Trans-Siberian Gold maintains production guidance despite Covid crisis

Total revenues were $9.3m, falling from $16.2m, while the firm maintained its gold production guidance for 2020 of 38,000 to 42,000 ounces.

The company, which operates the Asacha mine reported an average realised gold price for the period of $1,599, up 22% year-on-year. Average gold gradewas 5.2 grams per tonne, down from 8.8 grams per tonne a year earlier.

On the Covid-19 coronavirus pandemic, the company said that currently there was no material impact to its production from the crisis, with the group having risk mitigation structures in place.

However, Trans-Siberian noted that supply chains and logistics for people, supplies and parts were under pressure, and continually changing.

The firm’s dollar-denominated revenue from gold sales remained strong in a supportive gold price environment, with the board adding that the majority of the group's operational costs were rouble-denominated, which had fallen due to foreign exchange movements.

Looking ahead, Trans-Siberian said it was continuing to deliver on its strategic priorities, saying it would update the market on a number of things in the near future, including drilling results from the Main and East zones of the Asacha Gold Mine.

It would also be reporting its financial results for the year ended 31 December, as well as a scoping study for the Rodnikova Gold Deposit, and the start of mining at the East Zone of the Asacha Gold Mine.

Dorogov said that, in spite of the slowdown in the current quarter, Trans-Siberian was trading in line with management expectations and retained a positive outlook on its annual production, reiterating its full-year 2020 guidance of between 38,000 and 42,000 ounces.

At 1456 BST, shares in Trans-Siberian Gold were down 6.67% at 70p.