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.
Teranga Gold Corporation Reports Earnings and Operating Results for the Second Quarter Ended June 30, 2015; Provides Production and Capital Expenditure Guidance for the Year Ending December 31, 2015 and Production Guidance for the Three Years from 2015 to 2017
Jul 30 15
Teranga Gold Corporation reported consolidated financial and operating results for the second quarter ended June 30, 2015. For the quarter, the company reported revenue of $60,064,000 against $57,522,000 for the same period in the last year. Profit before income tax was $10,623,000 against loss before income tax of $13,213,000 for the same period in the last year. Profit attributable to shareholders of the company was $6,726,000 or $0.02 per basic share against loss attributable to shareholders of the company of $12,543,000 or $0.04 loss per basic share for the same period in the last year. The increase was mainly due to a 31% improvement in cost of sales and a 72% decline in finance costs. In the second quarter 2014, net losses were primarily attributable to a $13.7 million write-down of non-cash inventory to net realizable value. The write-down, which related to low-grade long-term ore stockpiles, was fully reversed during the fourth quarter 2014. Cash flow from operations was $12.3 million compared to cash used in operations of $9.8 million year ago. Total capital expenditures were $12.8 million, $6.0 million higher than the prior period, mainly due to higher development capital related to Gora and capitalized deferred stripping.
For the quarter, the company reported total mined of 8,306,000 tonnes against 6,665,000 tonnes for the same period in the last year. Gold production was 49,392 oz compared to 39,857 oz a year ago.
For the year ending December 31, 2015, the company is maintaining its guidance range with gold production between 200,000 oz to 230,000 oz at total cash costs and all-in sustaining costs of $650 to $700 per ounce and $900 to $975 per ounce, respectively. The company expected capital expenditures to be in the range of $49.0 to $58.0 million, total depreciation and amortization to be in the range of $260 - $275 per oz sold.
The company provided production guidance for the three years from 2015 to 2017. For the period, the company’s production is expected to average between 230,000 and 240,000 ounces per annum from 2015 through 2017, down from 254,000 in the 43-101 filed in 2014. Additional upside to free cash flow is expected from the current productivity initiatives underway and favourable fuel and currency rates, as well as, resource to reserve conversions from planned drilling at Niakafiri, Masato, Golouma, and Kerekounda and the OJVG land lease.
Teranga Gold Corporation to Report Q2, 2015 Results on Jul 30, 2015
Jul 3 15
Teranga Gold Corporation announced that they will report Q2, 2015 results at 8:30 AM, US Eastern Standard Time on Jul 30, 2015