CIBC World Markets Inc. raised its price target on Teranga Gold Corp. (TGZ.TO) to $3.25 from $3.00, following the company's fourth-quarter production numbers.
The company reported quarterly production of 36,695 ounces of gold at total cash costs of $902/oz. Total production for the year was 131,461 ounces at total cash costs of $900/oz., more or less in line with revised expectations, the brokerage said.
The brokerage said key deliverables in 2012 include the improvement of drilling availability and the completion of the expansion of the Sabodala mill. With the expansion, TGZ's production guidance is for 210,000-225,000 ounces at cash costs of $600-$650/oz.
CIBC raised 2012 EPS estimates to US$0.16 from US$0.14 and kept 2013 EPS estimates unchanged at US$0.30.
On Thursday, TGZ.TO is trading 0.78 percent lower at $2.53 on the Toronto Stock Exchange. The stock has been trading in the 52-week range between $1.91 and $2.82.