28th Jan 2020 12:13
(Alliance News) - Shares in Russia-focused gold producer Trans-Siberian Gold PLC fell on Tuesday despite the company achieving production and revenue records in 2019.
The stock was trading 14% lower at 49.50 pence each in London late Tuesday morning.
In 2019, gold output climbed 3.2% year-on-year to 43,479 ounces from 42,128 ounces.
The operator of the Asacha gold mine said revenue rose 5.5% to USD63.1 million from USD59.8 million in 2018. Average estimated gold price was up 10% year-on-year at USD1,399 an ounce from USD1,265.
Chief Executive Alexander Dorogov said: "Corresponding with record production and favourable gold prices, we are pleased to report all-time record revenue.
"We have worked hard to improve the efficiency of our operations and our understanding of the orebody at the Asacha Gold Mine, which is reflected in these results. We have an aggressive exploration and development plan for Asacha which is well underway."
Were it not for a revenue and output decline in the fourth quarter, Trans-Siberian's 2019 growth would have been sharper.
Gold production fell 31% year-on-year in the fourth quarter to 8.970 ounces from 13,069 ounces. Gold revenue fell 9.0% to USD18.3 million from USD20.1 million.
The company will report first quarter production numbers from Asacha in April.
By Eric Cunha; [email protected]
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