Teranga Gold Corporation: June Quarter Report
TORONTO, ONTARIO -- (Marketwire) -- 08/15/12 -- Teranga Gold Corporation (TSX: TGZ)(ASX: TGZ)
For a full explanation of Financial, Operating and Exploration results please see the Interim Condensed Consolidated Financial Statements as at and for the period ended June 30, 2012 and the associated Management's Discussion & Analysis at www.terangagold.com.
Highlights
-- Profit for the second quarter increased to $12.6 million, 45 percent
higher than the first quarter of 2012.
-- Second quarter record production totaled 45,495 ounces, a 9 percent
increase over first quarter 2012 and the highest in Company history, at
total cash costs of $645 per ounce, the lowest in Company history.
-- Construction of the mill expansion to double capacity is complete. With
the higher throughput rate in the second half of the year, the Company
is on track to meet its full year production guidance of 210,000 to
225,000 ounces of gold at total cash costs of $600 to $650 per ounce(1).
-- The recent amendment to the Macquarie Bank Facility Agreement increased
the quarter end cash balance to $35.6 million, and will increase
operating cash flow in the second half of 2012 as a greater percentage
of production can now be sold at higher spot gold prices.
-- Exploration at the Sabodala Pit continues to confirm the potential for
an expanded pit.
Operating Highlights
-- Gold production for the second quarter of 2012 was 45,495 ounces, 36
percent higher than the same quarter of 2011, despite down time as part
of mill expansion tie-ins and commissioning activities. The increase in
production was due to higher grade ore processed in the second quarter
of 2012.
-- Gold sold for the three months ended June 30, 2012 totaled 38,503 ounces
at a total cash cost of $645 per ounce sold compared to 35,407 ounces
sold at a total cash cost of $802 per ounce in the same quarter of 2011.
Ounces sold during the second quarter of 2012 were lower than ounces
produced due to the reduced ability to pour gold during the tie-ins for
the mill expansion. As a result, at June 30, 2012, gold in circuit and
gold bullion inventory increased by 7,121 ounces to 20,383 ounces. The
majority of gold inventory will be sold in the second half of the year.
-- Construction of the mill expansion to double capacity is complete,
though some fine tuning will continue during the third quarter. In the
third quarter the mill is expected to be operating at full capacity.
-- Total tonnes mined for the three months ended June 30, 2012 were 15
percent higher compared to the same period of 2011 due to improved
productivity and efficiency in the mining operation.
-- Mill throughput for the three months ended June 30, 2012 was 25 percent
lower than the same period of 2011 mainly due to the harder ore in 2012
compared to softer material that was available during the second quarter
of 2011 as well as the shutdowns relating to tie-ins for the mill
expansion.
-- With the higher throughput rate in the second half of the year, the
Company is on track to meet its full year production guidance of 210,000
to 225,000 ounces of gold at total cash costs of $600 to $650 per
ounce(1), in line with previous guidance.
"With the mill expansion complete we will see a significant increase in production and reduction in our cash costs per ounce during the second half of the year. I am increasingly encouraged by our recent drill results on the Mine License which we are optimistic can double our gold inventory on the Mine License alone extending our mine life to approximately 15 years in the near term and this does not include any ounces we find on our regional land package." said Alan R. Hill, Chairman and CEO.
(1) This production target is based on existing proven and probable reserves only.
Exploration at the Sabodala Mine continues to confirm the potential for an expanded pit
-- Pit optimization work completed in February 2012 defined a $1,550 per
ounce pit shell containing over 2 million ounces that serves as a guide
to our current drill program (2011 proven and probable reserves in the
Sabodala pit contained approximately 1 million ounces).
-- The 2012 drill program on Mine Licence ("ML") is designed to take the
ultimate pit about 150 metres deeper and, if successful, to add upwards
of 500,000 to 1 million ounces, based on drilling intercepts to date, at
grades of between 1.5 gpt and 2 gpt this year.
-- On the ML alone a minimum of 7 drill rigs are expected to be testing
targets at an estimated cost of $20 million in 2012 to expedite reserve
definition drilling and resource expansion. During the second quarter of
2012, Reverse Circulation ("RC") and Diamond drilling ("DD") on the ML
totaled 34,000 metres at cost of $7.0 million. Year to date, a total of
$14.2 million has been spent on just over 60,000 metres of drilling.
-- There are currently 40 drill targets that have been identified on the
Company's approximately 1,450 km2 Regional Land Package ("RLP"), all
within trucking distance of the mill. All 40 targets are expected to be
drill tested in 2012-2013. A further 20 targets have been evaluated with
surface sampling or trenching.
-- During the second quarter of 2012, the Company completed 41,000 metres
of Rotary Air Blast ("RAB") drilling over 14 anomalies and prospects and
18,000 metres of RC drilling.
-- There were 3 drill rigs on the RLP during the second quarter. RC
drilling focused on Toumboumba, Tourokhoto, Saiensoutou, Jam, KB and
testing of IP anomalies at Gora. In addition, several RAB programs where
completed. RLP exploration expenditures for the second quarter totaled
$5.3 million (including $0.5 million for Gora). Year to date, a total of
$13.9 million has been spent (including $2.1 million for Gora).
Financial highlights
Three months ended Six months ended June
(US$000's) June 30, 30,
-----------------------------------------------
2012 2011 2012 2011
Current Current Restated (i) Restated (i)
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Revenue 62,010 54,066 122,536 109,133
Cost of sales (33,083) (38,517) (64,988) (74,155)
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28,927 15,549 57,548 34,978
Other income 14 351 22 617
Share based compensation (626) (2,763) (2,381) (6,688)
Finance costs (1,009) (559) (1,947) (1,488)
Exploration and evaluation
expenditures (4,741) (8,325) (11,917) (11,354)
Administration expenses (5,948) (2,982) (9,297) (5,750)
Net foreign exchange gains 875 1,494 506 1,290
Impairment of available for
sale financial asset (11,917) - (11,917) -
Realized and unrealized
gains/losses on gold hedge
contracts 12,165 (16,203) (5,318) (18,907)
Realized and unrealized
gains/losses on oil hedge
contracts (1,284) (1,044) (669) 999
-----------------------------------------------
Profit/(loss) before income
tax 16,456 (14,482) 14,630 (6,303)
Income tax expense - (127) - (139)
-----------------------------------------------
Profit/(loss) for the period 16,456 (14,609) 14,630 (6,442)
Profit attributable to non-
controlling interest 3,866 (196) 4,823 1,514
-----------------------------------------------
Profit/(loss) attributable to
shareholders of Teranga 12,590 (14,413) 9,807 (7,956)
Basic earnings/(losses) per
share 0.05 (0.06) 0.04 (0.03)
(i) The Company adopted changes to its accounting policies as at January 1,
2012 that have been retrospectively applied to the three and six months
ended June 30, 2011. See "Interim Condensed Consolidated Financial
Statements - Change in Accounting Policies"
Profit for the Period
Profit for the three and six months ended June 30, 2012 was $12.6 million and $9.8 million, respectively, compared to losses of $14.4 million and $8.0 million in the same prior year periods. The earnings per share for the three and six months ended June 30, 2012 was $0.05 and $0.04 per share, respectively, compared to losses of $0.06 and $0.03 per share in the same periods last year. The increase in profit and earnings per share was due to an increase in gross profit from higher revenues and lower cost of sales, as well as from the impact of unrealized gold hedge gains, partially offset by higher administration expenses and investment impairment.
Revenue
Gold revenue for the three and six month periods ended June 30, 2012 was $62.0 million and $122.5 million, respectively, compared to gold revenue of $54.1 million and $109.1 million for the same prior year periods. The increase in gold revenue was driven by higher gold prices.
Revenues do not reflect the impact of gold hedges, as realized losses on ounces delivered into gold hedge contracts are classified in realized and unrealized gains/losses on gold hedge contracts.
Cost of Sales
Three months ended Six months ended
(US$000's) June 30, June 30,
---------------------------------------
2012 2011 2012 2011
----------------------------------------------------------------------------
restated restated
Mine production costs 33,584 30,292 66,155 55,205
Depreciation and amortization 10,821 8,752 19,767 19,258
Royalties 1,859 1,567 3,681 3,149
Rehabilitation - 120 4 259
Inventory movements (13,181) (2,214) (24,619) (3,716)
---------------------------------------
Total cost of sales 33,083 38,517 64,988 74,155
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Cost of sales for the three and six months ended June 30, 2012 were $33.1 million and $65.0 million, respectively, compared to $38.5 million and $74.2 million for the same prior year periods. Lower costs of sales were due to higher grade ore stockpiled during the period, partially offset by higher mining costs.
Mine production costs totaled $33.6 million and $66.2 million for the three and six months ended June 30, 2012, respectively, compared to $30.3 million and $55.2 million for the same prior year periods. Mine production costs increased due to more tonnes mined as well as higher fuel and blasting costs.
Depreciation and amortization for the three and six months ended June 30, 2012 totaled $10.8 million or $281 per ounce sold and $19.8 million or $268 per ounce sold, respectively, in comparison with $8.8 million or $247 per ounce sold and $19.3 million or $257 per ounce sold for the same periods last year. The increase is due to more ounces sold in the June 2012 quarter compared to the year earlier period and due to an increase in depreciation for the new mobile equipment purchased at the end of 2011 and the completed mill expansion. Depreciation and amortization expense for the remainder of 2012 is expected to decrease to approximately $200 to $225 per ounce sold due to the increase in production with the completion of the mill expansion.
Royalties for the three and six months ended June 30, 2012 increased to $1.9 million and $3.7 million, respectively, compared to $1.6 million and $3.1 million in the same periods of 2011 due to higher gold spot prices. Royalties are calculated at 3 percent of the average spot price of gold during the periods.
Administrative Expenses
Administrative expenses for the three and six months ended June 30, 2012 totaled $5.9 million and $9.3 million, respectively, compared to $3.0 million and $5.8 million in the same prior year periods. The increase in administrative expenses was due to higher employee costs, higher legal fees and corporate social responsibility costs. Administration expense, which includes costs of the corporate and Dakar offices as well as community and social responsibility expenses are expected to total approximately $16 million for 2012.
Share Based Compensation
During the three and six months ended June 30, 2012 a total of 50,000 and 1,920,000 common share options, respectively, were granted to directors and employees while 2,562,778 and 2,841,666 stock options were forfeited during the same periods. During the three and six months ended June 30, 2011 a total of 760,000 and 1,485,000 common share options, respectively, were granted to directors and employees while 64,444 and 224,444 stock options were forfeited during the same periods. No share options were exercised during the three and six months ended June 30, 2012 and 2011.
During the second quarter of 2012, 2,440,000 options originally granted to certain employees and consultants were forfeited due to negative personal tax consequences in their respective country of residence. Management continuously refines employee compensation packages to ensure that the Company is able to hire and retain the best employees available.
Realized and Unrealized Gains/Losses on Gold Hedge Contracts
The realized and unrealized gain on gold hedge contracts totaled $12.2 million for the second quarter of 2012 compared to a loss of $16.2 million for the second quarter of 2011. For the six months ended June 30, 2012 and 2011 the realized and unrealized loss on gold hedge contracts totaled $5.3 million and $18.9 million, respectively. The increase in realized and unrealized gains for the three months and a decrease in losses for the six months ended June 30, 2012 compared to the same prior year periods is due to a decrease in the spot price of gold. During the quarter ended June 30, 2012, the Company bought back certain "out of the money" gold forward sales contracts totalling 52,105 ounces. The total mark-to-market loss of the remaining 122,395 ounces of gold under gold hedge contracts recorded as a financial derivative liability decreased to $95.9 million at quarter end as the average forward price of the remaining contracts at $818 per ounce is marked to the quarter end spot price of $1,599 per ounce.
Exploration and Evaluation Expenditures
Exploration and evaluation expenditures totaled $4.7 million and $11.9 million for the three and six months ended June 30, 2012 compared to $8.3 million and $11.4 million in the same periods last year reflecting regional exploration costs incurred during the period related to drill programs as well as target identification work underway. Exploration and evaluation expenditures for 2012 are expected to total approximately $20 million.
Impairment of available for sale financial asset
As of June 30, 2012 Oromin share price traded 56 percent lower than the share price at the date of acquisition and 52 percent lower than at the beginning of the year. As a result of the continuous decline in the share price, the Company recognized a non cash impairment loss of $11.9 million on the Oromin shares during the second quarter.
Review of Operations
Gold sold for the three months ended June 30, 2012 totaled 38,503 ounces at a total cash cost of $645 per ounce sold compared to 35,407 ounces sold at a total cash cost of $802 per ounce in the same quarter of 2011. Ounces sold during the second quarter of 2012 were lower than ounces produced due to the reduced ability to pour gold during the tie-ins for the mill expansion. As a result, at June 30, 2012, gold in circuit and gold bullion inventory increased by 7,121 ounces to 20,383 ounces. The majority of gold inventory will be sold in the second half of the year. Gold sold for the six months ended June 30, 2012 totaled 73,771 ounces at a total cash cost of $658 per ounce was comparable to 74,897 ounces sold at a cash cost of $716 per ounce during the same period last year.
Key Statistics
Three months Six months ended
ended June 30, June 30,
------------------------------------
2012 2011 2012 2011
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restated restated
Operating results
Ore mined ('000t) 2,105 759 3,222 1,250
Waste mined ('000t) 5,130 5,538 11,446 11,997
Total mined ('000t) 7,235 6,297 14,668 13,247
Strip ratio waste/ore 2.4 7.3 3.6 9.6
Ore milled ('000t) 491 650 1,064 1,258
Head grade (g/t) 3.22 1.81 2.85 1.86
Recovery rate % 89.6 89.2 89.8 89.8
Gold produced (1) (oz) 45,495 33,388 87,399 67,684
Gold sold (oz) 38,503 35,407 73,771 74,897
Average price received $/oz 1,608 1,083 1,658 1,144
Total cash cost (incl.
royalties)(2) $/oz sold 645 802 658 716
Mining (cost/t mined) 2.5 2.4 2.5 2.1
Milling (cost/t milled) 22.9 16.6 19.8 15.9
G&A (cost/t milled) 7.0 5.4 6.2 5.1
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Financial results (US$'000)
Revenue 62,010 54,066 122,536 109,133
Profit/(loss) for the
period 16,456 (14,609) 14,630 (6,442)
Operating cash flow (12,989) (9,821) 15,896 10,192
Profit/(loss) per share 0.07 (0.06) 0.06 (0.03)
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As at June 30,
Financial position (US$'000) 2012 2011
Cash and cash equivalents
(3) 35,559 55,699
Net assets 286,936 268,669
Borrowings 77,298 23,977
Note (1) Gold produced represents change in gold in circuit inventory plus
gold recovered during the period
Note (2) Cash cost per ounce is a non-IFRS financial measure with no
standard meaning under IFRS
Note (3) Cash and cash equivalents includes also short term investments over
90 days and restricted cash
Mining
Total tonnes mined for the three and six months ended June 30, 2012 were 15 and 11 percent higher compared to the same periods of 2011 due to improved productivity and efficiency in the mining operation. Drilling and loading availabilities benefited from the addition of three new blast hole drill rigs and four new haul trucks. The implementation of better maintenance practices resulted in improved loading and hauling efficiencies from an improved availability of the mobile equipment fleet.
Unit mining costs for the three and six months ended June 30, 2012 were on plan but higher compared to the same periods of 2011 mainly due to higher fuel and blasting costs.
Milling
Mill throughput for the three and six months ended June 30, 2012 was 25 and 15 percent lower than the same periods of 2011 mainly due to harder ore in 2012 compared to the softer material that was available in 2011 as well as the shutdowns relating to tie-ins for the mill expansion.
Unit processing costs for the three and six months ended June 30, 2012 were 38 and 24 percent higher compared to the same periods of 2011 primarily due to lower throughput rates and higher reagent costs.
General and Administration
General and administration costs for the three and six months ended June 30, 2012 totaled $3.8 million and $7.7 million, respectively, compared to $3.5 million and $7.3 million in the same prior year periods. The marginal increase in general and administration costs was due to higher insurance costs.
Gold Production
Gold production for the second quarter of 2012 was 45,495 ounces, 36 percent higher than the same quarter of 2011, despite down time as part of mill expansion tie-ins and commissioning activities. Gold production for the six months ended June 30, 2012 was 87,399 ounces, 29 percent higher than the same period last year. The increase in production was due to higher grade ore processed in the first half of 2012.
Average Realized Gold Price
During the second quarter of 2012, 38,503 ounces were sold into the spot market at an average price of $1,608 per ounce while during the same quarter in 2011, 35,407 ounces were sold at an average realized price of $1,083 per ounce including 23,000 ounces that were delivered into gold hedge contracts at $845 per ounce and 12,407 ounces of gold sold into the spot market at an average price of $1,522 per ounce. During the six months ended June 30, 2012, 73,771 ounces were sold into the spot market at an average price of $1,658 while during the same period of 2011, 74,897 ounces were sold at an average realized price of $1,144 per ounce including 37,000 ounces delivered into gold hedge contracts at $845 per ounce and 37,897 ounces of gold sold into the spot market at an average price of $1,435 per ounce.
NON-IFRS FINANCIAL MEASURES
The Company provides some non-IFRS measures as supplementary information that management believes may be useful to investors to explain Teranga's financial results.
"Average realized price" is a financial measure with no standard meaning under IFRS. Management uses this measure to better understand the price realized in each reporting period for gold and silver sales. Average realized price excludes from revenues unrealized gains and losses on non-hedge derivative contracts. The average realized price is intended to provide additional information only and does not have any standardized definition under IFRS; it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently.
"Total cash costs of sales per ounce sold" is a common financial performance measure in the gold mining industry but has no standard meaning under IFRS. The Company reports total cash costs on a sales basis. We believe that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure, along with sales, is considered to be a key indicator of a Company's ability to generate operating earnings and cash flow from its mining operations.
Total cash costs figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measure of other companies. The total cash cost per ounce sold is calculated as follows:
Three months ended Six months ended
June 30, June 30,
---------------------------------------
2012 2011 2012 2011
---------------------------------------
restated restated
Gold produced oz 45,495 33,388 87,399 67,684
Gold sold oz 38,503 35,407 73,771 74,897
Cost of sales (1) ($'000) 33,083 38,517 64,988 74,155
Less: depreciation and
amortization ($'000) (10,821) (8,752) (19,767) (19,258)
Less: realized oil hedge
gain ($'000) (467) (647) (1,128) (1,137)
Add: non-cash inventory
movement ($'000) 3,119 (279) 4,577 (78)
Less: other adjustments ($'000) (80) (441) (117) (65)
---------------------------------------
24,834 28,398 48,553 53,617
Total cash cost of sales per
ounce sold $/oz 645 802 658 716
Note (1): Cost of sales include 3 percent royalty payable to the Government
of Senegal based on the value of gold shipments, evaluated at the spot price
on the shipment date.
Total Cash Costs
Total cash costs for the second quarter of 2012 were $24.8 million compared to $28.4 million in the same quarter last year. Total cash costs were $645 per ounce sold in the second quarter 2012, a decrease of 20 percent compared to $802 per ounce in the second quarter 2011. Total cash costs for the six months ended June 30, 2012 were $48.6 million or $658 per ounce sold compared to $53.6 million or $716 per ounce sold in the same period last year. The decrease in cash costs is due to lower cost of sales.
Outlook
With the completion of the Sabodala mill expansion, production for 2012 is expected to increase to between 210,000 to 225,000 ounces, an increase of 65 percent over 2011, while the total cash cost per ounce sold is expected to decline to between $600 to $650 per ounce in line with previous guidance. This production target is based on proven and probable reserves only.
At June 30, 2012 the gold forward sales program declined by 52,105 ounces to 122,395 ounces from the previous quarter end. The reduction of 52,105 ounces from the gold forward sales program was a result of a buy-back of "out of the money" gold forward sales contracts as part of the recent $60 million 2-Year Loan Facility with Macquarie Bank Limited by way of an amendment to the existing Facility Agreement. Forward sales contracts are expected to total 66,000 ounces at year end and are scheduled to be fully extinguished by August 2013, at which time the Company would be hedge free.
In total, between capitalized mine site exploration and regional exploration expenditures, the Company expects to spend approximately $40 million in calendar 2012.
Capital expenditures for 2012 are expected to total $40 million, an increase of $10 million over previous guidance, due to higher costs to complete the mill expansion. In addition, management continues to evaluate the merits of purchasing additional mining equipment to increase the mining rate at Sabodala. The additional mining equipment is expected to cost between $10 million to $15 million.
LIQUIDITY AND CAPITAL RESOURCES
The recent $60 million 2-Year Loan Facility with Macquarie Bank Limited by way of an amendment to the existing Facility Agreement increased the quarter end cash balance to $35.6 million, and will increase operating cash flow in the second half of 2012 as a higher percentage of production can now be sold at higher spot gold prices. Management believes that the cash and cash equivalents at June 30, 2012, together with expected future cash flows from operations and our ability to modify hedge deliveries as required from time to time, is sufficient to support the Company's minimum liquidity requirements. As a result of the amended Facility Agreement, the gold forward sales program declined by 52,105 ounces to 122,395 ounces from the previous quarter end. Forward sales contracts are expected to total 66,000 ounces at year end and are scheduled to be fully extinguished by August 2013, at which time the Company would be hedge free.
The Company's total planned capital expenditures for the calendar 2012, with a focus on completion of the plant expansion at the Sabodala mine site, capitalized exploration costs, as well as construction of the new tailings disposal facility, are expected to total $60 million, with approximately $15 million to be spent for the remainder part of the year. The increase is due to higher costs to complete the mill expansion.
PLANT EXPANSION
Construction of the mill expansion to double capacity is finished, though some fine tuning will continue through the third quarter. In the third quarter the mill is expected to be operating at full capacity. With the higher throughput rate in the second half of the year, the Company is on track to meet its full year production guidance of 210,000 to 225,000 ounces of gold at total cash costs of $600 to $650 per ounce.(2)
MINE LICENSE EXPLORATION
The primary objective of the $20 million 2012 drill program on the Sabodala Mine License is to expand the Sabodala Mine open pit reserves. Pit optimization work completed in February 2012 defined a $1,550 per ounce pit shell containing over 2 million ounces that serves as a guide to our current drill program (2011 proven and probable reserves in the Sabodala pit contained approximately 1 million ounces).(3) The ultimate pit limits at Sabodala are driven laterally by the extent of the Main Flat zone which dips gently away from the centre of the deposit to both the east and west. To the east, the Main Flat dips into Sambaya Hill towards the Masato deposit. To the north, the economic limit to mine the plunging Main Flat and sub parallel Lower Flat Zones is defined by the strip ratio.
(2) This production target is based on proven and probable reserves only.
(3) Pit optimization work, which included a Lerchs-Grossman (Whittle) run resulting in a shell containing 2 million ounces based on Measured, Indicated and Inferred resource material using comparable costs as reported in the December 31, 2011 Sabodala Technical Report.
The 2012 drill program is designed to take the ultimate pit about 150 metres deeper to about 480 metres in depth and, if successful, to add upwards of 500,000 to 1 million ounces, based on drilling intercepts to date, at grades of between 1.5 gpt and 2 gpt this year.(4) Recent results in the second quarter of 2012 advance the mineralized extents at Sabodala to the NE in drill hole SBDH291 and SE in drill hole SBDH259DD. In-fill drilling under the main haulage ramp on the north end of the pit is ongoing with a high grade intercept down dip at depth from drill hole SBDH254D which intersected a series of higher grade zones including 31 metres of 6.0 grams per tonne ("gpt") from 385 metres. Vertical drilling from the north end of the pit on the 20850N section returned 95 metres of 1.3 gpt from 358 metres in SBDH262D including internal dilution between mineralized zones.
As a result of the mine planning work completed in the first quarter of 2012, we have focused the majority of the drilling effort this year into expanding the Sabodala open pit reserves. During the second quarter of 2012, Reverse Circulation ("RC") and Diamond drilling ("DD") on the ML totalled 34,000 metres at cost of $7.0 million. Year to date, a total of $14.2 million has been spent on just over 60,000 metres of drilling. A minimum of 7 drill rigs are expected to be testing targets at an estimated cost of $20 million in 2012 with the expectation of drilling approximately 90,000 metres of RC and DD, about 15 percent higher than budget. There are 7 drills operating on the ML at the present time (5 DD and 2 RC).
Main Flat Extension ("MFE")
The MFE is one of the principal gold hosts in the Sabodala deposit.
Drilling targeting the MFE immediately adjacent to the current ultimate pit, as well as the Lower Flat Zone ("LFZ") located below and to the north of the MFE, confirms the continuation of the mineralized zone with further drilling planned. The MFE and LFZ remain open down plunge and to the northwest.
The drill program for the MFE for 2012 is designed to convert inferred resources north of the current ultimate pit to reserves; extend the MFE zone measured and indicated resource down dip to the west; additional deep drilling is required to develop the LFZ minable resource to depth; test for extensions of the LFZ to the east; and test for parallel zones beneath the Sabodala pit.
The goal of the MFE/LFZ programs is to add 500,000 to 1,000,000 ounces of gold to the open pit mineable gold inventory at an average grade between 1.5 - 2.0 gpt, by mid-year 2013.
During the second quarter 23,800 metres of drilling were completed at Sabodala primarily on the MFE but also testing the down dip potential of the Main Flat to the west of the current ultimate pit limit; both areas have returned good results.
(4) This exploration target is not a Mineral Resource. The potential quality and grade is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource.
The latest results from June quarter 2012 include:
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HOLE ID(1) FROM (m) INTERSECTION(2)
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SBDH166DD 536 6.9m @ 1.6 g/t
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SBDH207DD 230 2m @ 2.5 g/t
--------------------------------------------------
236 4m @ 2.3 g/t
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SBDH211D 262 10m @ 2.7 g/t
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SBDH225D 515 6m @ 2.5 g/t
--------------------------------------------------
527 18m @ 2.4 g/t
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SBDH239D 307 2m @ 3.8 g/t
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SBDH240D 273 4m @ 2.5 g/t
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287 4m @ 1.7 g/t
--------------------------------------------------
377 2m @ 3 g/t
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SBDH245 116 12m @ 2.3 g/t
--------------------------------------------------
162 8m @ 3.6 g/t
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SBDH246 298 1m @ 7.9 g/t
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SBDH248 153 5m @ 1.1 g/t
--------------------------------------------------
161 15m @ 3.2 g/t
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183 4m @ 1.7 g/t
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SBDH259DD 139 16m @ 4.2 g/t
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SBDH263DD 89 9m @ 5.4 g/t
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SBDH264DD 95 18m @ 2.3 g/t
--------------------------------------------------
119 17m @ 1.7 g/t
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SBDH291 164 20m @ 3.2 g/t
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(1) Drill hole results are disclosed as they are received and due to
location and depth of holes, not all results are available at the same time
nor are they processed sequentially.
(2) True widths to be determined.
Corridor and Ayoub's Target Area
Drilling along the Corridor northeast of the Sabodala pit intersected mineralization along the Ayoub's portion of the target area. The system, although low grade, is continuous and shows Sabodala style alteration. The position of the Ayoub's mineralization in the Corridor lends itself to sharing stripping allowing for the inclusion of deeper MFE mineralization into the ultimate pit. In the second quarter of 2012, 4,800 metres of drilling was completed, while no additional drilling is currently planned.
Masato
Drilling in 2011 confirmed a mineralized strike length of 500 metres and a dip extent of 200 metres on the ML. In the first quarter of 2012 the deposit extents were expanded to 300 metres down dip and a strike length of 1,600 metres. The Masato deposit remains open to depth and along strike.
The objectives for Masato for 2012 include in-filling the 200 metre by 500 metre zone identified in the first pass 2011 drill program in preparation for a resource estimate, further definition drilling on the high-grade pod of gold mineralization located on the north end of the deposit, as well as to locate the southern extension of Masato that strikes towards the ML. In the second quarter, 6,310 metres of drilling were completed. Assays are presently being compiled and geologic interpretation is in progress. Management expects the continued positive drilling results to lead to the defining of a resource at Masato on the ML by year end.
Drill programs scheduled for the second half of the year in the southern portion of the ML at Niakafiri, Niakafiri West, Soukhoto and Dinkokhono will be deferred into 2013 as we continue to focus on the expanded drill program at Sabodala.
REGIONAL EXPLORATION
There are currently 40 drill targets that have been identified on the Company's approximately 1,450km2 RLP, all within trucking distance of the mill. All 40 targets are expected to be drill tested in 2012-2013. A further 20 targets have been evaluated with surface sampling or trenching.
During the second quarter of 2012, the Company completed 41,000 metres of Rotary Air Blast ("RAB") drilling over 14 anomalies and prospects and 18,000 metres of RC drilling. There were 3 drill rigs on the RLP. RC drilling during the second quarter focused on Toumboumba, Tourokhoto, Saiensoutou, Jam, KB and testing of IP anomalies at Gora. In addition, several RAB programs where completed. RLP exploration expenditures for the second quarter totaled $5.3 million (including $0.5 million for Gora). Year to date, a total of $13.9 million has been spent, including $2.1 million at Gora. The exploration budget for the Regional Exploration Program is estimated at $20 million for 2012. The Company removed the three drill rigs for the rainy season and intends to use the time to catch up on the back log of assay results, analyse the exploration results to date and plan its drill programs for the final quarter of 2012 and 2013.
For full drill results from our regional exploration program please see the Company's website.
Toumboumba (Sabodala NW)
Toumboumba is a shear vein system hosted in the Falombou granite and has the potential for a small, shallow, oxide deposit, located 10 km from the Sabodala mill. This prospect consists of 18 north-south to north-east trending gold anomalous zones identified from RAB drilling during 2011.
During the second quarter of 2012 a program of 129 reverse circulation ("RC") holes for 12,000 metres was completed on a systematic 25 x 25 metre grid over the oxide resource area, targeting the main mineralized trends. The mineralization was confirmed as consisting of three principal, sub-parallel NS trending shallowly - east dipping shear veins hosted in granite. The upper portions of the granite are oxidized to a depth of approximately 50 metres. The mineralized system continues down dip into the fresh rock. Assays are pending for eight holes. Interpretation and three-dimensional modelling of the mineralization has commenced, with the objective of calculating an updated mineral resource estimate and determining the mining potential of this deposit by year end.
Tourokhoto
The bulk of the results for the previous RC program completed at Tourokhoto were received during the second quarter 2012, with assays only pending for one remaining hole. The RC drilling program at Tourokhoto comprised 27 holes for a total of 14,000 metres, which commenced in December 2011 and was completed during the first quarter of 2012. The drilling over Tourokhoto can be grouped into six geographically/geologically distinct areas, comprising the Main Trend Central Area, Northern Area, NE Area, and Southern Area as well as the Marougou and Segoto Areas.
The most promising drill results were returned from the Marougou area. This area is located south-east of the Tourokhoto Main Trend Central area. RC holes were drilled on three lines spaced 600 metres apart for a total of 3,000 metres. The drilling identified significant widths and grades of mineralization on each line, with best results of 14 metres @ 3.25 g/t Au from 31 metres in DBRC0149, 12 metres @ 13.2 g/t Au from 6 metres in DBRC0138 and 8 metres @ 3.6 g/t Au from 144 metres in DBRC0143. The full listing of intersections can be found on the Company's website. The mineralization highlights a trend of at least 1,200 metres in length, extending across the lines in a north-east direction with a westerly dip and represents the discovery of a new prospect. This prospect is open to the north and south and some extension of the trend in both directions is supported by surface gold anomalism along strike of the existing drilling. A new drill program to infill and extend the zone along strike is expected to begin in the fourth quarter, after the rainy season, to further evaluate this discovery.
Diegoun North ("the Donut")
Cinnamon
The first quarter drill testing of auriferous bedrock gold trends identified from 2011 RAB drilling consisted of 14 RC holes for 2,500 metres. The samples from this program were sent in two batches with five holes going to SGS Kayes for Fire Assay determinations of gold and nine holes going to SGS Sabodala for ARE 155 (Aqua Regia) gold analysis. Results to date returned up to 8 metres @ 1.9 g/t Au (from 115 metres in hole DBRC0227), 15 metres @ 0.5 g/t Au (from 41metres in DBRC0224) and 6 metres @ 2.8 g/t Au (from surface in DBRC00221) from the eastern portion of the prospect which falls into the Dembala Berola permit. See the company's website for a full listing of results.
The remainder of the results are expected to become available during the coming quarter.
Jam
A further 15 RC holes for 2,900 metres and nine DD holes for 2,100 metres were completed at Jam. This program was designed to test two north-west trending structures defined in this area as well as follow-up on previous anomalous RC holes with hole orientations at different angles. Results from this program returned wide, but low grade mineralized intersections, related to albite-carbonate-silica-pyrite altered felsic intrusive rocks and it is evident from the work completed to date that the Jam area is a large-scale, gold-bearing, hydrothermal alteration system.
Other diamond holes returned similar geology and gold results. The 28 km2 Diegoun north area with its three prospects Jam, Cinnamon and Honey is being recognized as a very large auriferous alteration system and the company believes there is potential to find economic grade mineralization within the large complex. The company continues to evaluate the results to date over the wet season to determine the next course of action.
An additional 13,000 metres of RAB drilling have been completed in the Jam area. This work was designed to complete coverage over the main north-east trending structural trends between Cinnamon and Jam (JC corridor) and on a second grid with north-east south-west oriented lines, to better evaluate the presence of mineralization on north-west trends. The Company awaits final assay results for all drilling to date, to define the next step.
Garaboureya
During the second quarter of 2012 a 200 x 50 metre termite mount sampling program was completed covering the entire permit with approximately 5,500 samples. A high-resolution aeromagnetic and radiometric data set was flown over the entire block for a total of approximately 730 line kilometres. Mapping of outcrop and regolith was completed together with rock chip sampling of potentially mineralized outcrop.
The termite mount samples were analyzed at SGS laboratories, Sabodala using an Aqua Regia digest with AAS finish. The results produced a number of significant surface gold anomalies, many of which can be mapped at the greater than 500ppb Au level (greater than 0.5 g/t Au) with maximum of up to 1.9 g/t Au obtained. The main anomaly is located at the flanks and base of an iron ore hill where it covers a 2000 x 500 metre area at the greater than 0.5 g/t Au level. Interpretation and drill follow-up planning will take place over the wet season.
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF
TERANGA GOLD CORPORATION
STATEMENTS OF COMPREHENSIVE INCOME / LOSS
(Unaudited and in US$'000 except per share amounts)
Three months Six months ended
ended June 30, June 30,
------------------ ------------------
2012 2011 2012 2011
Restated Restated
----------------------------------------------------------------------------
Revenue 62,010 54,066 122,536 109,133
Cost of sales (33,083) (38,517) (64,988) (74,155)
------------------ ------------------
Gross profit 28,927 15,549 57,548 34,978
Other income 14 351 22 617
Share based compensation (626) (2,763) (2,381) (6,688)
Finance costs (1,009) (559) (1,947) (1,488)
Exploration and evaluation expenditures (4,741) (8,325) (11,917) (11,354)
Administration expenses (5,948) (2,982) (9,297) (5,750)
Net foreign exchange gains 875 1,494 506 1,290
Realized and unrealized gains/(losses)
on gold hedge contracts 12,165 (16,203) (5,318) (18,907)
Realized and unrealized (losses)/gains
on oil hedge contracts (1,284) (1,044) (669) 999
Impairment of available for sale
financial asset (11,917) - (11,917) -
------------------ ------------------
(12,471) (30,031) (42,918) (41,281)
Profit/(loss) before income tax 16,456 (14,482) 14,630 (6,303)
Income tax expense - (127) - (139)
------------------ ------------------
Profit/(loss) for the period 16,456 (14,609) 14,630 (6,442)
------------------ ------------------
Profit/(loss) attributable to:
Shareholders 12,590 (14,413) 9,807 (7,956)
Non-controlling interests 3,866 (196) 4,823 1,514
------------------ ------------------
Profit/(loss) for the period 16,456 (14,609) 14,630 (6,442)
Other comprehensive income/(loss):
Exchange differences arising on
translation of Teranga corporate
entity - (451) (63) 1,998
Change in fair value of available for
sale financial asset, net of tax 5,246 (5,540) 1,319 (4,002)
------------------ ------------------
Other comprehensive income/(loss) for
the period 5,246 (5,991) 1,256 (2,004)
Total comprehensive income/(loss) for
the period 21,702 (20,600) 15,886 (8,446)
------------------ ------------------
Total comprehensive income/(loss)
attributable to:
Shareholders 17,836 (20,404) 11,063 (9,960)
Non-controlling interests 3,866 (196) 4,823 1,514
Total comprehensive income/(loss) for
the period 21,702 (20,600) 15,886 (8,446)
------------------ ------------------
Earnings/(losses) per share from
operations attributable to the
shareholders of the Company during the
period
- basic earnings/(losses) per share 0.05 (0.06) 0.04 (0.03)
- diluted earnings/(losses) per share 0.05 (0.06) 0.04 (0.03)
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF
TERANGA GOLD CORPORATION
STATEMENTS OF FINANCIAL POSITION
(Unaudited and in US$'000)
As at June 30, As at December 31,
2012 2011
Restated
-------------------------------------------------------- -------------------
Current assets
Cash and cash equivalents 35,559 7,470
Short-term investments - 593
Restricted cash - 3,004
Trade and other receivables 2,837 20,447
Inventories 76,277 48,365
Financial derivative assets 1,022 2,288
Other assets 7,785 12,751
Available for sale financial assets 9,303 19,800
------------------ -------------------
Total current assets 132,783 114,718
Non-current assets
Inventories 32,471 31,942
Financial derivative assets - 532
Property, plant and equipment 257,556 238,510
Mine development expenditure 102,222 89,825
Intangible assets 1,190 1,085
------------------ -------------------
Total non-current assets 393,439 361,894
------------------ -------------------
Total assets 526,222 476,612
------------------ -------------------
Current liabilities
Trade and other payables 54,771 43,238
Borrowings 17,200 16,468
Financial derivative liabilities 82,880 79,241
Provisions 1,972 1,954
------------------ -------------------
Total current liabilities 156,823 140,901
Non-current liabilities
Financial derivative liabilities 12,996 50,318
Provisions 9,369 9,215
Borrowings 60,098 7,509
------------------ -------------------
Total non-current liabilities 82,463 67,042
------------------ -------------------
Total liabilities 239,286 207,943
------------------ -------------------
Equity
Issued capital 305,412 305,412
Foreign currency translation reserve (998) (935)
Equity-settled share based
compensation reserve 14,980 12,599
Investment revaluation reserve - (1,319)
Accumulated losses (33,568) (43,375)
------------------ -------------------
Equity attributable to shareholders 285,826 272,382
Non-controlling interests 1,110 (3,713)
------------------ -------------------
Total equity 286,936 268,669
------------------ -------------------
Total equity and liabilities 526,222 476,612
------------------ -------------------
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF
TERANGA GOLD CORPORATION
STATEMENTS OF CHANGES IN EQUITY
(Unaudited and in US$'000)
Six months ended Six months ended
June 30, 2012 June 30, 2011
Restated
----------------------------------------------------------------------------
Issued capital
At January 1 305,412 305,502
Share issue cost - (90)
----------------------------------------------------------------------------
At June 30 305,412 305,412
----------------------------------------------------------------------------
Foreign currency translation reserve
At January 1 (935) 1,011
Exchange difference arising on
translation of Teranga corporate
entity (63) 1,998
----------------------------------------------------------------------------
At June 30 (998) 3,009
----------------------------------------------------------------------------
Equity-settled share based com
pensation reserve
At January 1 12,599 1,733
Equity-settled share based
compensation reserve 2,381 6,855
----------------------------------------------------------------------------
At June 30 14,980 8,588
----------------------------------------------------------------------------
Investment revaluation reserve
At January 1 (1,319) (940)
Change in fair value of available for
sale financial asset - (4,002)
Impairment 1,319 -
----------------------------------------------------------------------------
At June 30 - (4,942)
----------------------------------------------------------------------------
Accumulated losses
At January 1 (43,375) (34,332)
Profit/(loss) attributable to
shareholders 9,807 (7,956)
----------------------------------------------------------------------------
At June 30 (33,568) (42,288)
----------------------------------------------------------------------------
Non-controlling interests
At January 1 (3,713) (7,637)
Non-controlling interest - portion of
profit for the period 4,823 1,514
----------------------------------------------------------------------------
At June 30 1,110 (6,123)
----------------------------------------------------------------------------
Total equity at June 30 286,936 263,656
----------------------------------------------------------------------------
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF
TERANGA GOLD CORPORATION
STATEMENTS OF CASH FLOW
(Unaudited and in US$'000)
Three months ended Six months ended
June 30, June 30,
------------------- -------------------
2012 2011 2012 2011
----------------------------------------------------------------------------
Cash flows related to operating
activities
Profit/(loss) for the period 16,456 (14,609) 14,630 (6,442)
Depreciation 8,612 6,436 15,490 14,346
Amortization of capitalized mine
development costs 2,307 2,304 4,410 5,177
Amortization of intangibles 151 93 298 237
Amortization of borrowing costs 112 74 219 153
Unwinding of discount 22 - 45 -
Share based compensation 626 2,763 2,381 6,688
Net change in unrealized
(gains)/losses on gold hedge (12,165) 624 5,318 (4,205)
Net change in unrealized
(gains)/losses on oil hedge 1,751 1,691 1,798 140
Buyback of gold hedge sales
contracts (39,000) - (39,000) -
Income tax paid 127 - 139
Impairment of available for sale
financial asset 11,917 - 11,917 -
Changes in working capital (3,778) (9,324) (1,610) (6,041)
------------------- -------------------
Net cash (used)/provided by
operating activities (12,989) (9,821) 15,896 10,192
Cash flows related to investing
activities
Decrease in restricted cash 3,352 - 3,004 -
Redemption/(Increase) of short-term
investments - 28,728 592 (2,352)
Payments for purchase of property,
plant and equipment (11,083) (12,469) (26,574) (18,929)
Payments made on mine development (7,854) (3,108) (16,807) (5,117)
Payments for purchase of intangibles (401) (306) (403) (612)
------------------- -------------------
Net cash (used)/provided in
investing activities (15,986) 12,845 (40,188) (27,010)
Cash flows related to financing
activities
Proceeds from issuance of capital
stock, net of issue costs - (90) - (491)
Loan facility net of borrowing cost
paid 57,977 - 57,977 -
Repayment of borrowings (4,933) (1,750) (7,733) (3,500)
Draw down from finance lease
facility, net of financing cost
paid - - 2,862 -
Interest paid on borrowings (273) (250) (552) (447)
------------------- -------------------
Net cash provided/(used) by
financing activities 52,771 (2,090) 52,554 (4,438)
Effect of exchange rates on cash
holdings in foreign currencies 334 92 (173) 1,122
------------------- -------------------
Net increase / (decrease) in cash
and cash equivalents held 24,130 1,026 28,089 (20,134)
Cash and cash equivalents at the
beginning of financial period 11,429 54,673 7,470 75,833
------------------- -------------------
Cash and cash equivalents at the end
of financial period 35,559 55,699 35,559 55,699
------------------- -------------------
CORPORATE DIRECTORY
Directors
Alan Hill, Chairman and CEO
Richard Young, President and CFO
Christopher Lattanzi, Non-Executive Director
Oliver Lennox-King, Non-Executive Director
Alan Thomas, Non-Executive Director
Frank Wheatley, Non-Executive Director
Senior Management
Alan Hill, Chairman and CEO
Richard Young, President and CFO
Yani Roditis, Vice President, Operations
Kathy Sipos, Vice President, Investor & Stakeholder Relations
David Savarie, Vice President, General Counsel & Corporate Secretary
Macoumba Diop, General Manager and Government Relations Manager, SGO
Mark English, Operations Manager, SGO
Martin Pawlitschek, Regional Exploration Manager, SMC
Bruce Van Brunt, Business Development 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: generalmailbox@terangagold.com
W: http://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
Deloitte & Touche 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
Certain information included in this management discussion and analysis, including any information as to the Company's strategy, projects, exploration programs, joint venture ownership positions, plans, future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". The words "believe", "expect", "will", "intend", "anticipate", "project", "plan", "estimate", "on track" and similar expressions identify forward looking statements. Such forward-looking statements are necessarily based upon a number of estimates, assumptions, opinions and analysis made by management in light of its experience that, while considered reasonable, may turn out to be incorrect and involve known and unknown risks, uncertainties and other factors, in each case that may cause the actual financial results, performance or achievements of the Company to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements. Such forward-looking statements are not guarantees of future performance. These assumptions, risks, uncertainties and other factors include, but are not limited to: assumptions regarding general business and economic conditions; conditions in financial markets and the future financial performance of the company; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; the supply and demand for, deliveries of, and the level and volatility of the worldwide price of gold or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets, including changes in U.S. dollar and CFA Franc interest rates; risks arising from holding derivative instruments; adverse changes in our credit rating;
level of indebtedness and liquidity; ability to successfully complete announced transactions and integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; changes in costs and estimates associated with our projects; the accuracy of our reserve estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; contests over title to properties, particularly title to undeveloped properties; the risks involved in the exploration, development and mining business, as well as other risks and uncertainties which are more fully described in the Company's A.I.F. and in other Company filings with securities and regulatory authorities which are available at www.sedar.com. Accordingly, readers should not place undue reliance on such forward looking statements. Teranga expressly disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
COMPETENT PERSONS STATEMENT
The technical information in this quarterly report that relates to exploration results and mineral resource estimates within the Mining License is based on information compiled by Mr. Bruce Van Brunt, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Van Brunt is a full time employee of Teranga and not independent. Mr. Van Brunt has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the "Australasian Code of Reporting of exploration Results, Mineral Resources and Ore Reserves". Mr. Van Brunt is a "Qualified Person" in accordance with National Instrument 43-101 and he consents to the inclusion of this information in the form and context in which it appears in this announcement.
The technical information in this quarterly report that relates to the exploration results and targets within the regional exploration program are based on information compiled by Mr. Martin Pawlitschek, who is a member of the Australian Institute of Geoscientists. Mr. Pawlitschek is our full time employee and is not "independent" within the meaning of National Instrument 43-101. Mr. Pawlitschek has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity 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 of this information in the form and context in which it appears in this offering memorandum.
Contacts:
Teranga Gold Corporation
Kathy Sipos
Vice President of Investor & Stakeholder Relations
+1 416-594-0000
ksipos@terangagold.com
