Teranga Gold (TSX: TGZ) achieved record consolidated gold production for 2019, exceeding the top end of its full-year production guidance, the Toronto-based gold miner reported Tuesday. Annual gold production increased by 18% to 288,768 ounces compared with the 245,230 ounces produced in 2018.
This represents the fourth consecutive year in which the company has exceeded its production guidance and reported record results, Teranga COO Paul Chawrun said.
At the Wahgnion mine in Burkina Faso, which began commercial production in November, gold output reached 47,492 ounces, surpassing the high end of its production guidance of 30,000-40,000 ounces. The Sabodala mine in Senegal also topped its anticipated production guidance of 215,000-230,000 ounces with 241,276 ounces of gold produced.
Additionally, the company’s recently announced acquisition of the Massawa gold project — located only 20 km away from Sabodala — is expected to transform the Sabodala-Massawa complex into a “top-tier” gold producer, president and CEO Richard Young added.
Prior to announcing its acquisition of the Massawa project from Barrick Gold, which is expected to close in the first quarter, Teranga had been targeting gold production of 300,000-350,000 ounces for 2020. However, with production of Massawa’s free-milling ore expected to begin at Sabodala’s existing carbon-in-leach plant in the second half of this year, production is expected to increase beyond the previously anticipated range.
Within six months of closing the Massawa purchase, Teranga plans to complete a prefeasibility study highlighting updated production and costs for the integrated Sabodala-Massawa gold complex.
Shares of Teranga Gold rose to a six-year high of C$7.44 on Tuesday. The company’s market capitalization stands at approximately C$778.9 million.