Teranga Gold

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

Live financials

Teranga Gold (TSX:TGZ/OTCQX:TGCDF) is a Canadian-based gold producer advancing its pipeline of West African assets towards its vision of becoming a multi-asset mid-tier gold producer within the next five years. Teranga’s flagship asset has produced over 1.8 Moz of gold since its 2010 IPO. The company recently commenced production at its second gold mine in August 2019, two months ahead of the original schedule. Focused on diversification and growth, the company is also conducting exploration programs in three countries: Burkina Faso, Senegal and Cote d’Ivoire. The Company had over 4.1 Moz of mineral gold reserves as of December 31, 2018.

Management Profile

Richard Young, President & 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?

Attending 121 Mining Investment Hong Kong provides Teranga with the opportunity to discuss how the Company is advancing its existing organic pipeline of projects to achieve its vision of becoming a mid-tier gold producer. It also provides Teranga with the opportunity to update investors on the record operating performance at its Sabodala gold mine, the recent commissioning of its second gold mine, Wahgnion, as well as the exploration programs planned for its advanced exploration project, Golden Hill, and early-stage exploration properties in Côte d’Ivoire.

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

04 Sept – Teranga Gold Starts Production at Wahgnion Gold Operations Ahead of Original Schedule
01 Aug – Teranga Gold Delivers Solid Second Quarter Production and Costs; on Track to Achieve 2019 Guidance
25 July – Teranga Gold Announces a 27,000-Metre Drilling and Exploration Program at Golden Hill
03 May – Teranga Gold Achieves Record Quarterly Production and Lower AISC in Q1; Well-Positioned to Meet Full Year 2019 Production and Cost Guidance
21 Feb – Teranga Gold Announces Early-Stage Initial Resource for Golden Hill Including Indicated Resources of 415,000 Ounces at 2.02 g/t Au and Inferred Resources of 644,000 Ounces at 1.68 g/t Au

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

3 Months:

  • Ramp up Wahgnion, our recently commissioned gold mine, to commercial production.
  • Achieve 2019  production and cost guidance at both operating gold mines – Sabodala and Wahgnion.
  • Validate and increase the historical resource at the Afema exploration property.
  • Continue exploring the early-stage Miminvest properties.

6 Months:

  • Complete the preliminary technical and economic assessments to move Golden Hill, advanced exploration project, to the feasibility stage of development.

12 Months:

  • Complete 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. On the capital investment side of the business, Teranga only invests in projects that generate strong rates of return.

What do you think makes your company such a compelling investment?

Teranga has come a long way over a short time and investors are taking notice. In three years, Teranga transitioned from a single asset producer in one country to having two producing assets and a robust organic pipeline of gold exploration projects in three countries across West Africa. Teranga’s existing pipeline of assets, situated in one of the fastest growing gold producing regions in the world, has the potential to support its goal of achieving mid-tier status in the next five years. The company is closing its valuation gap on mid-tier West African gold producers, offering investors a unique combination of value and growth.