Mr. Richard Young reports
TERANGA GOLD EXCEEDS 2017 PRODUCTION GUIDANCE AND DELIVERS RECORD OUNCES; PROVIDES 2018 PRODUCTION GUIDANCE
Teranga Gold Corp. had record gold production of 233,267 ounces in 2017, exceeding the high end of its annual production guidance range of 205,000 to 225,000 ounces.
(All amounts in U.S. dollars unless otherwise indicated.)
Due to higher production and gold prices, the company ended the year with a strong cash position of approximately $88-million, an increase of $15-million from Sept. 30, 2017.
The company's strong financial position supports its ability to finance its next mine -- Banfora, which has been renamed Wahgnion to reflect the wishes of the local community. Early works activities at Wahgnion are under way in the lead-up to closing a project debt facility and the commencement of mill construction both anticipated to occur in the second quarter of 2018.
"Our operational focus on generating free cash flow at Sabodala is paying off," said Richard Young, president and chief executive officer. "With record mill throughput and positive reconciliation to ore reserve estimates, Sabodala achieved record gold production for the second consecutive year and exceeded 2017 production guidance. Our five-year profile for Sabodala estimates free cash flow of $230-million between 2018 and 2022, including approximately $90-million in free cash flow over the next two years (1) (2)."
All 2017 numbers are preliminary and unaudited and subject to final adjustment.
2018 production outlook
The company is forecasting gold production at Sabodala of between 210,000 and 225,000 ounces of gold in 2018 (3). This compares favourably with the 2018 production estimate of 213,000 ounces outlined in the 2017 Sabodala National Instrument 43-101 technical report filed on Aug. 30, 2017.
Added Mr. Young: "We are excited about 2018. Our expectations are for another year of strong production and cash flow at Sabodala as well as continued organic growth. Our top priority is to close the financing and proceed with construction of Wahgnion. In addition, we are aggressively advancing exploration programs at both Golden Hill in Burkina Faso and Afema in Cote d'Ivoire. With a long-life mine that provides solid annual gold production and free cash flow, a second mine in development and a pipeline of quality organic growth assets, we are well positioned to deliver on our vision of becoming the next multiasset mid-tier gold producer in West Africa."
2017 fourth quarter and year-end financial and operational results
Teranga expects to release its financial and operational results for the fourth quarter and year ended Dec. 31, 2017, before markets open on Friday, Feb. 23, 2018. Management will discuss the results during a conference call later that morning at 8:30 a.m. ET. A webcast of the conference call will be available through Teranga's website.
The conference call can be accessed by dialling 877-291-4570 (North America toll-free) or 647-788-4919 (international). A replay of the call will be accessible for one month following the call by dialling 800-585-8367 (North America toll-free) or 416-621-4642 (international). The conference ID is 7089809 (pound sign).
(1) This is a non-IFRS (international financial reporting standards) financial measure and does not have a standard meaning under IFRS. Please see the non-IFRS performance measures section in management's discussion and analysis for the three and nine months ended Sept. 30, 2017, available on the company's website.
(2) The free cash flow estimates are based on the updated life of mine plan and reserve estimate for the Sabodala project as set out in the technical report of Teranga for the Sabodala project, Senegal, West Africa, dated Aug. 30, 2017 (see in particular Section 21 -- capital and operating costs).
(3) This production guidance is based on existing proven and probable reserves only from the Sabodala mining licence as disclosed in the NI 43-101 technical report on the Sabodala project, Senegal, as filed on the company's website and on SEDAR.
About Teranga Gold Corp.
Teranga is a multijurisdictional West African gold company focused on production and development as well as the exploration of more than 5,000 square kilometres of land located on prospective gold belts. Since its initial public offering in 2010, Teranga has produced more than 1.2 million ounces of gold from its operations in Senegal, which as of June 30, 2017, had a reserve base of 2.7 million ounces of gold. Focused on diversification and growth, the company is advancing its Wahgnion gold project, with its recently released positive feasibility study, and conducting extensive exploration programs in three countries: Burkina Faso, Senegal and the Ivory Coast. Teranga has a strong balance sheet and the financial flexibility to execute on its growth strategy.
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