Teranga Mining - President and CEO, Richard Young
President and CEO, Richard Young
Source: CIM Mining
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  • Teranga Gold (TSX:TGZ) has announced its financial and production results from the first quarter of this year 
  • The mid-tier miner produced 91,312 ounces of gold in 2020’s first quarter, up 27 per cent on 2019’s same quarter
  • First quarter net earnings went from a loss of approximately C$3.8 million in 2019, to a net profit of approximately $22.86 million
  • During the quarter, the company significantly increased its gold inventory, as the coronavirus pandemic made it difficult to ship bullion
  • Teranga Gold (TGZ) is up 1.2 per cent, with shares trading at $10.13 and a market cap of $1.69 billion 

Teranga Gold (TSX:TGZ) has revealed its first quarter financial and production results, with net earnings increasing by around C$26 million.

The mid-tier miner produced 91,312 ounces of gold in 2020’s first quarter, up 27 per cent on 2019’s same quarter.

Quarterly revenue was up six per cent to approximately $185 million, when compared to the previous corresponding period.

The company increased gross profits to approximately $55.7 million for the quarter, and net profit to approximately $22.86 million. This a good effort, considering the net loss of around $3.8 million the company reported in 2019’s first quarter.

EBITDA for the quarter grew 70 per cent, and adjusted EBITDA went up 36 per cent. There was a nine per cent increase in operating cash flows, excluding inventory spending.

The company’s unsold bullion inventory grew to approximately $54.6 million, when using the end of march spot gold price. This was put down to coronavirus related delays in gold shipments.

CEO of Teranga, Richard Young said this quarter was Teranga’s first with two operational mines, and he was pleased with the results.

“While approximately 23,600 ounces of gold bullion inventory remained unsold at March 31, 2020, COVID-19 related shipping delays have since been addressed, and gold bullion is being shipped and sold on a regular basis.

“Barring any unforeseen issues related to the pandemic, we expect to meet our original production guidance for 2020,” he said

The company’s COO Paul Chawrun also commented, saying he was very happy with the performance of the Wahignon plant, which reached full production during the quarter.

“Mill throughput continues to exceed the plant design and gold production at 51,306 ounces was above plan.

“Wahgnion delivered what will be its strongest quarter of the year, offsetting an expected soft quarter from Sabodala as we progress through a lower grade phase of the mine plan,” he said.

Teranga Gold (TGZ) is up 1.2 per cent, with shares trading at $10.13 and a market cap of $1.69 billion at 9:27 am EDT. 

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