(Kitco News) – Trans-Siberian Gold (TSG:LSE) shares gapped higher in early UK trade after the firm sent out its latest Q4 & FY20 Production Update.
The company recorded record quarterly gold doré production of 15,217 oz. up 31.5% QoQ vs Q3 2020 11,570 oz. Adding to this, it achieved its highest quarterly gold grade of 10.3 g/t representing an increase of 38.7% QoQ. The firm also had its fifth consecutive year of increased YoY gold production
Importantly, gold revenue increased by 39% QoQ to $29.7 million vs Q3 2020 $21.4 million. In terms of the annual figure, Trans-Siberian recorded annual revenue at $81 million, up by 28.3% YoY (FY 2019: $63.1 million).
Alexander Dorogov, Chief Executive Officer of TSG said “Our immediate focus is on analysing the recent tragic rock fall accident at Vein 25 and taking the appropriate remedial action. We are deeply saddened by the accident and reiterate our condolences to the family and friends of our colleagues; we continue to support them in every way possible. Significant work is ongoing to understand the causes of the accident and once investigations are complete, we will advise on our plans to recommence mining at Vein 25 and provide full-year guidance. We are committed to ensuring a safe workplace for all our employees.”.
He also added “Vein 25 has presented increasingly higher grades, as demonstrated by the highest quarterly gold grade of 10.3 g/t achieved during Q4. Improved gold production was supported by a very favourable gold price throughout 2020, and I am delighted to report record annual gold revenue of $81million. With a strong balance sheet and available liquidity, TSG is well positioned for future growth.”.
The share price gapped up around 3% in early UK trade. The price is also now above the 111.0 support area marked in purple. If this bullishness is to continue then the 134 area would be the next target for the bulls. The all-time high is the stock is at 167 and if the black resistance can be taken out then the market is well on its way for another test.
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