TIDMTSG
RNS Number : 2700B
Trans-Siberian Gold PLC
29 January 2020
29 January 2020
Trans-Siberian Gold plc
("TSG" or the "Company")
2020 Production, Cost & Dividend Guidance
Trans-Siberian Gold plc (TSG.LN), a high grade gold producer in
Russia, is pleased to provide its production and cost guidance for
2020 together with a dividend update. All amounts are expressed in
US dollars.
Guidance
TSG is expecting 2020 gold production of between 38,000 and
42,000 ounces, closely in line with recent performance.
The Company expects Total Cash Costs(1) for 2020 to remain
within the range of $780 and $860 an ounce, with All-In Sustaining
Costs(2) of between $900 and $1000 per ounce.
Significant operating cash flows and existing financing enable
TSG to reinvest aggressively in resource expansion and discovery
drilling at the high-grade Asacha Gold Mine, as well as progressing
with the evaluation of the Rodnikova gold deposit.
Alexander Dorogov, Chief Executive Officer of TSG,
commented:
"Following a record year of operational performance and
revenues, we are extremely well placed to push forward with our
drilling campaign focused on expanding the mineral resource at our
flagship asset; the Asacha Gold Mine. We plan to commence mining in
the East Zone of the mine this year and as a result maintain stable
gold production and cost performance. We look forward to continuing
to invest in our operations and adding value for all our
stakeholders. The Company reiterates its firm commitment to
continue returning capital to its shareholders through dividends in
the coming year."
Gold production (ounces) 38,000 - 42,000
Total Cash Cost(1) ($/ounce) 780 - 860
All-In Sustaining Costs
(AISC)(2) ($/ounce) 900 - 1000
Growth Capital ($ million) 10.7
Sustaining Capital ($ million) 1.4
------------------------- -------------- ----------------
Dividends
Since 2015, TSG has returned a total of $21.5 million to its
shareholders in the form of dividends.
In line with the Company's proven track record of returning
capital to its shareholders, TSG sets out to pay a base level of
sustainable dividends through the commodities cycle of
approximately $3 million per annum. In addition, the Board assesses
the merits of additional returns to shareholders via special
dividends, to be paid from cash flows in excess of the Group's
needs when taking into account debt repayments, exploration and
development capital expenditure. If appropriate, the Group will
continue to pay special dividends at an appropriate time in its
reporting cycle. Over the last five years, the Company has paid out
$11.2 million as special dividends.
The Board's strategy is to maintain a balance between
sustainable and attractive shareholder returns, investment in
growth opportunities and balance sheet strength.
ENDS
Contacts:
TSG
Stewart Dickson +44 (0) 7799 694195
Arden Partners plc
Paul Shackleton (Corporate Finance)
Tim Dainton / Fraser Marshall (Equity Sales) +44 (0) 207 614 5900
Hudson Sandler (Financial PR)
Charlie Jack / Katerina Parker / Elfreda
Kent +44 (0) 207 796 4133
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. The Company also holds the licence for the development
and exploration of the Rodnikova deposit, one of the largest gold
fields in South Kamchatka.
Additional information is available from the Company's website:
www.trans-siberiangold.com
Non-IFRS Disclosure
The Company believes that investors use certain non-IFRS
measures as indicators to assess gold mining companies,
specifically Total Cash Costs per Ounce and All-In Sustaining Cash
Costs per Ounce. In the gold mining industry, these are common
performance measures but do not have any standardized meaning. The
Company believes that, in addition to conventional measures
prepared in accordance with IFRS, certain investors use this
information to evaluate the Company's performance and ability to
generate cash flow. Accordingly, it is intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS.
(1) Total Cash Costs per Ounce of Gold: Total cash costs include
mine site operating costs such as mining, processing and local
administrative costs, royalties, production taxes, mine standby
costs and current inventory write downs, if any. Production costs
are exclusive of depreciation and depletion, reclamation, capital
and exploration costs. Total cash costs per gold ounce are net of
by-product silver sales and are divided by gold ounces sold to
arrive at a per ounce figure.
(2) All-In Sustaining Costs per Ounce of Gold: A performance
measure that reflects all of the expenditures that are required to
produce an ounce of gold from current operations. While there is no
standardized meaning of the measure across the industry, the
Company's definition is derived from the AISC definition as set out
by the World Gold Council in its guidance dated June 27, 2013 and
November 16, 2018. The World Gold Council is a non-regulatory,
non-profit organization established in 1987 whose members include
global senior mining companies. The Company believes that this
measure will be useful to external users in assessing operating
performance and the ability to generate free cash flow from current
operations. The Company defines AISC as the sum of total cash costs
(per above), sustaining capital (capital required to maintain
current operations at existing levels), capital lease repayments,
corporate general and administrative expenses, in-mine exploration
expenses and rehabilitation accretion and amortization related to
current operations. AISC excludes capital expenditures for
significant improvements at existing operations deemed to be
expansionary in nature, exploration and evaluation related to
growth projects, rehabilitation accretion and amortization not
related to current operations, financing costs, debt repayments,
and taxes. Total all-in sustaining costs are divided by gold ounces
sold to arrive at a per ounce figure.
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
oz ounce
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCKKCBQABKKKDB
(END) Dow Jones Newswires
January 29, 2020 02:00 ET (07:00 GMT)
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