PERTH (miningweekly.com) – ASX- and TSX-listed gold miner Teranga Gold Corporation on Thursday told shareholders that it would likely meet the higher end of its production guidance for 2013, as the company reported a strong third quarter.

For the year to date, Teranga had produced 154 836 oz of gold, which the company said put it on track to meet its full-year guidance of between 190 000 oz and 210 000 oz.

“We remain on track to meet our production and cash costs guidance for 2013. Our third-quarter mining activities were consistent with our annual mine plan, which is expected to deliver higher-grade ore to our mill in the fourth quarter of 2013,” said executive chairperson Alan Hill.

Gold production from the Sabodala operation, in Senegal, reached 36 874 oz in the three months to September – 33% lower than the previous corresponding period, owing to lower processing grades.

Teranga noted that this was partly offset by higher mill throughput, owing to improvements made in the crushing circuit.

Total tonnes mined for the three months under review were 26% higher than the previous corresponding period, with the increase ascribed to haul truck productivities as a result of shorter haul distances to the mill and waste dumps, as well as improved loading efficiencies.

Meanwhile, Teranga reported that revenue for the three months to September reached A$50.6-milllion, compared with the A$105-million reported in the same period last year. The decline in gold revenue was driven by lower gold sales and lower spot gold prices.

President and CEO Richard Young noted that, in the volatile gold price environment, the company has taken further steps to strengthen its balance sheet and improve financial flexibility.

“We have prepared a revised mine plan, which, on a standalone basis, maximises gold production, while minimising operating, sustaining and new project development costs. Also, we’ve removed the lump sum loan payment that was previously due in June 2014, which allows the company to better match cash flows in a lower gold price environment.”

Young said Teranga would now focus on working with its joint venture partners on the Golouma gold project, also in Senegal, to integrate their deposits into the mine plan to increase production from the Sabodala mill.