Trans-Siberian Gold plc (TSG.LN), a low cost, high grade gold producer in Russia, announces its unaudited interim results for the period ended 30 June 2020.

Financial Highlights

  • H1 2020 revenue generation of $29.9 million, in line with 2019 (H1 2019: $30 million)
  • EBITDA $13.3 million (H1 2019: $14.4 million)
  • Adjusted EBITDA of $15.4 million (H1 2019: $14.4 million) stripping out exceptional expenses and non-cash items
  • Profit before tax $3.3 million (H1 2019: $8.5 million)
  • Interim dividend of $7 million resulting in payment of $0.08 per share (H1 2019: $2.0 million resulting in payment of $0.023 per share)
  • Largest single dividend payment made to date in the Company’s history; total capital returned to shareholders $40m
  • 28.6% reduction of debt to $19.5 million (H1 2019: $27.3m)
  • Low leverage with Net Debt / EBITDA ratio of 0.36 at 30 June 2020
  • High liquidity with cash on hand and undrawn $9 million revolving credit line

Operational Highlights

  • Gold dore production 18,278 oz. (H1 2019: 21,889 oz.)
  • Silver in dore production 47,466 oz. (H1 2019: 59,787 oz.)
  • Refined gold production 17,149 oz. (H1 2019: 23,155 oz.)
  • Average gold grade 6.4g/t (H1 2019: 8.6g/t)
  • Average selling price for gold $1,691/oz. (H1 2019: $1,312/oz.)
  • Total Cash Cost per oz. gold $941/oz. (H1 2019: $672/oz.)
  • AISC per oz. gold $1,021/oz. (H1 2019: $850/oz.)
  • 25,000 metres of drilling successfully completed at Asacha licence area
  • Comprehensive protective and sanitary measures in place to protect employees and ensure limited operational impact of COVID-19

Current Trading & Outlook

  • Operational performance in Q3 2020 has been in line with Q2 2020 during which it produced 11,419 oz. of gold with an average feed grade of 7.57 g/t.
  • Gold prices have remained very favourable with an all-time record spot price of $2,067.15 recorded on 6 August 2020
  • Strong cash generation expected and positive future prospects for the Company
  • TSG expects to publish operational results for Q3 in October 2020
  • Upgraded dividend guidance for the full year to be announced shortly
  • Firmly on track to achieve full year production guidance of 38,000-42,000 oz.

Alexander Dorogov, CEO of TSG, commented:

"I am pleased to announce our interim results for the first half of 2020.

This year was to be, and has been, a year of transition from the Main Zone to the East Zone of the Asacha Gold Mine. As anticipated and in line with our mining plan, we have mined lower grades in the first half of this year. However, we successfully adjusted for this during the second quarter, when we began to process high-grade ore from Vein 25 North. Lower volumes produced sold at higher gold prices has enabled us to report H1 revenues largely in line with last year’s record first-half results. Work continues to progress with the development of this promising ore-body.

Our business has structurally improved as we mine a higher grade deposit and generate attractive free cash flows from our operations. We are pleased to declare our largest single dividend payment ever and maintain our objective of delivering attractive returns to shareholders.

Furthermore, we have made solid explorational progress during the period, completing our 25,000 metre drilling programme at the Asacha licence area. We look forward to reporting the results of drilling at Vein 25 and the other highly prospective exploration targets at the Asacha Gold Mine.

TSG is proud of its significant contribution to the regional economy of Kamchatka and the substantial number of people we employ locally. The spread of COVID-19 continues to pose a great challenge to us all. We continue to prioritise the health and safety of our people and the local communities above all.

We look forward to the future with confidence".


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