(All amounts in U.S. dollars unless otherwise
indicated).
Teranga Gold Corporation ("Teranga" or the
"Company") (TSX:TGZ) (OTCQX:TGCDF) is pleased to report record gold
production of 233,267 ounces in 2017, exceeding the high end of its
annual production guidance range of 205,000 to 225,000 ounces.
Due to higher production and gold prices, the
Company ended the year with a strong cash position of approximately
$88 million, an increase of $15 million from September 30,
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.
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,” said Richard Young, President and
Chief Executive Officer. “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 $230 million between 2018 and 2022,
including approximately $90 million in free cash flow over the next
two years(1) (2).”
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 225,000 ounces of gold in 2018(3).
This compares favourably to the 2018 production estimate of 213,000
ounces outlined in the 2017 Sabodala 43-101 technical report filed
on August 30, 2017.
Added Mr. Young, "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. In addition, we are aggressively advancing exploration
programs 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.”
2017 Fourth Quarter and Year-End
Financial and Operational Results
Teranga expects to release its financial and
operational results for the fourth quarter and year ended December
31, 2017 before markets open on Friday, February 23, 2018.
Management will discuss the results during a conference call
later that morning at 8:30 a.m. (ET). A webcast of
the conference call will be available through Teranga’s website
– www.terangagold.com.
The conference call can be accessed by dialling
(877) 291-4570 (North America toll-free) or (647) 788-4919
(international). A replay of the call will be accessible for
one month following the call by dialing: (800) 585-8367 (North
America toll-free) or (416) 621-4642 (international).
The conference ID: 7089809#.
Endnotes
(1) This is
a non-IFRS financial measure and does not have a standard meaning
under IFRS. Please see the Non-IFRS Performance Measures
section in Management’s Discussion & Analysis for the three and
nine months ended September 30, 2017 available on the Company’s
website at www.terangagold.com.
(2) The free
cash flow estimates are based on the updated life of mine plan and
reserve estimate for the Sabodala project as set out in the
Technical Report of Teranga for the Sabodala Project, Senegal, West
Africa dated August 30, 2017 (see in particular section 21 -
Capital and Operating Costs).
(3) This
production guidance is based on existing proven and probable
reserves only from the Sabodala mining license as disclosed in the
NI 43-101 Technical Report on the Sabodala Project, Senegal as
filed on the Company's website at www.terangagold.com and
on SEDAR at www.sedar.com.
Forward-Looking Statements
This press release contains certain statements
that constitute forward-looking information within the meaning of
applicable securities laws ("forward-looking statements"), which
reflects management's expectations regarding Teranga’s future
growth opportunities, results of operations, performance (both
operational and financial) and business prospects (including the
timing and development of new deposits and the success of
exploration activities) and other opportunities. Wherever possible,
words such as "plans", "expects", "does not expect", "scheduled",
"trends", "indications", "potential", "estimates", "predicts",
"anticipate" “to establish” or "does not anticipate", "believe",
"intend", "ability to" and similar expressions or statements that
certain actions, events or results "may", "could", "would",
"might", "will", or are "likely" to be taken, occur or be achieved,
have been used to identify such forward looking information.
Specific forward-looking statements in this presentation include
forecasting gold production of between 210,000 and 225,000 ounces
of gold in 2018. Although the forward-looking information contained
in this press release reflect management's current beliefs based
upon information currently available to management and based upon
what management believes to be reasonable assumptions, Teranga
cannot be certain that actual results will be consistent with such
forward-looking information. Such forward-looking statements are
based upon assumptions, opinions and analysis made by management in
light of its experience, current conditions and its expectations of
future developments that management believe to be reasonable and
relevant but that may prove to be incorrect. These assumptions
include, among other things, the closing and timing of financing,
the ability to obtain any requisite governmental approvals, the
accuracy of mineral reserve and mineral resource estimates, gold
price, exchange rates, fuel and energy costs, future economic
conditions, anticipated future estimates of free cash flow, and
courses of action. Teranga cautions you not to place undue reliance
upon any such forward-looking statements.
The risks and uncertainties that may affect
forward-looking statements include, among others: the inherent
risks involved in exploration and development of mineral
properties, including government approvals and permitting, changes
in economic conditions, changes in the worldwide price of gold and
other key inputs, changes in mine plans and other factors, such as
project execution delays, many of which are beyond the control of
Teranga, as well as other risks and uncertainties which are more
fully described in Teranga's Annual Information Form
dated March 30, 2017, and in other filings of Teranga with
securities and regulatory authorities which are available
at www.sedar.com. Teranga does not undertake any obligation to
update forward-looking statements should assumptions related to
these plans, estimates, projections, beliefs and opinions change.
Nothing in this document should be construed as either an offer to
sell or a solicitation to buy or sell Teranga securities. All
references to Teranga include its subsidiaries unless the context
requires otherwise.
About Teranga
Teranga is a multi-jurisdictional West African
gold company focused on production and development as well as the
exploration of more than 5,000 km2 of land located on
prospective gold belts. Since its initial public offering in
2010, Teranga has produced more than 1.2 million ounces of gold
from its operations in Senegal, which as of June 30,
2017 had a reserve base of 2.7 million ounces of gold.
Focused on diversification and growth, the Company is advancing
its Wahgnion Gold Project, with our recently released positive
feasibility study, and conducting extensive exploration programs in
three countries: Burkina Faso, Senegal and Côte
d’Ivoire. Teranga has a strong balance sheet and the
financial flexibility to execute on its growth strategy. The
Company has nearly 4.0 million ounces of gold reserves from its
combined Sabodala Gold operations and Wahgnion Gold
Project.
Steadfast in its commitment to set the benchmark
for responsible mining, Teranga operates in accordance with the
highest international standards and aims to act as a catalyst for
sustainable economic, environmental, and community development as
it strives to create value for all of its stakeholders.
Teranga is a member of the United Nations Global Compact and a
leading member of the multi-stakeholder group responsible for the
submission of the first Senegalese Extractive Industries
Transparency Initiative revenue report. The Company's
responsibility report is available at
www.terangagold.com/responsibilityreport and is prepared in
accordance with its commitments under the United Nations Global
Compact and in alignment with the Global Reporting Initiative
guidelines.
Contact Information
Richard Young
President & CEO
T: +1 416-594-0000 | E:
ryoung@terangagold.com
Trish MoranHead of Investor RelationsT: +1 416-564-4290 | E:
tmoran@terangagold.com