Teranga is a Canadian-based gold company which operates the only gold mine and mill in Senegal, West Africa. Base case gold production is expected to average about 250,000 ounces annually at all-in sustaining costs in the lowest (best) quartile of industry costs allowing the Company to generate strong free cash flows. Beyond the Company’s base case mine plan are significant opportunities for organic growth through further exploration discoveries on its 246km² Mine License and highly prospective 1,055km² regional exploration package – located on an emerging gold belt.
Teranga means hospitality and friendliness in Wolof, the main local language of Senegal. The Company wanted a name that would reflect its actions and vision of becoming the benchmark for responsible gold mining in the country.
The Sabodala gold mine, which came into operation in 2009, is located 650km southeast of the capital of Senegal, Dakar within the West African Birimian geological belt in Senegal where approximately 11 million ounces of gold resources have been discovered over the past six years, and lies about 90km from major gold mines in Mali.
As at December 31, 2013 following the transformational acquisition of the Oromin Joint Venture Group ("OJVG"), total proven and probable open pit reserves were 2.81 million ounces of gold included in measured and indicated open pit resources of 6.19 million ounces of gold and inferred open pit mineral resources of 2.64 million ounces of gold.
Teranga currently expects to produce 250,000 ounces at all-in sustaining costs of approximately $1,000 per ounce at a base case. The operation is still in its infancy and significant upside potential exists through both optimization and exploration.
|Focused on Delivering
In the short-term (2014-2015) we plan to integrate the OJVG with our operations and increase free cash flow through higher production and lower material movement.
In the medium-term (2014-2016) we plan to evaluate the heap leach processing option, plus we will continue to look for ways to optimize both mill throughput, mine planning and grade.
Looking further out (2015 onward) we will be looking for exploration discoveries.
|Focused on Generating Free Cash Flow
Having multiple deposits allows us to sequence our mine plan according to which option provides the highest free cash flow.
This means we are not preparing our mine plans based on which provides us with the highest production, but rather which plan provides us with the highest free cash flow.
|Focused on Growing Reserves
We are focused on adding profitable reserve ounces by systematically identifying and evaluating targets on our existing land package, 246km2 Mine License as well as a Regional Land Package of approximately 1,000km2 which covers more than 70km of strike length on an emerging gold belt.
|Focused on Financial Strength
We are focused on value creation for our shareholders through higher returns. We will invest in Senegal, and any investments we make must have a return that is higher than our hurdle rate and has a quick pay-back period.
We will remain disciplined in our allocation of capital.
Our Mission and Vision
The Company’s mission is to share the benefits of responsible mining with all stakeholders. We strive to act as a responsible corporate citizen by building projects together with the communities near our operations and by committing to using best available techniques as we carry out our actions. We aim to achieve benefits for all parties involved, and to contribute to the sustainability and improved livelihoods for the communities in which we operate.
Phase 1: Become a pre-eminent gold producer in Senegal with 250,000 to 350,000 ounces of annual gold production leveraging off our existing mill and infrastructure
Phase 2: Increase annual gold production to 400,000 to 500,000 ounces with a second mill expansion
Set the benchmark in Senegal for responsible mining: Improving the standard of living for those in the communities in which we operate and provide the communities with the ability to become truly independent and sustainable for decades to come, even after the closure of our mining operations.