Sep 15 2016
Richard Young, President and CEO of Teranga Gold Corporation ("Teranga" or the "Company") will present at the Precious Metals Summit in Beaver Creek, Colorado tomorrow, Thursday, September 15, 2016, at 11:40 a.m. MDT / 1:40 p.m. EDT. A live webcast of Mr. Young's presentation and slides for simultaneous viewing will be available on Teranga's website at www.terangagold.com/events. The focus of the presentation will be on the Company's record year-to-date operating results and strategic growth initiatives, including its proposed acquisition of Gryphon Minerals Limited ("Gryphon"), as outlined in more detail in the corporate update below.
On Track to Achieve 2016 Production and Cost Guidance
Following record production of 123,267 ounces in the first half of the year, and together with third quarter production and costs on plan, the Company's Sabodala operation is on track to meet its 2016 guidance for production of between 200,000 and 215,000 ounces and all-in sustaining costs in the range of $900 to $975 per ounce for 2016.
Teranga achieved another company best for the first six months of 2016 with free cash flow per ounce of $123(1). Teranga's pro forma June 30, 2016 cash balance was $70 million(2) and the Company expects to finish the year with a solid cash balance after the close of its proposed acquisition of Gryphon.
Completes Mill Optimization
The mill optimization, which was launched at Sabodala in mid-2015, is complete. The project was successfully commissioned in August 2016, coming in one quarter ahead of schedule and approximately 10 percent below the $20 million budget. As outlined at the time the project was launched, expectations are for mill throughput rates to increase by 15 percent and costs to improve by 5 percent.
The mill achieved record high throughput rates in the first half of the year, due in part to certain elements of the mill optimization project having been completed.
Growing and Diversifying with Proposed Acquisition of Gryphon
As part of its proposed acquisition of Gryphon, a Scheme Meeting will be held by Gryphon at 10:00 a.m. (Perth time) on Friday, September 23, 2016 at 38 Station Street, Subiaco WA 6008. At the Scheme Meeting, Gryphon shareholders will consider and, if thought fit, agree to the proposal by Teranga to acquire all the ordinary shares in Gryphon by way of a scheme of arrangement in consideration for 0.169 Teranga CHESS Depositary Interests or 0.169 common shares of Teranga.
"The proposed acquisition of Gryphon diversifies our asset base into mining-friendly Burkina Faso and lays the foundation for Teranga to become a multi-jurisdictional West African growth company," stated Richard Young, President and Chief Executive Officer of Teranga. "Gryphon's Board of Directors and management team remain unanimously in favour of the acquisition and we look forward to closing the transaction and working with the Gryphon team to advance the Banfora project and exploration on the regional properties."
Endnotes
(1) Free cash flow and free cash flow per ounce are defined as operating cash flow less capital expenditures.
(2) Pro forma cash balance at June 30, 2016 includes $12.1 million of Value Added Tax which can be used to offset taxes and royalties owing to the Government of Senegal.