Trans-Siberian Gold plc (TSG.LN), a high grade gold producer in Russia, is pleased to provide its production and cost guidance for 2020 together with a dividend update. All amounts are expressed in US dollars.

Guidance

 TSG is expecting 2020 gold production of between 38,000 and 42,000 ounces, closely in line with recent performance.

The Company expects Total Cash Costs1 for 2020 to remain within the range of $780 and $860 an ounce, with All-In Sustaining Costs2 of between $900 and $1000 per ounce. 

Significant operating cash flows and existing financing enable TSG to reinvest aggressively in resource expansion and discovery drilling at the high-grade Asacha Gold Mine, as well as progressing with the evaluation of the Rodnikova gold deposit.

Alexander Dorogov, Chief Executive Officer of TSG, commented:

"Following a record year of operational performance and revenues, we are extremely well placed to push forward with our drilling campaign focused on expanding the mineral resource at our flagship asset; the Asacha Gold Mine. We plan to commence mining in the East Zone of the mine this year and as a result maintain stable gold production and cost performance. We look forward to continuing to invest in our operations and adding value for all our stakeholders. The Company reiterates its firm commitment to continue returning capital to its shareholders through dividends in the coming year."

 

Gold production  

(ounces)

 

38,000 - 42,000

Total Cash Cost1

($/ounce)

 

780 - 860

All-In Sustaining Costs (AISC)2

($/ounce)

 

900 - 1000

Growth Capital  

($ million)

 

10.7

Sustaining Capital

($ million)

 

1.4


Dividends

 Since 2015, TSG has returned a total of $21.5 million to its shareholders in the form of dividends.

In line with the Company's proven track record of returning capital to its shareholders, TSG sets out to pay a base level of sustainable dividends through the commodities cycle of approximately $3 million per annum. In addition, the Board assesses the merits of additional returns to shareholders via special dividends, to be paid from cash flows in excess of the Group's needs when taking into account debt repayments, exploration and development capital expenditure. If appropriate, the Group will continue to pay special dividends at an appropriate time in its reporting cycle. Over the last five years, the Company has paid out $11.2 million as special dividends.

The Board's strategy is to maintain a balance between sustainable and attractive shareholder returns, investment in growth opportunities and balance sheet strength.

 

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