Modern Mining April 2018

MINING News

New Luika propels Shanta Gold into profit

AIM-listed Shanta Gold has announced its audited final results for the year ended 31 December 2017 (FY2017). Shanta’s flagship asset is its New Luika Gold Mine (NLGM), located in the Lupa goldfield of south-west Tanzania. Profit after taxa- tion for the year was US$4,2 million (as compared to a loss after taxation of US$8,0 million in 2016). New Luika delivered a consistent mill feed throughout 2017 from both its under- ground operation and from surface mining during the first half of the year, in line with the Revised Mine Plan. Total mill feed was 632 287 tonnes at an average grade of 4,3 g/t for the production of 79 585 oz of gold (at an AISC of US$734/oz), which was a significant achievement in what was Shanta’s first year of underground mining. May 2017was a significant milestone for Shanta as stope ore was produced for the first time from the underground operation. This ore was sourced using long-hole open stoping between the 900 and 880 metre levels in the Bauhinia Creek orebody and the operation has exceeded 7 000 metres of development ore underground. The number of stopes available for production is now in the process of increasing to three on a stable basis. Shanta notes that 2017 was the first year in which New Luika’s Bauhinia Creek underground orebody has been opera- tional. Since commencing development in July 2016, it has produced in excess of 250 000 tonnes of ore at an average grade exceeding 6 g/t.

The processing plant of Shanta’s New Luika Gold Mine in Tanzania (photo: Shanta).

into reducing the net debt position and the continuation of this is central to plans for restructuring the company’s balance sheet. Recording a profit in 2017 for the first time wouldn’t have been possible had the underground operation not been transitioned to on time and within budget and our efforts to optimise the company’s recurring cost base will be a key driver towards improving future cash flows. “Our priorities for 2018 remain focused on continued low-cost operational excel- lence, balance sheet deleveraging, and targeted growth.” 

dividend to shareholders. Randgold has increased its annual dividend ever since it declared the first one in respect of the 2006 financial year. Chief Executive Mark Bristow says Randgold continues the hunt for its next world-class gold deposit through the expansion of exploration programmes in West and Central Africa and the evalu- ation of its potential next mine project at Massawa in Senegal. At the same time, it is also examining global growth opportunities. “Irrespective of any new projects, how- ever, our 10-year plan shows us remaining profitable at a long-term gold price of Several initiatives are ongoing to fur- ther enhance the capacity of the operation including a planned revision in mining method for the Luika underground ore- body from cut-and-fill to long-hole open stopingwhichwill remove the requirement for backfilling with cement altogether. “We are pleased to report a set of full year results that reflect a sustainable transi- tion to underground mining at New Luika, as well as a new management strategy of cost control and optimisation,” comments Eric Zurrin, Shanta’s CEO. “Considerable inroads have been made

Randgold raises production and cuts costs Randgold Resources had one of the best years in its history of achievement and delivery in 2017, posting another produc- tion record off an already high base and pruning the cost of production to its low- est level in six years. At the same time, the group continued to replace its attribut- able reserves and measured and indicated resources at the same or better grade, the company says in its recently released annual report.

US$1 000 per ounce and generating cash that will support significant investment in our future as well as the continued pay- ment of dividends,” he says. Also in the annual report, Chairman Christopher Coleman says despite chal- lenges Randgold remains committed to its partnerships with its host countries. “The mutually beneficial relationships it has patiently forged with its host countries and communities are serving it well, and over the years the company has effectively dealt with the differences that inevitably arise in even the most well-intentioned partnerships,” he says. “Randgold is conse- quently confident that it is well-equipped to cope with the occasional turbulence in its operational climate.” 

With profit for the year up 14 %, cash and cash equivalents rising to US$720 mil- lion and the company’s robust 10-year business plan firmly in place, the board was able to recommend a doubling of the

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