31 Jul 2018 08:25
Trans-Siberian Gold plc
("TSG" or the "Company")
Q2 Production Update
Trans-Siberian Gold plc (TSG.LN) announces its production update at the Asacha Gold Mine for the three months to 30 June 2018 ("Q2" or the "Period") and the first six months of 2018 ("H1").
Q2 Highlights
· 14.3% increase in gold dore production of 9,260oz (Q1 2018: 8,100oz)
· Average gold grade: 6.3g/t (Q1 2018: 6.1g/t)
· Estimated average selling price of $1,300/oz generating revenue of approximately $12m* (Q1 2018: $15.6m)
· 19% reduction in mine development due to high underground water levels but mitigating works on schedule
H1 Highlights
· Record H1 revenue generation of approximately $27.6m* (H1 2017: $18.9m)
· 25% increase in gold dore produced of 17,361oz (H1 2017: 13,897oz)
· Average gold grade: 6.2g/t (H1 2017: 5.1g/t)
· Estimated average selling price of $1,324/oz (H1 2017: $1,237/oz)
Alexander Dorogov, Chief Executive Officer of TSG, commented:
"We are pleased with our overall performance in the first half of the year with strong revenue generation of approximately $27.6m*. We are successfully addressing the challenge of high levels of underground water. This effort has been reinforced by senior operational management changes. Our production guidance remains unchanged. We expect the enhanced underground pumping facilities to be complete next month and continue to watch costs closely and seek efficiencies where possible".
Production Summary
Mining and production data for Q2 2018 and H1 2018 at the Asacha Gold Mine is shown in the following table:
Q2 | Q1 | Q-on-Q | Q2 | Y-on-Y | H1 | H1 | Y-on-Y | |
Metric | 2018 | 2018 | % Change | 2017 | % Change | 2018 | 2017 | % Change |
Mine development, m | 1,253 | 1,549 | -19.1% | 1,362 | -8.0% | 2,802 | 2,625 | 6.7% |
Ore extracted, tonnes | 48,437 | 47,081 | 2.9% | 47,539 | 1.9% | 95,518 | 93,693 | 1.9% |
Ore processed, tonnes | 47,822 | 44,395 | 7.7% | 45,857 | 4.3% | 92,217 | 90,177 | 2.3% |
Grade, gold, g/t | 6.3 | 6.1 | 3.9% | 4.8 | 32.4% | 6.2 | 5.1 | 22.6% |
Grade, silver, g/t | 22.4 | 15.4 | 45.7% | 8.9 | 151.0% | 19.0 | 9.0 | 112.4% |
Recovery, gold, % | 94.5 | 94.4 | 0.1% | 93.9 | 0.6% | 94.4 | 94.1 | 0.4% |
Recovery, silver, % | 76.6 | 75.9 | 0.9% | 75.9 | 1.0% | 76.4 | 76.3 | 0.1% |
Gold in dore (oz) | 9,260 | 8,100 | 14.3% | 6,651 | 39.2% | 17,361 | 13,897 | 24.9% |
Silver in dore (oz) | 26,456 | 15,662 | 68.9% | 9,930 | 166.4% | 42,118 | 20,078 | 109.8% |
Gold refined (oz) | 9,355 | 11,343 | -17.5% | 7,363 | 27.0% | 20,698 | 15,007 | 37.9% |
Silver refined (oz) | 25,025 | 21,127 | 18.4% | 9,856 | 153.9% | 46,152 | 22,212 | 107.8% |
Gold sold (oz) | 9,161 | 11,311 | -19.0% | 7,309 | 25.3% | 20,472 | 14,954 | 36.9% |
Silver sold (oz) | 5,444 | 25,345 | -78.5% | 9,271 | -41.3% | 30,790 | 21,845 | 40.9% |
Gold price, $/oz | 1,300 | 1,343 | -3.2% | 1,251 | 3.8% | 1,324 | 1,237 | 7.0% |
Silver price, $/oz | 16.4 | 17.0 | -3.7% | 16.4 | -0.2% | 16.9 | 16.5 | 2.4% |
Gold revenue, $000* | 11,906 | 15,191 | -21.6% | 9,147 | 30.2% | 27,096 | 18,503 | 46.4% |
Silver revenue, $000* | 89 | 431 | -79.3% | 152 | -41.4% | 521 | 361 | 44.3% |
Total revenue, $000* | 11,995 | 15,622 | -23.2% | 9,299 | 29.0% | 27,617 | 18,864 | 46.4% |
* Note: Unaudited figure
Commentary
During the Period, and as expected, mine development has reduced due to snow melt and the construction of the main underground pumping station with larger cross cuts. The works to address water levels are on schedule and the enhanced underground pumping facilities are due to be completed in August 2018 with the main pumping station expected to be fully operational by the end of 2018. We continue to blend higher grade stoping ore with lower grade stock piled ore to ensure our processing capacity is fully utilized. The average grade for Q2 was 6.3 g/t.
Gold production in H2 2018 is expected to improve as the effects of the installation of additional pumping equipment are felt. Accordingly, the Company's total gold production guidance range of 36,000-40,000oz for 2018 remains unchanged. The upper end of the range represents a year-on-year increase of approximately 9% in total gold production.
TSG intends to provide a production update for Q3 2018 in October 2018.
Unaudited interim financial results for H1 2018 will be published by the end of September 2018.
Contacts
TSG |
|
Stewart Dickson | +44 (0) 7799 694195
|
|
|
Cantor Fitzgerald Europe | +44 (0) 207 894 7000 |
David Porter
|
|
About TSG
TSG is focused on low cost, high grade mining operations and stable gold production from its 100% owned Asacha Gold Mine in Far East Russia.
Additional information is available from the Company's website: www.trans-siberiangold.com
Market Abuse Regulations
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.
Abbreviations
g/t grammes per tonne
oz ounce
m metre
Disclaimer
This announcement contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets, fluctuations in interest and/or exchange rates and metal prices; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements.