Teranga Gold Reports Strong Q1 2017 Production and Financial TORONTO, ONTARIO--(Marketwired - April 27, 2017) -
(All amounts are in U.S. dollars unless otherwise stated)
Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ)(ASX:TGZ) is pleased to report its financial and operating results for the first quarter ended March 31, 2017.
"2017 is off to a strong start, with first quarter production ahead of schedule against the full year mine plan. We are on track for a similar, if not better, year than 2016 which was a record for us in terms of production," stated Richard Young, President and Chief Executive Officer.
In 2016, Teranga reported the highest gold production and lowest unit costs in the Company's history, helped in large part by an exceptional first quarter that benefitted from high grade material deferral from 2015.
Added Mr. Young, "While we remain focused on delivering maximum value at our flagship producing asset, the Sabodala gold mine in Senegal, the real excitement across the Company is due to the progress we are making on Banfora and our organic growth prospects. We remain on schedule to complete the feasibility study for our Banfora development project by mid-year. Furthermore, we have had very encouraging exploration results on our Golden Hill exploration property, as well as on both of our Sabodala and Banfora mine licenses."
FINANCIAL HIGHLIGHTS
- Net income attributable to shareholders of $5.6 million or $0.01 per share
- EBITDA(1) of $21.9 million
- Operating activities generated cash inflows of $21.3 million
- Strong balance sheet maintained with cash and cash equivalents of $94.5 million
OPERATING HIGHLIGHTS
- Gold production of 56,903 ounces is ahead of full year mine plan
- Record mill throughput
- Cost of sales per ounce, total cash costs per ounce(1) and all-in sustaining costs (excluding non-cash inventory movements and amortized advanced royalty costs) per ounce(1) were within the Company's full year guidance ranges
- Received 2017 Prospectors & Developers Association of Canada Environmental & Social Responsibility Award
ORGANIC GROWTH HIGHLIGHTS
- Reported exploration results in Burkina Faso include:
- two gold discoveries at Golden Hill, and
- completion of reserve confirmation program and initiation of an exploration program at Banfora
- In Senegal, the Company announced two consecutive rounds of positive drilling results at Niakafiri on the Sabodala mine license
- The Company remains on track to deliver, by mid-year, both a NI 43-101 technical report for its Banfora gold development project in Burkina Faso and an updated company-wide mineral resource and mineral reserve statement