SHANTA Gold, a UK-listed gold junior operating in Tanzania, said it had delivered on targeted cost savings of just over $7m on an annualised basis three months ahead of schedule.
Since announcing its target to reduce annualised costs by a further $2m in January 2018, the company achieved an additional $2.1m reduction in recurring costs, taking the total annualised cost reductions achieved to $7.2m, it said.
“These further cost reductions cement Shanta’s position as one of the lowest cost producing gold mining companies in Africa and form part of our overriding strategy of maximising value for our shareholders,” said Eric Zurrin, CEO of Shanta Gold.
The cost savings were achieved through the re-negotiation of contracts with suppliers and the elimination of non-essential general administrative spend.
The full benefit of the 2018 cost reductions will be realised from the third quarter of this year. Importantly, the underground operation has been ring-fenced during this exercise to ensure that underground production continues as planned, the company said.
