Higher gold prices more than double Sabodala’s net cash flowCompany on track to meet higher end of 2019 production guidance and lower end of cost per ounce guidance(All amounts are in U.S. dollars unless otherwise stated)TORONTO, Oct. 31, 2019 (GLOBE NEWSWIRE) — Teranga Gold Corporation (“Teranga” or the “Company”) (TSX:TGZ; OTCQX:TGCDF) today reported financial, operating and development results for the three and nine months ended September 30, 2019.THIRD QUARTER 2019 HIGHLIGHTS
Three months ended September 30, 2019 compared to three months ended September 30, 2018Company-wide gold production, including pre-commercial production from Wahgnion, totalled 61,975 ounces.Following first pour at the end of August, Wahgnion produced 10,620 ounces. Commercial production is expected to be declared in the fourth quarter. Wahgnion construction was completed ahead of schedule and is expected to be approximately $15 million below budget.Revenues and gross profit were 11% and 37% higher, respectively, due to higher gold prices.Net cash flow from Sabodala increased by 252% to $18.7 million, raising year-to-date amount by 136% to $68.6 million.Operating cash flow decreased 47% due to a $13 million build-up of inventories (first fills, ore in stockpile, gold in circuit and gold bullion) at the recently commissioned Wahgnion gold mine.Net loss and EBITDA(1) were negatively impacted by cash and non-cash items related to gold sales derivative instruments, and warrant and offtake payment liabilities, all of which were related to the financing of the Company’s second gold mine, Wahgnion.For the full-year, the Company expects to achieve the higher end of its consolidated production guidance and the lower end of its cost per ounce guidance for 2019.“The third quarter was a milestone quarter for the Company with the successful commissioning of our Wahgnion gold mine, ahead of schedule and under budget,” said Richard Young, President & Chief Executive Officer. “With the addition of Wahgnion, we have two operating mines and an advanced-stage exploration project, moving us significantly closer to achieving our vision of becoming a mid-tier West African gold producer.”
“With another solid quarter at Sabodala and the start-up of production at Wahgnion, we are well on track to meet the higher end of our full-year production guidance for the Company and the lower end of our cost guidance. The Wahgnion plant is ramping up and we expect to declare commercial production during the fourth quarter,” said Paul Chawrun, Chief Operating Officer. “Based on our most recent technical report, Wahgnion is expected to increase Teranga’s annual production by 50%(2),(3) and double mine site free cash flows(1),(4) at $1,250/oz gold price.”OPERATING & FINANCIAL HIGHLIGHTS
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