Trans-Siberian Gold announces another dividend following record revenue

Low cost, high grade Russia-focussed gold producer Trans-Siberian Gold announced its unaudited interim results for the period ended 30 June on Thursday, reporting record first half revenue generation of $30m (£24.03m), up 8.7% year-on-year.

The AIM-traded firm said its profit before tax totalled $8.5m for the period, making for an improvement of 169.7% over the prior year, while its EBITDA stood at $14.4m, which was ahead 62.2%.

It noted that a $5.6m special interim dividend of 5.1 US cents per share was declared and paid during the period, while it also completed a 20.8% share buyback, increasing its free float to 24.3%.

The board declared an interim dividend of $2m, resulting in payment of 2.3 cents per share, rising from 0.9 cents at the same time last year.

On the operational front, the company said its gold dore production increased to 21,889 ounces, up 26.1%, while its refined gold production improved 11.9% over last year’s first half to 23,155 ounces.

It said its average gold grades were 38.7% higher year-on-year at 8.6 grams per tonne, while the average selling price for gold remained flat at $1,312 per ounce, compared to $1,324 12 months prior.

Trans-Siberian said it reduced its total cash cost per ounce of gold by 24.6% to $672, and its all-in sustaining cost per ounce by 38.0% to $850.

The board said it had “enhanced” the company’s asset base with the acquisition of a development and exploration licence for the Rodnikova deposit, and had “strengthened” the firm’s senior management with the appointments of a new chief financial officer and mine manager.

It confirmed it was on track to achieve its annual production guidance of between 40,000 and 44,000 ounces.

“We are proud to once again report record revenues of $30m for the first six months of the year, reflecting superior operational performance,” said Trans-Siberian Gold chief executive officer Alexander Dorogov.

“We have seen some exciting accomplishments over the period, including the addition of two highly experienced individuals to our senior management team, the acquisition of the licence for the high-calibre Rodnikova deposit - one of the largest gold fields in South Kamchatka - and the completion of a $7.6m share buyback.”

Dorogov also highlighted that the firm was now mining at “consistently higher” grades, averaging 8.6 grams per tonne, and was looking to drive its initiatives for improvements in its operational efficiency further.

“With the issuance of our seventh consecutive dividend, I am very pleased to be confirming our commitment to continued shareholder returns, and we look forward to the remainder of the year with optimism.”