Teranga Reports Highest Quarterly Production in Company History
Driving a 40% Increase in Annual Gold Production;
Beats High End of Full-Year Guidance Range to
Achieve Fifth Consecutive Year of Record Gold Production.
Teranga repositions as a low-cost mid-tier gold producer following the successful integration of
the Sabodala-Massawa Gold Complex and a strong first year from Wahgnion
(All amounts are in U.S. dollars unless otherwise stated)
TORONTO: January 12, 2021 – Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ;
OTCQX:TGCDF) is pleased to report full year gold production of 404,460 ounces for 2020, exceeding the top end of its full-year production guidance range. This marks the fifth consecutive year that the Company
has both attained record annual gold production and exceeded production guidance.
As at December 31, 2020, after approximately $28 million in debt repayments during the fourth quarter, the Company’s unaudited consolidated cash balance was $75.1 million, an increase of $17.8 million over the consolidated cash balance at September 30, 2020.
Teranga produced a record 119,364 ounces of gold in the fourth quarter, increasing full year production to 404,460 ounces of gold in 2020, a year-over-year increase of 40%.
Full year gold production topped the high end of the Company’s increased guidance range of between 375,000 and 400,000 ounces with both of its operating mines, Sabodala-Massawa and Wahgnion, meeting or exceeding each of their respective guidance ranges. The Company’s original 2020 production guidance range of 345,000 to 355,000 ounces was adjusted upward mid-year.
“Teranga’s highly skilled operating teams achieved record production for the fifth year in a row, a testament to their expertise and dedication, as well as the quality of our assets,” said Paul Chawrun, Chief Operating Officer. “The successful integration of the high-grade Massawa gold project with our flagship Sabodala mine combined with the first full year of operations at Wahgnion resulted in record production for the quarter and year.”
Sabodala-Massawa produced 229,199 ounces of gold in 2020, the mid-point of its revised production guidance range of 225,000 to 235,000 ounces of gold and well above the original guidance of ~215,000 ounces of gold issued at the beginning of last year. Following commercial production at Massawa on September 1, 2020, high-grade Massawa ore was prioritized for processing through the Sabodala mill, resulting in a record 79,239 ounces of gold produced in the final quarter of the year.
During its first full year of commercial production, the Company’s newest mine, Wahgnion, produced 175,261 ounces of gold, surpassing the high end of its revised 2020 production guidance range of 150,000 to 165,000 ounces. Teranga increased Wahgnion’s original production guidance of 130,000 to 140,000 ounces mid-year to reflect the outperformance of the plant, which continues to process approximately 25% more material than its original designed capacity.
“We have achieved our vision of becoming a low-cost mid-tier gold producer, with two strong operations and a highly prospective organic growth pipeline,” said Richard Young, President and CEO. “Our combination with Endeavour Mining is a natural next step for Teranga and will allow our shareholders to benefit further as owners of a best-in-class senior gold producer poised for continued growth.”
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 etc. etc..
Teranga is a mid-tier gold producer operating two mines – Sabodala-Massawa and Wahgnion – and advancing prospective exploration properties across West Africa, one of the world’s fastest growing gold jurisdictions. Through its continued success and commitment to responsible mining, Teranga creates sustainable value for all stakeholders and acts as a catalyst for social, economic, and environmental development. On November 16, 2020, Teranga and Endeavour announced their plans to combine to create a new top 10 senior gold producer with industry-leading low production costs and high cash flow yield, a strong balance sheet and one of the best organic growth pipelines of any senior gold company. Subject to successful completion of the transaction, the new combined company will have diversification across three countries and highly complementary assets with the potential for significant capital, operating and financing synergies. To learn more about Teranga, please visit www.terangagold.com.