The AIM-listed firm said its dollar-denominated revenue from gold sales “remains strong in a supportive gold price environment” and that the recent decline in oil prices is expected to “considerably reduce” energy costs.
A devaluation of the Russian rouble is also expected to contribute to cost improvements as most of the firm’s operational costs are denominated in the currency.
TSG also said that its supply chains remained unaffected by the coronavirus outbreak and that its operation will continue to run as normal.
Looking ahead, the firm said it was “progressing well” with its 2020 priorities, with underground and surface drilling campaigns underway at the main and east zones of its Asacha gold mine in Russia while a scoping study at the Rodnikova gold deposit was on track for the second quarter of the year.
Shares in the company surged 20.2% to 54.1p in early deals.