Completion of all gold forward sales commitments
21 December 2020
Shanta Gold Limited
("Shanta Gold" or the "Company")
Completion of all gold forward sales commitments
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to announce that it has settled all outstanding gold forward sale commitments, leaving the Company unhedged.
As of early 2020, the Company had sold forward 40,000 ounces ("oz") to January 2021 at an average price of US$1,244 /oz. The forward sales were a condition of its senior lending facility.
On the 18th December 2020, the Company delivered 1,900 oz into the hedge book and settled the final outstanding 840 oz from operating cash flow.
Eric Zurrin, Chief Executive Officer, commented:
"With all forward gold sales commitments settled, Shanta will now receive the full benefit of today's strong gold price environment. As a result, we look forward to significantly improved free cash generation heading into 2021."
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Shanta Gold Limited |
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Eric Zurrin (CEO) |
+44 (0) 14 8173 2153 |
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Luke Leslie (CFO) |
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Nominated Adviser and Joint Broker |
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Liberum Capital Limited |
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Scott Mathieson / Ed Thomas / Louis Davies / Nikhil Varghese |
+44 (0) 20 3100 2000 |
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Joint Broker |
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Tamesis Partners LLP |
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Charlie Bendon / Richard Greenfield |
+44 (0) 20 3882 2868 |
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
About Shanta Gold
Shanta Gold is an East Africa-focused gold producer. It currently has defined ore resources on the New Luika and Singida projects in Tanzania and holds exploration licences covering approximately 1,100 km2 in the country. Shanta Gold also owns the West Kenya Project in Kenya with defined ore resources of 1.2 Mt grading 12.6 g/t. Shanta's flagship New Luika Gold Mine commenced production in 2012 and produced 84,506 ounces in 2019. The Company has been admitted to trading on London's AIM market and has approximately 1,043 million shares in issue. For further information please visit: www.shantagold.com.
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