounces of gold at an average price of US$1,409 an ounce during 2013, while sales in the final quarter were 18,800 ounces at US$1,320 an ounce.
It has also forward sold 19,500 ounces at US$1,331 € well above of the spot price for the yellow metal
The group, which owns the New Luika Mine, is sitting on a fairly comfortable cash cushion of US$22mln (up US$2mln) from the end of the third quarter and spent US$3.2mln on capital investment in the quarter
The current year is expected to be one of significant milestones, including the updated life-of-mine plan for New Luika, due in the second quarter, the underground mining report and the feasibility study for the Singida project
Chief executive Mike Houston said: "The recently announced resource upgrade reaffirms our belief in the ability to extend the life-of-mine at New Luika both through opencast and underground mining and highlights the potential of the wider Lupa Goldfields to support this extension.
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