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Teranga Gold Corp. (TSX:TGZ,ASX:TGZ) announced its financial, operating and development results for Q1 2015, noting that its net profit margin more than tripled, hitting $15.3 million, or $0.04 per share.
Teranga Gold Corp. (TSX:TGZ,ASX:TGZ) announced its financial, operating and development results for Q1 2015, noting that its net profit margin more than tripled, hitting $15.3 million, or $0.04 per share. Meanwhile, free cash flow was $7.3 million, or $131 per ounce.
Other highlights include:
- Total cash costs improved by 13 percent to $609 per ounce
- All in sustaining costs increased by 3 percent to $841 per ounce
- 2015 operating and financial guidance affirmed – favourable currency exchange rates could lead to lower end of cost guidance
- Debt-free balance sheet following final payment on equipment finance facility
- Current growth initiatives move forward
- Gora: permits received in first quarter – development is on schedule for production in fourth quarter
- Mill optimization: placing orders for long lead items for mill optimization, which is expected to increase mill throughput by up to 10 percent and reduce processing costs by 5 percent
- Heap leach: results from phase 2 are positive – pre-feasibility study expected in third quarter
- Mine license: exploration continues with a near-term update pending
- Optimized three-year mine plan (2015-2017) to increase free cash flow significantly compared to the most recent 43-101 mine plan
Richard Young, president and CEO of Teranga, commented:
We are off to a solid start to the year, reflecting Company-wide focus on increasing productivity and reducing costs. On the growth side, the development of our new high-grade Gora deposit is progressing well and is scheduled to be in production by the fourth quarter. On increasing processing capacity, the mill optimization project, which is expected to increase throughput by up to 10 percent and also lower unit costs by approximately 5 percent, is targeted for completion in the third quarter of 2016 and we continue to see positive results on the phase two testing of heap leaching. These organic growth initiatives, together with the high potential to convert resources to reserves and make discoveries on our large land package, are expected to lead to long-term growth in free cash flow.
Click here to read the full Teranga Gold Corp. (TSX:TGZ,ASX:TGZ) press release.