Trans-Siberian warns on profits after 'operational challenges'

Trans-Siberian, which forecasts production for 2018 to come in between 36,000 and 40,000 ounces, saw revenue increase 3% to $43.5m in its most recent trading year but warned that operation challenges experienced early in the year had slashed its first-half profits to just $500,000 - a 90.74% drop year-on-year.

Whilst operations improved significantly throughout the second half of 2017, Trans-Siberian cautioned that pre-tax profits for the full year will be lower than the $8.7m reported a year earlier.

Management has taken action to address several of setbacks experienced by Trans-Siberian throughout 2017, but the firm was still anticipating "some cost inflation", especially when it came to power generation, but noted that CAPEX for 2018 was still expected to fall in line with the previous year at around $11m.

Trans-Siberian, which still maintained its dividend policy of returning cash to shareholders, said that its operating cash flow for the year ended 31 December would come in at around $10.1m - a decline of more than half year-on-year, but assured investors that the outlook for 2018 "is promising".

As of 0840 GMT, shares had lost 2.46% to 39.99p.