8th Jun 2020 11:29
(Alliance News) - Russia-focused gold producer Trans-Siberian Gold PLC on Monday hailed its record revenue performance and reiterated its 2020 guidance despite the Covid-19 pandemic.
Revenue in 2019 rose 5.5% to USD63.1 million from USD59.8 million, though pretax profit fell 26% to USD12.6 million from USD17.0 million.
Driving the profit fall was the absence of USD4.0 million from ore stock inventory impairment reversal booked in 2018. Finance expenses rose 52% USD1.6 million and it swung to a foreign exchange loss of USD241,000 on financing activities, from 2018's USD12,000 gain.
More promisingly for Cambridge-based Trans-Siberian, its earnings before interest, taxes, depreciation, and amortisation rose 11% to USD26.4 million from USD23.9 million.
Non-Executive Chair Charles Ryan said: "2019 was a year of significant development for Trans-Siberian Gold, as we made substantial progress in executing our strategy to drive shareholder value and continue generating industry-leading shareholder returns. We achieved our highest ever revenue of USD63.1 million, delivering solid EBITDA growth in a record year for gold.
"By acquiring a premier and strategically positioned asset, the Rodnikova deposit, we have secured near term prospects for organic growth, while continuing to pursue selective accretive M&A opportunities."
Back in January, Trans-Siberian said its output on 2019 rose 3.2% to 43,479 ounces from 42,128 ounces.
Ryan added: "Covid-19 represents a period of significant uncertainty for our industry. Whilst our operations remain unaffected, we remain vigilant and are managing our operations with the highest degree of responsibility to mitigate the spread of the virus, to safeguard our employees and ensure business continuity."
The company reiterated its 2020 guidance of gold production between 38,000 and 42,000 ounces, so at best a 3.4% fall.
Shares in the company were 6.3% lower at 81.04 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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