from Teranga's web site on their future growth strategy.
"Growth
The Company has outlined a two-stage growth plan:
Phase 1: Become a mid-tier gold producer in Senegal with 250,000 to 350,000 ounces of annual gold production leveraging off the Company’s existing mill and infrastructure.
Phase 2: Increase annual gold production to 400,000 to 500,000 ounces via a mill expansion as reserves increase.
The Company’s objective is to increase reserves and production which in turn should increase earnings and cash flow per share, through both internal exploration discoveries and strategic acquisitions. "
They just said at the RBC conference that if they were to make an acquisition they would only consider OLE.
With all due respect to the guys at TGZ. I do not think they can get to that 400,000 to 500,000 ounce target by themselves. It seems like they are having some issues with their costs.
"Total mine site cash production costs for 2013 are expected to rise by between $30 and $35 million compared to 2012 due to an increase in mining (up 24 percent) and processing (up 37 percent) rates."
It sounds like they have to work more and spend more than they did in 2012 to pull less gold. What does this mean? They are going to pull lower grade gold in 2013.
They are now projecting between 190,000 to 210,000 ounces for 2013. They produces 214,310 ounces in 2012. I cannot see them internally ramping up production (essentially doubling their current projections) in order to hit their goals without a strategic acquisition.
I should be given some OLE stock options for all this research.