For immediate release
15
May 2019
Serabi Gold plc(“Serabi”
or the “Company”)Unaudited Interim Financial
Results for the three month period to 31 March 2019 and
Management’s Discussion and Analysis
Serabi Gold (AIM:SRB, TSX:SBI), the Brazilian
focused gold mining and development company, today releases its
unaudited interim financial results for the three month period
ending 31 March 2019 and at the same time has published its
Management’s Discussion and Analysis for the same period.
Key Financial Information
|
|
3 months to31 March
2019US$ |
3 months to31 March 2018US$ |
12 months to31 December 2018US$ |
Revenue |
|
17,126,040 |
13,826,851 |
43,261,743 |
Cost of sales |
|
(11,361,987) |
(9,489,101) |
(31,101,016) |
Gross operating profit |
|
5,764,053 |
4,337,750 |
12,160,727 |
Administration and share based payments |
|
(1,449,316) |
(1,408,717) |
(5,867,918) |
EBITDA |
|
4,314,737 |
2,929,033 |
6,292,809 |
Depreciation and amortisation charges |
|
(2,264,733) |
(1,941,738) |
(9,004,411) |
Operating profit / (loss) before finance and
tax |
|
2,050,004 |
987,295 |
(2,711,602) |
|
|
|
|
|
Profit / (loss) after tax |
|
1,549,962 |
10,786 |
(5,754,541) |
Earnings per ordinary share (basic) |
|
2.63 cents |
0.03 cents |
(11.20 cents) |
|
|
|
|
|
Average gold price received |
|
US$1,287 |
US$1,319 |
US$1,258 |
|
|
|
|
|
|
|
|
As at31
March2019 |
As at31 December 2018 |
Cash and cash equivalents |
|
|
12,133,713 |
9,216,048 |
Net assets |
|
|
70,163,641 |
69,110,287 |
|
|
|
|
|
Cash Cost and All-In Sustaining Cost (“AISC”) |
|
|
|
|
|
|
3 months to 31 March 2019 |
3 months to31 March 2018 |
12 months to31 December 2018 |
Gold production for cash cost and AISC
purposes |
|
10,164 |
9,188 |
37,108 |
|
|
|
|
|
Total Cash Cost of production (per ounce) |
|
US$796 |
US$907 |
US$821 |
Total AISC of production (per ounce) |
|
US$1,021 |
US$1,166 |
US$1,093 |
Key Operational Information
|
SUMMARY PRODUCTION STATISTICS TO DATE FOR 2019 AND FOR THE 2018
CALENDAR YEAR |
|
|
Qtr 1 |
Qtr 1 |
Qtr 2 |
Qtr 3 |
Qtr 4 |
Total |
2019 |
2018 |
2018 |
2018 |
2018 |
2018 |
|
|
|
|
|
|
|
|
Gold
production (1) (2) |
Ounces |
10,164 |
9,188 |
9,563 |
8,101 |
10,256 |
37,108 |
|
|
|
|
|
|
|
|
Mined ore – Total |
Tonnes |
42,609 |
39,669 |
36,071 |
42,725 |
44,257 |
162,722 |
|
Gold grade (g/t) |
7.47 |
7.49 |
8.12 |
6.23 |
7.45 |
7.29 |
|
|
|
|
|
|
|
|
Milled ore |
Tonnes |
43,451 |
43,145 |
38,155 |
41,405 |
45,548 |
168,253 |
|
Gold grade (g/t) |
7.69 |
7.04 |
7.71 |
6.11 |
7.39 |
7.06 |
|
|
|
|
|
|
|
|
Horizontal development – Total |
Metres |
1,868 |
2,353 |
2,744 |
2,814 |
2,460 |
10,371 |
- Gold production figures are subject to amendment pending final
agreed assays of the gold content of the copper/gold concentrate
and gold doré that is delivered to the refineries.
- Gold production totals for 2019 include treatment of 3,136
tonnes of flotation tails at a grade of 4.00 g/t (2018 full year:
16,466 tonnes at 3.71g/t).
- The table may not sum due to rounding.
FINANCIAL HIGHLIGHTS
- EBITDA for the first quarter of U$4.3 million up 47% on the
same quarter in 2018
- Profit after tax of US$1.5 million with earnings per share of
2.63 cents.
- Cash holdings at the end of March 2019 of US$12.1 million an
increase of US$2.9 million since the end of 2018.
- AISC for the quarter of US$1,021 per ounce with a Cash Cost of
US$796 per ounce.
- Operational cash flow for the period of US$6.5 million (US$5.7
million after mine development costs), compared with US$3.1 million
(US$2.1 million after mine development costs) for the same period
in 2018.
OPERATIONAL and DEVELOPMENT
HIGHLIGHTS
- First quarter gold production of 10,164 ounces of gold,
maintaining the momentum from the end of 2018.
- Second successive quarter of production above 10,000 ounces for
the first time.
- Mine tonnage totalled 42,609 tonnes at 7.47 grams per tonne
(“g/t”) of gold.
- 43,451 tonnes of run of mine (“ROM”) ore were processed through
the plant from the combined Palito and Sao Chico orebodies, with an
average grade of 7.69 g/t of gold.
- 1,868 metres of horizontal development completed during the
quarter.
- Completion and announcement of the Company’s updated mineral
resource estimate for its Coringa gold project (“Coringa”):
- the new mineral resource estimate represents a 37% increase
over the previously disclosed estimation (as of May 3, 2017).
- an Indicated Resource for Coringa of 216,000 ounces of
contained gold (845,000 tonnes at an average in-situ grade of 7.95
g/t).
- an additional Inferred Resource of 298,000 ounces of contained
gold (1,436,000 tonnes at an average in-situ grade of 6.46
g/t).
- Production guidance for 2019 is maintained in the range of
40,000-44,000 ounces representing a significant improvement on 2018
production of 37,108 ounces.
Mike Hodgson, CEO of Serabi commented:
“The last two quarters have been excellent from an operational
perspective and represent the first occasion that the Company’s
operations have achieved two successive quarters with gold
production in excess of 10,000 ounces. These financials
results reflect the operational improvements that we have enjoyed
with revenue, profit and cash generation all having significantly
improved over the same quarter in 2018.
“Most pleasing, however, is to see a reduction in the unit costs
of production, with a reported AISC of US$1,021 compared with
US$1,166 for the same quarter in 2018 and an average AISC for the
2018 calendar year of US$1,093. Given the nature of the
operations, Serabi has a fairly fixed level of monthly costs, in
the form of labour, power and consumable costs. With the mine
and plant producing and processing broadly consistent tonnages of
ore, the key to profitability is maximising the grade of the ore
mined and processed. Whilst the improvements in the last 6
months to the processed grade have been relatively small, the
benefits have been quite significant.
“The financial results for the first quarter have benefitted
from the high level of gold inventory held at the end of 2018 and
which was sold during the quarter. A total of 12,309 ounces
were sold during the period compared with production of 10,164
ounces and with inventory levels now back to more normal levels we
would expect sales and production volumes to more closely track
each other over the rest of the year.
“Net cash generated in the period was slightly less than US$3.0
million after taking account of mine development, exploration and
other capital expenditure but again has been helped by the delayed
sales carried over from the end of 2018. Provided the Company
can maintain the current levels of production, I am confident that
we can maintain a good cash flow for the rest of the year.
The Company’s cash holdings as at 31 March 2019 were US$12.2
million.
“We are being helped by a strong gold price when looked at in
Brazilian Reais, and with so much of our cost base incurred in
Brazil this is the true indicator of our margin and
profitability. Following the election of Jair Bolsonaro as
president in November 2018, many, myself included, saw the
potential for the Real to strengthen as he pursued public spending
reforms and implemented business friendly policies to promote
growth. To date however the exchange rate has remained in the
range of BrR$3.80 to US$1.00 and the gold price in Brazilian Reais
has averaged BrR$4,850 for the quarter compared with BrR$4,264 for
the same period in 2018 and BrR$4,600 for the 2018 calendar
year.”
A video update by Mike Hodgson on current operations can
be accessed using the following link
https://www.brrmedia.co.uk/broadcasts-embed/5cda93c79ebae53e0fb331a6/serabi-gold-palito-update?popup=true
SERABI GOLD PLCCondensed
Consolidated Statements of Comprehensive Income
|
|
|
|
For the three months ended31 March |
|
|
|
|
2019 |
2018 |
(expressed in US$) |
Notes |
|
|
(unaudited) |
(unaudited) |
CONTINUING
OPERATIONS |
|
|
|
|
|
Revenue |
|
|
|
17,126,040 |
13,826,851 |
Cost of sales |
|
|
|
(11,861,987) |
(9,489,101) |
Release of inventory impairment
provision |
|
|
|
500,000 |
– |
Depreciation and amortisation charges |
|
|
|
(2,289,545) |
(1,992,853) |
Gross
profit |
|
|
|
3,474,508 |
2,344,897 |
Administration expenses |
|
|
|
(1,383,831) |
(1,331,424) |
Share-based payments |
|
|
|
(65,485) |
(77,293) |
Gain on sales of assets
disposal |
|
|
|
24,812 |
51,115 |
Operating profit / (loss) |
|
|
|
2,050,004 |
987,295 |
Foreign exchange (loss) /
gain |
|
|
|
(14,617) |
(57,090) |
Finance expense |
2 |
|
|
(411,105) |
(590,373) |
Finance income |
2 |
|
|
139,059 |
34 |
Profit / (loss) before
taxation |
|
|
|
1,763,341 |
339,866 |
Income tax expense |
3 |
|
|
(213,379) |
(329,080) |
Profit / (loss) for the period from continuing operations
attributable to the owners of the parent(1) |
|
|
|
1,549,962 |
10,786 |
|
|
|
|
|
|
Other comprehensive
income (net of tax) |
|
|
|
|
|
Items that
may be reclassified subsequently to profit or loss |
|
|
|
Exchange differences on translating foreign operations |
|
|
|
(562,093) |
(334,431) |
Total comprehensive profit / (loss) for the period
operations attributable to the owners of the parent |
|
|
|
987,869 |
(323,645) |
|
|
|
|
|
|
Profit / (loss) per ordinary share (basic) (1) (2) |
4 |
|
|
2.63 cents |
0.03 cents |
Profit / (loss) per ordinary share (diluted) (1) (2) |
4 |
|
|
2.49 cents |
0.03 cents |
(1) All revenue and expenses
arise from continuing operations.(2) On 19 June
2018, the Group completed a capital reorganisation with every 20
existing shares being consolidated into one new share. The total
number of existing ordinary shares in issue immediately prior to
the capital reorganisation was 1,175,281,440. The total number of
ordinary shares in issue following the capital reorganisation was
58,764,072. For comparative purpose the weighted average
ordinary shares in issue and the diluted ordinary shares in issue
for the three month period ended 31 March 2018, has been adjusted
to reflect the share consolidation of 20 existing shares into one
new share.
SERABI GOLD PLCCondensed
Consolidated Balance Sheets
|
|
|
As at |
As at |
As at |
|
|
|
31 March |
31 March |
31 December |
|
|
|
2019 |
2018 |
2018 |
(expressed in US$) |
|
|
(unaudited) |
(unaudited) |
(audited) |
Non-current
assets |
|
|
|
|
|
Deferred exploration costs |
|
|
28,581,674 |
25,295,721 |
27,707,795 |
Property, plant and
equipment |
|
|
40,766,304 |
47,736,835 |
42,342,102 |
Taxes receivable |
|
|
1,554,651 |
1,569,140 |
1,555,170 |
Deferred taxation |
|
|
2,091,031 |
2,772,101 |
2,162,180 |
Total non-current assets |
|
|
72,993,660 |
77,373,797 |
73,767,247 |
Current
assets |
|
|
|
|
|
Inventories |
|
|
6,272,053 |
6,160,750 |
8,511,474 |
Trade and other receivables |
|
|
1,196,042 |
1,151,999 |
758,209 |
Prepayments and accrued
income |
|
|
4,328,718 |
3,914,034 |
4,166,916 |
Cash and cash equivalents |
|
|
12,133,713 |
6,695,525 |
9,216,048 |
Total current assets |
|
|
23,930,526 |
17,922,308 |
22,652,647 |
Current
liabilities |
|
|
|
|
|
Trade and other payables |
|
|
5,931,532 |
5,291,005 |
6,273,321 |
Interest bearing liabilities |
|
|
4,048,054 |
5,760,390 |
4,302,798 |
Acquisition payment
outstanding |
|
|
11,259,277 |
5,000,000 |
10,997,757 |
Derivative financial
liabilities |
|
|
254,134 |
754,462 |
390,976 |
Accruals |
|
|
342,322 |
591,830 |
372,327 |
Total current liabilities |
|
|
21,835,319 |
17,397,687 |
22,337,179 |
Net current assets |
|
|
2,095,207 |
524,621 |
315,468 |
Total assets less current liabilities |
|
|
75,088,867 |
77,898,418 |
74,082,715 |
Non-current
liabilities |
|
|
|
|
|
Trade and other payables |
|
|
971,662 |
2,590,883 |
955,521 |
Provisions |
|
|
1,529,318 |
2,157,944 |
1,543,811 |
Acquisition payment
outstanding |
|
|
– |
10,235,707 |
– |
Interest bearing liabilities |
|
|
2,424,246 |
2,299,524 |
2,473,096 |
Total non-current liabilities |
|
|
4,925,226 |
17,284,058 |
4,972,428 |
Net assets |
|
|
70,163,641 |
60,614,360 |
69,110,287 |
Equity |
|
|
|
|
|
Share capital |
|
|
8,882,803 |
5,555,775 |
8,882,803 |
Share premium reserve |
|
|
21,752,430 |
1,797,407 |
21,752,430 |
Option reserve |
|
|
1,428,852 |
1,111,040 |
1,363,367 |
Other reserves |
|
|
4,937,419 |
4,406,657 |
4,763,819 |
Translation reserve |
|
|
(41,369,216) |
(31,533,999) |
(40,807,123) |
Retained surplus |
|
|
74,531,353 |
79,277,480 |
73,154,991 |
Equity shareholders’ funds |
|
|
70,163,641 |
60,614,360 |
69,110,287 |
The interim financial information has not been
audited and does not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006. Whilst the financial
information included in this announcement has been compiled in
accordance with International Financial Reporting Standards
(“IFRS”) this announcement itself does not contain sufficient
financial information to comply with IFRS. The Group
statutory accounts for the year ended 31 December 2018 prepared
under IFRS as adopted in the EU and with IFRS and their
interpretations adopted by the International Accounting Standards
Board will be filed with the Registrar of Companies following their
adoption by shareholders at the next Annual General Meeting. The
auditor’s report on these accounts was unqualified. The
auditor’s report did not contain a statement under Section 498 (2)
or 498 (3) of the Companies Act 2006.
SERABI GOLD PLCCondensed
Consolidated Statements of Changes in Shareholders’
Equity
(expressed in US$) |
|
|
|
|
|
|
|
(unaudited) |
Share capital |
Sharepremium |
Share option reserve |
Other reserves (1) |
Translation reserve |
Retained Earnings |
Total equity |
Equity
shareholders’ funds at 31 December 2017 |
5,540,960 |
1,722,222 |
1,425,024 |
4,015,369 |
(31,199,568) |
79,266,705 |
60,770,712 |
Foreign currency adjustments |
— |
— |
— |
— |
(334,431) |
— |
(334,431) |
Profit for the
period |
— |
— |
— |
— |
— |
10,786 |
10,786 |
Total comprehensive income for the period |
— |
— |
— |
— |
(334,431) |
10,786 |
(323,645) |
Transfer to taxation reserve |
— |
— |
— |
391,288 |
— |
(391,288) |
— |
Shares issued in period |
14,815 |
75,185 |
— |
— |
— |
— |
90,000 |
Share options lapsed in period |
— |
— |
(391,277) |
— |
— |
391,277 |
— |
Share option
expense |
— |
— |
77,293 |
— |
— |
— |
77,293 |
Equity
shareholders’ funds at 31 March 2018 |
5,555,775 |
1,797,407 |
1,111,040 |
4,406,657 |
(31,533,999) |
79,277,480 |
60,614,360 |
Foreign currency adjustments |
— |
— |
— |
— |
(9,273,124) |
— |
(9,273,124) |
Loss for the
period |
— |
— |
— |
— |
— |
(5,765,327) |
(5,765,327) |
Total comprehensive income for the period |
— |
— |
— |
— |
(9,273,124) |
(5,765,327) |
(15,038,451) |
Transfer to taxation reserve |
— |
— |
— |
357,162 |
— |
(357,162) |
— |
Shares issued in period |
3,327,028 |
19,955,023 |
— |
— |
— |
— |
23,282,051 |
Share options lapsed in period |
— |
— |
— |
— |
— |
— |
— |
Share option
expense |
— |
— |
252,327 |
— |
— |
— |
252,327 |
Equity
shareholders’ funds at 31 December 2018 |
8,882,803 |
21,752,430 |
1,363,367 |
4,763,819 |
(40,807,123) |
73,154,991 |
69,110,287 |
Foreign currency adjustments |
— |
— |
— |
— |
(562,093) |
— |
(562,093) |
Profit for the
period |
— |
— |
— |
— |
— |
1,549,962 |
1,549,962 |
Total comprehensive income for the period |
— |
— |
— |
— |
(562,093) |
1,549,962 |
987,869 |
Transfer to taxation reserve |
— |
— |
— |
173,600 |
— |
(173,600) |
— |
Share options lapsed in period |
— |
— |
— |
— |
— |
— |
— |
Shares issued in period |
— |
— |
— |
— |
— |
— |
— |
Share option
expense |
— |
— |
65,485 |
— |
— |
— |
65,485 |
Equity
shareholders’ funds at 31 March 2019 |
8,882,803 |
21,752,430 |
1,428,852 |
4,937,419 |
41,369,216 |
74,531,353 |
70,163,641 |
- Other reserves comprise a merger reserve of US$361,461 and a
taxation reserve of US$4,575,958 (31 December 2018: merger reserve
of US$361,461 and a taxation reserve of US$4,402,358).
SERABI GOLD PLCCondensed
Consolidated Cash Flow Statements
|
|
For the three monthsended31 March |
|
|
|
2019 |
2018 |
(expressed
in US$) |
|
|
(unaudited) |
(unaudited) |
Operating
activities |
|
|
|
|
Operating profit / (loss) |
|
|
1,549,962 |
10,786 |
Net financial expense |
|
|
286,663 |
557,429 |
Depreciation – plant, equipment and mining
properties |
|
|
2,289,545 |
1,992,853 |
Release of inventory impairment
provision |
|
|
(500,000) |
— |
Provision for taxation |
|
|
213,379 |
329,080 |
Share based payments |
|
|
65,485 |
167,293 |
Foreign exchange |
|
|
21,851 |
(68,424) |
Changes in
working capital |
|
|
|
|
|
Decrease / (Increase) in
inventories |
|
|
2,737,810 |
1,470,683 |
|
(Increase) / increase
in receivables, prepayments and accrued income |
|
(736,605) |
(499,348) |
|
Increase /
(decrease) in payables, accruals and provisions |
|
538,494 |
(129,853) |
Net cash inflow from operations |
|
|
6,501,626 |
3,096,929 |
|
|
|
|
|
Investing
activities |
|
|
|
|
Purchase of property,
plant and equipment and assets in construction |
|
|
(389,728) |
(425,694) |
Capitalised mine
development costs |
|
|
(838,310) |
(965,523) |
Geological
exploration expenditure |
|
|
(588,462) |
(568,418) |
Pre-operational
project costs |
|
|
(439,942) |
(793,430) |
Acquisition
payment |
|
|
(1,035,087) |
— |
Proceeds from sale of
assets |
|
|
35,042 |
51,115 |
Interest
received |
|
|
2,217 |
34 |
Net cash outflow on investing activities |
|
|
(3,389,312) |
(2,701,916) |
|
|
|
|
|
Financing
activities |
|
|
|
|
Draw-down of secured
loan |
|
|
— |
3,000,000 |
Repayment of secured
loan |
|
|
— |
(333,333) |
Repayment of finance
lease liabilities |
|
|
(185,605) |
(283,147) |
Interest paid and finance charges |
|
|
(152,796) |
(152,420) |
Net cash inflow / (outflow) from financing
activities |
|
|
(338,401) |
2,231,100 |
|
|
|
|
|
Net increase
/ decrease in cash and cash equivalents |
|
2,873,913 |
(768,093) |
Cash and cash
equivalents at beginning of period |
|
|
9,216,048 |
4,093,866 |
Exchange
difference on cash |
|
|
43,751 |
(24,454) |
Cash and cash equivalents at end of period |
|
|
12,133,713 |
6,695,525 |
Notes
1. Basis of preparationThese
interim condensed consolidated financial statements are for the
three month period ended 31 March 2019. Comparative information has
been provided for the unaudited three month period ended 31
March 2018 and, where applicable, the audited twelve month period
from 1 January 2018 to 31 December 2018. These condensed
consolidated financial statements do not include all the
disclosures that would otherwise be required in a complete set of
financial statements and should be read in conjunction with the
2018 annual report.The condensed consolidated financial statements
for the periods have been prepared in accordance with International
Accounting Standard 34 “Interim Financial Reporting” and the
accounting policies are consistent with those of the annual
financial statements for the year ended 31 December 2018 and those
envisaged for the financial statements for the year ending 31
December 2019.
Accounting standards, amendments and
interpretations effective in 2019The Group has not adopted
any standards or interpretations in advance of the required
implementation dates. As of 1 January 2019, IFRS “16 Leases”,
became effective and requires lessees to recognise all lease assets
and liabilities on the balance sheet for both finance leases and
operating leases. The adoption of IFRS 16 has not had any
significant impact on the Group’s financial statements as the
operating leases held by the Group are of low value and the
majority of the existing contracts either relate to service
agreements or otherwise do not result in right of use assets or
lease liabilities.
These financial statements do not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006.
- Going concern
As at 31 March 2019 the Group had cash in hand
of US$12.1 million and net assets of US$70.2 million. The
Directors have reviewed the forecast cash flow of the Group for the
next 12 months. Based on this forecast, which includes
planned capital and exploration programmes, the Group may not be
able to generate sufficient cash flows to settle, in full, the
deferred consideration of US$12 million payable for the acquisition
of Coringa which falls due in December 2019.
The Directors believe there is a reasonable
prospect of the Group securing further funds as and when required
in order that the Group can meet all liabilities including the
deferred consideration payable for the acquisition of Coringa as
and when they fall due in the next 12 months and have prepared the
financial statements on a going concern basis.
As at the date of this report the outcome of
raising further funds remains uncertain and this represents a
material uncertainty surrounding going concern. If the Group fails
to raise the necessary funds the Group may be unable to realise its
assets and discharge its liabilities in the normal course of
business. The matters explained indicate that a material
uncertainty exists that may cast significant doubt on the Group and
Parent’s ability to continue as a going concern. These financial
statements do not show the adjustments to the assets and
liabilities of the Group or the Parent company if this was to
occur.
(ii) Use of estimates and
judgementsThere have been no material revisions to the
nature and amount of changes in estimates of amounts reported in
the 2018 annual financial statements.
(iii)
Impairment
At each balance sheet date, the Group reviews
the carrying amounts of its property, plant and equipment and
intangible assets to determine whether there is any indication that
those assets have suffered impairment. Prior to carrying out of
impairment reviews, the significant cash generating units are
assessed to determine whether they should be reviewed under the
requirements of IFRS 6 - Exploration for and Evaluation of Mineral
Resources or IAS 36 - Impairment of Assets. Such determination is
by reference to the stage of development of the project and the
level of reliability and surety of information used in calculating
value in use or fair value less costs to sell. Impairment reviews
performed under IFRS 6 are carried out on a project by project
basis, with each project representing a potential single cash
generating unit. An impairment review is undertaken when indicators
of impairment arise; typically when one of the following
circumstances applies:
(i)
sufficient data exists that render the resource uneconomic and
unlikely to be developed
(ii)
title to the asset is compromised
(iii)
budgeted or planned expenditure is not expected in the foreseeable
future
(iv)
insufficient discovery of commercially viable resources leading to
the discontinuation of activities
Impairment reviews performed under IAS 36 are
carried out when there is an indication that the carrying value may
be impaired. Such key indicators (though not exhaustive) to the
industry include:
(i)
a significant deterioration in the spot price of gold
(ii) a
significant increase in production costs
(iii) a
significant revision to, and reduction in, the life of mine
plan
If any indication of impairment exists, the
recoverable amount of the asset is estimated, being the higher of
fair value less costs to sell and value in use. In assessing value
in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks
specific to the asset for which the estimates of future cash flows
have not been adjusted.
If the recoverable amount of an asset (or
cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash-generating unit)
is reduced to its recoverable amount. Such impairment losses are
recognised in profit or loss for the year.
Where an impairment loss subsequently reverses,
the carrying amount of the asset (or cash-generating unit) is
increased to the revised estimate of its recoverable amount, but so
that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been
recognised for the asset (or cash-generating unit) in prior years.
A reversal of an impairment loss is recognised in profit or loss
for the year.
2. Finance Costs
|
3 months ended31 March
2019(unaudited) |
3 months ended31 March 2018 (unaudited) |
|
US$ |
US$ |
Interest expense on secured loan |
(149,584) |
(152,420) |
Unwinding of discount on acquisition payment |
(261,521) |
(237,746) |
Arrangement fee for secured loan |
— |
(90,000) |
Charge on revaluation of derivatives |
— |
(45,207) |
Amortisation of fair value of derivatives |
— |
(65,000) |
|
(411,105) |
(590,373) |
Income on revaluation of derivatives |
136,842 |
— |
Interest income |
2,217 |
34 |
Net finance expense |
(272,046) |
(590,339) |
3. Taxation
The Group has recognised a deferred tax asset to
the extent that the Group has reasonable certainty as to the level
and timing of future profits that might be generated and against
which the asset may be recovered. The Group has released the
amount of US$145,012 as a deferred tax charge during the three
month period to 31 March 2019.
The Group has also incurred a tax charge for the
period in Brazil of US$68,367.
4. Earnings per share
|
|
3 months ended31 March
2019(unaudited) |
3 months ended31 March 2018 (unaudited) |
Profit / (loss) attributable to ordinary shareholders (US$) |
|
|
1,549,962 |
10,786 |
Weighted average ordinary shares in issue |
|
|
58,909,551 |
35,016,000 |
Basic profit / (loss)
per share (US cents) |
|
|
2.6311 |
0.0308 |
Diluted ordinary shares in issue |
|
|
62,346,301 |
36,752,750 |
Diluted profit/ (loss)
per share (US cents) |
|
|
2.4861 |
0.02935 |
(1)
On 19 June 2018, the Group completed a capital reorganisation with
every 20 existing shares being consolidated into one new
share. For comparative purpose the weighted average ordinary
shares in issue and the diluted ordinary shares in issue for the
three month period ended 31 March 2018, has been adjusted to
reflect the share consolidation of 20 existing shares being
consolidated into one new share.
Enquiries:
Serabi Gold plc |
|
Michael Hodgson |
Tel: +44 (0)20 7246 6830 |
Chief Executive |
Mobile: +44 (0)7799 473621 |
|
|
Clive Line |
Tel: +44 (0)20 7246 6830 |
Finance Director |
Mobile: +44 (0)7710 151692 |
|
|
Email: contact@serabigold.com |
|
Website: www.serabigold.com |
|
|
|
Beaumont Cornish LimitedNominated Adviser
and Financial Adviser |
|
Roland Cornish |
Tel: +44 (0)20 7628 3396 |
Michael Cornish |
Tel: +44 (0)20 7628 3396 |
|
|
Peel Hunt LLPUK Broker |
|
Ross Allister |
Tel: +44 (0)20 7418 9000 |
James Bavister |
Tel: +44 (0)20 7418 9000 |
Copies of this announcement are available from
the Company's website at www.serabigold.com.
Neither the Toronto Stock Exchange, nor any
other securities regulatory authority, has approved or disapproved
of the contents of this announcement.
The Company will, in compliance with Canadian
regulatory requirements, post the Unaudited Interim Financial
Statements and the Management Discussion and Analysis for the three
month period ended 31 March 2019 on SEDAR at www.sedar.com.
These documents will also available from the Company’s website –
www.serabigold.com.
Serabi’s Directors Report and Financial
Statements for the year ended 31 December 2018 together the
Chairman’s Statement and the Management Discussion and Analysis,
are available from the Company’s website – www.serabigold.com and
on SEDAR at www.sedar.com.
This announcement is inside information for the purposes
of Article 7 of Regulation 596/2014. The person who arranged for
the release of this announcement on behalf of the Company was Clive
Line, Director.
GLOSSARY OF TERMSThe following
is a glossary of technical terms: “Au” means gold. “assay” in
economic geology, means to analyse the proportions of metal in a
rock or overburden sample; to test an ore or mineral for
composition, purity, weight or other properties of commercial
interest.“development” - excavations used to establish access to
the mineralised rock and other workings.“doré – a semi-pure alloy
of gold silver and other metals produced by the smelting process at
a mine that will be subject to further refining.“DNPM” is the
Departamento Nacional de Produção Mineral.“grade” is the
concentration of mineral within the host rock typically quoted as
grammes per tonne (g/t), parts per million (ppm) or parts per
billion (ppb).“g/t” means grammes per tonne.“granodiorite” is an
igneous intrusive rock similar to granite.“igneous” is a rock that
has solidified from molten material or magma.“Intrusive” is a body
of igneous rock that invades older rocks.“on-lode development” -
Development that is undertaken in and following the direction of
the Vein. “mRL” – depth in metres measured relative to a fixed
point – in the case of Palito and Sao Chico this is
sea-level. The mine entrance at Palito is at
250mRL.“saprolite” is a weathered or decomposed clay‐rich
rock.“stoping blocks” – a discrete area of mineralised rock
established for planning and scheduling purposes that will be mined
using one of the various stoping methods. “Vein” is a generic
term to describe an occurrence of mineralised rock within an area
of non-mineralised rock.
Qualified Persons StatementThe
scientific and technical information contained within this
announcement has been reviewed and approved by Michael Hodgson, a
Director of the Company. Mr Hodgson is an Economic Geologist by
training with over 26 years' experience in the mining industry. He
holds a BSc (Hons) Geology, University of London, a MSc Mining
Geology, University of Leicester and is a Fellow of the Institute
of Materials, Minerals and Mining and a Chartered Engineer of the
Engineering Council of UK, recognising him as both a Qualified
Person for the purposes of Canadian National Instrument 43-101 and
by the AIM Guidance Note on Mining and Oil & Gas Companies
dated June 2009.
Forward Looking
StatementsCertain statements in this announcement are, or
may be deemed to be, forward looking statements. Forward looking
statements are identified by their use of terms and phrases such as
‘‘believe’’, ‘‘could’’, “should” ‘‘envisage’’, ‘‘estimate’’,
‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘will’’ or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward looking statements are not based on
historical facts but rather on the Directors’ current expectations
and assumptions regarding the Company’s future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements reflect the Directors’ current beliefs
and assumptions and are based on information currently available to
the Directors. A number of factors could cause actual results to
differ materially from the results discussed in the forward looking
statements including risks associated with vulnerability to general
economic and business conditions, competition, environmental and
other regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with such
forward looking statements.
ENDS
- Press Release - Q1 results 2019
- Q1 2019 Financial Statements
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