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TORONTO, ONTARIO -- (Marketwire) -- 02/20/13 -- Teranga Gold Corporation (TSX: TGZ)(ASX: TGZ) -
(All amounts are in US$ unless otherwise stated)
For a full explanation of Financial, Operating, Exploration and Development results please see the Audited Consolidated Financial Statements and Management's Discussion & Analysis for 2012 at www.terangagold.com.
2012 Annual Guidance Met With Record Production & Profits
-- Record annual profit of $79.9 million ($0.33 per share) in 2012 up from a loss of $16.0 million ($0.07 loss per share) in 2011. Record fourth quarter profit of $48.8 million ($0.20 per share) or 106 percent higher than the same prior year period.-- Gold production for 2012 was within original guidance of 210,000 - 225,000 ounces at 214,310 ounces, a Company record and 63 percent higher than for the same 2011 period. Gold production for the three months ended December 31, 2012 was 71,804 ounces, 96 percent higher than the same prior year period.-- Total cash costs for 2012 were within guidance, of $600 - $650 per ounce, at $627(1) per ounce sold compared to $782 per ounce for the twelve months ended December 31, 2011, a reduction of 20 percent. Fourth quarter total cash costs were $623 per ounce sold, compared to $809 per ounce in the same prior year period, a reduction of 23 percent.-- Gold hedge book reduced to 59,789 ounces at year end and further reduced to 38,105 ounces as at January 29, 2013. Management expects the hedge book to be extinguished by June 2013.-- The Company's cash, cash equivalents and bullion receivables at December 31, 2012 increased to $45.0 million, including $5.3 million in bullion receivables.-- Gold production for 2013 is expected to be in the range of 190,000 - 210,000 ounces at total cash costs of $650 to $700 per ounce.(1)-- Gora technical study confirmed reserves of 285,000 ounces to be mined over 4-years at total cash costs of $675 to $700 ounce.-- Measured & Indicated resources increased 34 percent to 2.9 million ounces, while reserves remain similar to 2011 net of production.
"With the mill expansion complete and optimization work well underway we expect to be able to maintain an annual production profile of about 200,000 ounces from our mine licence alone. We expect Gora, the most advanced in our exploration pipeline, will be additive to this production base leveraging off of our central milling facility as we target our first phase growth of 250,000 to 350,000 ounces of annual production," said Alan R. Hill, Executive Chairman.
Financial Highlights
-- Gold revenue for the twelve months ended December 31, 2012 was $350.5 million compared to gold revenue of $236.9 million for the fifteen months ended December 31, 2011. The increase in gold revenue was driven by higher gold sales and spot gold prices. Revenues exclude the impact of realized losses on ounces delivered into forward sales contracts which are classified within losses on gold hedge contracts.-- Consolidated profit for 2012 was $79.9 million ($0.33 per share) up from a loss of $16.0 million ($0.07 loss per share) during the fifteen months ended December 31, 2011. The increase in profit was primarily due to an increase in gross profit from higher revenues, lower regional exploration expenditures and lower gold hedge losses, partly offset by a non-cash impairment charge recorded in 2012, related to an available for sale financial asset.
