Shanta Gold reaches cost saving target three months early

East Africa-focused gold producer, developer and explorer Shanta Gold announced on Tuesday that its plan to reduce its costs by $7m on an annualised basis has been achieved, three months ahead of schedule.

The AIM-traded firm said that, since announcing its target to reduce annualised costs by a further $2m in January, it had achieved an additional $2.1m of recurring cost reductions, taking the total annualised cost reductions achieved to $7.2m.

It said those 2018 cost reductions were the result of renegotiated contracts with suppliers, and the elimination of non-essential G&A spend.

The full benefit of the 2018 cost reductions would be realised from the third quarter, the board claimed.

It added that importantly, the underground operation had been ring fenced during the exercise to ensure that underground production continued 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 maximising value for our shareholders,” said chief executive officer Eric Zurrin.