(MENAFN- ProactiveInvestors)- adds detail share price comment- Shanta Gold (LON:SHG) produced a record amount of gold from its New Luika mine in Tanzania in its latest quarter with costs also sharply lower. Output totalled 25550 ounces in the three months to September up two-thirds on a year ago with sales of 26250 ounces at a price of US$1175. Cash costs were US$453 per ounce (US$834 three months previously) with all-in-sustaining costs of US$609. Shanta also published a value for its underground plans at New Luika which showed returns of 56% and a net present value US$72mln at a $1200/oz gold price. Toby Bradbury chief executive said: "Both the production and cost performance for the quarter further de-risks our AISC and production guidance for 2015. 'The operating platform we have established at NLGM underpins the value accretive base case mine plan the underground feasibility study and updated reserves statement released to the market last month. 'I remain confident that Shanta will achieve its 2015 annual production and AISC guidance of 72000-77000 oz at US$850/oz to US$900/oz respectively." The higher production and lower costs also led to a sharp rise in cashflow over the quarter with US$13.2mln generated compared to a spend of US$3mln in the previous three months. Net debt dropped to US$49mln from US$54.5mln at the start of the period. Shanta is also looking at going underground at the mine which will allow it to access 310000 additional ounces of gold with a further 514000oz outside of the current mine plan. SP Angel said Shanta faces a challenge to fund the underground development though the broker believes there is enough gold in exploration areas to extend the open cast operations and push the need to go underground out for another few years. Shares rose 14% to 6.43p.
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