Teranga Gold: March Quarter Report
14.05.2013 | Marketwire
TORONTO, ONTARIO -- (Marketwired) -- 05/14/13 -- Teranga Gold Corporation (TSX: TGZ)(ASX: TGZ) -
For a full explanation of Financial, Operating, Exploration and Development results please see the Interim Condensed Consolidated Financial Statements as at and for the period ended March 31, 2013 and the associated Management's Discussion & Analysis at www.terangagold.com.
Solid first quarter production and cash costs and hedge book eliminated.
-- Consolidated profit for the first quarter of 2013 was $45.0 million
($0.18 per share), compared to a loss of $2.1 million ($0.01 per share)
in the same prior year period.
-- Gold production for the three months ended March 31, 2013 increased 63
percent to 68,301 ounces of gold compared to the same prior year period.
-- As of April 15, 2013, the Company is 100 percent hedge free.
-- Total cash costs for the three months ended March 31, 2013 decreased 18
percent to $535 per ounce sold compared to the same prior year period.
-- The Company's cash balance at March 31, 2013 increased to $57.4 million,
including $6.4 million in bullion receivables.
-- The company signed a long-term comprehensive Agreement in Principle with
the Republic of Senegal in early April which sets out a predictable and
stable fiscal operating environment for the Company's future investment
in exploration, acquisitions and development to increase reserves and
production.
-- Gold production for 2013 is on track to be in the range of 190,000 -
210,000 ounces at total cash costs of $650 to $700 per ounce in line
with 2013 guidance.(1)
(1) Total cash costs per ounce sold is a common financial performance measure in the gold mining industry but has no standard meaning under IFRS. For a definition of this metric, please refer to page 11 of the Company's Management's Discussion and Analysis.
"Sabodala had another strong quarter, providing the foundation for a solid year. Beyond Sabodala, the Agreement in Principle signed between the Company and the Republic of Senegal paves the way for us to invest and develop in order to increase our reserves and production in Senegal for the long-term. Our ability to leverage off our existing mill and infrastructure should allow us to increase reserves, production, earnings, cash flow and free cash flow in the coming years," said Alan R. Hill, Executive Chairman.
Financial Highlights (details on Page 5)
-- Gold revenue for the first quarter of 2013 was $113.8 million compared
to $60.5 million in the same prior year period, an increase of 88
percent. The increase in gold revenue was mainly driven by higher gold
sales.
-- Consolidated profit attributable to shareholders of Teranga for the
first quarter of 2013 was $45.0 million ($0.18 per share), compared to a
loss of $2.1 million ($0.01 per share) in the same prior year period.
The increase in profit and earnings per share were primarily due to an
increase in gross profit from an increase in revenues and a significant
loss on gold hedge contracts in the prior year.
-- Operating cash flow for the first quarter of 2013 was $23.6 million
compared to $35.9 million in the same prior year period. The decrease in
operating cash flow was mainly due to delivery of 45,289 ounces into the
hedge book during the first quarter of 2013 and the timing of working
capital receipts and payments.
-- Capital expenditures were $22.2 million for the first quarter of 2013,
which was $9.3 million lower than the same prior year period. The
decrease in capital expenditures was mainly due to higher expenditures
in 2012 related to the mill expansion which was completed in second
quarter 2012, partially offset by higher capitalized deferred stripping
expenditures in first quarter 2013.
-- The Company's cash balance at March 31, 2013 increased to $57.4 million,
including $6.4 million in bullion receivables.
-- During the first quarter of 2013, the average realized gold price was
$1,090 per ounce with 45,289 ounces delivered into gold hedge contracts
at an average price of $806 per ounce and 24,378 ounces sold at an
average spot price of $1,619 per ounce. During the same prior year
period, 35,268 ounces were sold at an average price of $1,712 per ounce.
-- The gold forward sales contracts declined by 45,289 ounces during the
first quarter 2013 to 14,500 ounces at March 31, 2013. As of April 15,
2013, the Company is 100 percent hedge free after having bought back the
remaining "out of the money" gold forward sales contracts.
-- During the first quarter of 2013, the Company entered into a new $50
million finance lease facility with Macquarie Bank Limited
("Macquarie"). The lease facility replaces the finance lease facility
previously in place with Societe Generale ("SocGen"), which was assigned
and novated to Macquarie. The proceeds will be put towards additional
equipment for the Sabodala pit as well as the new equipment required for
the Gora deposit that is currently being permitted. In total, $22.7
million was outstanding at March 31, 2013, including $10.5 million
novated from SocGen during the quarter. A further $4.3 million will be
drawn down in the second quarter when final delivery of Sabodala
equipment is received. The balance of $23 million will be reserved for
future drawn downs for purchases of mining equipment, as required.
"Now that we have eliminated the hedge book, our realized gold price should rise as we sell 100 percent of our production at spot gold prices. The higher realized gold price should result in higher cash margins and cash flows to further strengthen our balance sheet in 2013 and beyond. The free cash flow generated from Sabodala is expected to fund our growth initiatives through both exploration and consolidation," said Richard Young, President and CEO.
Operating Highlights (details on Page 5)
-- Gold production for the three months ended March 31, 2013 increased 63
percent to 68,301 ounces of gold compared to the same prior year period
due to the processing of higher grade ore combined with higher mill
throughput as a result of the completion of the mill expansion.
-- Gold sold for the three months ended March 31, 2013 increased 98 percent
to 69,667 ounces compared to the same prior year period. Ounces sold
during the first quarter were slightly higher than production for the
period due to a draw-down of gold in circuit inventory. At March 31,
2013, gold in circuit and gold bullion inventory amounted to 11,883
ounces.
-- Total cash costs for the three months ended March 31, 2013 decreased 18
percent to $535 per ounce sold compared to the same prior year period.
While gross mine site costs increased 35 percent due to higher mining
and processing rates, the decrease in total cash costs per ounce was
mainly due to higher gold ounces sold and higher capitalization of
production phase stripping costs. Total cash costs have been adjusted
for the adoption of IFRIC 20 for capitalization of a portion of
production phase stripping costs.
-- Total tonnes mined for the three months ended March 31, 2013 were 19
percent higher compared to the same prior year period due to the
increase in hauling and drilling capacity of the mining fleet during
2012 and first quarter 2013.
-- Ore tonnes mined were 17 percent higher compared to the prior year
period while grades mined were 36 percent higher resulting in an
increase in ounces mined of about 60 percent.
-- Mining rates are expected to decrease by about 2 percent in the second
quarter through the balance of the year despite the commissioning of 3
haul trucks and 1 shovel as the Company lowers its mining rate to
maximize free cash flow in 2013 but maintain production guidance.
-- Unit mining costs for the quarter were 3 percent higher than the prior
year period, mainly due to higher costs for blasting consumables
enabling better fragmentation for processing.
-- Ore tonnes milled for the three months ended March 31, 2013 were 21
percent higher than the same prior year period due to an increase in
mill capacity as a result of the completion of the mill expansion in the
second quarter of 2012.
-- Transfer chute design upgrades and the addition of more durable liners
in the high wear points through the plant commenced with a comprehensive
planned shutdown in January 2013, with further work to continue during
planned shutdowns in both the second and third quarters 2013. These
changes are anticipated to help reduce the frequency and duration of
unplanned downtime allowing the design targets to be achieved. Crusher
operating time is the key to meeting design target throughput rates.
-- Unit processing costs for the three month period ended March 31, 2013
were 31 percent higher than the same prior year period mainly due to
higher power generation cost due to a higher power demand associated
with the increased milling capacity, higher maintenance costs associated
with the planned January shutdown to improve crusher operating time, and
higher consumption of grinding media required for the processing of a
lower ratio of soft to hard ore blend.
-- Unit general and administration costs for the three months ended March
31, 2013 were higher compared to the same prior year period mainly due
to a buildup in manpower.
2013 Revised Guidance
-------------------------------------
Revised Guidance Original Guidance
Operating results
Production (oz) 190,000 - 210,000 190,000 - 210,000
Total cash costs (incl.
royalties)(1, 2) ($/oz sold) 650 - 700 650 - 700
Exploration and evaluation expense
(Regional exploration) ($ millions) 3.0 10.0 - 15.0
Administration expenses ($ millions) 13.0 15.0 - 20.0
Capital expenditures ($ millions)
Mine site 20.0 20.0 - 25.0
Capitalized reserve development
(Mine License) 5.0 5.0 - 10.0
Gora development costs
Mobile equipment 5.0 30.0 - 35.0
Site development 5.0 15.0 - 20.0
-------------------------------------
Total Gora development costs 10.0 45.0 - 50.0
Capitalized deferred stripping(2) 35.0 35.0 - 40.0
-------------------------------------
Total capital expenditures 70.0 105.0 - 125.0
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(1) Total cash costs per ounce is a non-IFRS financial measure with standard
meaning under IFRS. For definition of this metric, please see page 11 in
Management's Discussion and Analysis.
(2) Includes the impact of adopting IFRIC 20 - Stripping Costs in the
Production Phase of a Surface Mine. Refer to Adoption of New Accounting
Standards in the Management's Discussion and Analysis.
-- First quarter results benefited from continuation of mining a high grade
zone in phase two, as a result, the Company remains on track to produce
between 190,000 - 210,000 ounces of gold in 2013. Total cash costs
guidance for 2013 remains unchanged at $650 to $700 per ounce despite
the increase in the royalty rate from 3% to 5% of sales effective
January 1, 2013.
-- In light of market conditions, we have lowered discretionary
expenditures in a number of key areas including operations, exploration
and administration, as well as, sustaining and development capital.
-- Reserve development expenditures on the Mine License have been reduced
while exploration drilling on the Regional Land Package is being
minimized. The Agreement in Principle signed with the Government of
Senegal in early April provides for the extension of five key regional
exploration licenses which allows the Company to defer regional
exploration activity. Exploration expense for 2013 is now expected to
total $3 million, a decrease from our original guidance range of $10 to
$15 million, while capitalized reserve development costs are now
expected at the lower end of our original guidance range of $5 to $10
million.
-- General and administrative expenses have been reduced to $13 million
from the original guidance range of $15 to $20 million, but still
provide for the necessary support of operations and development.
-- Sustaining and development capital expenditures have been reduced by
extending the timeline for the development of the Company's first
satellite deposit at Gora, where permits are expected in 2013 and
production in the first half of 2014. Mine site capital expenditures are
expected at the lower end of our original guidance range of $20 to $25
million. Development expenditures at Gora in 2013 will be minimized to
$5 to $10 million from a previous expected range of $45 to $50 million,
of which $23 million was to be financed via the new mobile equipment
loan. Capitalized deferred stripping at the Sabodala pit is now expected
at the bottom end of the original range of $35 to $40 million.
-- With these changes, at a gold price of $1,400 per ounce, we expect to
generate free cash flow in 2013 which will further improve our financial
strength during this period.
Development Highlights (Mine License)
-- Drilling at the Sabodala open pit during the first quarter was primarily
from within the pit and along the perimeter to the east and west of the
current pit to upgrade and increase mineral resources. Drilling
confirmed continuation of these zones. The 2013 drill program for
Sabodala was largely completed at the end of first quarter 2013.
-- Waste dump condemnation drilling to the southeast of the Sabodala open
pit encountered a zone of mineralization within the general trend of the
NW Shear projected to the SE near the base of Sambaya Hill. Drilling
continued in this area during the first quarter, following up on results
received in 2012.
-- A large resource definition program is planned for 2013 for the
Niakafiri, Niakafiri West, Dinkokhono and Soukhoto deposits, pending
ongoing community discussions. In conjunction with our Agreement with
the Republic of Senegal, Management expects to complete these
discussions and commence drilling in the second quarter of 2013.
-- The Masato North target area is located along the possible northeast
trending splay of the Sabodala Shear zone, to the north of Masato.
Drilling intersected a strongly altered shear zone containing sericite,
albite and sulphides. A total of 870 metres in 6 holes were drilled in
the first quarter 2013 and results are pending.
Exploration Highlights (Regional Land Package)
-- A program of approximately 4,300 metres of Reverse Circulation ("RC")
drilling was completed in the first quarter to follow up on the
mineralization intersected at Tourokhoto Marougou in 2012. Three
mineralized zones ranging in strike length from 0.5 km to 1.3 km and
with varying widths have been outlined. Geological and resource modeling
is ongoing. The previous drilling program identified significant
mineralization on three RC lines spaced over a total strike length of
1,200 metres. The follow-up program was designed to determine if this
mineralization is continuous between and along strike of these widely
spaced lines.
-- A 1,600 metre RC drill program was completed in the first quarter at
Goumbou Gamba. The program was implemented to test the strike and down
dip extensions of gold mineralization identified over a 2 km strike
length in earlier Rotary Air Blast ("RAB") and RC drill campaigns.
-- Geological mapping and rock chip sampling was undertaken at Soreto. A 4
km long surface gold anomaly associated with a major NNW regional shear
structure was identified. A limited diamond drill-hole program has been
designed to test the mineralization at depth.
-- Geological mapping and trench sampling at Ninyenko has confirmed the
existence of a near surface flat lying gold bearing brecciated shear
zone with pervasive quartz-hematite-potassic alteration. Gold
mineralization has been identified in prospect trenches covering an area
1.3 km long by 0.6 km wide. Channel sampling of the mineralized zone
gave elevated gold values. Trenching and mapping is planned to locate
extensions to the gold mineralization.
Corporate Update
-- The Company signed a long-term comprehensive Agreement in Principle
("Agreement") with the Republic of Senegal in early April. The Agreement
sets out a predictable and stable fiscal operating environment for the
Company's future investment in exploration, acquisitions and development
to increase reserves and production.
-- The Agreement benefits all stakeholders and gives the Company the
ability to invest with certainty in regards to the fiscal and operating
parameters. The agreement is expected to be finalized during the second
quarter of 2013.
-- In April 2013, the Company appointed Mr. Jeff Williams to the Board of
Directors of the Company. Mr. Williams is a non-executive member of the
Company's Board and is also an advisor to Mineral Deposits Limited, the
company that built the Sabodala mine.
-- The Company has appointed Ernst & Young LLP as the Company's new
auditors.
-- The Company also announces that its Board of Directors has approved an
amendment to its by-laws to add an advance notice requirement (the
"Advance Notice By-Law"), which requires advance notice to be given to
the Company in circumstances where nominations of persons for election
as a director of the Company are made by shareholders other than
pursuant to: (i) a requisition of a meeting made pursuant to the
provisions of the Canada Business Corporations Act (the "CBCA"); or (ii)
a shareholder proposal made pursuant to the provisions of the CBCA.
Among other things, the Advance Notice By-law fixes a deadline by which
shareholders must submit a notice of director nominations to the Company
prior to any annual or special meeting of shareholders where directors
are to be elected and sets forth the information that a shareholder must
include in the notice for it to be valid.
-- In the case of an annual meeting of shareholders, notice to the Company
must be given not less than 30 nor more than 65 days prior to the date
of the annual meeting, however, in the event the meeting is to be held
on a date that is less than 50 days after the date on which the first
public announcement of the date of the annual meeting was made, notice
may be made not later than the close of business on the 10th day
following such public announcement.
-- The Advance Notice By-Law is effective immediately and will be submitted
to shareholders for confirmation and ratification at the Company's
upcoming annual and special meeting of shareholders to be held on June
26th, 2013 (the "Meeting").
-- The Company also announces that the Board has adopted a majority voting
policy (the "Majority Voting Policy") with respect to the election of
directors in uncontested elections. In the event that a nominee receives
more "withheld" than "for" votes in an uncontested election, he or she
will be expected to submit to the Board his or her resignation, to take
effect upon acceptance by the Board. The Board, on the recommendation of
the corporate governance and nominating committee, will consider the
resignation and make its decision to accept or reject such resignation
and announce its decision in a news release within 90 days after the
shareholder meeting at which the candidacy of the director was
considered.
-- The full text of the Advance Notice By-Law and the Majority Voting
Policy are available on SEDAR at www.sedar.com. Further details
regarding the Meeting will be contained in a Management Information
Circular that will be mailed to shareholders of the Company and filed on
SEDAR in due course.
Review of First Quarter Financial Results
----------------------------------------------------------------------------
(US$000's, except where indicated) Three months ended March 31
-----------------------------
-----------------------------
Financial Results 2013 2012
----------------------------------------------------------------------------
Revenue 113,815 60,526
Cost of sales (55,971) (31,117)
-----------------------------
Gross Profit 57,844 29,409
Exploration and evaluation expenditures (2,027) (7,176)
Administration expenses (3,830) (3,349)
Share based compensation 73 (1,755)
Finance costs (2,696) (938)
Gains/(losses) on gold hedge contracts 2,193 (17,483)
Gains on oil hedge contracts 31 615
Net foreign exchange losses (61) (369)
Impairment of available for sale financial
asset (962) -
Other income 9 8
------------------------------
Profit/(loss) for the period 50,574 (1,038)
Profit attributable to non-controlling
interest 5,591 1,036
------------------------------
Profit/(loss) attributable to shareholders of
Teranga 44,983 (2,074)
Basic earnings/(losses) per share 0.18 (0.01)
----------------------------------------------------------------------------
Review of First Quarter Operating Results
Three months ended
(US$000's, except where indicated) March 31
----------------------
----------------------
Operating Results 2013 2012
----------------------------------------------------------------------------
Ore mined ('000t) 1,312 1,117
Waste mined ('000t) 7,536 6,316
----------------------
Total mined ('000t) 8,848 7,433
Grade mined (g/t) 1.87 1.38
Ounces mined (oz) 78,929 49,516
Strip ratio waste/ore 5.7 5.7
Ore milled ('000t) 696 573
Head grade (g/t) 3.31 2.52
Recovery rate % 92.1 90.0
Gold produced(1) (oz) 68,301 41,904
Gold sold (oz) 69,667 35,268
Average price received $/oz 1,090 1,712
Total cash cost (incl. royalties)(2) $/oz sold 535 650
Mining ($/t mined) 2.61 2.53
Milling ($/t milled) 22.47 17.19
G&A ($/t milled) 6.17 5.61
----------------------------------------------------------------------------
(1) Gold produced represents change in gold in circuit inventory plus gold
recovered during the period.
(2) Total cash costs per ounce is a non-IFRS financial measure with no
standard meaning under IFRS. For definition of this metric, please see page
11 of the Management's Discussion and Analysis.
First Quarter Cost of Sales
----------------------------------------------------------------------------
(US$000's, except where indicated) Three months ended March 31
-------------------------------
Cost of Sales 2013 2012
----------------------------------------------------------------------------
Mine production costs 28,340 25,528
Depreciation and amortization 20,319 9,002
Royalties 5,610 1,822
Rehabilitation 1 4
Inventory movements 1,701 (5,239)
-------------------------------
Total cost of sales 55,971 31,117
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CORPORATE DIRECTORY
Directors
Alan Hill, Executive Chairman
Richard Young, President and CEO
Christopher Lattanzi, Non-Executive Director
Oliver Lennox-King, Non-Executive Director
Alan Thomas, Non-Executive Director
Frank Wheatley, Non-Executive Director
Jeff Williams, Non-Executive Director
Senior Management
Alan Hill, Executive Chairman
Richard Young, President and CEO
Mark English, Vice President, Sabodala Operations
Paul Chawrun, Vice President, Technical Services
Navin Dyal, Vice President and CFO
David Savarie, Vice President, General Counsel & Corporate Secretary
Kathy Sipos, Vice President, Investor & Stakeholder Relations
Macoumba Diop, General Manager and Government Relations Manager, SGO
Registered Office
121 King Street West, Suite 2600
Toronto, Ontario, M5H 3T9, Canada
T: +1 416-594-0000
F: +1 416-594-0088
E: investor@terangagold.com
W: www.terangagold.com
Senegal Office
2K Plaza
Suite B4, 1er Etage
sis la Route due Meridien President
Dakar Almadies
T: +221 338 693 181
F: +221 338 603 683
Auditor
Ernst & Young LLP
Share Registries
Canada: Computershare Trust Company of Canada
T: +1 800 564 6253
Australia: Computershare Investor Services Pty Ltd
T: 1 300 850 505
Stock Exchange Listings
Toronto Stock Exchange, TSX symbol: TGZ
Australian Securities Exchange, ASX symbol: TGZ
FORWARD LOOKING STATEMENTS
This news release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Teranga, or developments in Teranga's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond the control of Teranga, as well as other risks and uncertainties which are more fully described in the Company's Annual Information Form dated March 27, 2013, and in other company filings with securities and regulatory authorities which are available at www.sedar.com. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and, except as required by law, Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this news release should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities.
COMPETENT PERSONS STATEMENT
The technical information contained in this Report relating to the mineral reserve estimates within the Sabodala, Sutuba, Niakafiri and Gora deposits and the Stockpiles, is based on information compiled by Julia Martin, P.Eng., MAusIMM (CP), a full time employee with AMC Mining Consultants (Canada) Ltd., is independent of Teranga, is a "qualified person" as defined in NI 43-101 and a "competent person" as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Ms. Martin has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Ms Martin has reviewed and accepts responsibility for the reserve estimates disclosed above. Ms Martin has consented to the inclusion in the report of the matters based on her information in the form and context in which it appears in this Report.
The technical information contained in this Report relating to the mineral resources is based on information compiled by Ms. Patti Nakai-Lajoie, who is a Member of the Association of Professional Geoscientists of Ontario. Ms. Patti Nakai-Lajoie is full time employee of Teranga and is not "independent" within the meaning of National Instrument 43-101. Ms. Patti Nakai-Lajoie has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Ms. Patti Nakai-Lajoie is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects and she consents to the inclusion in the report of the matters based on her information in the form and context in which it appears in this Report.
The technical information contained in this Report relating to exploration results is based on information compiled by Mr. Martin Pawlitschek, who is a Member of the Australian Institute of Geoscientists. Mr. Pawlitschek is a consultant of Teranga and is not "independent" within the meaning of National Instrument 43-101. Mr. Pawlitschek has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Pawlitschek is a "Qualified Person" in accordance with NI 43-101 and he consents to the inclusion in the report of the matters based on his information in the form and context in which it appears in this Report.
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF
TERANGA GOLD CORPORATION
STATEMENTS OF COMPREHENSIVE INCOME / LOSS
(Unaudited and in US$000's, except per share amounts)
Three months Three months
ended ended
-------------- --------------
-------------- --------------
March 31, March 31,
2013 2012
(Restated)
Revenue 113,815 60,526
Cost of sales (55,971) (31,117)
-------------- --------------
Gross profit 57,844 29,409
Exploration and evaluation expenditures (2,027) (7,176)
Administration expenses (3,830) (3,349)
Share based compensation 73 (1,755)
Finance costs (2,696) (938)
Gain (losses) on gold hedge contracts 2,193 (17,483)
Gains on oil hedge contracts 31 615
Net foreign exchange (losses)/ gains (61) (369)
Impairment of available for sale financial
asset (962) -
Other income 9 8
-------------- --------------
(7,270) (30,447)
Profit/(loss) before income tax 50,574 (1,038)
Income tax benefit - -
-------------- --------------
Profit/(loss) for the period 50,574 (1,038)
-------------- --------------
Profit/(loss) attributable to:
Shareholders 44,983 (2,074)
Non-controlling interests 5,591 1,036
-------------- --------------
Profit/(loss) for the period 50,574 (1,038)
-------------- --------------
Other comprehensive loss:
Exchange differences arising on translation of
Teranga corporate entity - (63)
Change in fair value of available for sale
financial asset, net of tax (5,456) (3,927)
-------------- --------------
Other comprehensive loss for the period (5,456) (3,990)
-------------- --------------
Total comprehensive income/(loss) for the
period 45,118 (5,028)
-------------- --------------
Total comprehensive income/(loss) attributable
to:
Shareholders 39,527 (6,064)
Non-controlling interests 5,591 1,036
-------------- --------------
Total comprehensive income/(loss) for the
period 45,118 (5,028)
-------------- --------------
Earnings/(losses) per share from operations
attributable to the shareholders of the
Company during the period
- basic earnings/(losses) per share 0.18 (0.01)
- diluted earnings/(losses) per share 0.18 (0.01)
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF
TERANGA GOLD CORPORATION
STATEMENTS OF FINANCIAL POSITION
(Unaudited and in US$000's)
As at March 31, 2013 As at December 31, 2012
(Restated)
Current assets
Cash and cash equivalents 51,016 39,722
Trade and other receivables 7,554 6,482
Inventories 73,376 74,969
Financial derivative assets - 456
Other assets 5,080 6,836
Available for sale financial
assets 8,273 15,010
--------------------- ------------------------
Total current assets 145,299 143,475
--------------------- ------------------------
Non-current assets
Inventories 35,650 32,700
Property, plant and equipment 238,129 247,898
Mine development expenditures 158,429 138,609
Intangible assets 1,663 1,859
--------------------- ------------------------
Total non-current assets 433,871 421,066
--------------------- ------------------------
Total assets 579,170 564,541
--------------------- ------------------------
Current liabilities
Trade and other payables 40,920 44,823
Borrowings 10,307 10,415
Financial derivative
liabilities 11,709 51,548
Provisions 1,920 1,940
--------------------- ------------------------
Total current liabilities 64,856 108,726
--------------------- ------------------------
Non-current liabilities
Borrowings 69,037 58,193
Provisions 9,750 10,312
Other non-current liabilities 2,612 -
--------------------- ------------------------
Total non-current liabilities 81,399 68,505
--------------------- ------------------------
Total liabilities 146,255 177,231
--------------------- ------------------------
Equity
Issued capital 305,412 305,412
Foreign currency translation
reserve (998) (998)
Equity-settled share based
compensation reserve 16,845 16,358
Investment revaluation reserve - 5,456
Accumulated income 94,208 49,225
--------------------- ------------------------
Equity attributable to
shareholders 415,467 375,453
Non-controlling interests 17,448 11,857
--------------------- ------------------------
Total equity 432,915 387,310
--------------------- ------------------------
Total equity and liabilities 579,170 564,541
--------------------- ------------------------
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF
TERANGA GOLD CORPORATION
STATEMENTS OF CHANGES IN EQUITY
(Unaudited and in US$000's)
Three months ended Three months ended
------------------- -------------------
------------------- -------------------
March 31, 2013 March 31, 2012
(Restated)
Issued capital
----------------------------------------------------------------------------
End of period 305,412 305,412
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Foreign currency translation reserve
Beginning of period (998) (935)
Exchange difference arising on
translation of Teranga corporate
entity - (63)
----------------------------------------------------------------------------
End of period (998) (998)
----------------------------------------------------------------------------
Equity-settled share based
compensation reserve
Beginning of period 16,358 12,599
Equity-settled share based
compensation reserve 487 1,755
----------------------------------------------------------------------------
End of period 16,845 14,354
----------------------------------------------------------------------------
Investment revaluation reserve
Beginning of period 5,456 (1,319)
Change in fair value of available
for sale financial asset, net of
tax (5,456) (3,927)
----------------------------------------------------------------------------
End of period - (5,246)
----------------------------------------------------------------------------
Accumulated income/(loss)
Beginning of period 49,225 (43,375)
Profit/(Loss) attributable to
shareholders 44,983 (2,074)
----------------------------------------------------------------------------
End of period 94,208 (45,449)
----------------------------------------------------------------------------
Non-controlling interest
Beginning of period 11,857 (3,713)
Non-controlling interest - portion
of profit for the period 5,591 957
----------------------------------------------------------------------------
End of period 17,448 (2,756)
----------------------------------------------------------------------------
Total shareholders' equity at March
31 432,915 265,317
----------------------------------------------------------------------------
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF
TERANGA GOLD CORPORATION
STATEMENTS OF CASH FLOW
(Unaudited and in US$000's)
Three months ended Three months ended
------------------- -------------------
------------------- -------------------
March 31, 2013 March 31, 2012
(Restated)
Cash flows related to operating
activities
Profit/(loss) for the period 50,574 (1,038)
Depreciation of property, plant and
equipment 15,354 6,934
Depreciation of capitalized mine
development costs 4,996 2,103
Amortization of intangibles 269 147
Amortization of borrowing costs 350 107
Unwinding of discount 24 23
Share based compensation 487 1,755
Net change in losses on gold hedge (39,839) 17,483
Net change in losses on oil hedge 456 47
Impairment of available for sale
financial asset 962 -
Profit on disposal of property, plant
and equipment 99 -
Changes in working capital (10,092) 8,366
----------------------------------------------------------------------------
Net cash provided by operating
activities 23,640 35,927
Cash flows related to investing
activities
Increase in restricted cash - (348)
Redemption of short-term investments - 592
Expenditures for property, plant and
equipment (4,624) (15,491)
Expenditures for mine development (17,479) (15,995)
Acquisition of intangibles (73) (2)
Proceeds on disposal of property,
plant and equipment 35 -
----------------------------------------------------------------------------
Net cash used in investing activities (22,141) (31,244)
Cash flows related to financing
activities
Repayment of borrowings - (2,800)
Draw down from finance lease
facility, net of financing cost paid 11,146 2,862
Interest paid on borrowings (1,670) (279)
----------------------------------------------------------------------------
Net cash provided by (used in)
financing activities 9,476 (217)
Effect of exchange rates on cash
holdings in foreign currencies 319 (507)
----------------------------------------------------------------------------
Net increase in cash and cash
equivalents held 11,294 3,959
Cash and cash equivalents at the
beginning of period 39,722 7,470
----------------------------------------------------------------------------
Cash and cash equivalents at the end
of period 51,016 11,429
----------------------------------------------------------------------------
Contacts:
Teranga Gold Corporation
Kathy Sipos
Vice-President, Investor & Stakeholder Relations
+1 416-594-0000
ksipos@terangagold.com
www.terangagold.com