Teranga Gold Corporation (“Teranga” or the “Company”) (TSX:TGZ)(ASX:TGZ) is pleased to announce that the Company achieved record gold production in the second quarter of 2017 with gold production of 57,557 ounces for the three months ended June 30, 2017. During the first half of 2017, the Company produced 114,460 ounces of gold.
“We are on track to achieve our 2017 production guidance range of between 205,000 and 225,000 ounces,” stated Richard Young, President and Chief Executive Officer, Teranga. “The operations at Sabodala are running well. We continue to reconcile well to reserves and plant throughput is benefitting from the mill optimization project that was completed last year.”
The Company also announced that the feasibility study for the Banfora gold project in Burkina Faso is nearing completion and is expected to be released in August.
Added Mr. Young, “At present, the process flowsheet, resource modeling, operating and capital costs are meeting the expectations envisaged when management initially reviewed the Banfora project prior to our decision to acquire Gryphon Minerals. As a result, the board has sufficient comfort with the project to approve the investment of an additional $10 million towards further advancement of construction readiness activities, such as improvements to local site infrastructure and commencement of front-end engineering designs, prior to completion of the feasibility study and in advance of a full construction decision, both of which are expected next month.”
Teranga’s cash balance was approximately $80 million as at June 30, 2017, representing a $14 million decrease from the prior quarter due primarily to income taxes of $15 million. Income taxes are paid annually in arrears.
Q2 2017 Financial and Operating Results Conference Call and Webcast
On Friday, July 28, 2017, Teranga will release its second quarter 2017 financial results at 6:00 a.m. ET and conduct a conference call/audio webcast at 8:30 a.m. ET, during which management will review the quarter’s highlights. Those wishing to listen can access the live conference call and webcast as follows:
|Date & Time:||Friday July 28, 2017 at 8:30 a.m. ET|
|Telephone:||Toll-free (877) 291-4570 / Local or International (647) 788-4919|
|Please allow 10 minutes to be connected to the conference call.|
|Webcast:||The webcast can be accessed on Teranga’s website at http://www.terangagold.com/ or directly by clicking here: www.terangagold.com/q22017|
|Replay:||The conference call replay will be available for two weeks after the call by dialing|
|(416) 621-4642 or toll-free at (800) 585-8367 and entering the conference ID 43759388.|
|Note:||The slide presentation will be available for download at http://www.terangagold.com/ for simultaneous viewing during the call.|
Qualified Persons Statements
The technical information contained in this press release relating to construction readiness activities associated with the Banfora gold project is based on, and fairly represents, information compiled by Mr. William Paul Chawrun, P. Eng who is a member of the Professional Engineers Ontario, which is currently included as a “Recognized Overseas Professional Organization” in a list promulgated by the Australian Securities Exchange from time to time. In his capacity as Chief Operating Officer, Mr. Chawrun a full time employee of Teranga and is not “independent” within the meaning of National Instrument 43-101. However, he is a “Qualified Person” as defined in National Instrument 43-101. Mr. Chawrun has consented to the inclusion in this press release of the matters based on his compiled information in the form and context in which it appears in this press release.
This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”), which reflects management’s expectations regarding Teranga’s future growth, results of operations (including, without limitation, future production and capital expenditures), performance (both operational and financial) and business prospects (including the timing and development of new deposits and the success of exploration activities) and opportunities. Wherever possible, words such as “on track”, “potential”, “belief”, “believe”, “expects”, “estimates”, “plans”, “anticipated”, “ability” and similar expressions or statements that certain actions, events or results “should”, or “will” have been used to identify such forward looking information. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions and anticipated courses of action. Although the forward-looking statements contained in this press release reflect management’s current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Teranga cannot be certain that actual results will be consistent with such forward looking statements. Such forward-looking statements are based upon assumptions, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments that management believe to be reasonable and relevant but that may prove to be incorrect. These assumptions include, among other things, the ability to obtain any requisite governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic conditions, the ability to resettle the community within anticipated timeline, anticipated future estimates of free cash flow, and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements.
The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, including government approvals and permitting, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond the control of Teranga, as well as other risks and uncertainties which are more fully described in Teranga’s Annual Information Form dated March 30, 2017, and in other filings of Teranga with securities and regulatory authorities which are available at www.sedar.com. Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities. All references to Teranga include its subsidiaries unless the context requires otherwise.
Teranga is a multi-jurisdictional West African gold company focused on production and development as well as the exploration of more than 5,000km2 of land located on prospective gold belts. Since its initial public offering in 2010, Teranga has produced more than 1.2 million ounces of gold from its operations in Senegal, which as of December 31, 2015 had a reserve base of 2.6 million ounces of gold. Focused on diversification and growth, the Company is advancing its Banfora development project and conducting extensive exploration programs in three countries: Senegal, Burkina Faso and Côte d’Ivoire. Teranga has a strong balance sheet and the financial flexibility to grow its business.
Steadfast in its commitment to set the benchmark for responsible mining, Teranga operates in accordance with the highest international standards and aims to act as a catalyst for sustainable economic, environmental, and community development as it strives to create value for all of its stakeholders. Teranga is a member of the United Nations Global Compact and a leading member of the multi-stakeholder group responsible for the submission of the first Senegalese Extractive Industries Transparency Initiative revenue report. The Company’s responsibility report, is available at www.terangagold.com/responsibilityreport and is prepared in accordance with its commitments under the United Nations Global Compact and in alignment with the Global Reporting Initiative guidelines.
Teranga Gold Corporation
President & CEO
Head of Investor Relations