TORONTO, ONTARIO — (Marketwired) — 08/07/13 — Teranga Gold Corporation (TSX: TGZ)(ASX: TGZ) –
For a full explanation of Financial, Operating, Exploration and Development results please see the Interim Condensed Consolidated Financial Statements as at and for the period ended June 30, 2013 and the associated Management-s Discussion & Analysis at .
(All amounts are in US$000-s unless otherwise stated)
Solid second quarter gold sales and cash costs and hedge book eliminated.
„With another strong quarter behind us, we remain on track to meet our original production and cash cost guidance for 2013. We are also pleased to report that as of mid-June, the Sabodala mill has been operating at its design capacity for mostly hard ore. This increase to design capacity in the last month puts us on excellent footing going forward as we leverage our newly signed definitive global agreement with the Government of Senegal to increase gold production by bringing satellite deposits through our mill,“ said Alan R. Hill, Executive Chairman.
Financial Highlights (details on Page 5)
„With the elimination of our hedge book on April 15, 2013, we are now selling all of our production at spot gold prices which we anticipate will result in higher cash margins and a stronger balance sheet allowing us to execute on the first phase of our vision of growing production to 250,000 to 350,000 ounces. We can now focus on completing the purchase of Oromin and working with the OJVG partners to integrate their deposits into our mine plans in order to increase production from the Sabodala mill,“ said Richard Young, President and CEO.
Operating Highlights (details on Page 5)
Outlook 2013
Development Highlights (Mine License)
Reserves and Resources(2)
Exploration Highlights (Regional Land Package)
Agreement with Republic of Senegal
Offer to Acquire Oromin Explorations Ltd („Oromin“)
Following the expiry of the Varied Offer, Teranga took up all Oromin shares validly deposited to the Varied Offer and gave notice that it would promptly pay for all deposited Oromin shares by issuing the relevant number of treasury shares.
Review of Second Quarter Financial Results
Review of Second Quarter Operating Results
Second Quarter Cost of Sales
Non-IFRS Financial Measures
The Company provides some non-IFRS measures as supplementary information that management believes may be useful to investors to explain the Company-s financial results. Refer to page 15 of the Company-s Management-s Discussion and Analysis for further details.
CORPORATE DIRECTORY
FORWARD-LOOKING STATEMENTS
This news release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws („forward-looking statements“). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Teranga, or developments in Teranga-s business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond the control of Teranga, as well as other risks and uncertainties which are more fully described in the Company-s Annual Information Form dated March 27, 2013, and in other company filings with securities and regulatory authorities which are available at . Forward-looking statements are based on management-s current plans, estimates, projections, beliefs and opinions, and, except as required by law, Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this news release should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities.
COMPETENT PERSONS STATEMENT
The technical information contained in this document relating to the mineral reserve estimates for Gora and Niakafiri is based on information compiled by Julia Martin, P.Eng., MAusIMM (CP). Ms. Martin is a full time employee with AMC Mining Consultants (Canada) Ltd., is independent of Teranga, is a „qualified person“ as defined in NI 43-101 and a „competent person“ as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves“. Ms. Martin has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves“. Ms. Martin is a „Qualified Person“ under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Ms. Martin has reviewed and accepts responsibility for the Mineral Reserve estimates for Gora and Niakafiri disclosed in this document and has consented to the inclusion of the matters based on her information in the form and context in which it appears in this document.
The technical information contained in this document relating to the Mineral Resource estimate is based on information compiled by Patti Nakai-Lajoie, P. Geo., who is a Member of the Association of Professional Geoscientists of Ontario. Ms. Nakai-Lajoie is a full time employee of Teranga and is not „independent“ within the meaning of National Instrument 43-101. Ms. Nakai-Lajoie has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves“. Ms. Nakai-Lajoie is a „Qualified Person“ under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Ms. Nakai-Lajoie has reviewed and accepts responsibility for the Mineral Resource estimate disclosed in this document and has consented to the inclusion of the matters based on her information in the form and context in which it appears in this document.
The technical information contained in this document relating to the Mineral Reserve estimate for Sabodala is based on information compiled by Paul Chawrun, P. Eng., who is a member of the Professional Engineers of Ontario. Mr. Chawrun is a full time employee of Teranga and is not „independent“ within the meaning of National Instrument 43-101. Mr. Chawrun has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves“. Mr. Chawrun is a „Qualified Person“ under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Chawrun has reviewed and accepts responsibility for the Mineral Reserve estimate for Sabodala disclosed in this document and has consented to the inclusion of the matters based on his information in the form and context in which it appears in this document.
(1) Total cash costs per ounce sold and all-in sustaining costs per ounce sold are non-IFRS financial performance measures with no standard definitions under IFRS. See page 6 of this release.
(2) Refer to the Competent Persons Statement on page 7 of this press release.
Contacts: Teranga Gold Corporation Kathy Sipos Vice-President, Investor & Stakeholder Relations +1 416-594-0000
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