Loading ...I’ve been looking at this one. Seems to have a lot going for it. One drawback is that it is thinly traded in the US.
Teranga Gold: African Greenstone
Unless you are a geologist, the savannah of Senegal and the scrub pines of Northern Ontario share little in common. But under the surface the similarities could not be more striking. Stretching from the Central African nation of Mali into the eastern districts of Senegal is a greenstone belt which would be familiar to any Canadian geologist. A greenstone belt which is producing gold in both nations.
For Teranga Gold (T.TGZ) the greenstone belt is the basis for gold production which is expected to reach at least 220,000 ounces in 2014. For Richard Young, Teranga’s President and CEO, the attraction to Senegal was not just the fact that there was a full scale, “Barrick quality” gold mill but the fact that it was surrounded by a prolific greenstone belt that was underexplored.
On September 15, 2014, the company issued a press release confirming its 2014 production guidance and announcing positive results on its key growth initiatives, as well as, confirming it expects to be debt free at the end of 2014.
Teranga emerged from a series of corporate arrangements which saw its gold mill and a large prospective land position come together between 2010 and earlier this year. The objective was the creation of a long life, low cost operation. “The merger with the Oromin Joint Venture Group more than doubled open pit gold reserves to 2.8 million ounces adjacent to our mill providing operating and capital synergies that result in a long life, low cost operation. The merger also provides us with a large resource base to work with including measured and indicated resources of 6.2 million ounces and inferred resources of 2.6 million ounces,” said Young.
Material is mined from an open pit and taken to the mill. “This year we will hit the lower end of our guidance range of 220,000 to 240,000 ounces. Following the merger we published a base case mine plan for the combined operations, which had not been optimized,” said Young. “But through the course of this year we have been focused on optimizing that base case mine plan. Through the optimization work, we expect to be able to produce a similar amount of gold but move less material, which will reduce our operating costs. In addition, because we are moving less material, mobile equipment is available for the development of our first satellite deposit Gora, which reduces the capital cost to develop the satellite deposit. Overall, the optimization of our plan is expected to improve 2015 cash flow by $40 to $60 million.”
more http://business.financialpost.com/2014/09/23/teranga-gold-african-greenstone/