Trans-Siberian Gold plc (TSG.LN), a low cost, high grade gold producer in Russia, provides the following update on the current status of the Company’s operations and approach amidst the widespread global outbreak of Covid-19 virus.
We are proud to be a significant employer in the Kamchatka region of the Far East of Russia. The health and wellbeing of all our employees remains our utmost priority, and we are closely monitoring the development of this global health crisis and its potential impact on our people and operations. We have risk mitigation policies in place aimed at communicating the best precautionary measures to our staff to prevent the spread of the virus.
The Company’s supply chains remain unaffected and our operations continue to run as normal. Our Moscow office remains open, although processes are in place to ensure employees are able to work from home if needed. We continue to follow the latest government advice in all our jurisdictions with regard to the current running of our operations.
Current events have resulted in material changes to commodity prices and foreign exchange rates, which are expected to impact positively on the overall profitability of the Group. The Company’s dollar-denominated revenue from gold sales remains strong in a supportive gold price environment. The recent oil price decline is expected to considerably reduce the Group’s energy costs, and the connected devaluation of the Russian rouble is equally anticipated to contribute to overall cost improvement, as the majority of the Group’s operational costs are rouble-denominated.
The Group is progressing well with its previously stated priorities for 2020. Underground and surface drilling campaigns at the Main and East zones of the Asacha Gold Mine are underway, with further updates to follow in due course. The Scoping Study for the Rodnikova Gold Deposit remains on track for Q2 2020. There is no change to the Company’s production or dividend guidance.
TSG expects to report production results from the Asacha Gold Mine for the first quarter of 2020 in April 2020.