Teranga Gold (TSX: TGZ) saw production rise by 27% to 91,312 ounces for the first quarter of 2020, driven by strong performance at its Wahgnion operations in Burkina Faso.
Improvement in Q1 production also led to significant increases in both company revenue and gross profit over the last comparable period, up 46% and 41% respectively.
Consolidated net profit attributable to shareholders was $16.2 million or $0.13 per share, compared to a net loss of $2.7 million or $0.03 per share previously. Adjusted net profit attributable to shareholders came to $7.0 million or $0.06 per share, compared to $2.2 million or $0.02 per share.
Wahgnion delivered what will be its strongest quarter of the year, offsetting an expected soft quarter from Sabodala
“This was Teranga’s first full quarter with two operating mines and we are pleased to report strong revenues, profits and quarterly production,” president and CEO Richard Young said in the company’s press release.
“While approximately 23,600 ounces of gold bullion inventory remained unsold at March 31, 2020, covid-19 related shipping delays have since been addressed, and gold bullion is being shipped and sold on a regular basis.”
Barring any unforeseen issues related to the pandemic, the company expects to meet its original production guidance for the year.
“Wahgnion delivered what will be its strongest quarter of the year, offsetting an expected soft quarter from Sabodala as we progress through a lower grade phase of the mine plan,” chief operating officer Paul Chawrun added.
Development of the Sabodala-Massawa complex in Senegal is currently underway, with integration activities proceeding as planned.
Chawrun said the company is track to “initiate mining at the Sofia deposit, complete the prefeasibility study and issue the NI 43-101 technical report in the third quarter.”
Teranga’s stock jumped as high as 10.4% on the TSX to a five-year high of C$11.18 per share. The Toronto-based miner has a market capitalization of C$1.79 billion.