Trans-Siberian Gold exceeds upper end of production guidance

AIM-listed miner Trans-Siberian Gold expects to have exceeded the upper end of its gold production guidance in its most recent trading year.

TSG told investors on Friday that the operational performance of its Asacha Gold Mine in Russia had continued to improve during the second half of 2018 and, as a result of improving gold grades in the fourth quarter, the company now expects to "slightly exceed" the upper end of its full-year total gold production guidance of 36,000-40,000 ounces.

Chief executive Alexander Dorogov said: "We are making continuous improvements at the Asacha Gold Mine which are delivering real results."

Elsewhere, TSG entered into a new electricity supply agreement with Kamchatskenergo which will supply power to the Asacha Gold Mine at a reduced price of RUR 4.69 (US$0.07/kWh) per kilowatt hour following the implementation of incentive measures to support the development of the Far East of Russia.

"Power is a significant production cost and we are pleased to have secured a substantial cost saving with the support of the regional Government of Kamchatka," added Dorogov.

Lastly, TSG noted that construction of its underground de-watering pumping facilities was continuing, albeit slightly behind its original planning timetable, and that completion of permanent facilities was expected to be seen by the end of May.

As of 1030 GMT, TSG shares had shot up 11.30% to 38.40p.