Shanta Gold to increase production in 2021

In the last update from Shanta Gold (SHG: LSE), the company announced gold production numbers of 82,978 oz, slightly above its 2020 forecast of 80,000 - 85,000 oz. The company also stated that it is now unsecured and fully exposed to the price of gold. The company reported adjusted EBITDA of US $ 63.8 million compared to adjusted EBITDA of US $ 47.7 million for 2019 and unconstrained cash on hand of US $ 41.6 million compared to 6.7 US $ million in the third quarter. Looking ahead, the company predicted that gold production would increase during the year after the third mill spins up, resulting in production being weighted in the second half of 2021. This now means the company expects to produce approximately 80,000 ounces of gold in 2021. Eric Zurrin, Chief Executive Officer, said, "Shanta is a free cash flow generating East African gold producer with promising prospects for reserve and production growth within its portfolio. The company is drilling on each of its three projects and expects the Group's reserves to be in the Exploration is likely to be the primary driver of shareholder value creation in the coming years. Shanta has met its 2020 headline targets with gold production and costs in line with forecast and again has an industry leader Security deposit provided. " A look at the share price shows that investors took the news slightly negatively. The daily rate fell about 3% but the wave high at 19.50 is still the one to watch out for. Should the bear market continue, the purple support line is around 16.00. Additionally, the red support line at 12.75 has been an important pivot zone for the stock.