TIDMTSG
RNS Number : 6675I
Trans-Siberian Gold PLC
23 March 2018
Trans-Siberian Gold plc
("TSG" or the "Company")
Trading Update & 2018 Guidance
Trans-Siberian Gold plc (TSG.LN) announces a trading update for
the year ended 31 December 2017 ahead of publication of its annual
results in May 2018.
FY17 Highlights
-- Total gold production exceeded FY17 production guidance: 36,714oz
-- Total gold produced stable Y-on-Y (FY16: 36,225oz)
-- Record quarterly gold production of 12,244oz in Q4 2017
-- Significant Y-on-Y increases in mine development and ore processed
-- Estimated unaudited revenues of $43.5m
FY18 Guidance
-- Total gold production in the range of 36,000oz - 40,000oz
-- Upper end of total gold production range represents a Y-on-Y increase of 9%
-- Average gold head grade expected to increase by 26% to 8.3g/t (FY17: 6.6g/t)
-- Total cash costs expected to be within the range $650 - 680/oz
-- CAPEX forecast for 2018 of $11m in line with expenditures in FY17
Trading Update & Financial Performance
Total gold production of 36,714oz exceeded FY17 production
guidance and was stable against the previous year (FY16: 36,225oz).
The Company finished the year strongly with record quarterly gold
production of 12,244oz in Q4 2017.
Unaudited revenues for the year were approximately $43.5m (FY16:
$42.2m). As previously announced, operational challenges in H1 2017
resulted in a pre-tax profit of $0.5m (H1 2016 restated: $5.4m).
Whilst operations improved significantly in H2 2017 it is expected
that pre-tax profits for FY2017 will be lower than FY 2016. (FY16:
$8.7m).
Our balance sheet remains robust.
Unaudited net debt at the end of the period was approximately
$12m. The re-financing of our debt facilities in June 2017 lowered
our borrowing costs by more than 30%.
For the full year ending December 2017, we expect operational
cash flow to be approximately $10.1m (FY16: $20.9m). Looking to the
year ahead, we expect the Company to be strongly cash generative,
with cash generated from operations returning to levels of around
$20m.
We will maintain our dividend policy of returning cash to
shareholders.
The Company's accounts for FY17 are currently being audited; TSG
expects to announce its Final Results in late May 2018.
Outlook & 2018 Guidance
The outlook for 2018 is promising.
Management action has been taken to address some of the
challenges of 2017 as evidenced by the 64% increase in gold
production in H2 2017 and the appointment of Konstantin Kornienko
as Managing Director of the Company's wholly owned operating
subsidiary, ZAO Trevozhnoye Zarevo.
TSG is targeting total gold production in the range of 36,000oz
- 40,000oz (FY17: 36,714oz). The upper end of this range would
represent a year-on-year increase of 9% in total gold
production.
Underpinning our positive outlook is the expectation of
increasing the average gold head grade by approximately 26% to 8.3
g/t (FY17: 6.6g/t).
We anticipate some cost inflation especially for power
generation but overall, total cash costs are expected to fall
year-on-year to within the range of $650 - $680/oz.
CAPEX forecast for 2018 is approximately $11m, which is in line
with expenditures for 2017.
TSG expects to report gold production for Q1 2018 in April
2018.
Ends
Contacts: TSG
Stewart Dickson +44 (0) 7799 694195
Cantor Fitzgerald Europe
Nominated Adviser & Corporate Broker +44 (0) 207 894 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 company news service from the London Stock Exchange
END
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