TSG.L Share News (TSG)

(ShareCast News) - Shares in AIM-listed Trans-Siberian Gold fell almost 7% on Thursday despite the company reporting a big jump in full year pre-tax profits.The company made $6.6m profit before tax compared with $1.3m in 2014.Gold production was up 5.3% to 37,984 oz while silver output grew 10.7% to 49,398. Sales costs per ounce of gold fell 13% to $742, while cash costs per ounce were down 11.8% to $522.Trans Siberian said in June 2015 ore extraction was impacted by excessive water inflow into its Asacha mine "due to exceptionally heavy rains and atypically quick snow melting"."Increased water inflow at the levels below 200 metres (m) had been anticipated in the mine's design, however the actual inflow in June was substantially higher and necessitated a temporary halt to extraction at the 182 m level and below," it added."By August the inflow had substantially decreased and underground stoping activities resumed at the 182 m and lower levels, however the mine suffered further flooding during November as a result of the cyclone which hit Kamchatka at the end of October.""These events also affected mine development and reduced the amount of higher grade stoping ore available, requiring the processing of lower grade material mined earlier and some tonnage from poor grade ore stockpiles in order to maintain plant throughput.""This was the principal factor affecting the average grade of the ore delivered to the plant (7.65 g/t in 2015 compared with 7.68 g/t in 2014).""The company is cautiously optimistic that the proportion of new, richer grade, stoping ore in ore processed by the plant will increase during 2016 and expects that after the 100 m level is reached at the beginning of 2017, enabling the start of cutting in vertical intervals of 50 m, the mine should be able to cut 150 000 mt of stoping ore each year and deliver it to the plant, with a consequent improvement in average ore grades."Trans Siberian shares were down 6.91% at 37.7p at 1122 BST.