Tanzania-focused miner Shanta Gold PLC (LON:SHG) is comfortably on track to hit its guidance of 80-84,000oz this year, says Eric Zurrin chief executive.
Production in the half-year totalled 42,230oz, up 11% on a year ago.
"Shanta has completed the transition to one of the least geared UK listed gold producers.
"In the second half of this year we expect more on-mine and regional exploration results, the launch of the Singida IPO and hopefully some movement on the US$25mln VAT receivable which is roughly the same size as our net debt."
Underground exploration drilling results released during the period showed the best historical intersected grades and widths since production began at New Luika, he added.
Underlying profits [EBITDA] (before non-cash loss on unsettled forward contracts) of US$10.5 m (Q1: US$11.7 m).
All-in-sustaining costs year-to-date are US$735/oz, which was below annual guidance of US$740-780/oz, said Zurrin.
Shanta announced the intention to list the Singida asset in Tanzania on the Dar es Salaam stock exchange in March..
The gold miner wants to raise US$20mln to develop Singida.
Shanta will retain at least 51% ownership of Singida and will operate the project with the money to be used to start production and for exploration to expand the resource.