ASX Round-Up: A Look at Beadell Resources and Teranga Gold

For investors focused on the resource space, a good way to track companies listed in Australia is to look at the S&P/ASX 300 (INDEXASX:XKO). The index includes all S&P/ASX 200 (INDEXASX:XJO) companies as well as about 100 smaller-cap companies, and as of April 2015 accounted for 74 percent of the Australian equities market. Specifically, the S&P/ASX 300 Metal & Mining (INDEXASX:XMM) division is a great source for companies to watch.
The Investing News Network is thus profiling companies on the S&P/ASX 300 Metal & Mining index. This week’s companies are Beadell Resources (ASX:BDR) and Teranga Gold (ASX:TGZ,TSX:TGZ).

Beadell Resources is a gold producer whose main focus is its Tucano project in Brazil; it also owns the Tropicana gold development project in Australia. Tucano has a gold resource of about 5.4 million ounces, with 1.3 million ounces located in open pits at the property. The project also holds over 2,500 square kilometers of highly prospective exploration tenements.
This week, Beadell released the maiden mineral resource for its Urucum underground project in Brazil. It sits at 4.86 million tonnes at 4.06 g/t gold for 634,000 ounces, reported above a lower cut off of 1.6 g/t gold. The total measured and indicated resource is 2.73 million tonnes at 4.56 g/t gold for 400,000 ounces, and the total inferred resource is 2.13 million tonnes at 3.42 g/t gold for 234,000 ounces.

Gold miner Teranga is focused on its Sabodala gold mine, which is the only gold mine and mill located in Senegal, West Africa. The mine’s proven and probable reserves as of December 2014 were 4.45 million tonnes at 1.5 g/t gold for 210,000 ounces. At the end of July, the company reported its Q2 results, noting that they show significant improvements to its net profit and costs. Teranga turned a net profit of $6.7 million compared to a loss of $12.5 million in Q2 2014, and also increased cash flow from operations to $12.3 million compared to a loss of $9.8 million during the same period in 2014.
The company also has a 2015 exploration program in place that is focused on converting resources to reserves and on extending existing deposits along strike on the Sabodala and OJVG mine licenses.
 
Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article. 
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