After a tough year, Shanta Gold (SHG) appears to be turning a corner. As investors will have hoped when former chief financial officer Eric Zurrin moved into the top job in August, there has been a concerted focus on the financial position.
So, despite a hike in royalties, and a near-doubling in underground tonnage mined, $5m (£3.6m) of annual costs were stripped out in just two months, keeping fourth-quarter all-in sustaining costs down at $784 an ounce. A reduction in capital expenditure has certainly helped the Tanzanian miner’s cash flow, as has the careful management of government relations. Recent meetings with various ministers have also had the desired effect: Shanta was the first miner in Tanzania to be paid back an instalment of overdue VAT receipts, and has been reassured it will see the remaining $14.5m it is owed.
