Teranga Gold sets new quarterly production record

JOHANNESBURG (miningweekly.com) – Dual-listed Teranga Gold has recorded its “best ever” production for a second quarter, producing 52 540 oz in the three months ended June. This brought the company’s half-year production to 123 267 oz, spurred by its mill throughput surpassing one-million tons for only a third time in the company’s history.

Teranga also reported all-in sustaining costs of $968/oz , including development capital and total cash costs of $619/oz.

“We are very pleased with how the year is shaping up. Production and costs are on track to meet our full-year guidance and cash is building on the balance sheet,” CEO Richard Young said on Friday.

He added that the company’s Sabodala project, in Senegal, was generating significant free cash flow, which was being deployed to fund high-return organic growth initiatives that leveraged its existing asset base. This included lmill optimisation, advancing exploration and investing in transactions, such as the proposed acquisition of Africa-focused gold miner Gryphon Minerals.

“The combination of forces will help us grow in Senegal, Burkina Faso and Côte d’Ivoire with our new exploration joint venture,” he noted.

Teranga COO Paul Chawrun added that the Sabodala project was “running very well. In each deposit being mined this year, we are ahead of the reserve model.”

The mill is running at record throughput rates and the mill optimisation project is ahead of schedule and on track to be commissioned by early September, about one-quarter ahead of schedule.

“In addition, our exploration programme is beginning to produce results. We expect to have three new deposits – two on the mine licence and one regional deposit – in at least the resource category by year-end, with evaluation for extension along strike and depth of these, as well as a number of new targets [which continue] to be drilled,” he added.

The company is on track to produce between 200 000 oz and 215 000 oz this year.