31st Jul 2018 13:07
LONDON (Alliance News) - Trans-Siberian Gold PLC on Tuesday reported a solid rise in quarterly gold output from its Asacha gold mine, while its interim revenue has reached a record level.
The Asacha gold mine is located in Kamchatka region in the Russian Far East, around 150 kilometres south to the port of Petropavlovsk-Kamchatsky.
For the three months to June, the company's second quarter gold dore production was 9,260 ounces, up 14% quarter-on-quarter. The average gold grade was 6.3 grammes of gold per tonne of ore, compared to 6.1 g/t gold in the first quarter.
Trans-Siberian's average selling price is estimated at USD1,300 per ounces, meaning revenue for the second quarter is expected to be around USD12 million from USD15.6 million in the first quarter.
Overall, this means first half revenue is guided around USD27.6 million, well above the USD18.9 million it recorded in the same period a year earlier.
First half gold production was 17,361 ounces, up 25% year-on-year, while the average grade rose to 6.2 g/t gold from 5.1 g/t gold.
Chief Executive Alexander Dorogov said: "We are pleased with our overall performance in the first half of the year with strong revenue generation of approximately USD27.6 million. 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."
Shares in Trans-Siberian were 2.9% down on Tuesday at a price of 34 pence each.
Related Shares:
TSG.L