Can you give us some background information on Teranga Gold and its evolution over the years?

Teranga Gold completed its initial public offering in 2010, with its primary producing gold mine, Sabodala, located in Senegal. At that time, Sabodala produced just over 100,000 ounces of gold annually, with a reserve base of 1.4 million ounces. Since then, Teranga Gold has expanded its operations by acquiring a property adjacent to Sabodala and increasing its mill capacity. This expansion has resulted in Sabodala producing more than 200,000 ounces of gold annually since 2012, and the company expects this trend to continue for at least the next five years, with reserves now totaling 2.7 million ounces.

In addition to Sabodala, Teranga Gold has made advancements towards its vision of becoming a multi-asset mid-tier West African gold producer. The company acquired another publicly listed company and entered into two joint ventures, expanding its presence beyond Senegal to include Burkina Faso and Côte d’Ivoire. Its second gold mine, Wahgnion, located in Burkina Faso, is currently under construction, with the first pour expected by the end of 2019.

How did Sabodala perform last year, and what are the expectations for its future production?

Sabodala had a record production year in 2017, producing 233,000 ounces of gold and generating free cash flow of US$40 million. Looking ahead, Sabodala is expected to produce over one million ounces of gold in the next five years, generating approximately US$250 million in free cash flow. This will provide the necessary funds to support Teranga Gold’s organic growth opportunities in Burkina Faso and Côte d’Ivoire.

What impact does Sabodala have on local employment?

Teranga Gold has around 1,100 employees at Sabodala, with nearly 95% of them being Senegalese. Over half of the employees come from local and regional communities. The company also provides employment opportunities for casual labor from the local communities. Teranga Gold focuses on training local community members in various skills, such as brickwork and ironwork, to enhance their employability locally and beyond. The company is committed to responsible mining and aims to ensure that the local community benefits from its presence. Teranga Gold has received international recognition for its commitment to responsible mining through various awards, including the 2017 PDAC Environmental and Social Responsibility Award.

Can you provide an overview of the Wahgnion growth project?

Teranga Gold acquired the Wahgnion project through its acquisition of Gryphon Minerals in 2016. In September 2017, the company released a feasibility study for Wahgnion, estimating 1.2 million ounces of gold, a mine life of nine years, all-in sustaining costs per ounce of US$850, and an internal rate of return of 15%. Further drilling programs conducted last year indicate that the mine life could increase to 12 or 13 years, with updated reserves expected to be reported soon. Teranga Gold anticipates mining between two and three million ounces of gold over the life of Wahgnion, with annual production ranging from 120,000 to 150,000 ounces and all-in sustaining costs per ounce around US$850.

Could you tell us about the US$15 million exploration campaign in West Africa?

Teranga Gold’s 2018 exploration program is primarily focused on Burkina Faso and Côte d’Ivoire. The company has allocated a budget of over US$3 million for its early-stage properties in Côte d’Ivoire. However, the main focus of resources is on its most advanced exploration property, Golden Hill, located in Burkina Faso’s Houndé Greenstone Belt. Teranga Gold has been drilling extensively across the entire Golden Hill property for the past 18 months, and the results have increased confidence that this project could become the company’s third gold mine in West Africa, propelling Teranga Gold into mid-tier producer status. The work at Golden Hill is progressing rapidly, with significant investments in 2017 and 2018. Teranga Gold plans to announce an initial resource estimate for the most advanced Golden Hill prospects by the end of the year, followed by metallurgical test work programs and environmental studies.

What role can West Africa play in increasing gold production globally?

While world gold production is expected to decline in the coming years, West Africa is emerging as one of the fastest-growing regions for gold production. The region has witnessed significant progress over the past 25 years, attributed to mining-friendly governments and underexplored geological potential. West Africa currently produces half of the continent’s gold and is approaching the production levels of North America. The region’s success can be attributed to factors such as the mining-friendly jurisdictions of Côte d’Ivoire and Burkina Faso, which are recognized as highly prospective areas. Côte d’Ivoire, in particular, possesses a significant portion, 35%, of the West African Birimian Greenstone Belt.

What are the highlights to expect from Teranga Gold in 2019?

Teranga Gold anticipates a steady flow of news throughout 2019. In the first half of the year, the company surpassed its 2018 guidance and achieved strong results in the first quarter at Sabodala. Teranga Gold also completed a US$190 million financing for the construction of Wahgnion and the feasibility of Golden Hill projects. Encouraging updates have been provided regarding the advanced exploration project, Golden Hill, and major construction has commenced at Wahgnion, with a 33% increase in its M&I (measured and indicated) resources. For the rest of the year, Teranga Gold plans to announce further drilling updates, release an initial resource estimate for Golden Hill, provide updated technical reports for Wahgnion, and share updates on exploration and development programs in Côte d’Ivoire. The company aims to achieve strong production and free cash flow at Sabodala to support its organic growth. Overall, Teranga Gold is on track to become the next mid-tier gold producer in West Africa, with a portfolio of projects that could potentially increase its annual production to over 500,000 ounces of gold.