Investor Call (Part 2)13 Dec 2020 11:41
Summary of the investment case
(Zoom Meeting from November 24th, 2020 from 6:00 p.m. to 7:00 p.m. CET)
Interview partner: Stewart Dickson, Director TSG
The interview / information is based on the ppt presentation from October 1st, 2020:
http://www.trans-siberiangold.com/media/1388/tsg-h1-20-results-presentation.pdf
1. Business case assessment
The strategic direction is well thought out and can be communicated in an understandable way for private investors. Slides 7 and 18, which get to the point, are helpful.
Slide No. 7:
a) The existing operation in the Asacha Mine is continuously improved according to the principles of best practice. This takes place among other things by employing experienced staff ex Kinross
b) The Rodnikova deposit with JORC 1moz Gold, which was newly acquired in 2019, is an extremely promising platform for increasing TSG's production potential to around 100k gold in the medium term. Rodnikova is about 50km from the Asacha Mine. The infrastructure is not yet very well developed. As with Asacha, electricity should be generated from diesel generators or geothermal energy.
c) The M&A endeavors (Meger & Acquisition) are primarily geared towards quality. In principle, one is open to examining opportunities anywhere in the world. Relevant criteria include: Geological model, compatibility with existing know-how at TSG, safe jurisdiction, stable political situation, etc.
Slide No. 18:
The business case can be divided into two areas:
1. Efficiently and effectively conduct ongoing operations at the Asache Mine. The LoM (Life of Mine) is gradually being expanded. The Vein 25 should prove to be very sustainable.
2. Strengthen TSG's future viability. The main driver is the Rodnikova deposit.
2. Operation / Exploration Asacha
(Slides no.16 and 17 are decisive)
This year the grades were lower. The reason for this was the weaker grades in the main zone. By blending the new High Grade Vein25 with the ores of the Main Zone, the processing grades in q3 / 20 could be 'normalized' again and thus the Oz production increased again compared to H1. The realistic goal is to keep the mill feed stable between 8 and 8.5 Au g / t in the future. Recovery at a consistently high level.
While the operation is ongoing, exploration will continue (with 2 drilling rigs on site). Due to the climatic conditions, it is possible to drill all year round - even in winter. The drilling program is in full swing and further news flow can be expected.
In summary, the exploration was very successful and the exploration costs / oz are in the lowest quartile worldwide.
3rd part follows ...