Shanta Gold Ltd (LON:SHG) has met its cost reduction target three months ahead of schedule.
The East Africa-focused gold producer has shaved an annualised US$7.2mln from costs by renegotiating contracts with suppliers and by eliminating non-essential general and administrative spending.
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The full benefit of the 2018 cost reductions will be realised from the third quarter of 2018. However, the underground operation at New Luika in Tanzania has been ringfenced during this exercise to ensure that production continues as planned.
"These further cost reductions cement Shanta's position as one of the lowest cost producing gold mining companies in Africa and form part of our overriding strategy of maximizing value for our shareholders," said chief executive Eric Zurrin.