Expect to begin commissioning of the Wahgnion processing plant in Q3
and production ramp up in Q4 2019
(All amounts are in U.S. dollars unless otherwise stated)
Toronto, Ontario: May 3, 2019 - Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ;
OTCQX:TGCDF) today reported financial and operating results for the three months ended March 31, 2019, and provided an update on the development progress of its second mine, Wahgnion.
First Quarter Highlights
(Q1 2019 vs Q1 2018)
? Record quarterly gold production of 71,946 ounces, an increase of 12%
? Per ounce cost metrics decreased by up to 9% and were below the respective full-year guidance ranges, including all-in sustaining costs (excluding non-cash inventory movements and amortized advanced royalty costs)1 of $806 per ounce
? Company is on track to meet full year production and cost guidance
? Benefitting from an advance gold prepayment of $11.8 million, operating cash flow before changes in working capital excluding inventories rose 6% to $26.3 million and operating cash flow increased by 261% to $49.6 million
? EBITDA1 increased by 37% to $36.9 million
? Net income attributable to shareholders decreased to a loss of $2.7 million, or $0.03 per share while adjusted net income attributable to shareholders1 was $2.2 million, or $0.2 per share. Net income and adjusted net income1 was negatively impacted by a pending tax assessment for $10 million
? Wahgnion construction is on budget and on track for Q3 commissioning
? Issued initial mineral resources estimate for Golden Hill, Teranga’s most advanced exploration project “2019 is off to a strong start for Teranga across our portfolio, with record operational results from Sabodala, good construction progress at Wahgnion and an initial resource at Golden Hill,” said Richard Young, President & Chief Executive Officer. “Our 10-year-old cornerstone asset, Sabodala, set a record for quarterly production in the first quarter. With over 12 years of mine life remaining, Sabodala is delivering solid free cash flow1 to support our growth initiatives.”
Meanwhile, the construction schedule for the Company’s second mine, Wahgnion, located in southwest Burkina Faso, is on track and entering its final phases.
“I am pleased to report that we expect to begin commissioning the processing plant in the third quarter and production ramp up during the fourth quarter,” said Paul Chawrun, Chief Operating Officer. “Based on our progress to date, we expect Wahgnion will produce between 30,000 and 40,000 ounces2 of gold in 2019, which exceeds the original estimate of 18,000 ounces released in the October 2018 technical report.”
During the first five years of its mine life, Wahgnion is expected to increase Teranga’s current consolidated annual gold production by approximately 50%, or more than 130,000 ounces.2
“During the first quarter, we continued to make meaningful progress towards achieving our vision of building a multi-asset, mid-tier gold producer in West Africa,” added Mr. Young. “By year end, we will have two gold
mines in operation capable of producing between 300,000 and 350,000 ounces in 2020 and generating strong free cash flows. As well, Golden Hill continues to show that it has the potential to be our third gold mine. In less than two years, we have advanced it from an early-stage exploration project to an initial mineral resource estimate. Going forward, our priority is to increase the mineral resources estimate and advance Golden Hill into the feasibility stage of development.”

Operating & Financial Highlights
see & read more on
https://s2.q4cdn.com/949220588/files/doc_financials/quarterly/2019/05-03-2019-Q1-Results-PR-FINAL.pdf