Adjusted EBITDA Up By 290%
Teranga Gold Corporation (TSX:TGZ) has reported significant financial, operating and development results for the three and nine months ended September 30, 2020.
Highlights of the three months ended September 30, 2020 compared to three months ended September 30, 2019 included:
- 69% increase in gold production to a record 104,773 ounces
- 169% growth in revenue to US$192.6 million
- 348% increase in gross profit to US$77.0 million
- Rise in consolidated net profit attributable to shareholders to US$9.2 million compared to net loss attributable to shareholders of US$9.7 million
- Increase in adjusted net profit attributable to shareholders to US$38.8 million compared to US$2.3 million
- EBITDAup 306% and adjusted EBITDA up 290%
- 714% increase in operating cash flow to US$75.6 million
- Free cash flow grew to US$37.2 million
- Cash balance increased to US$57.3 million and gold bullion inventory rose to 20,800 ounces, representing US$39.2 million at quarter end gold price of US$1,887 per ounce.
“The third quarter was record-breaking for Teranga as we started mining high-grade ore at Massawa, delivered solid results at Wahgnion and realised strong gross profit, earnings and cash flow,” said Richard Young, President and Chief Executive Officer.
“We expect to complete our transformation into a low-cost mid-tier producer by year end and will continue to advance our organic growth pipeline in pursuit of our third mine.”
COO Paul Chawrun said the company is well on track to achieve its 2020 production and cost guidance.
“The addition of Massawa’s high-grade ore is a game changer, transforming the Sabodala-Massawa complex into a top tier gold asset. Mining and processing of the high-grade ore commenced in the third quarter and we expect a record fourth quarter for Sabodala-Massawa,” Mr Chawrun added.
“The Wahgnion plant continues to operate significantly above design and exploration drilling activities commenced at a variety of prospects throughout the mine license and regional properties during the quarter.
“There is also a considerable amount of exploration work underway at Afema in Côte d’Ivoire, where we have announced excellent initial drill results, and at Golden Hill, for which we recently announced an increase in the mineral resource.”
The company has a number of upcoming highlights:
• Sabodala-Massawa: Creating a Tier One Gold Complex
- Resource definition drilling at several Massawa deposits (Sofia, C Zone, North Zone)
- Resource evaluation drilling at several Massawa prospects (Samina, Tina)
- Engineering trade-off studies in support of a definitive feasibility study to be completed in 2021
- Complete phase 1 construction of Sabodala plant upgrades in 2021
• Wahgnion: Extending Mine Life
- Continue mine planning optimization as a result of the higher plant throughput
- Ongoing exploration resource expansion programs with an aim to extend mine life
• Golden Hill: Expanding Resources at Golden Hill
- File mine license application in December 2020
- Continue resource expansion drill programs and advance engineering studies, metallurgical test work, baseline environmental and social assessments
- Continue to aggressively explore with $15 million earmarked for exploration between now and end of 2021
• Afema: Rapidly Advancing Exploration Project
- By year end, complete the US$10 million drill campaign at the Woulo Woulo discovery as well as on the Niamienlessa structural trend and the Afema shear zone
- Expand trenching and drilling to new areas of interest within the mining license and exploration permits
- Publish initial resource estimate in the first quarter 2021
