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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Shanta Gold Limited | LSE:SHG | London | Ordinary Share | GB00B0CGR828 | ORD 0.01P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 14.75 | 14.70 | 14.80 | 14.75 | 14.70 | 14.70 | 1,568,618 | 08:00:04 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 114.06M | -2.3M | -0.0022 | -67.05 | 155.09M |
From Apr 2019 to Apr 2024
TIDMSHG
RNS Number : 5804X
Shanta Gold Limited
01 September 2015
01 September 2015
Shanta Gold Limited
("Shanta Gold" or the "Company")
Interim results for the six months ended 30 June 2015
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, announces its unaudited results for the six months ended 30 June 2015 (the "Period").
Highlights
Operational
-- Bauhinia Creek ("BC") and Luika Pits re-designed and re-optimised, significantly reducing strip ratios and future mining costs;
-- Ore production significantly lower due to limited ore access during redevelopment of the pits;
Hot Features
Premium
-- Gold production of 28,180 ounces ("oz") (H1 2014: 42,194 oz);
-- Cash and all in sustaining costs ("AISC") of US$993 /oz and US$1,310 /oz respectively (H1 2014: US$759 /oz and US$965 /oz respectively);
-- 25,142 oz of gold sold at an average price of US$1,238/oz;
-- June production back to budget levels and on track to meet full year guidance of 72,000 - 77,000 oz;
-- Costs anticipated to reduce significantly in the second half of the year to below US$700 / oz to achieve AISC of US$850-900 /oz for the year;
-- 3,784 metre drilling programme completed at Elizabeth Hill Mineralised Prospect ("Elizabeth Hill") post period end and may provide an additional source of ore for NLGM in the future; and
-- Repairs to new crushing circuit fire damage completed with no production loss.
Financial
-- Revenue of US$31.9 million (H1 2014: US$58.3 million);
-- Loss before and after tax of US$10.3 million and US$8.3 million respectively (H1 2014: Profit before and after tax: US$7.7 million and US$4.1 million respectively);
-- Cash generated from operations of US$4.4 million reflecting lower production during redevelopment (H1 2014: US$16.7 million);
-- Capital expenditure of US$14.7 million (H1 2014: US$10.9 million); -- Lower cost and longer tenure US$40 million loan facility finalised with Investec Bank; -- US$20 million FBN bank loan refinanced and US$10 million standby facility drawn;
-- Cash balance of US$5.9 million reflecting redevelopment costs and lower production (31 December 2014: US$14.9 million); and
-- Net debt of US$54.5 million (31 December 2014: US$40.7 million).
Corporate
-- Prudent hedging policy remains in place with 24,642 oz sold in the period under forward sales contracts;
-- A further 26,000 oz hedged as at 30 June 2015 to December 2015 at an average price of US$1,222 /oz; and
-- Peet Prinsloo re-joined Shanta Mining Company Limited ("SMCL") as Head of Exploration, managing Shanta's renewed exploration focus.
Toby Bradbury, Chief Executive Officer, commented:
"Shanta's H1 2015 production reflects the major redevelopment of the mine from January to May. While doing so invariably impacts year-on-year production and cash at hand, production was restored to budget levels from June. Shanta has grown its resource base in H1 with a (Post Period) New Luika Mine JORC Resource and Reserves Update and a resource definition drilling update from Elizabeth Hill. The optionality and scalability of the operational improvements established in H1 will offer material reductions to future mining costs, and we remain on track to deliver full year 2015 production of 72-77,000 oz at an AISC of US$850-900 /oz."
Enquiries:
Shanta Gold Limited Toby Bradbury (CEO) Patrick Maseva-Shayawabaya (CFO) +255 (0)22 2601 829 Nominated Adviser and Joint Broker Peel Hunt LLP Matthew Armitt / Ross Allister + 44 (0)20 7418 8900 Joint Broker GMP Securities Europe LLP Richard Greenfield / Alexandra Carse + 44 (0)20 7647 2800 Financial Public Relations Tavistock Emily Fenton / Nuala Gallagher +44 (0)20 7920 3150
About Shanta Gold
Shanta Gold is an East Africa-focused gold producer, developer and explorer. It currently has defined ore resources on the New Luika and Singida projects in Tanzania and holds exploration licences over a number of additional properties in the country. Shanta's flagship New Luika Gold Mine commenced production in 2012 and, produced 84,000 ounces in 2014. The Company is admitted to trading on London's AIM and has approximately 468 million shares in issue. For further information please visit: www.shantagold.com.
Income Statement
Revenue for the Period, of US$31.9 million was generated from the sale of 25,142 oz of gold at an average price of US$1,238 /oz. This was 45% lower than for H1 2014 reflecting the lower volume of sales and lower gold price. The low sales volume mirrored the low gold production due to limited ore access during the development of both BC and Luika Pits in the first five months of 2015. Sales volume and average gold price for H1 2014 were 44,459 oz and US$1,302/oz respectively.
The volume of sales for the Period was 43% lower than H1 2014. Cost of sales for the Period amounted to US$32.7 million, down 21% from H1 2014 reflecting the lower volume of sales, the impact of fixed costs on a lower sales volume base and the processing of lower grade ore. The combination of reduced sales volume and lower gold price resulted in a gross loss for the Period of US$0.8 million compared to a gross profit of US$16.9 million for H1 2014.
Administration and exploration expenditure amounted to US$5.8 million, similar to H1 2014 with the increase in administration costs offset by the decrease in exploration expenditure which remained low for the Period. As a result, an operating loss of US$6.6 million was recorded. Net finance costs amounted to US$3.8 million, resulting in a loss before tax of US$10.3 million down from a profit before tax of US$7.7 million for H1 2014.
The loss before tax for the Period resulted in a deferred tax credit of US$2.0 million. Consequently, loss after tax for the Period amounted to US$8.3 million, down from a profit after tax of US$4.1 million for H1 2014, giving a loss per share of US$1.8 cents.
Costs
While focus on cost management and reduction remained strong and total costs were in line with expectations, unit cost performance was affected by low production. Cash and All in Sustaining costs for the Period thus amounted to US$993 /oz and US$1,310 /oz respectively, up from US$759 /oz and US$965 /oz for H1 2014.
Cash cost - Mining, processing and mine administration costs
All in Sustaining cost - Cash cost plus royalty, interest, general administration & corporate costs and stay in business capital expenditure
Financial Position
Group assets excluding cash balances increased from US$154.3 million at 31 December 2014 to US$158.8 million, due mainly to capital expenditure relating to the BC pit pushback, offset by depreciation. At Period end, Inventories amounted to US$10.1million, down from US$12,7 million at 31 December 2014. Total liabilities increased by US$3.5 million. Borrowings increased by US$4.9 million and trade creditors by US$0.3 million offset by a decrease in the deferred tax liability of US$2 million.
Cash flow
The low production and gold price adversely impacted cash generation which was US$4.4 million, compared to US$16.7 million for H1 2014. Capital expenditure amounted to US$14.7 million, US$10.4 million of which was on the BC pit push back. Two new loan facilities totalling US$40 million with a five year tenure and bearing interest at LIBOR + 4.9% were signed with Investec Bank. US$20 million of the facilities was used to refinance the FBN Bank loan. Total loan repayments including the refinancing amounted to US$25 million. US$10 million of the Investec facilities was drawn to fund working capital requirements during a period when cash generation was low. Interest payments on the bank loans and Convertible Loan Notes amounted to US$2.1 million. As a result of the low cash generated from operations, the cash balance at 30 June was US$5.9 million, down from US$14.9 million at 31 December 2014. Net debt at Period end thus amounted to US$54.5 million, up from US$40.7 million at 31 December 2014.
Corporate
The Company has maintained a prudent hedging policy and was able to realise an average price of US$1,238/oz from 24,642 oz sold under hedging contracts. As at 30 June 2015, 26,000 oz had been sold forward to 31 December 2015 at an average price of US$1,222/oz.
Peet Prinsloo re-joined Shanta as Head of Exploration. Peet is responsible for managing Shanta's renewed exploration focus. He has overseen the rapid recommencement of drilling to extend the understanding of value-adding resources within and surrounding the NLGM mining lease.
Outlook
The gold price is forecast to remain volatile for the remainder of 2015. However, the Company has already sold forward at least 60% of the forecast production for the remainder of the year at an average price of US$1,222/oz. The re-optimisation of the pits has resulted in reduced Life of Pit strip ratios with consequent reduction in mining costs. A significant improvement in cash generation and profitability is therefore forecast for H2 2015. The company remains on track to deliver full year guidance of 72,000 - 77,000 oz at an AISC of $850/oz - $900/oz.
Consolidated Income Statement for the six months ended
30 June 2015
Note 6 months 6 months Year
ended ended ended
30June 30 June 31 December
2015 2014 2014
US$'000 US$'000 US$'000
Unaudited Unaudited Audited
Revenue 31,912 58,276 114,857
Cost of sales (32,743) (41,289) (80,106)
(MORE TO FOLLOW) Dow Jones Newswires
September 01, 2015 02:03 ET (06:03 GMT)
---------- ------------------------ ------------
Gross (loss)/profit (831) 16,987 34,751
Other costs (5,804) (5,844) (11,818)
------------------------
Administration expenses (4,749) (4,555) (8,956)
Exploration and evaluation
costs (1,055) (1,289) (2,862)
Operating (loss)/profit (6,635) 11,143 22,933
Finance income 127 37 509
Finance expense (3,835) (3,520) (6,872)
------------------------
(Loss)/profit before
taxation (10,343) 7,660 16,570
Taxation 2,044 (3,555) (7,715)
Current - - -
Deferred 2,044 (3,555) (7,715)
---------- ------------------------ ------------
(Loss)/profit for the
Period / year attributable
to equity holders of
the parent company (8,299) 4,105 8,855
========== ======================== ============
Basic (loss)/earnings
per share (cents) 3 (1.781) 0.884 1.907
========== ======================== ============
Diluted (loss)/earnings
per share (cents) 3 (1.781) 0.871 1.890
========== ======================== ============
Consolidated Statement of Comprehensive
Income
6 months 6 months Year ended
ended ended
30 June 30 June 31 December
2015 2014 2014
Unaudited Unaudited Audited
US$'000 US$'000 US$'000
(Loss)/profit after
taxation (8,299) 4,105 8,855
Other comprehensive
income:
Exchange differences
on translating subsidiary
which can subsequently
be reclassified to
profit or loss 36 10 (26)
---------- ---------- ------------
Total comprehensive
(loss)/income attributable
to equity shareholders
of parent company (8,263) 4,115 8,829
========== ========== ============
SHANTA GOLD LIMITED
Consolidated Statement of Financial Position
Note 30 June 30 June 31 December
2015 2014 2014
US$'000 US$'000 US$'000
Unaudited Unaudited Audited
Non-current assets
Intangible assets 23,243 23,251 23,208
Property, Plant and
Equipment 117,814 97,032 108,724
Deferred tax asset - 1,570 -
Total non-current
assets 141,057 121,853 131,932
---------- ---------- ------------
Current assets
Inventories 10,123 16,104 12,707
Trade and other receivables 7,152 10,085 9,123
Restricted cash 500 600 500
Cash and cash equivalents 5,861 15,472 14,878
Total current assets 23,636 42,261 37,208
---------- ---------- ------------
Total assets 164,693 164,114 169,140
========== ========== ============
Capital and reserves
Share capital 77 75 76
Share premium 133,246 132,865 132,865
Other reserves 10,349 11,182 10,638
Retained deficit (58,284) (56,087) (50,228)
Total equity 85,388 88,036 93,351
---------- ---------- ------------
Non-Current liabilities
Loans and borrowings 4 55,792 42,953 38,435
Decommissioning provision 9,328 6,041 8,970
Deferred taxation 5,742 5,197 7,787
Total non-current
liabilities 70,862 54,191 55,192
---------- ---------- ------------
Current liabilities
Trade payables and
accruals 6,396 7,640 6,143
Loans and borrowings 4 2,047 14,247 14,454
Total current liablities 8,443 21,887 20,597
---------- ---------- ------------
Total liabilities 79,305 76,078 75,789
---------- ---------- ------------
Total equity and liabilities 164,693 164,114 169,140
========== ========== ============
Consolidated statement of changes in equity
Share Convertible Shares
Share Share option Debt Translation to be Retained Total
capital premium reserve reserve reserve issued deficit Equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
--------------------- -------- -------- -------- ----------- ----------- -------- -------- --------
At 1 January
2015 76 132,865 4,067 5,374 781 416 (50,228) 93,351
Loss for the
Period - - - - - - (8,299) (8,299)
Comprehensive
income for the
Period - - - - 36 - - 36
Shares issued 1 381 (243) - - (310) 243 72
Share based payments - - 228 - - - - 228
--------------------- --------
At 30 June 2015
(Unaudited) 77 133,246 4,052 5,374 817 106 (58,284) 85,388
--------------------- -------- -------- -------- ----------- ----------- -------- -------- --------
At 1 January
2014 76 132,797 4,286 5,374 807 - (60,192) 83,148
Profit for the
Period - - - - - - 4,105 4,105
Comprehensive
income for the
Period - - - - 10 - - 10
Shares issued - 68 - - - - - 68
Share based payments - - 705 - - - - 705
At 30 June 2014
(Unaudited) 76 132,865 4,991 5,374 817 - (56,087) 88,036
--------------------- -------- -------- -------- ----------- ----------- -------- -------- --------
At 1 January
2014 76 132,797 4,286 5,374 807 - (60,192) 83,148
Profit for the
year - - - - - - 8,855 8,855
Comprehensive
loss for the
year - - - - (26) - - (26)
Share based payments - - 890 - - 416 - 1,306
Shares issued - 68 - - - - - 68
Lapsed options - - (1,109) - - - 1,109 -
At 31 December
2014 (Audited) 76 132,865 4,067 5,374 781 416 (50,228) 93,351
--------------------- -------- -------- -------- ----------- ----------- -------- -------- --------
Consolidated Statement of Cash flows
Note 30 June 30 June 31 December
2015 2014
2014
US$'000 US$'000 US$'000
Unaudited Unaudited Audited
Net cash flows from operating
activities 5 4,383 16,650 39,042
Investing activities
Purchase of intangible
(MORE TO FOLLOW) Dow Jones Newswires
September 01, 2015 02:03 ET (06:03 GMT)
assets (35) - (31)
Purchase of property,
plant and equipment (PPE) (630) (307) (11,026)
PPE - additions to assets
under construction (3,681) (7,700) (1,936)
PPE - deferred stripping
cost (10,423) - (9,976)
Interest received - - -
Proceeds from disposal
of asset 32 6
Net cash flows (used
in) investing activities (14,737) (8,007) (22,963)
---------------------- -------------------- --------------------
Financing activities
Equipment loan repaid (290) - (288)
Loans and related fees
paid (25,141) (5,625) (11,250)
Loan interest paid (2,378) (2,184) (4,401)
Net refund of restricted
cash - - 100
Loans received, net of
issue costs 29,146 33,446
Net cash flows from/(used
in) financing activities 1,337 (7,809) (15,839)
---------------------- -------------------- --------------------
Net (decrease)/increase
in cash and cash equivalents (9,017) 834 240
Cash and cash equivalents
at beginning of Period 14,878 14,638 14,638
Cash and cash equivalents
at end of Period/year 5,861 15,472 14,878
====================== ==================== ====================
SHANTA GOLD LIMITED
Notes to the Consolidated Financial Statements
for the six months ended 30 June 2015
1. General information
Shanta Gold Limited (the "Company") is a limited company incorporated in Guernsey. The Company is listed on the London Stock Exchange's AIM market. The address of its registered office is Suite A, St Peter Port House, St Peter Port, Guernsey.
The interim consolidated financial statements were approved by the board and authorised for issue on 28 August 2015.
2. Basis of preparation
The consolidated interim financial statements have been prepared using policies based on International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU. The consolidated interim financial statements have been prepared using the accounting policies which will be applied in the Group's financial statements for the year ended 31 December 2015.
The consolidated interim financial statements for the Period 1 January 2015 to 30 June 2015 are unaudited and incorporate unaudited comparative figures for the interim Period 1 January 2014 to 30 June 2014 and the audited comparative figures for the year to 31 December 2014. It does not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2014 Annual Report.
The same accounting policies, presentation and methods of computation are followed in the interim consolidated financial statements as were applied in the Group's latest annual audited financial statements except that in the current financial year, the Group has adopted a number of revised Standards and Interpretations. However, none of these has had a material impact on the Group's reporting.
In addition, the IASB has issued a number of IFRS and IFRIC amendments or interpretations since the last annual report was published. It is not expected that any of these will have a material impact on the Group.
3. (Loss)/earnings per share
Basic (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to the ordinary shareholders by the weighted average number of ordinary shares outstanding during the Period/year.
There were share incentives outstanding at the end of the Period that could potentially dilute basic earnings per share in the future.
Due to the loss for the Period ended 30 June 2015, the share options would be anti-dilutive and therefore diluted EPS is the same as Basic EPS.
Unaudited Unaudited Audited
30 June 2015 30 June 2014 31-Dec-14
--------- ------------------------------------- ------------------------------------- --------------------------------------
Weighted Weighted Weighted
average Per average Per average Per
number share number share number share
Loss of shares amount Profit of shares amount Profit of shares amount
---------
US$'000 (thousands) (Cents) US$'000 (thousands) (Cents) US$'000 (thousands) (Cents)
--------- ---------- --------------- -------- --------- -------------- ---------- ------------ -------------- --------
Basic
EPS (8,299) 466,605 (1.781) 4,105 464,389 0.884 8,855 464,303 1.907
--------- ---------- --------------- -------- --------- -------------- ---------- ------------ -------------- --------
Diluted
EPS (8,299) 470,292 (1.781) 4,105 471,190 0.871 8,855 468,530 1.890
--------- ---------- --------------- -------- --------- -------------- ---------- ------------ -------------- --------
SHANTA GOLD LIMITED
Notes to the Consolidated Financial Statements
for the six months ended 30 June 2015
4. Loans and borrowings
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
$'000 $'000 $'000
----------- ---------- ----------------
Amounts payable
within one year
Promissory notes
(a) - 2,334 2,376
Loan from FBN Bank
(b) - 10,997 11,048
Loan from Investec 1,003 - -
Bank (b)
Loan from related
parties (c) 337 337 337
Equipment Finance(e) 579 579 579
Finance lease(f) 128 - 114
---------- ---------- --------------
2,047 14,247 14,454
========== ========== ==============
Amounts payable after
one year
Promissory notes
(a) 2,845 2,720 2,761
Loan from FBN Bank
(b) - 16,875 11,250
Loan from Investec 28,143 - -
Bank (net of arrangement
costs) (b)
Convertible loan
notes (d) 22,645 21,042 21,843
Equipment Finance
(e) 1,737 2,316 2,027
Finance lease (f) 422 - 554
55,792 42,953 38,435
========== ========== ==============
(a) Promissory note relates to Promissory Note 2 of US$3.1 million issued in consideration for the acquisition of Boulder and is repayable on 15 April 2017. The note bears an annual interest of 2.6% and is payable semi-annually in arrears. The promissory note is recognised at fair value and subsequently accounted at amortised cost. The fair value of the note has been determined by discounting the cash flows using a market rate of interest which would be payable on a similar debt instrument obtained from an unconnected third party.
(b) Loan from Investec Bank in South Africa relates to a drawdown of US$ 30 million from two facilities totalling US$40 million obtained in May 2015.The facilities bear an annual interest rate of LIBOR +4.9% and are secured on the bank account which is credited with gold sales, the shares in Shanta Mining Company Limited (SMCL) and a charge over the assets of SMCL.
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