The company realised an average US$1,533/oz for gold sold in the half (plus-17% yoy), including gold sold into its hedge contracts. Outstanding forward gold sales were at 27,000oz at an average price of $1,251/oz for the current half year.

Shanta said profit after tax for the latest half year was $1 million compared with a $5.7 million loss for the same period last year.

It had net cash of $2.1 million at June 30, compared with net debt of $14.3 million a year ago.

Shanta is spending $5 million on exploration this year, up 65% on 2019.

The company has meanwhile completion the US$14.5 million acquisition of West Kenya across the border in Kenya, from Barrick Gold (now a 6% Shanta shareholder), and plans to start infill and extension drilling soon to try to build out the current resource of 1.2Mt grading 12.6gpt (1.18Moz) and complete a scoping study in the current half.

"The West Kenya acquisition is significant for Shanta Gold, creating an East African gold mining champion with realisable growth prospects and high asset quality across three attractive gold projects," Shanta CEO Eric Zurrin said last week.

"With the stronger gold price environment, the company remains focussed on value-driven opportunities alongside maintaining sustainable and cost-efficient operations at New Luika gold mine. With the acquisition of the West Kenya Project now complete Shanta has diversified its East-African portfolio with a highly complementary asset that significantly bolsters the company's growth pipeline."