HomeEast AfricaShanta Gold revises strategy on cost control and shareholder returns

Shanta Gold revises strategy on cost control and shareholder returns

As part of the revised strategy, Toby Bradbury and Shanta Gold have agreed that he will retire as CEO but will remain on the board of directors until September 2017 to assist with the transition.

The board is pleased to announce the appointment of Eric Zurrin who will take over as CEO with immediate effect.

Eric Zurrin was re-appointed to Shanta Gold as CFO on 13 March 2017.

[quote]Zurrin has previously worked across a range of roles within Shanta Gold over the last four years including as interim CFO in 2015/2016 leading the financial restructuring and as adviser to the CEO in 2013 leading an operational restructuring of the business as New Luika ramped up production.

Zurrin holds a Bachelor of Commerce (Accounting) degree and has 15 years’ experience in investment banking and mining, previously with UBS Investment Bank in London and serves as a director of Kincora Copper.

Zurrin will be based in the United Kingdom from September 2017.

It is intended that Zurrin will be formally appointed to the board shortly and Shanta Gold will look to appoint a CFO in due course.

Shanta Gold produced 40 073 oz of gold in the first half of 2017 at an all-in sustaining cost (AISC) of US$755 /oz.

Production in July has been maintained at those levels and Shanta Gold remains on track to meet full year guidance of 80 000 – 85 000 oz at AISC of $800 – $850 /oz.

 “On behalf of the board I would like to thank Toby Bradbury for his contributions to Shanta Gold as CEO over the last two and a half years,” says Shanta Gold chairman, Tony Durrant.

“Under his tenure Shanta Gold has made significant steps forward, particularly in demonstrating New Luika to be a sustainable, robust and reliable, low-cost gold producer, as well as successfully commencing its transition to a predominately underground operation. “

“Following the changing business environment in Tanzania, however, it is important that Shanta Gold accordingly adapts and refocuses its strategy on cost and capital control,” continues Durrant.

“The board and Toby have mutually agreed that the time is right for a new CEO to lead these initiatives and therefore is very pleased that Eric Zurrin has accepted the role of CEO of Shanta Gold.

 “Eric knows Shanta Gold extremely well, having advised the company for the last four years prior to being re-appointed as CFO in March 2017. His strong finance, investment and commercial expertise will help guide the company through the next stage in its development, which will prove invaluable for Shanta during this evolving period in Tanzania,” adds Durrant.

“I am delighted to have been appointed to the role of CEO of Shanta Gold and look forward to working with the board and the wider Shanta Gold team as we adjust the company, and its cost base, to the new environment in Tanzania,” states Shanta Gold CEO, Eric Zurrin.

“I am excited by the prospect of invigorating an entrepreneurial spirit in a very exciting junior gold mining company. Since re-joining Shanta, we have maintained the principle of always seeking to improve and, in response to a changing environment; we have clear areas for improvement and cost-effective growth that we will start executing over the coming months,” he continues.

“The company’s assets at New Luika and Singida are of high quality and the exploration rights across the Lupa Goldfield remain extremely exciting and prospective. Our vision remains to demonstrate and deliver on the true potential value of our assets.

“Shanta Gold has an excellent operating team on the ground at New Luika with highly experienced underground mining leadership. The recent appointment of Keith Marshall, as a non-executive director of the company, solidifies the senior oversight of the operations and ensures that we are well positioned to complete our transition into a successful underground mining operation,” explains Zurrin.

“Tanzania is undergoing a period of change however the country remains one of the fastest growing African nations and ranked no. 5 in Africa for gold producing nations. The company’s footprint across the Lupa Goldfield, a highly prospective goldfield in Africa, positions us favourably for long term success.

“The board and I remain confident in continuing to deliver a sustainable and cash generative business with a focus on shareholder value,” maintains Zurrin.

Feature image credit: Wikimedia