East African gold miner Shanta Gold, listed on AIM, reported a slight dip in its Q3 output to 27,935 ounces from the previous quarter’s record high of 29,403 ounces. Even with this minor decrease, the company remains on track to meet its annual target range of 90,000-98,000 ounces.
The miner also reported improved costs quarter-on-quarter. Cash operating costs were at $757 an ounce and all-in sustaining costs stood at $1,023 per ounce. These figures align with the company’s annual cost target range of $1,200-$1,300 an ounce.
While the number of gold ounces sold this quarter decreased, leading to a drop in adjusted earnings to $19.0 million, strong gold prices resulted in an average selling price of $1,930 per ounce. This suggests that the firm was able to maintain profitability due to favorable market conditions.
In the context of the company’s overall performance, InvestingPro Data reveals some key metrics that could be of interest. Shanta Gold has a market cap of $13.7B USD and a P/E ratio of 4.41 as of Q2 2023. This is relatively low, indicating that the company may be undervalued relative to its earnings. The company’s revenue for Q2 2023 stands at a substantial $20148.99M USD, with a revenue growth of 3.96% and a quarterly revenue growth of 7.91%.
InvestingPro Tips also shed some light on Shanta Gold’s financial health and market position. The company has been aggressively buying back shares and has consistently increased its earnings per share. This could be a positive sign for investors, as it suggests that the company is confident in its future prospects. Shanta Gold is also trading at a low Price / Book multiple and a low P/E ratio relative to near-term earnings growth, which could make it an attractive investment opportunity.
Moreover, Shanta Gold has maintained dividend payments for 15 consecutive years, which is a positive sign for income-focused investors. The company’s dividend yield as of 2023 stands at 4.77%, with dividend growth of 37.36% as of Q2 2023.
For more insights and tips like these, consider subscribing to InvestingPro, which offers additional tips and real-time metrics to help you make informed investment decisions. For more information, visit InvestingPro Pricing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.