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Review of Operational Results
---------------------------------------------------------------------------- Three months ended Twelve months ended December 31, December 31, ----------------------------------------- 2012 2011 2012 2011---------------------------------------------------------------------------- restated restatedOperating results Ore mined ('000t) 2,038 1,715 5,915 3,973 Waste mined ('000t) 5,274 4,736 22,962 21,818 Total mined ('000t) 7,312 6,451 28,877 25,791 Grade mined (g/t) 2.04 1.50 1.98 1.39 Ounces mined (oz) 133,549 82,710 376,185 177,362 Strip ratio waste/ore 2.6 2.8 3.9 5.5 Ore milled ('000t) 725 604 2,439 2,444 Head grade (g/t) 3.40 2.10 3.08 1.87 Recovery rate % 90.7 89.8 88.7 89.5 Gold produced(1) (oz) 71,804 36,695 214,310 131,461 Gold sold (oz) 71,604 34,665 207,814 137,136 Average price received $/oz 1,296 1,482 1,422 1,236 Total cash cost (incl. royalties)(2) $/oz sold 623 809 627 782 Mining (cost/t mined) 3.1 2.5 2.7 2.3 Milling (cost/t milled) 19.9 17.3 20.4 16.8 G&A (cost/t milled) 6.4 6.2 6.2 5.8Note (1) Gold produced represents change in gold in circuit inventory plus gold recovered during the periodNote (2) Cash cost per ounce is a non-IFRS financial measure with no standard meaning under IFRSCost of Sales
Twelve months Fifteen months ended December ended December 31, 31,(US$000s) 2012 2011 --------------------------------- Current Restated (i)Mine production costs 145,831 126,125Depreciation and amortization 52,660 40,077Royalties 10,491 7,035Rehabilitation 36 9Inventory movements (29,695) (24,434) ---------------------------------Total cost of sales 179,323 148,812 ---------------------------------
2013 Guidance
---------------------------------------------------------------------------- Year ending December 31, --------------------------------- 2012 2013 Actuals Guidance RangeOperating results Ore mined ('000t) 5,915 4,000 - 4,500 Waste mined ('000t) 22,962 31,000 - 32,000 --------------------------------- Total mined ('000t) 28,877 35,000 - 36,500 Grade mined (g/t) 1.98 1.40 - 1.60 Strip ratio waste/ore 3.9 7.00 - 7.75 Ore milled ('000t) 2,439 3,300 - 3,400 Head grade (g/t) 3.08 2.00 - 2.15 Recovery rate % 88.7 89.0 - 91.0 Gold produced (oz) 214,310 190,000 - 210,000 Gold sold (oz) 207,814 190,000 - 210,000 Total cash cost (incl. royalties)(1,2) $/oz sold 627 650 - 700 Total production cost(1) $/oz sold 850 950 - 1,000 Mining (cost/t mined) 2.71 2.50 - 2.70 Milling (cost/t milled) 20.39 19.00 - 20.00 G&A (cost/t milled) 6.16 5.00 - 6.00Mine production costs $ millions 145.8 170.0 - 180.0Capital Expenditures Mine site $ millions 52.9 20.0 - 25.0 Capitalized reserve development $ millions 26.1 5.0 - 10.0 Gora development costs Mobile equipment $ millions - 30.0 - 35.0 Site development $ millions 4.3 15.0 - 20.0 --------------------------------- Total Gora development costs $ millions 4.3 45.0 - 50.0 Capitalized deferred stripping(2) $ millions N/A 35.0 - 40.0 ---------------------------------Total Capital Expenditures $ millions 83.3 105.0 - 125.0 Exploration (expensed) $ millions 16.7 10.0 - 15.0 Administration expense $ millions 17.9 15.0 - 20.0 Hedge close-outs / deliveries (oz) 136,395 59,789(1) Total cash cost per ounce and total production cost per ounce are non- IFRS financial measures with no standard meaning under IFRS. For definitions of these metrics, please see page 26 of the Management Discussion and Analysis on www.terangagold.com.(2) For 2013, reflects the impact of adoption of a new IFRS standard for deferred stripping. Please see page 25 of the Management Discussion and Analysis on www.terangagold.com.
