22nd Jan 2019 11:06
LONDON (Alliance News) - Trans-Siberian Gold PLC on Tuesday said it will pay a special dividend to its shareholders after reporting record quarterly and annual production from its Asacha gold mine, located in Kamchatka region in far east Russia.
The mining company said it achieved a record quarterly production in the three months to the end of December of 13,069 ounces of gold, up from 11,698 ounces mined in the third quarter of 2018.
On the year-on-year basis, gold output in the final quarter increased by 6.7% from 12,244 ounces produced in the fourth quarter of 2017.
During the period, Trans-Siberian said it sold 16,399 ounces of gold at an average price of USD1,228 per ounce, up 81% from 9,085 ounces sold a year prior. As a result, quarterly revenue jumped to USD20.6 million from USD11.6 million year-on-year.
The company also reported that its annual production reached all-time record of 42,128 ounces, exceeding upper end of its production guidance. This was 15% higher than 36,714 ounces mined in 2017.
Gold sales in 2018 were 36% higher, at 45,956 ounces, compared to 33,870 ounces sold in 2017. Trans-Siberian expects to report revenue for 2018 of USD59.8 million, up 38% from USD43.5 million recorded the year before.
Separately, the miner declared a special interim dividend of USD0.052 per share and said it considering its final dividend for 2018 ahead of its annual results. Back in September, Trans-Siberian declared an interim dividend of USD0.009 per share.
For 2017, it paid a final dividend of USD0.021 and an interim dividend of USD036.
Trans-Siberian intends to announce its 2018 results in early June, while first quarter gold production update will be published in April.
"We are pleased once again to announce new quarterly and annual gold production records," said Chief Executive Alexander Dorogov.
"Supplementing the interim dividend paid earlier in the financial year, we are pleased to announce an additional special interim dividend and to continue to provide attractive returns to shareholders," added Dorogov.
Looking ahead, Trans-Siberian said it plans to produce between 40,000 ounces and 44,000 ounces of gold in 2019. The company will remain focused on continuing to improve the key metrics of the business, it said, and the generation of strong cash flows.
Trans-Siberian shares were trading 2.9% higher on Tuesday at 38.60 pence each.
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