Teranga Gold earns $2.36-million (U.S.) in Q2
2020-08-07 07:27 ET - News Release
Mr. Richard Young reports
TERANGA GOLD DELIVERS STRONG Q2 PRODUCTION LED BY WAHGNION; INCREASES 2020 GOLD PRODUCTION GUIDANCE TO 375,000-400,000 OUNCES
Teranga Gold Corp. has provided its financial, operating and development results for the three and six months ended June 30, 2020. All amounts are in U.S. dollars unless otherwise stated.
Second quarter 2020 highlights
Three months ended June 30, 2020, compared with three months ended June 30, 2019
40-per-cent increase in consolidated gold production to 89,011 ounces, driven by a strong second quarter operations at Wahgnion;
96-per-cent increase in revenue to $164.2-million;
209-per-cent increase in gross profit to $56.4-million;
Increase in consolidated net profit attributable to shareholders to $2.4-million, or one cent per share, compared with a net loss of $7.6-million, or seven cents per share;
Increase in adjusted net profit attributable to shareholders to $27.7-million, or 17 cents per share, compared with $2.9-million, or three cents per share;
135-per-cent increase in EBITDA (earnings before interest, taxes, depreciation and amortization) and 137-per-cent increase in adjusted EBITDA;
187-per-cent increase in operating cash flows before changes in working capital, excluding inventories;
121-per-cent increase in operating cash flows;
Unsold gold bullion inventory of $36.3-million (using a period-end spot gold price) due to a lengthened time frame between shipments related to the COVID-19 pandemic;
2020 production guidance updated to 375,000 to 400,000 ounces of gold from earlier guidance of 345,000 to 355,000 ounces;
New five-year production and cost guidance (2021 to 2025): Companywide production is expected to average 533,000 ounces of gold per year at all-in sustaining cost of $785 per ounce.
"It's been a good year so far despite the challenges and cost of maintaining operations during a pandemic," said Richard Young, president and chief executive officer. "Following the recent prefeasibility study results for the integrated Sabodala-Massawa complex and Wahgnion's updated mine plan, Teranga now has a flagship top-tier gold asset and a solid second operation. Our quality asset base is the foundation of the company's transformation into a mid-tier gold producer."
Mr. Young added, "We are significantly increasing 2020 production guidance while our five-year production guidance for the period 2021 to 2025 is expected to average 533,000 ounces of gold per year at all-in sustaining costs of $785 per ounce, establishing Teranga as one of the lowest cost producers globally with significant cash flows, particularly at current gold prices."
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