- Teranga Gold (TGZ) has increased its annual production guidance, following a strong second quarter report
- The company’s gross profit for the quarter has increased 209 per cent against 2019’s same quarter, reaching approximately C$75.51 million
- Gold production also improved by 40 per cent and revenue grew 96 per cent, compared to 2019’s corresponding period
- As a result, Teranga has increased its gold production guidance to between 375,000 and 400,000 gold ounces, up from the previous guidance of between 345,000 and 355,000 ounces
- Teranga Gold (TGZ) is down 4.5 per cent and is trading at $15.35 per share
Teranga Gold (TGZ) has increased its annual production guidance, following a strong second quarter report.
Incredibly, the company’s gross profit for the quarter has increased 209 per cent against 2019’s same quarter, reaching approximately C$75.51 million.
Despite widespread operational suspensions across the industry, Teranga’s gold production for the quarter increased 40 per cent year-on-year to 89,011 ounces.
Coupled with a vastly inflated gold price, revenues for the quarter jumped a staggering 96 per cent to approximately $219.79 million.
On the back of these great results, the company has also improved guidance ranges for the rest of the year.
The company’s new gold production guidance is between 375,000 to 400,000 gold ounces, up from the previous guidance of between 345,000 ounces to 355,000 ounces.
The company is currently sitting on approximately $48.59 million in unsold gold bullion, as timeframes for shipping have been significantly hindered by the coronavirus pandemic.
President and CEO of Teranga Gold Richard Young said it had been a good year so far for the company, despite the challenges faced from COVID-19 pandemic.
“Our quality asset base is the foundation of the company’s transformation into a mid-tier gold producer.
“We are significantly increasing 2020 production guidance while our five-year production guidance for the period 2021 to 2025 is expected to average 533,000 ounces of gold per year at an all in sustaining costs of $785 per ounce, establishing Teranga as one of the lowest cost producers globally with significant cash flows, particularly at current gold prices,” he said.
Teranga Gold (TGZ) is down 4.5 per cent and is trading at $15.35 per share at 10:55 am EDT.