Teranga Gold Corporation Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2015; Reports Unaudited Consolidated Production Results for the Third Quarter Ended September 30, 2015; Revises Production and Capital Expenditures Guidance for 2015 and Provides Financial Guidance for the Fourth Quarter of 2015
Oct 29 15
Teranga Gold Corporation reported unaudited consolidated earnings and production results for the third quarter and nine months ended September 30, 2015. For the quarter, the company reported revenue of $37,830,000 compared with $56,711,000 for the same period last year. Profit attributable to shareholders of Teranga was $1,568,000 compared with loss attributable to shareholders of Teranga $1,524,000 for the same period last year. Net cash used in operating activities was $8,221,000 compared with net cash provided by operating activities of $13,822,000 for the same period last year. Profit before income tax was $1,215,000 compared with loss before income tax $1,096,000 for the same period last year. Revenue declined by $18.8 million, or 33% over the prior year to $37.8 million due to lower gold sales and a 12% decline in the average realized gold price. Net profit attributable to shareholders increase in the current quarter was mainly due to lower cost of sales resulting in a 23% increase in gross profit margins, lower finance costs, and lower exploration expenditures, partly offset by lower net foreign exchange gains in the current period. The decrease in operating cash flow was primarily due lower gold sales and an increase in VAT recoverable balances partly offset by lower mine production costs. Expenditures for property, plant and equipment was $8,541,000 compared to the $1,472,000 for the same quarter year ago.
For the nine months period, the company reported revenue of $166,385,000, profit before income tax of $29,380,000, net profit attributable to shareholders of $21,281,000 or $0.06 per basic and diluted share, net cash provided by operating activities of $20,679,000, expenditures for property, plant and equipment of $16,778,000 compared to the revenue of $184,035,000, loss before income tax of $8,870,000, net loss attributable to shareholders of $9,914,000 or $0.03 per basic and diluted share, net cash provided by operating activities of $18,332,000, expenditures for property, plant and equipment of $2,755,000 for the same period a year ago.
For the quarter, the company reported gold produced of 32,956 ounces compared with 48,598 for the same period last year.
The company revised production and capital expenditures guidance for 2015. For the period, the company expected Ore milled to be 3,350,000t - 3,450,000t compared with previous guidance of 3,600,000t - 3,800,000t. Gold produced to be 200,000 oz compared with previous guidance of 200,000 oz - 230,000 oz. Total capital expenditures to be $54.0 million compared with previous guidance of $49.0 - $58.0.
The company expected to generate significant free cash flow in the fourth quarter.
Teranga Gold Corporation Reaffirms Production Guidance for the Third Quarter and Full Year of 2015
Sep 21 15
Teranga Gold Corporation reaffirms production guidance for the third quarter and full year 2015. The company reaffirmed its 2015 production outlook of between 200,000 and 230,000 ounces. Production is expected to be in the lower half of the guidance range as a result of changes made during the third quarter to the Gora mine plan to enlarge the phase one pit to optimize operating efficiencies. Third quarter and full year production will also be impacted by heavy rainfall that has caused material handling issues with the oxide material being mined at Masato, which in turn has negatively impacted throughput. Management also reaffirms that mine production costs and unit mining, milling and G&A costs are expected to come in at the lower end of cost guidance, primarily driven by a reduction in fuel prices, favourable variances in currency and a company-wide focus on cost management in connection with its comprehensive business performance improvement programme launched in 2014. Teranga expects to generate free cash flow in the fourth quarter and end 2015 with a strong cash balance.