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Teranga Gold's (TGCDF) CEO Richard Young on Q3 2016 Results - Earnings Call Transcript
Page 5 of 6
Question-and-Answer Session
Operator
[Operator Instructions] Your first question today comes from Andrew Breichmanas from BMO Capital Markets. Please go ahead.
Andrew Breichmanas
Thanks and good morning. So just a couple of questions about the mining rate from shovel availability, first,
what are the issues with the fleet and what measures need to be taken to achieve sort of the target rates by yearend and second, looking at the mine plan next year should be another period of drawing down on stockpile, so
with lower tonnage within the high grade stockpiles at yearend, is there potential to see an impact in 2017 or do you anticipate being able to catch up with tonnage from Gora and Kerekounda into next year?
David Mallo
Excellent question, Andrew. So I will address the shovel issue first. So we have a repair and maintenance contract with Via [ph] who is the Komatsu supplier for all of Africa and in fact most of Europe. They have been performing very well over the period through Sabodala and in the last six months, we’ve had a couple of major failures in the shovels and this is just for our hydraulic fleet, the PC 3000. So due to that, they didn’t fully staff up to address those major repairs and then we felt little bit behind on the other areas of PM, and so we ended up getting into a situation where we felt behind or they felt behind although we are managing our supplier on the PM schedule. So through the third quarter and into the fourth quarter we have been addressing that by bringing people on-site. But we’ve lost approximately 2500 total operating hours of our hovel and that’s about half the shovel if you add that all up and that translates to about 2 million tons ballpark and so where the impact of that lies in the mine plan is a little bit less on the stripping for Kerekounda and our and bench advance and Golouma was the one that was more effected. Now to your other question on the stockpiles, where this actually ends up effecting us is the amount of stockpile we built up by the end of the year that was either insituing [ph] ground which is what the situation is now or it’s going to be in stockpile beside the plan in the ROM stockpile.
And no, we don’t see this effecting 2017 and in fact we are hoping to see or we are going through our mine plans and I need to be careful how we put the numbers. But we are seeing a good solid next several years and the biggest reason is because we are ahead of reserves. We were actually recovering better grade and more tonnes out of these pits right now.
https://seekingalpha.com/article/4016400-teranga-golds-tgcdf-ceo-richard-young-q3-2016-results-earnings-call-transcript?page=5