2013-09-16 16:11:04 -
Vancouver, British Columbia, September 16, 2013 - Investment firm Jennings
Capital has initiated coverage on Teranga Gold (TSX:TGZ) (ASE:TGZ). Analyst Dan
Hrushewsky gives the company a buy recommendation and a 12-month target price of
$1.50, a 108% premium to the $0.72 price the day the report was issued.
InvestmentPitch.com has produced a "video news alert" based on this report. If
this link is not enabled, please visit www.InvestmentPitch.com and enter
"Teranga" in the search box.
Teranga owns and operates the Sabodala gold mine, the only commercial mine and
mill in Senegal. The mine, which came into operation in 2009, is located 650
kilometres southeast of the capital of Senegal, within the West African Birimian
geological belt, where approximately 10 million ounces of gold resources have
been discovered over the past six
years. It also lies about 90 kilometres from
major gold mines in Mali. Senegal has seen very little modern gold exploration
and is underexplored relative to other West African countries.
During 2012, the company produced 214,310 ounces of gold at a total cash cost of
$627 per ounce, the lowest of its peer group. The company is currently exploring
ten exploration permits encompassing approximately 1,057 square kilometres of
land surrounding the Sabodala Mine License.
Through its recent acquisition of Oromin Explorations, the company gained access
to Oromin's 43.5% share of the OJVG project, which adjoins its Sabodala Mine
Lease. As it is practically impossible to mine and process only the 43.5% of the
open pittable reserves, the company is confident it will be able to negotiate a
toll milling fee, enabling it to mine and process 100% of the open pittable
Sabodala's remaining economic material plus Oromin's 43.5% share of the joint
venture reserves total 1.5 million ounces grading 2.25 grams per tonne or 2.5
million ounces grading 2.18 grams per tonne if we include 100% of the joint
In addition, the company has a large land position with many identified targets
along strike and below the Sabodala pit, more than 50 targets on its regional
land package, and at least 14 targets on the Oromin joint venture land package.
Analyst Dan Hrushewsky stated, "We believe the government of Senegal wants a
significant and growing mining industry, and that it sees Teranga playing a
large part in implementing that strategy. Therefore, we see Teranga benefitting
from its "first mover" status by continuing, as it did with Oromin, to be a
"consolidator of choice" in the country."
Teranga currently trades at $0.66, well below the $1.50 target price, and with
316.8 million shares outstanding, the company is capitalized at $209 million.
For more information please visit the company's website www.TerangaGold.com or
contact Andrew Bradbury at 416-607-4493 or email firstname.lastname@example.org
For more information about Jennings Capital or to obtain a copy of their
research report, contact your nearest Jennings Capital office. Their branches
are listed on their website at www.jenningscapital.com.
InvestmentPitch.com, a multimedia company that provides a combined solution for
creating and hosting financial video content, and distributing it across
multiple platforms to investors and financial professionals, specializes in
producing three minute videos based on news releases and research reports.
Barry Morgan, CFO
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: InvestmentPitch via Thomson Reuters ONE