PERTH (miningweekly.com) – Gold miner Teranga Gold Corporation has reported a 24% increase in production from its Sabadola gold mine, in Senegal, for the three months to June.
Gold production reached 49 392 oz, compared with the 48 643 oz produced in the March quarter.
Teranga also reported a 13% reduction in mine production costs, which reached $35.5-million during the quarter, owing to a reduction in mining and processing costs. Total cash costs reduced by 26% quarter-on-quarter to $602/oz.
Revenue for the quarter increased by 4% to $60.1-million during the second quarter, owing to a 13% increase in gold sales. However, this was partially offset by a 7% decline in the average realised gold price.
“With the steps we have taken to reduce our costs and eliminate our debt, we are in a position of financial strength, generating solid cash flows from operations during the quarter to fund new project capital,” said Teranga president and CEO Richard Young.
“Several growth initiatives are under way, including Gora, our new high-grade satellite deposit, which I’m pleased to say is on track to come into production in the fourth quarter and is expected to further enhance our production flexibility and to generate significant free cash flow commencing in 2015.”
To ensure financial flexibility, Teranga, during the quarter, secured a $30-million two-year revolving line of credit with Societe Generale, which would be used for working capital purposes and to smooth fluctuations in cash flows as the company self-funded several new capital projects over the next 18 months.
These projects would include the optimisation of the Sabodola mill to increase throughput and lower cost, thereby increasing production and further expanding margins.
Gold production for the full 2015 was expected to reach between 200 000 oz and 230 000 oz, while total cash costs for the full-year were expected to be between $650/oz and $700/oz.