Trans-Siberian Gold (TSG) has a niche position as a small miner that pays a hefty dividend. Sticking to that has been made easier as it has so far avoided the Covid-19 outbreak that has seen other gold miners slow, or suspend, operations. The company declared a 2.3¢ (2p) final dividend for 2019, equal to the half-year payout.
It has not all been smooth sailing, however, with the up-and-down nature of underground mines resulting in the estimated size of the Asacha reserve being reduced by 200,000 ounces (oz) of gold, and grades fall in the first half of this year. Trans-Siberian said it was looking at a lower production year in 2020, guiding to 38,000-42,000oz, down from 43,479oz last year.
Cash profits in 2019 were up over 10 per cent on the year before, to $26m, from higher gold production and the stronger price. Operating profit was down a fifth, although without the reversal of a $4m impairment for ore stockpiles relating to 2018, that metric would have been flat.
Trans-Siberian made great leaps on the exploration front in 2019, finding a new vein that could be twice the size of the original orebody at Asacha, according to management. Spending this year has been focused on drilling for the new orezone, called ‘Vein 25 North’.
| TRANS-SIBERIAN GOLD (TSG) | ||||
| ORD PRICE: | 79p | MARKET VALUE: | £69m | |
| TOUCH: | 78-82p | 12-MONTH HIGH: | 133p | LOW: 37p |
| DIVIDEND YIELD: | 4.6% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 90¢ | NET DEBT: | 21% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2015 | 44.0 | 6.61 | 4.75 | - |
| 2016 | 45.2 | 9.32 | 6.42 | - |
| 2017 | 43.4 | 3.03 | 2.29 | 5.7* |
| 2018 | 59.8 | 17.0 | 11.3 | 1.8 |
| 2019 | 63.1 | 12.6 | 9.17 | 4.6 |
| % change | +6 | -26 | -19 | +130 |
| Ex-div: | 09 Jul | |||
| Payment: | 28 Jul | |||
| £1 = $1.27, *Excludes 5.2¢ special dividend | ||||
