Trans-Siberian Gold PLC Q4 & FY18 Production Update & 2019 Guidance (6846N)

TIDMTSG

RNS Number : 6846N

Trans-Siberian Gold PLC

22 January 2019

Trans-Siberian Gold plc

("TSG" or the "Company")

Q4 & FY18 Production Update & 2019 Guidance

Trans-Siberian Gold plc (TSG.LN) announces its production update at the Asacha Gold Mine for the three months to 31 December 2018 ("Q4") and for the 12 months ended 31 December 2018 ("FY18"). The Company also provides guidance on expected production for 2019.

Q4 Highlights

   --      Record quarterly gold production of 13,069oz (Q3 2018: 11,698oz) 
   --      6.7% increase in gold production (Q4 2017: 12,244oz) 
   --      5.8% increase in gold grade: 9.1g/t (Q4 2017: 8.6g/t) 
   --      80.5% increase in gold sold: 16,399oz (Q3 2018: 9,085oz) 
   --      77.0% increase in quarterly estimated revenue: $20.6m (Q3 2018: $11.6m) 
   --      No injuries 

FY18 Highlights

   --      All-time record annual gold production of 42,128oz 
   --      Total gold production exceeded upper end of FY2018 production guidance 
   --      11.9% increase in gold grade: 7.4g/t (2017: 6.6g/t) 
   --      35.7% increase in gold sold: 45,956oz (2017: 33,870oz) 
   --      37.6% increase in total estimated revenue: $59.8m (2017: $43.5m) 
   --      2019 gold production guidance of 40,000 - 44,000oz. 

Alexander Dorogov, Chief Executive Officer of TSG, commented:

"We are pleased once again to announce new quarterly and annual gold production records. The success of the ongoing improvement measures that have been implemented by our operational team in Kamchatka gives us a strong basis for higher levels of gold production and value creation in 2019".

Production Summary

Mining and production data for Q4 and FY18 at the Asacha Gold Mine is shown in the following table:

 
          Metric               Q4       Q3      Q-on-Q      Q4      Y-on-Y     2017      2018      Y-on-Y 
------------------------- 
                              2018     2018    % Change    2017    % Change    Total     Total    % Change 
-------------------------   -------  -------  ---------  -------  ---------  --------  --------  --------- 
 Mine development 
  (m)                        1,769    1,844     -4.1%     1,656      6.8%      5,780     6,415     11.0% 
 Ore extracted 
  (tonnes)                   41,006   37,073    10.6%     55,992    -26.8%    198,349   173,597    -12.5% 
 Ore processed (tonnes)      47,530   49,948    -4.8%     46,752     1.7%     184,433   189,695     2.9% 
 Grade, gold 
  (g/t)                       9.1      7.8      16.8%      8.6       5.8%       6.6       7.4      11.9% 
 Grade, silver 
  (g/t)                      28.63    24.25     18.1%      17.6     62.7%      12.3      22.8      85.9% 
 Recovery, gold 
  (%)                         95.2     95.1      0.1%      94.7      0.5%      94.4      94.9       0.5% 
 Recovery, silver 
  (%)                         76.1     78.1     -2.6%      81.2     -6.3%      78.7      76.7      -2.5% 
 Gold in dore 
  (oz)                       13,069   11,698    11.7%     12,244     6.7      36,714    42,128     14.7% 
 Silver in dore 
  (oz)                       32,748   30,203     8.4%     21,291    53.8%     57,072    105,069    84.1% 
 Gold refined 
  (oz)                       14,541   10,814    34.5%     9,858     47.5%     33,872    46,053     36.0% 
 Silver refined 
  (oz)                       35,186   26,853    31.0%     16,315    115,7%    52,746    108,191    105.1% 
 Gold sold 
  (oz)                       16,399   9,085     80.5%     9,929     65.2%     33,870    45,956     35.7% 
 Silver sold 
  (oz)                       29,333   48,626    -39.7     10,183    188.1%    46,125    108,749    135.8% 
 Gold price 
  ($/oz)                     1,228    1,201      2.2%     1,273     -3.6%      1,261     1,265      0.3% 
 Silver price 
  ($/oz)                      14,5    14.50      0.1%       16      -9.3%      16.30      15       -6.7% 
 Gold Revenue* ($,000)       20,135   10,911    84.5%     12,639    59.3%     42,708    58,143     36.1% 
 Silver Revenue* ($,000)      426      703      39.4%      162      162.8%      754      1,649     118.7% 
 Total Revenue* ($,000)      20,560   11,614    77.0%     12,802    60.6%     43,462    59,792     37.6% 
--------------------------  -------  -------  ---------  -------  ---------  --------  --------  --------- 
 

* Note: Unaudited figure

Totals may not add up due to rounding

Commentary

2018 was a record year for gold production at the Asacha Gold Mine. Total annual gold production was 42,128oz, representing a 14.7% increase from 36,714oz produced in 2017 and exceeded the upper end of guidance. Gold production of 13,069oz during Q4 also represented a new quarterly record.

During 2018 the plant processed 189,695 tonnes of ore with an average gold grade of 7.4g/t and a recovery rate of 94.9%. Increasing gold grades, up 11.9% compared to 2017, have been key to the Company's strong operational performance. In particular, it was pleasing to record an average gold grade of 9.1g/t for Q4.

During Q4, a total of 16,399oz of gold was sold at an average price of US$1,228/oz. The Company does not forward sell or hedge its gold sales.

Outlook & 2019 Guidance

As the gold price continues to perform strongly, the Company's strategy in 2019 will remain focused on continuing to improve the key metrics of the business and the generation of strong cash flows to enable the delivery of attractive returns to our stakeholders. Guidance for gold production in 2019 is estimated to be in the range of 40,000oz - 44,000oz.

TSG expects to report first quarter 2019 gold production from the Asacha Gold Mine in April 2019.

ENDS

 
  Contacts TSG 
 Stewart Dickson             [phone] 
 
                                 [phone] 
 Cantor Fitzgerald Europe                   7000 
 David Porter 
 

About TSG

TSG is focused on low cost, high grade mining operations and stable gold production from its 100% owned Asacha Gold Mine in Far East Russia.

Additional information is available from the Company's website: www.trans-siberiangold.com

Market Abuse Regulations

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

Abbreviations

   g/t        grammes per tonne 
   oz         ounce 
   m         metre 

Disclaimer

This announcement contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets, fluctuations in interest and/or exchange rates and metal prices; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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January 22, 2019 02:00 ET (07:00 GMT)