Bill Cara

Cara Community GSM 50: Teranga Gold

Teranga Gold Corp. (TSX: TGZ) (OTC: TGCDF) reviewed 10-12-2020

Market Cap:       $1.9B                     Share Price:        $11.15

Shares outstanding: 167,533,615

Cash:  $49.4 M (USD) as of 30 Jun 2020   Credit: Via Societe Generale; no details noted

Debt:  $400 M (USD) estimated, as of 30 Jun 2020

Current operations: Yes

Insiders: Approx. 33%     Institutional: 77 hold about 35% of the float

Website: terangagold.com

Investor Presentations: https://www.terangagold.com/investors/events-and-presentations/default.aspx

CEO & Director: Richard Young                   HQs: Toronto, Canada

Canadian gold producer with 241,276 oz gold produced in 2019

Major assets:

– Sabodala-Massawa mine in Senegal. Open-pit, est. reserves 9 M oz

– Wahgnion mine in Burkina Faso – Open-pit, est. reserves 2.9 M oz

– Golden Hill & Gourma, Burkina Faso – exploration

Commercial production started at Wahgnion in Nov 2019

AISC: $988 (USD) per gold ounce as of 30 Jun 2020, stated per the company website as of Jun 2020

AISC increased 23% due to lower grade ores processed at Sabodala

Total Production was 89,011 oz gold for Q2 2020. Guidance for 2020 is 375-400Koz production

Five-year (2021-2025) average annual production est. ~533 Koz at est. AISC of $785/oz

Free cash-flow was $55.3M (USD) in Q2 2020

Earnings Q2 2020: $2.4 M (USD) or 0.01 cents per share

The company was to file a 43-101 by 31 Aug 2020 for the Sabodala-Massawa complex est. total reserves of 4.8 M oz gold via the PFS

Bottom line:

  • Some political risk in W. Africa. The company has a streaming agreement with Franco-Nevada
  • Co. has two mines in production. May see production increases to about 550,000 oz, Au, in 2021
  • No position at present, but may consider it