Teranga Gold Reports Higher 2015 Earnings Before Impairment

Teranga Gold Corp. (TSX:TGZ,ASX:TGZ) released its financial results for Q4 2015, as well as the year as a whole. It also put out its guidance for 2016, along with updated life-of-mine cash flow plans.
Highlights for Q4 2015, along with the full 2015 year, include:

• Net loss attributable to shareholders (excluding impairment)⁽¹⁾ for the quarter decreased from a profit recorded in the prior year quarter, largely due to lower gold prices and lower production combined with the reversal of a $16 million non-cash inventory write-down in the fourth quarter 2014 that was recorded in the second and third quarters of 2014.
• Net profit attributable to shareholders (excluding impairment)⁽¹⁾ for the full year increased slightly from the prior year, largely due to lower costs that were offset by lower gold prices and lower production.
• Net loss (including impairment) for the quarter and year included a non-cash impairment charge related to long-lived assets and recorded goodwill of $77.9 million, net of tax effects. The impairment charge was triggered primarily by the effect of changes in the Company’s long-term gold price assumptions.
• Production shortfall largely deferred into 2016
• Met or beat 2015 cost guidance – delivered total cash cost savings of $20+ million, or $100+ per ounce

Richard Young, president and CEO of Teranga Gold, commented:

Full year earnings before the impairment charge were better than the prior year, despite lower gold prices and production, due to our sharp focus on margin improvement through improved productivity and cost reductions. Our updated life of mine plan incorporates these materially lower costs and higher throughput, which significantly improves our long-term free cash flow profile of our business.

Click here to read the full Teranga Gold Corp. (TSX:TGZ,ASX:TGZ) press release.