Sabodala, Senegal
Photo by: Teranga Gold
TORONTO (miningweekly.com) – Senegal-focused gold miner Teranga Gold has strengthened its balance sheet by retiring the outstanding $15-million balance of its loan facility with Macquarie Bank on December 31.
The TSX- and ASX-listed miner started 2014 with $60-million outstanding under the facility, of which $30-million was repaid on January 15, after the company completed a streaming agreement with Franco-Nevada Corporation as part of its acquisition of the Oromin Joint Venture Group.
The balance of $30-million was repaid in three quarterly $5-million instalments, with a final outstanding balance of $15-million paid at year-end.
The company ended the year with $35.7-million in cash and cash equivalents, an increase of $7.7-million over the previous quarter, including restricted cash.
Teranga reported total output for the December quarter of 71 278 oz of gold, a 47% quarter-on-quarter improvement from its Sabodala gold mine. Output was 36% higher over the corresponding quarter a year earlier, placing full-year 2014 output at 211 823 oz, the second-best total in the company’s history.
Output was marginally lower than fourth-quarter guidance mainly owing to slightly lower recovery rates than planned. The fourth quarter saw record quarterly mill throughput of one-million tonnes. Ore was sourced from both the Sabodala and Masato pits, with soft ore from the recently developed Masato pit contributing to higher throughput rates.
Teranga had in October downgraded its full-year production expectations by 8 000 oz, after deferring the mining of high-grade ounces and after failing to meet production expectations in the three months to September.
The company’s TSX-listed stock on Thursday morning gained 4.21% at C$0.49 apiece.