Shanta Gold : Q4 Presentation

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Q4 2018 Results 2

Shanta Gold - Highlights

Q4 2018 performance

•  Gold production of 23.9k oz at New Luika

•  Cash costs of US$514 /oz, AISC3 of US$701 /oz

•  Cash balance: US$9.0 m

•  Ilunga development ahead of schedule, first ore expected in March

•  Singida Gold Project NPV of US$31 m and IRR of 67%

Very strong 2018

•  Gold production: 81,872 oz, better than guidance of 80,000 oz

•  Cash costs of US$538 /oz

•  AISC: US$731 /oz, better than guidance of US$750 /oz

•  Very strong EBITDA of US$45.5 m

•  Net debt: US$31.5 m at Dec '18

•  Total capex of US$18.2 m, including US$3.3 m for Ilunga

•  Exceptional safety record with zero LTIs in 2018

•  Dividend policy to take into account financial strength

2019 guidance

•  Gold production: 80,000 - 84,000

•  AISC: US$740 - 800 /oz

•  Exploration budget increased by 100% from 2018

Onto the 7th year of steady production

Summary Capitalisation
Share Price (GBP) 1	5.3p
Market capitalisation	US$53.3 m
Net debt 2	US$31.5 m
Enterprise Value	US$84.8 m
EV / 2018 EBITDA	1.86 x
1. As of 15 January 2019
2. As of 31 December 2018

3. The AISC calculation since Q3 2017 includes the impact of higher royalties (c. US$40/oz). Development costs at the Bauhinia Creek, Luika and Ilunga underground operations are not included in AISC

Q4 2018 performance

•  Zero lost time injuries

•  Gold production of 23,942 oz (Q4 2017: 21,288 oz)

•  Gold sales of 24,893 oz (Q4 2017: 20,644 oz)

•  AISC of US$701 /oz (Q4 2017: US$784 /oz)1

•  Cash operating costs of US$514 /oz (Q4 2017: US$553 /oz)

•  157,952 tonnes ore mined from underground; as planned, no open pit mining took place

•  Ilunga underground pre-production development well ahead of schedule and first ore now expected in March, ahead of the original mid-year 2019 target

•  Singida Gold Project NPV of US$31 m and IRR of 67% announced

1 AISC calculation since Q3 2017 includes the impact of higher royalties (c. US$40/oz). Development costs at the Bauhinia Creek, Luika and Ilunga underground operations are not included in AISC

Quarterly gold production (000's oz)

Shanta Gold 2018 highlights

21% 81,872

New all-time record for monthly milled tonnes in December. New all-time record for quarterly milled tonnes of 172,902 tonnes in Q4

$731 /oz 60,304