Record production for Teranga Gold

Teranga Gold reported a record gold production of 233 267oz in 2017, exceeding the high end of its annual production guidance range of 205 000 to 225 000oz.

Due to higher production and gold prices, the company ended the year with a strong cash position of about USD88-million, an increase of USD15-million from 30 September 2017. The company’s strong financial position supports its ability to finance its next mine – Banfora, which has been renamed Wahgnion to reflect the wishes of the local community.

Sabodala-pit
Sabodala gold mine achieved record gold production in 2017.

Image credit: Teranga Gold

Early works activities at Wahgnion are underway in the lead-up to closing a project debt facility and the commencement of mill construction both anticipated to occur in the second quarter of 2018.

"Our operational focus on generating free cash flow at Sabodala is paying off,” says Richard Young, Teranga president and CEO. “With record mill throughput and positive reconciliation to ore reserve estimates, Sabodala achieved record gold production for the second consecutive year and exceeded 2017 production guidance. Our five-year profile for Sabodala estimates free cash flow of USD230-million between 2018 and 2022, including approximately USD90-million in free cash flow over the next two years.” All 2017 numbers are preliminary and unaudited and subject to final adjustment.

2018 PRODUCTION OUTLOOK

The company is forecasting gold production at Sabodala of between 210 000 and 225 000oz of gold in 2018. This compares favourably to the 2018 production estimate of 213 000oz outlined in the 2017 Sabodala 43-101 technical report filed on 30 August 2017.

"We are excited about 2018. Our expectations are for another year of strong production and cash flow at Sabodala as well as continued organic growth. Our top priority is to close the financing and proceed with construction of Wahgnion,” adds Young.

“In addition, we are aggressively advancing exploration programmes at both Golden Hill in Burkina Faso and Afema in Côte d’Ivoire. With a long-life mine that provides solid annual gold production and free cash flow, a second mine in development and a pipeline of quality organic growth assets, we are well-positioned to deliver on our vision of becoming the next multi-asset mid-tier gold producer in West Africa.”

Teranga expects to release its financial and operational results for the fourth quarter and year ended 31 December 2017 before markets open on Friday 23 February 2018.


 

 

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