TIDMTSG
RNS Number : 6223Q
Trans-Siberian Gold PLC
22 October 2019
22 October 2019
Trans-Siberian Gold plc
("TSG" or the "Company")
Q3 and 9M Production & Operations Update
Trans-Siberian Gold plc (TSG.LN), a low cost, high grade gold
producer in Russia, announces its production update at the Asacha
Gold Mine for the three months ended 30 September 2019 ("Q3" or the
"Period") and for the first nine months ("9M") of 2019.
Q3 Highlights
-- 32% QoQ increase in gold production to 12,620 oz (Q2 2019: 9,544oz)
-- Average gold grade increased by 6.3% YoY to 8.3 g/t (Q3 2018: 7.8 g/t)
-- 28.2% increase YoY in gold revenues to approximately $14milion* (Q3 2018: $11milion)
-- Average realised gold price for the period rose by 23.6% YoY to $1,485 (Q3 2018: $1,201)
-- One minor lost-time injury during the period
9M Highlights
-- Revenue increased by 12.9% YoY to $44.3million* (9M 2018: $39.2milion)
-- Substantial increase of 18.8% in gold production YoY to 34,509 oz (9M 2018: 29,059)
-- Average gold grades 25.6% higher YoY at 8.5 g/t (9M 2018: 6.8 g/t)
-- Estimated average realised gold price for the period 6.1%
higher YoY at $1,364 (9M 2018: $1,286)
-- On track to meet upper end of production guidance for the full year
Alexander Dorogov, Chief Executive Officer of TSG,
commented:
"I am pleased to announce our production results for Q3 and 9M
2019, that are underpinned by our continued operational
improvement. We are particularly delighted to note that following a
substantial increase in the average gold price last quarter, we
have successfully maintained the high grade of 8.3g/t during this
period. Our production to date of 34,509 oz places TSG firmly on
track to meet the upper end of our annual output guidance of
40-44,000oz."
Production Summary
Mining and production data for Q3 and 9M 2019 at the Asacha Gold
Mine is shown in the following tables:
Q3 2019
Metric Q3 Q3 Y-on-Y Q2 Q-on-Q
------------------
2019 2018 % Change 2019 % Change
------------------ --------- ------- ------- --------- ------- ---------
Mine development (m) 1,903 1,844 3.2% 1,864 2.1%
Ore extracted (tonnes) 34,245 37,073 -7.6% 39,017 -12.2%
------------------ --------- ------- ------- --------- ------- ---------
Ore processed (tonnes) 48,996 49,948 -1.9% 37,058 32.2%
Grade, gold (g/t) 8.3 7.8 6.3% 8.4 -1.2%
Grade, silver (g/t) 18.4 24.3 -24.1% 26.4 -30.3%
Recovery, gold (%) 95.2 95.1 0.2% 95.2 0.0%
Recovery, silver (%) 80.7 78.1 3.3% 84.0 -3.9%
Gold in dore (oz) 12,620 11,698 7.9% 9,544 32.2%
Silver in dore (oz) 24,686 30,203 -18.3% 27,629 -10.7%
------------------ --------- ------- ------- --------- ------- ---------
Gold refined (oz) 11,291 10,814 4.4% 11,298 -0.1%
Silver refined (oz) 21,866 26,853 -18.6% 32,683 -33.1%
------------------ --------- ------- ------- --------- ------- ---------
Gold sold (oz) 9,417 9,085 3.7% 10,113 -6.9%
Silver sold (oz) 21,959 48,626 -54.8% 32,937 -33.3%
Gold price ($/oz) 1,485 1,201 23.6% 1,313 13.1%
Silver price ($/oz) 14.8 14.5 2.3% 14.7 0.5%
Gold Revenue* ($,000) 13,985 10,911 28.2% 13,276 5.3%
Silver Revenue* ($,000) 325 703 -53.8% 484 -33.0%
Total Revenue* ($,000) 14,310 11,614 23.2% 13,761 4.0%
------------------ --------- ------- ------- --------- ------- ---------
9M 2019
Metric 9m 9m Y-on-Y
------------------
2019 2018 % Change
------------------ --------- -------- -------- ---------
Mine development (m) 5,787 4,646 24.6%
Ore extracted (tonnes) 108,101 132,591 -18.5%
------------------ --------- -------- -------- ---------
Ore processed (tonnes) 130,800 142,165 -8.0%
Grade, gold (g/t) 8.5 6.8 25.6%
Grade, silver (g/t) 23.8 20.9 14.3%
Recovery, gold (%) 95.3 94.7 0.7%
Recovery, silver (%) 81.7 76.9 6.2%
Gold in dore (oz) 34,509 29,059 18.8%
Silver in dore (oz) 84,473 72,321 16.8%
------------------ --------- -------- -------- ---------
Gold refined (oz) 34,446 31,512 9.3%
Silver refined (oz) 85,422 73,006 17.0%
------------------ --------- -------- -------- ---------
Gold sold (oz) 31,479 29,557 6.5%
Silver sold (oz) 91,224 79,416 14.9%
Gold price ($/oz) 1,364 1,286 6.1%
Silver price ($/oz) 15.0 15.4 -2.4%
Gold Revenue* ($,000) 42,936 38,008 13.0%
Silver Revenue* ($,000) 1,372 1,224 12.2%
Total Revenue* ($,000) 44,308 39,231 12.9%
------------------ --------- -------- -------- ---------
*Note: Unaudited figure
Totals may not add up due to rounding
Commentary
In Q3 2019, the positive gold price environment remained largely
unchanged with the precious metal on track for its best year of
price performance since 2010. The strong revenue generation for the
period was supported by the continued favourable gold price
environment.
A decrease in silver production numbers for the quarter was
expected, and is the result of a different ore body being mined
during the period. It is not material to the Group's overall
financial performance. Management do expect higher silver - gold
mineralisation at the depth in the ore body.
In January 2018 announced that its wholly owned subsidiary TZ
had received a claim of RUB 140million (approximately US$2.2
million) from the Federal Service for Supervision of Use of Natural
Resources, RosPrirodNadzor ("RPN") over payments for the disposal
of waste materials following a site inspection in 2016. Having
taken appropriate advice, TZ disputed the claim made by RPN in
court. During the Period, the Court fully rejected RPN's claim. The
deadline for the claimant to appeal the Court's resolution is 4
November 2019.
In Q3 2019, 7,500m underground drilling on the Main Zone at
depth and 5,000m surface drilling on Vein 25 (East Zone) was
successfully completed and the Company commenced updating its
geological models and interpretation. As disclosed in the Company's
Interim Results, preliminary internal estimates indicated the
published JORC compliant in-situ resource may be overestimated; as
a result, the Directors consider that the operational life of the
Asacha Gold Mine beyond 2024 will need to be reviewed.
As the Company ramps up its near-mine exploration surrounding
Asacha and development of Rodnikova, it has expanded its geological
team significantly. The enlarged team is led by Oleg Dukov who
previously worked at the Julietta Mine (also an epithermal gold
deposit) owned by Kinross Gold Corporation.
The Company has engaged Competent Persons to produce updated
JORC-compliant Mineral Resource Estimates for both Asacha and
Rodnikova and expects to publish these during the fourth quarter of
the year.
TSG intends to provide a production update for Q4 2019 in
January 2020.
S
Contacts:
TSG
Stewart Dickson +44 (0) 7799 69419
Arden Partners plc
Paul Shackleton (Corporate Finance)
Tim Dainton / Fraser Marshall (Equity Sales) +44 (0) 207 894 7000
Hudson Sandler (Financial PR)
Charlie Jack / Katerina Parker / Elfreda
Kent +44 (0) 207 796 4133
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. The Company also holds the licence for the development
and exploration of the Rodnikova deposit, one of the largest gold
fields in South Kamchatka.
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 rns@lseg.com or visit www.rns.com.
END
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