Quick overview7 Jan 2016 21:49
See http://drmaccers.blogspot.co.uk/2016/01/trans-siberian-gold-tsg.html?m=1 for all the figures.
TSG has went from loosing money per oz with high costs to making $4-500/oz. How?
The major reason is the rouble devaluation since mid 2014. This has kept up and falling to new lows and very fast. Cost of sales has over halved to $712 for half 1 2015, this will have fallen again in half 2 2015 and starting the new year even better.
The other major cost reason is price of oil for all the equipment and we all know how low that's gone.
Spot gold is on a charge currently. Bulls are back
The forecast profit for 2015 is £6mill with 6p EPS. 2016 is £10mill profit and 10p EPS so the current forward PE is 1.8
Another thing to consider is every $10 spot gold rises, TSG makes $400k more profit a year! Quite the leverage. Similarly with the rouble, the more it falls, the more profit they make but it's harder to be exact.
All in all, this should be multiples higher and if you are long gold this is a great leveraged play