Shanta releases full year results, stock drops

The West Kenya project has received about $55 million in exploration investment. (Image courtesy of Shanta Gold | Twitter.)

Shanta Gold (LSE: SHG) released on Friday its final results for 2019, reporting revenue of $112.8 million, up from $103.8 million in 2018.

The miner's focus remained on its flagship asset, the New Luika gold mine, in Southwest Tanzania, throughout the year, it said.

The company produced 84,506 ounces of gold, above 2019 guidance of 80,000 ounces. Cash costs were $544 /oz and all in sustaining costs (AISC) were $777 /oz, within 2019 guidance.

Shanta reported net debt reduction of 55% to $14.3 million.

The company produced 84,506 ounces of gold, above 2019 guidance of 80,000 ounces

"2019 was a successful 12-month period for Shanta, in which we delivered on all of our operational targets. New Luika produced 84,506 ounces, which was ahead of guidance and achieved against the backdrop of an uncompromised safety record." said Shanta CEO, Eric Zurrin in a media statement.

"The company's growth pipeline has been extended significantly following the significant post period acquisition of the high grade West Kenya Project from Barrick Gold." Zurrin added.

Investor reaction to the report was mixed; at market close in London Friday, Shanta's stock was down nearly 15% on the LSE. The day's trading volume reached over 9.7 million, over four times the daily average. The company has a ?74.3 million market capitalization.