- East Africa-focused gold producer Shanta Gold achieved higher first-quarter earnings, on the back of higher production and amid rising gold prices.

Adjusted earnings before interest, tax, depreciation and amortisation for the three months through March rose to $15.0m, up from $8.6m in the fourth quarter of 2019.

Shanta Gold reiterated its annual output guidance of 80,000-to-85,000 ounces.

The company said the Songwe region in Tanzania had no reported cases of Covid-19 and and that it had put in place restrictions on all non-critical business travel.

'During the quarter, we announced the acquisition of Barrick's Kenya assets,' chief executive Eric Zurrin said.

'As a result, Shanta is expected to transform into a multi-asset and geographically diversified company with a portfolio of low-cost gold mines, and the potential to become a significant producer.'

'We look forward to publishing the West Kenya Project economics and the Singida economics in the coming months.'

'We anticipate low capital costs at both projects driven by the highly attractive grades.'

'The company meanwhile continues to make excellent progress in reducing its hedge book and transitioning towards a net cash position.'

At 9:19am: [LON:SHG] Shanta Gold Ltd share price was +0.25p at 11.5p

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