30th Apr 2018 13:36
LONDON (Alliance News) - Trans-Siberian Gold PLC on Monday said it saw record revenue in the first quarter as gold production at the Asacha mine in eastern Russia was higher year-on-year.
The gold ore mining company said mining progress has been slowed by high underground water levels during the period.
As a result, gold production in the first quarter of 2017 decreased 34% to 8,100 ounces from 12,244 ounces in the final quarter of 2017, but rose 12% compared to 7,246 ounces produced in the first quarter of last year.
Trans-Siberian Gold said it generated "record" quarterly revenue of GBP15.6 million, up from GBP9.6 million posted in 2017.
Looking ahead, the company said that production levels in the second quarter will reflect the continuation of high water levels whilst remedial activities take place.
Also, Trans-Siberian expects gold production in the second half of the year to improve, helped by the installation of additional pumping equipment.
The company said it anticipates to achieve annual production of between 36,000 and 40,000 ounces.
"Having achieved record quarterly production in Q4 2017, we have made a solid start to 2018," said Chief Executive Dmitry Khilov. "A weaker ruble and higher gold prices have had positive impacts on our profitability."
Shares in Trans-Siberian Gold were down 7.7% at 36.01 pence per share on Monday.
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