StockMarketWire.com
Shanta Gold's revenue fell by 5.2% from $55.7 million to $52.7 million in the first half of the year.

The company said this reflected lower gold sales as a result of the availability of lower grades than the previous year.

The cost of sales amounted to $44 million, down 11.9% from the prior year, including the effect of accounting for underground development ore prior to commercial production.

EBITDA was $21.5 million, down from $33.3 million, which was a record result based on high gold production as the Bauhinia Creek open pit returned high grades in the final few months of its life in 2016.

The company made a loss before tax of $600,000, an improvement from a loss of $3 million the year before.

The effect of accounting for underground development ore prior to commercial production reduced profit before tax by $8.3 million.

Since the first half ended, the Tanzanian government has introduced a new Finance Act and a number of new legislative bills.

Since July, gold shipments have attracted higher royalty rates of 6%, up from 4% previously, and a clearing fee of 1% has been applied.

Shanta said its production forecast remains unchanged but it will continue to seek advice on the legislation and its potential impact.