Trans-Siberian Gold plc (TSG.L) is pleased to announce its audited financial results for the year ended 31 December 2016.

Financial Highlights:

  • Revenue of $45.2 million (2015: $44.1 million)
  • Operating Profit of $10.7 million (2015: $8.8 million)
  • Profit Before Tax of $8.7 million (2015: $6.6 million)
  • Maiden dividend of $5.5 million
  • $3.5 million of debt repaid
  • Cash and cash equivalents of $13.1 million (2015: $12.6 million)

Operational Highlights:

  • Refined gold production of 35,366 oz. (2015: 37,984 oz.)
  • Cash cost1 of $426/oz (2015: $473/oz.)
  • Average realised gold price of $1,248/oz (2015: $1,146/oz)
  • Asacha plant operated at 8.6% above its designed annual capacity of 150,000 tonnes
  • 95.2% average gold recovery (2015: 95.4%)
  • Ore extracted 179,000 tonnes (2015: 178,000 tonnes)
  • Ore processed 163,000 tonnes (2015: 161,000 tonnes)
  • Gold grades averaged 7.23 g/t (2015: 7.65 g/t)

Post Period End Developments:

  • The Company's subsidiary ZAO Trevozhnoye Zarevo ("TZ") agreed two new loan facilities with VTB bank: a $15 million facility with a 5 year term and 18 months grace period at an interest rate of 6.2% per annum, and a $5 million facility with a 3 year term, also at an interest rate of 6.2% per annum.
  • The terms of the two new loan facilities are a significant improvement; the interest rate per annum has been reduced by approximately 30%.
  • Drawdown of the $15 million facility has facilitated repayment of existing $14.8 million facilities

1 Excluding depletion, net of the silver credit and excluding royalty

Charles Ryan, Non-Executive Chairman of TSG, commented:

"I am satisfied by our financial performance in 2016. We remain cash-generative and financially robust at a time when the gold industry is re-shaping. We will continue to seek efficiencies and enhance our financial performance wherever practicable. In particular, I am very pleased that we paid our maiden dividend of $5.5m.

We emphasise our commitment to deliver returns for shareholders. We are confident that we have an attractive investment case and are re-doubling our efforts to communicate with the investment community. As a low-yield investment environment persists, we believe that the Company's commitment to an attractive and stable dividend pay-out policy should increase interest in the Company's shares and the Company more widely.

I take this opportunity to thank our shareholders for their continued support during 2016. I also wish to express the Company's appreciation of the efforts of our staff to deliver these results and to continue to create the conditions for future success."

The Company confirms that copies of the Company's Annual Report and Accounts have been sent to shareholders and are appended to this announcement in their entirety.

Copies of the Company's Annual Report and Accounts are available on the Company's website: www.trans-siberiangold.com

Contacts:

TSG
Simon Olsen
+44 (0) 7770 484965

Stewart Dickson
+44 (0) 7799 694195

Cantor Fitzgerald Europe
David Porter
David Foreman
Craig Francis
+44 (0) 207 894 7000

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.

Download the announcement in full (PDF 302KB)

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