Teranga Gold Reports 2015 Full Year and Fourth Quarter Financial Results, 2016 Outlook and Updated Life of Mine Plan
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 02/25/16 -- (All amounts are in U.S. dollars unless otherwise stated)
Teranga Gold Corporation ("Teranga" or the "Company") (TSX: TGZ)(ASX: TGZ) is pleased to report its financial results for the fourth quarter and full year ended December 31, 2015, along with 2016 guidance and updated life of mine plan cash flows.
"Full year earnings before the impairment charge were better than the prior year, despite lower gold prices and production, due to our sharp focus on margin improvement through improved productivity and cost reductions," stated Richard Young, President and Chief Executive Officer. "Our updated life of mine plan incorporates these materially lower costs and higher throughput, which significantly improves our long-term free cash flow profile of our business."
"2016 is off to a strong start as we benefit from high grade mill feed deferred from last year and record throughput," added Mr. Young.
2015 Highlights
Navin Dyal, Vice President and Chief Financial Officer stated, "The impairment charge related to long-lived assets and goodwill and was triggered primarily by the effect of changes in long-term gold prices. The impairment charge, which was non-cash, does not detract from the strength of our balance sheet and the long-term free cash flow ability of our operations."
Balance Sheet Review
The Company's cash balance at December 31, 2015 was $44.4 million, $8.6 million higher than the balance at the start of the year, primarily due to cash flow provided by operations of $30.4 million and financing activities of $25.9 million partly offset by capital expenditures of $47.7 million. As at December 31, 2015, $15.0 million was drawn from the $30 million Revolver Credit Facility. Including the VAT receivable from the Republic of Senegal, the Company's pro forma cash balance at December 31, 2015 was $57.6 million.
The trade and other receivable balance of $15.7 million includes $13.2 million in VAT recoverable. In February, the Company received a total of approximately $5.0 million in VAT refunds. The remaining December 31, 2015 balance of $8.2 million is expected to be refunded over the balance of 2016.
In February 2016, the Company successfully negotiated an exemption for the payment and collection of refundable VAT. This exemption is governed by an amendment to our mining convention and is enforceable for the next six years, expiring on May 2, 2022.
Financial and Operating Highlights
A copy of Teranga's complete financial statements and Management's Discussion & Analysis for the year ended December 31, 2015 are available on the Company's website at and on SEDAR at .
2016 Outlook
In deriving its 2016 production guidance, the Company has taken steps to mitigate a production shortfall, including the build-up of higher grade stockpiles of approximately 40,000 ounces, which will provide a buffer against any future operating shortfall.
The Company's outlook for 2016 is as follows:
2016 production is based on ore sourced from Masato, Golouma (new deposit) and Gora, as well as existing stockpiles. The current phase of Masato will be completed in Q1 2016, with Golouma production commencing in Q1 2016. Kerekounda waste stripping is scheduled to commence in Q3 2016, while mining at Gora will continue throughout the year.
The Company expects to generate positive free cash flow in 2016 using a $1,100 per ounce gold price assumption.
The following table outlines the Company's estimated 2016 summary production and cost guidance:
Life of Mine Schedule
Appendix 1 represents a life of mine schedule developed from proven and probable reserves. The pit sequencing schedule is based on optimizing the material movement capability with the mine mobile fleet and the availability of high grade ore within the various ore bodies. This pit sequencing schedule represents one of a number of possibilities that can be adjusted as economic conditions change. The schedule emphasizes lower annual material movement (not exceeding 40 million tonnes per annum) utilizing the existing fleet in a low gold price environment to deliver the highest cash flow profile for the first five years of mining (2016 to 2020), with flexibility for design changes as economic conditions change.
Based on the detailed annual capital and operating costs in Appendix 2 and 3, all-in sustaining costs are expected to be in the $900 per ounce range over the five year period from 2016 to 2020, as well as, over the 13.5 year mine life. Over the 13.5 year life of mine, the Franco-Nevada stream is expected to add a further $73 per ounce to costs resulting in free cash flow per ounce of over $100 per ounce, after income tax and minority dividends at $1,100 per ounce gold. A presentation going into more detail on the life of mine will be available on the Company's website later today.
Endnotes
(1) Net profit (loss) attributable to shareholders before the effects of the impairment charge is a Non-IFRS performance measure. Please see Non-IFRS Performance Measures in the Company's MD&A.
(2) 22,500 ounces of production are to be sold to Franco Nevada at 20% of the spot gold price. This production guidance is based on existing proven and probable reserves only from the Sabodala mining license as at December 31, 2015.
(3) Total cash costs per ounce, all-in sustaining costs per ounce, and total depreciation and amortization per ounce are non-IFRS financial measure and do not have standard meanings under IFRS. All-in sustaining costs per ounce sold include total cash costs per ounce, administration expenses (excluding Corporate depreciation expense and social community costs not related to current operations), capitalized deferred stripping, capitalized reserve development and mine site & development capital expenditures as defined by the World Gold Council. Please see Non-IFRS Performance Measures in the Company's MD&A.
Forward Looking Statements
This 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, future economic conditions and courses of action, the proposed plans with respect to mine plan, anticipated 2015 results, mineral reserve and mineral resource estimates, anticipated life of mine operating and financial results, and the completion of construction of the Gora deposit related thereto. Such statements are based upon assumptions, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments that management believe to be reasonable and relevant. These assumptions include, among other things, the ability to obtain any requisite Senegalese governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, 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, including government approvals and permitting, 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 September 1, 2015, and in other company filings with securities and regulatory authorities which are available at . 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 report should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities.
About Teranga
Teranga is a Canadian-based gold company listed on the Toronto Stock Exchange (TSX: TGZ) and Australian Securities Exchange (ASX: TGZ). Teranga is principally engaged in the production and sale of gold, as well as related activities such as exploration and mine development in Senegal, West Africa.
Teranga's mission is to create value for all of its stakeholders through responsible mining. Its vision is to explore, discover and develop gold mines in Senegal and West Africa, in accordance with the highest international standards, and to be a catalyst for sustainable economic, environmental and community development. All of its actions from exploration, through development, operations and closure will be based on the best available techniques. For more information, please refer to .
APPENDICES
APPENDIX 1: LIFE OF MINE (2016 TO 2029)
APPENDIX 2: LIFE OF MINE CAPITAL EXPENDITURES
APPENDIX 3: LIFE OF MINE OPERATING COSTS
Contacts:
Richard Young
President & CEO
+1 416-594-0000
Trish Moran
Head of Investor Relations
+1 416-607-4507
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Datum: 25.02.2016 - 13:04 Uhr
Sprache: Deutsch
News-ID 453258
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