- January 13, 2021
- Posted in Africa
Teranga Gold (TSX: TGZ) reported on Tuesday that it has exceeded its full year production guidance and achieved record annual production during 2020, marking the fifth consecutive year that the company has accomplished both.
During the fourth quarter, Teranga produced 119,364 ounces of gold, increasing its full-year production to 404,460 ounces in 2020, a year-over-year increase of 40%.
The full-year gold production topped the high end of the company’s increased guidance range of between 375,000 and 400,000 ounces, with both of its operating mines, Sabodala-Massawa in Senegal and Wahgnion in Burkina Faso, meeting or exceeding each of their respective guidance ranges. The original 2020 production guidance range of 345,000 to 355,000 ounces was adjusted upward mid-year.
Sabodala-Massawa produced 229,199 ounces of gold in 2020, around the mid-point of its revised production guidance range of 225,000 to 235,000 ounces, but well above the original guidance of approximately 215,000 ounces issued at the beginning of last year.
Following commercial production at Massawa on September 1, 2020, high-grade Massawa ore was prioritized for processing through the Sabodala mill, resulting in 79,239 ounces of gold produced in the final quarter of the year.
During its first full year of commercial production, Teranga’s newest mine, Wahgnion, produced 175,261 ounces of gold, surpassing the high end of its revised 2020 production guidance range of 150,000 to 165,000 ounces. The company increased Wahgnion’s original production guidance of 130,000 to 140,000 ounces mid-year to reflect the outperformance of the plant, which continues to process approximately 25% more material than its original designed capacity.
Shares of Teranga Gold were down 2% by midday Tuesday. The Toronto-based gold producer, which is set to be acquired by Endeavour Mining (TSX: EDV), has a market capitalization of C$2.27 billion.