The new Wahgnion mine that Teranga Gold built in Burkina Faso has been completed ahead of schedule and about $15-million under budget, TSX-listed Teranga Gold reported on Thursday, noting that the mine would reach commercial production in the fourth quarter.
Wahgnion, which is Teranga’s second gold operation after the Sabodala mine, in Senegal, is expected to increase the company’s yearly production by 50% and double mine site free cash flows at a $1 250/oz gold price.
Wahgnion is forecast to produce 132 000 oz/y at an all-in sustaining cost of $761/oz in the first five years of its 13-year mine life.
In the three months ended September, company-wide production, including pre-commercial production from Wahgnion, increased to 61 975 oz, from 56 376 oz in a year earlier. Following first pour at the end of August, Wahgnion produced 10 620 oz.
“With another solid quarter at Sabodala and the start-up of production at Wahgnion, we are well on track to meet the higher end of our full-year production guidance for the company and the lower end of our cost guidance,” said COO Paul Chawrun.
Revenues and gross profit were 11% and 37% higher, respectively, at $71.447-million and $17.20-million, owing to higher gold prices.
The company’s net cash flow from Sabodala increased by 252% to $18.7-million, raising year-to-date amount by 136% to $68.6-million.
The miner posted a net loss of $9.72-million, from a profit of $7.87-million a year earlier, while its adjusted profit came to $2.34-million, up from $0.7-million.
For the full-year, Teranga expects to achieve the higher end of its consolidated production guidance of 245 000 oz to 270 000 oz and the lower end of its cost per ounce guidance for 2019.