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Interesting discussion. Strange time to dump shares in a well managed gold producer when the price of the metal looks likely to rise into the mid $1800s by the end of the week.

Cheap enough today. Could be a good entry level for recovery.

Spewing dollars at this price! TSG should be trading well north of £1 in anticipation of quarterly results.

Well done TbtT! I would have done the same thing if I was holding. This is on my watch list and looks good value once the mine reopens but there are better places to park cash right now. HUM, AAZ, RSG, GPM, TSG, SHG, AAU, CAPD I'm sure you have a couple of these in your pf ;)

While I am delighted to see my portfolio up so much this morning I can't help sharing the disappointment others have mentioned about the price offered. I hope another group sees the potential and comes in with a higher offer as I doubt there is enough shareholder resistance to prevent a sale of £18.50 a share.

HGM is in the middle of an expansion programme that will remove pricier ounces from its output and keep production moving beyond the 300,000 ounce (oz) milestone hit last year. The average gold price achieved this year to date is approx. $400/oz higher and dividends should be covered.

I don't ever remember the discount being sooo wide but I guess once DWHT moves into double figures there will be a correction here. I think it's harder to attract new investors here when information pertaining to the value of the 'A' shares is not so easily accessible.

The dividend yield is about 2.5%

If we all partook in an orchestrated hoovering it would probably be against the rules. Got to keep the little man in his place and that... Onwards to 40p!

Cora still has it's work cut out to actually secure the capital. It is a vote of confidence for it's management and the project of course. With regards dividends here, I would not rule out anything.

120koz steady production is around $100m cash after OPEX each year using prices today.

Someone sold £8.4k worth here at 560 and rebought the same amount (minus costs) of DWHT at 930! They might soon regret that..

If Anglo Asian want to fast track an open pit deposit at Avshancli they won't need to build a new mine, nor even processing facilities. The distance from Gedabek is only 10km. Anything below the open pit can be worked into the usual mine plan studies to firm up the economic case for an underground mine and that won't be ready for at least five years according to the report, which I tend to agree with for a company of this size.

Ordubad is much larger and still requires a great deal more work to understand the costs and risks involved (due to location mainly). I think shareholders would benefit handsomely if management can attract a partner (like SOLG and GGP) to invest in the development of the project.

Mention on Master Investor - The best gold-mining funds

Low**** says that economic recovery, following the pandemic, will take longer than some might expect:

“The end of the lockdown is only the end of the beginning, not the beginning of the end of this crisis. The damage done will take time to filter through and it all depends on consumer confidence, which is a big unknown. The fact is the recovery could take years and markets are likely to have bouts of volatility during this period, so don’t write off gold at this stage. It is an excellent diversifier and has proven its value during the crisis.”

Low**** recommends the Blackrock Gold & General fund where managers Evy Hambro and Tom Holl adopt a disciplined approach, incorporating detailed commodity and company research, as he explains:

“At the company level, valuation analysis is rigorous and aims to find companies with the best exposure to commodity prices within an acceptable level of risk. This leads to an emphasis on larger producers with quality assets and ability to grow their production in a cost-effective way.”

The only investment trust operating in this area is the £27m Golden Prospect Precious Metals (LON:GPM) that my colleague Simon Cawkwell recently tipped. It holds a concentrated portfolio of gold-mining stocks, with the 10 largest positions accounting for just over half of the assets.

The managers increased the fund’s gearing to nine percent at the height of the sell-off, to enable them to add holdings at distressed prices. The portfolio has a relatively low exposure to stocks held by the large gold-mining ETFs, which means the performance tends to be markedly different to the rest of the sector.

GPM was the best-performing investment trust in 2019 and it has made an excellent start to 2020, which has helped it to close its average discount of 22% over the last 12 months to just six percent. If gold really does take off then this fund should magnify the gains considerably, although any weakness would also be amplified.

This is a positive move if you're a believer the gold price will continue to appreciate in the future.

Yanfolia will continue to throw out free cash yada yada.. Production growth is forecast to be minimal though and life of mine continues to be a concern (hopefully be addressed). This has been a growth story up until recently and todays news puts the stock firmly back into that category.

Similar story with SHG although hedging, development costs and Acacia legacy issues have weighed on the stock. TSG are also advancing a second mine asset, Rodnikova is around 1moz. Difficult to know who is performing better and no point trying to predict who will do best so have all three in my pf.

Compare with AAZ who brought their mine to production in about a year but have done nothing remarkable since (80koz steady production, debt to cash transition, increased dividend). The share price has retraced since the summer rally last year despite the rising gold price.

Hi Jolly,

DWHT results warmly received by the market, up to 950. Think this should be closer to 750. Lack of interest right now but definitely worth holding.

Apparently US employment data was much better than expected which has piled more pressure on precious metal prices today. Gold and silver down 2-3% whilst copper is up nearly 2% and oil is up 4-5%.

Of interest Credit Suiise have revised their gold price predictions up to average $1,700/oz this quarter (versus $1,540 previously), more importantly rising to an average of $1,750 in the third quarter ($1,560 previously) and an average of $1,775 in the fourth ($1,600 previously). Still looks to be conservative in my eyes as more stimulus is being prepared and inflationary pressures will begin to take off.

The outlook for 2021 has also risen with gold expected to average $1,800/oz ($1,600 previously).

Debt Re-Financing

TSG's subsidiary AO Trevozhnoye Zarevo ("TZ") has entered into an agreement with PJSC VTB Bank ("VTB") for a revolving credit line with a limit of $10 million for a period of 3 years.

This agreement, successfully re-finances an existing credit line with a limit of $5 million expiring on 20 June 2020 and enhances the short-term liquidity of the Group. The existing facility has been fully repaid. TZ currently has not drawn down any funds under the new credit facility.

The interest rate on the new facility has been reduced from 6.2% to 5.2% per annum. The credit agreement retains customary representations and warranties from TZ to VTB and is secured against the equity and fixed assets of TZ. Certain amounts drawn down under the credit line must be repaid within one year. TZ also retains its obligation to sell gold exclusively to VTB Bank.

Furthermore, the Credit Committee of VTB has agreed to lower the current interest rate on a separate existing Russian ruble-denominated credit line, which was provided to TZ in 2019 at an annual interest rate of 10.7% and has a current balance of ?604.5 million (approximately $8.8 million). A floating interest rate will now be set on this existing facility, calculated as 3.5% over the lending rate of the Russian Central Bank.

The key lending rate of the Russian Central Bank currently stands at 5.5% per annum, meaning the annual interest rate attached to the loan will now amount to 9%, resulting in a 1.7% reduction in the cost of borrowing per annum. An additional agreement regarding the change of the interest rate is expected to be signed before the end of June 2020. Other credit facility conditions remain unchanged.

Following a careful evaluation of available refinancing options, the Board is confident that the debt levels remain low by industry standards and provide an appropriate capital structure, giving the Group enhanced liquidity on improved terms.

Notice of Results + Debt refinancing

Trans-Siberian Gold plc (TSG.LN), a low cost, high grade gold producer in Russia, announces that the Group's financial results for the year ended 31 December 2019 will be published on Monday 8th June 2020.

As previously reported, 2019 was a record operational year for TSG and the Board expects the full results for the year ended 31 December 2019 to be in line with management expectations.

The Group's operations continue to be largely unaffected by COVID-19 and the Group is currently benefitting from a strong gold price environment. TSG remains committed to the previously indicated production and dividend guidance for 2020.

If HUM had announced today that they were embarking on a $10m exploration and development initiative of Dugbe you would find the same names complaining about the update. Dugbe is certainly not worth $60-70m in the current climate. If the directors are acting in concert to take on the risk at a substantial discount then good for them! We have a 120koz producing mine operating at near record gold prices. That is what will drive interest and return for shareholders here, not some low grade exploration asset that will require a couple hundred million to get to production.

Dillinger is right, shareholders on 23 April receive the dividend of GBP 0.035 per share which is to be paid on 05 June 2020. Not a bad price to be buying HGM at considering it was up around 270p a couple weeks back.

Difficult getting a quote this morning. Managed to snag a bunch more for 131p. Time to watch that link ;)