Teranga Gold

Website: www.terangagold.com
Primary ticker: TSX:TGZ
Stage of development: Exploration, Production, Development
Primary minerals: Gold
Project to promote: Sabodala Gold Mine, Wahgnion Gold Mine, and Golden Hill Exploration Project

Live financials

Teranga Gold (TSX:TGZ/OTCQX:TGCDF) is a Canadian-based gold producer with a pipeline of West African assets and a vision of becoming a low-cost multi-asset mid-tier gold producer. Since its initial public offering in 2010, Teranga has produced more than 2 million ounces of gold from Sabodala, its flagship operation in Senegal. In late 2019, the Company announced commercial production at its second gold mine, Wahgnion, located in Burkina Faso, and also acquired a 90% interest in the Massawa gold project from Barrick Gold. Massawa is one of the highest-grade undeveloped open-pit gold reserves in Africa. This acquisition is expected to close in the first quarter of 2020. Teranga is also conducting extensive exploration programs in three West African countries: Burkina Faso, Côte d’Ivoire and Senegal.

Management Profile

Richard Young, President and CEO

Richard Young is the President and Chief Executive Officer of Teranga Gold. Mr. Young is on the board of the World Gold Council. He culminates 25-years of extensive experience in the gold industry. A Chartered Professional Accountant, Mr. Young joined Barrick Gold Corporation (ABX-T) in 1991 and served in a series of positions of increasing responsibility in finance, corporate development, investor relations and mine development. Prior to joining Teranga in 2010, Mr. Young served as Vice President and Chief Financial Officer of Gabriel Resources Ltd. for five years. Mr. Young holds a Bachelor of Economics from the University of Western Ontario as well as a Graduate Diploma in Public Accountancy from McGill University.

What is your rationale for attending 121 Mining Investment?

Teranga has grown significantly over the last three years. Attending 121 provides Teranga with the opportunity to update investors on its growth and achievements, as well as its repositioning as a low-cost, mid-tier producer, focusing principally on upcoming plans to transform Sabodala into a top tier gold complex with the addition of the Massawa project.

What recent news would you like to highlight to investors attending?

07 Dec – Delivers Record 288,768 Ounces of Gold, Exceeding Top End of 2019 Production Guidance of 245,000-270,000 Ounces
18 Dec – Closes C$140 Million Bought Deal Public Offering of Subscription Receipts
10 Dec – To Acquire High-Grade Massawa Gold Project, Accelerates Repositioning as Low-Cost, Mid-Tier Producer
25 Nov – Declares Commercial Production at Wahgnion Gold Operations; Expected to Achieve Upper End of 2019 Production Guidance
31 Oct – Delivers Strong Operating Results from Sabodala and Commissions Second Mine During Third Quarter
04 Sept – Starts Production at Wahgnion Gold Operations Ahead of Original Schedule

What are your key goals for the next 3, 6 and 12 months?

3 Months:
• Announce 2019 operating and cost results.
• Close the transaction for the acquisition of the Massawa gold project.
• Release updated exploration results for Golden Hill.
• Validate and increase the historical resource at the Afema exploration property.

6 Months:
• Complete the preliminary technical and economic assessments to move Golden Hill to the feasibility stage of development.

12 Months:
• Complete a pre-feasibility study highlighting updated production and costs for the integrated Sabodala-Massawa gold complex.
• Commence production of Massawa’s free-milling ore at Sabodala’s existing carbon-in-leach plant.
• Demonstrate several consecutive quarters of stable operating performance at the new mine – Wahgnion.
• Continue the village resettlement related to the Niakafiri deposit and recommence drilling.
• Convert the Golden Hill exploration license to a mine license.
• Issue ongoing updates from the exploration programs in Burkina Faso, Côte d’Ivoire, and Senegal.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

The challenge for any commodity company is managing costs and capital investment because commodity companies have no control over the gold sales price. Teranga is focused on improving productivity, reducing costs, and designing mine plans that concentrate on profitable production and free cash flow.

In a sentence, what do you think makes your company such a compelling investment?

While Teranga’s share price has increased significantly over the last two years, our valuation is lagging. It does not fully reflect our significant transformation, as well as our prospective growth and expectations for increased cash flow.