(Alliance News) - Russia-focused Trans-Siberian Gold PLC on Wednesday warned that 2020 gold production is expected to be below 2019, but stopped short of giving a specific reason behind the fall.
Shares in Trans-Siberian were down 0.4% at 49.30 pence each in London in afternoon trade.
The Cambridge-based company is predicting 2020 gold production to be between 38,000 and 42,000 ounces, down from 43,479 ounces estimated for 2019.
Total cash costs for 2020 is forecast to remain within USD780 and USD860 range, with an all sustaining costs of between USD900 and USD1000 per ounce.
Trans-Siberian said it continues to reinvest "aggressively" in resource expansion and discovery drilling at its flagship Asacha gold mine, as well as progressing with the evaluation of the Rodnikova gold deposit.
The company also reiterated its commitment to continue returning capital to its shareholders through dividends in 2020. Since 2015, Trans-Siberian has returned a total of USD21.5 million to its shareholders in the form of dividends.
"The board's strategy is to maintain a balance between sustainable and attractive shareholder returns, investment in growth opportunities and balance sheet strength," the company said.
Alexander Dorogov, the company's chief executive, said: "Following a record year of operational performance and revenues, we are extremely well placed to push forward with our drilling campaign focused on expanding the mineral resource at our flagship asset; the Asacha gold mine. We plan to commence mining in the East Zone of the mine this year and as a result maintain stable gold production and cost performance."
By Tapan Panchal; tapanpanchal@alliancenews.com
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