full of sound and fury, Signifying nothing

The best quarter I’ve seen from a junior producer so far in 2q15 is…

..Teranga Gold (TGZ.to) (TGZ.ax). And that’s good because I own some.
The thing to like isn’t the production, which was slightly low due to lower than expected mined grades and head grades. What’s to like is that even after producing a couple of thousand less ounces than I’d have liked in a perfect world its costs items were low, both on an absolute scale and on per-ounce metrics. With AISC at U$948/oz in what’s going to be the softest production quarter of 2015 (and 2016 and beyond, most likely, as there’s better grading material coming online soon) TGZ is still solidly profitable at even our new lower summer sale gold prices.
  • It’s still a 200k+ oz per annum producer.
  • It has U$38m cash in the bank.
  • It’s done all the heavy lifting on investment and corporate finance
  • It’s profitable at current gold prices
  • It has an optimum community and social risk profile.

And you get all this for under CAD$200m market cap. Today’s NR here.
I’ll bet you cashmoney that when you see its 4q15 production results and guidance for 2016 you’ll be saying “Damn, how the devil was that at just CAD$0.56 back in July?”.

We’ll do the charts on Sunday, here’s just one:

Leave a Reply

Your email address will not be published.

Hello, you are not in a chatroom, you are in my living room. Opposing views and criticisms welcome, insults or urinating on furniture unwelcome. Please refrain from swearing if possible, it is not needed.