LONDON (ShareCast) - Shanta Gold said 2013 full-year production came to 64,054 ounces, marginally ahead of guidance of 63,000 ounces, following a strong fourth quarter.

The East Africa focused company’s gold output rose 3.6% to 19,581 in the fourth quarter from the previous three months and sales of the yellow metal came to 18,800 ounces at an average price of $1,320 per ounce.

Gold sales for the full year 2013 were 61,877 ounces at an average price of $1,409 per ounce.

The firm reiterated its full-year 2104 production guidance of 80,000 ounces as the firm works on improving its plants to boost output.

However, some delays have been experienced in the delivery of both the elution/electro winning plant and the crushing/screening plant. The two plants are now scheduled to be commissioned by the end of the second quarter of 2014.

In the last quarter, the company began mining operations at the New Luika open pit where historical near surface workings occurred. It resulted in an overstatement of block model ore recoveries which is not expected to be an ongoing issue. Nevertheless the firm saw improved grades.

"The company delivered another strong quarter with record throughput and production enabling us to marginally exceed our full year production guidance," said Chief Executive Mike Houston.

"With 38,475 ounces produced in the second half we have a robust base on which to build from and while further plant optimisation needs to be completed, we are confident in our ability to achieve FY 2014 production guidance of 80,000 ounces."

Shares rose 2.06% to 12.38p at 14:55 on Monday.

RD

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