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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Serabi Gold Plc | LSE:SRB | London | Ordinary Share | GB00BG5NDX91 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -3.00 | -4.69% | 61.00 | 60.00 | 62.00 | 64.00 | 61.00 | 64.00 | 212,111 | 15:18:21 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 58.71M | -983k | -0.0130 | -46.92 | 46.2M |
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For immediate release
14 August 2017
Serabi Gold plc
("Serabi" or the "Company")
Unaudited Interim Financial Results for the three and six month periods
to 30 June 2017 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 and six month periods ending 30 June 2017 and at
the same time has published its Management's Discussion and Analysis for
the same period.
Key Financial Information
SUMMARY FINANCIAL STATISTICS FOR THE THREE AND SIX
MONTHSING 30 JUNE 2017
3 months to 6 months to 3 months to 6 months to
30 June 2017 30 June 2017 30 June 2016 30 June 2016
US$ US$ US$ US$
Revenue 10,142,676 23,316,260 14,232,086 25,911,175
Cost of Sales (6,849,960) (16,862,310) (8,923,316) (15,612,822)
Depreciation and
amortisation
charges (2,710,157) (4,610,861) (2,428,213) (3,644,940)
Gross profit 582,559 1,843,089 2,880,557 6,653,413
Profit / (loss)
before tax (794,176) (827,667) 60,924 1,562,228
Profit after tax (891,637) (1,005,680) (341,483) 1,006,182
Earnings per
ordinary share
(basic) (0.13c) (0.15c) (0.05c) 0.15c
Average gold price
received US$1,221 US$1,216
As at As at
30 June 2017 31 Dec 2016
Cash and cash
equivalents 3,832,218 4,160,923
Net assets 61,894,630 63,378,973
Cash Cost and
All-In Sustaining
Cost ("AISC")
6 months to 6 months to
30 June 2017 30 June 2016
Gold production
for cash cost and
AISC purposes 18,009 19,667
Total Cash Cost of US$819 US$763
production (per
ounce)
Total AISC of US$1,072 US$945
production (per
ounce)
Key Operational Information
SUMMARY PRODUCTION STATISTICS FOR THE TWO QUARTERS
TO 30 JUNE 2017
Year
Quarter Quarter to Quarter Quarter Quarter Quarter
1 2 Date 1 2 3 4 Total
2017 2017 2017 2016 2016 2016 2016 2016
Horizontal
development
- Total Metres 2,251 1,855 4,106 2,925 2,941 2,649 2,694 11,209
Mined ore -
Total Tonnes 36,918 42,075 78,993 37,546 33,606 43,133 44,579 158,864
Gold
grade
(g/t) 10.12 7.80 8.89 11.02 9.56 9.61 8.94 9.74
Milled ore Tonnes 46,663 43,905 90,568 36,615 39,402 42,464 40,485 158,966
Gold
grade
(g/t) 7.09 6.26 6.69 8.58 8.17 8.08 7.60 8.11
Gold
production
(1) (2) Ounces 9,861 8,148 18,009 9,771 9,896 10,310 9,413 39,390
1. 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.
2. Gold production totals for the first six months of 2017 include treatment
of 4,042 tonnes of flotation tails.
Financial Highlights
-- Cash Cost for the year to date of US$819.
-- All-In Sustaining Cost for the year to date of US$1,072.
-- Temporary operational issues in Q2 2017, which have now been fully
resolved, restricted production and, in combination with a strengthening
Brazilian Real, impacted financial results for the first half of the
year.
-- Gross profit from operations for the first six months of 2017 of US$1.84
million.
-- Loss per share of 0.15 cents for the first six months of 2017.
-- Cash holdings of US$3.83 million at 30 June 2017.
-- The Company has entered into a new US$5 million facility with Sprott
Resource Lending Partnership for a term expiring on 31 December 2019.
-- Average gold price of US$1,221 received on gold sales in the first six
months of 2016.
2017 Guidance
-- Serabi remains on track to meet forecast gold production for 2017 of
approximately 40,000 ounces at an All-In Sustaining Cost of US$950 to
US$975 per ounce.
Operational Highlights
-- Second quarter production of 8,148 ounces of gold.
-- Mine production totalled 42,075 tonnes at 7.80 grammes per tonne ("g/t")
of gold.
-- 43,905 tonnes processed through the plant for the combined mining
operations, with an average grade of 6.26 g/t of gold.
-- 1,855 metres of horizontal mine development completed in the quarter.
-- At the Palito sector, expansion of working areas continues, with
development and production now coming from eight veins from the 25
included in the geological resource. The main ramp has now reached the
-50 metre relative level ("mRL"), with the G3 vein intersected, the
deepest working area in the deposit. To date grades have been very
encouraging.
-- At the Sao Chico sector, the main ramp has now been deepened to the 40mRL,
approximately 200 vertical metres below surface. Production is coming
from the 140mRL and 128mRL levels with levels 116mRL, 100mRL, 86mRL,
70mRL, 56mRL and with the 40mRL now being developed, development remains
well ahead of production.
-- By the end of the second quarter, surface ore stocks were approximately
12,000 tonnes (31 March 2017: 13,000 tonnes) with an average grade of
3.15 g/t of gold.
-- SRK Ltd hired to commence a new 43-101 Technical Report on the property,
hopefully to be issued early Q4, 2017.
Mike Hodgson, CEO of Serabi commented,
"As I noted in the Company's announcement of its second quarter
production, the Company has achieved mid-year production of over 18,000
ounces of gold and I remain very satisfied with the production results
for the year to date and the prospects for the rest of the year.
"The operational issues that we encountered and restricted gold
production in April and May, are now fully resolved, and June and July
has seen production levels return to those levels that we achieved
through much of 2016 and during the first quarter of 2017. Furthermore,
the month of July was the highest monthly production for the year to
date and I remain confident that we can recover shortfall over the
remainder of the year and will be able to meet our full year production
guidance of 40,000 ounces.
"Nonetheless, in the short term, the production shortfalls during that
six week period have impacted on our financial results for the second
quarter of the year. Whilst at the operating level the Company has
reported a gross profit of approximately US$580,000 and a gross profit
to date of US$1.8 million, revenue is probably some US$2 million lower
than we might have expected had production in the second quarter
mirrored that of the first quarter of 2017. That being said, if, I as I
expect, we recover this lost production through the second half of the
year, we should recover the lost revenue and cash flow with relatively
low increase in operating cost and therefore see a stronger financial
performance in the second half of the year.
"The results when compared against 2016 have also been adversely
affected by the relative strength of the Brazilian Real. The average
rate for the first six months of 2017 is 14 per cent stronger than for
the same period in 2016 which has the effect of increasing operating
costs when reported in US Dollars. In fact, when looked at in local
currency terms, our operating costs are in fact tracking slightly lower
than in 2016 notwithstanding that the mined and processed ore tonnages
have been higher in the first six months of 2017 than for the same six
months period in 2016.
"Our cash balances remain relatively strong but again the production
shortfalls have not allowed us to build up our cash balances to the
extent that we had hoped although considering timing differences of
sales receipts, particularly in relation to sales of concentrate, the
cash position is approximately US$1 million better than at the start of
the year.
"The Company has, at the period end, taken out a new working capital
loan facility with Sprott Resource Lending Partnership of US$5 million
which is for a 30 month period. The new funding from this was not,
however, received until early July so is not reflected in our cash
holdings as at 30 June 2017. This loan funding will allow the Company to
expedite some of its capital investment programmes that it feels will
improve operations and bring costs efficiencies in the medium term and
thus reduce unit production costs.
"Some of the areas of investment focus on improving the quality of the
mill feed. This includes a reduction in the size of the underground
development drives and continuing the trials on ore sorting using x-ray
technology to further eliminate waste and low grade ore in the mill feed
before it enters the plant.
"Despite our success with narrow vein mining, development still produces
high and unavoidable levels of low grade and waste material. This not
only increases costs but this waste material consumes vital capacity
within the process plant. Reducing the size of underground development
galleries is now more of a reality with the availability of numerous
suppliers manufacturing smaller units of equipment than were available
when we re-opened Palito in 2013. The idea is to initially purchase two
to three units for trial and, if successful, more to follow.
"These ore sorting initiatives are very exciting and, I feel, could
bring a paradigm shift to vein mining in the region. We will seek to
reduce as much dilution as we can in the mining process, but inevitably
cannot remove all of it. If ore sorting can be successfully introduced
the ramifications are very significant, with the potential to reduce
feed tonnage and concurrently increase the grade of the ore delivered to
the process plant."
SERABI GOLD PLC
Condensed Consolidated Statements of Comprehensive Income
For the three months ended For the six months ended
30 June 30 June
2017 2016 2017 2016
(expressed in US$) Notes (unaudited) (unaudited) (unaudited) (unaudited)
CONTINUING OPERATIONS
Revenue 10,142,676 14,232,086 23,316,260 25,911,175
Cost of sales (6,849,960) (8,923,316) (16,642,310) (15,612,822)
Provision for Impairment of Inventory - - (220,000) -
Depreciation of plant and equipment (2,710,157) (2,428,213) (4,610,861) (3,644,940)
Gross profit 582,559 2,880,557 1,843,089 6,653,413
Administration expenses (1,178,903) (1,412,120) (2,420,358) (2,544,320)
Share based payments (112,412) (25,640) (178,032) (148,756)
Gain on disposal of assets 115,975 24,401 115,975 26,969
Operating profit (592,781) 1,467,198 (639,326) 3,987,306
Foreign exchange loss (167,236) (31,609) (120,399) (72,408)
Finance expense (34,194) (1,374,699) (68,011) (2,352,739)
Finance income 35 34 69 69
(Loss) / profit before taxation (794,176) 60,924 (827,667) 1,562,228
Income tax expense (97,461) (402,407) (178,013) (556,046)
(Loss) / profit for the period from continuing operations
(1) (2) (891,637) (341,483) (1,005,680) 1,006,182
Other comprehensive income (net of tax)
Items that may be reclassified subsequently to profit
or loss
Exchange differences on translating foreign operations (2,124,542) 5,349,439 (656,695) 9,629,568
Total comprehensive income/(loss) for the period (2) (3,016,179) 5,017,956 (1,662,375) 10,635,750
(Loss) / profit per ordinary share (basic) (1) 3 (0.13c) (0.05c) (0.15c) 0.15c
(Loss) / profit per ordinary share (diluted) (1) 3 (0.13c) (0.05c) (0.15c) 0.14c
(1) All revenue and expenses arise from continuing operations.
SERABI GOLD PLC
Condensed Consolidated Balance Sheets
As at As at As at
30 June 30 June 31 December
2017 2016 2016
(expressed in US$) (unaudited) (unaudited) (audited)
Non-current assets
Deferred exploration costs 9,868,205 9,550,074 9,990,789
Property, plant and equipment 43,557,012 46,927,210 45,396,140
Deferred taxation 3,133,428 - 3,253,630
Total non-current assets 56,558,645 56,477,284 58,640,559
Current assets
Inventories 6,844,757 9,520,851 8,110,373
Trade and other receivables 2,865,877 7,783,763 1,233,049
Prepayments and accrued income 5,166,612 4,348,014 3,696,550
Cash and cash equivalents 3,832,218 4,774,537 4,160,923
Total current assets 18,709,464 26,427,165 17,200,895
Current liabilities
Trade and other payables 5,330,772 6,480,142 4,722,139
Interest bearing loan 1,371,489 2,516,667 1,371,489
Convertible loan facility - 1,892,624 -
Trade and asset finance
facilities 1,338,475 7,608,526 1,592,568
Derivative financial liabilities 650,000 1,577,832 -
Accruals 512,649 443,601 635,446
Total current liabilities 9,203,385 20,519,392 8,321,642
Net current assets 9,506,079 5,907,773 8,879,253
Total assets less current
liabilities 66,064,724 62,385,057 67,519,812
Non-current liabilities
Trade and other payables 2,133,294 2,298,786 2,211,078
Provisions 1,824,472 2,309,908 1,851,963
Interest bearing liabilities 212,328 208,212 77,798
Total non-current liabilities 4,170,094 4,816,906 4,140,839
Net assets 61,894,630 57,568,151 63,378,973
Equity
Share capital 5,540,960 5,263,182 5,540,960
Share premium reserve 1,722,222 - 1,722,222
Option reserve 1,332,578 1,136,509 1,338,652
Other reserves 3,404,624 361,461 3,051,862
Translation reserve (31,264,543) (29,596,967) (30,607,848)
Retained earnings 81,158,789 80,403,966 82,333,125
Equity shareholders' funds 61,894,630 57,568,151 63,378,973
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 2016 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 but did contain an Emphasis of Matter with respect to the
Company and the Group regarding Going Concern. The auditor's report did
not contain a statement under Section 498 (2) or 498 (3) of the
Companies Act 2006.
SERABI GOLD PLC
Condensed Consolidated Statements of Changes in Shareholders' Equity
Share
(expressed in US$) Share Share option Other Translation Accumulated
reserves Total
capital premium reserve (1) reserve loss equity
Equity shareholders' funds at 31 December
2015 (audited) 5,263,182 - 2,747,415 450,262 (39,226,535) 77,549,321 46,783,645
Foreign currency adjustments - - - - 9,629,568 - 9,629,568
Profit for the period - - - - - 1,006,182 1,006,182
Total comprehensive income for the period - - - - 9,629,568 1,006,182 10,635,750
Warrants lapsed - - - (88,801) - 88,801 -
Share options lapsed in period - - (1,759,662) - - 1,759,662 -
Share option expense - - 148,756 - - - 148,756
Equity shareholders' funds at 30 June 2016
(unaudited) 5,263,182 - 1,136,509 361,461 (29,596,967) 80,403,966 57,568,151
Foreign currency adjustments - - - - - - -
Loss for the period - - - - - - -
Total comprehensive income for the period - - - - - - -
Transfer to taxation reserve - - - 2,690,401 - (2,690,401) -
Shares Issued in period 277,778 1,722,222 - - - - 2,000,000
Release of fair value provision on
convertible loan - - - - - 1,195,450 1,195,450
Share option expense - - - - - - -
Equity shareholders' funds at 31 December
2016 (audited) 5,540,960 1,722,222 1,338,652 3,051,862 (30,607,848) 82,333,125 63,378,973
Foreign currency adjustments - - - - (656,695) - (656,695)
Loss for the period - - - - - (1,005,680) (1,005,680)
Total comprehensive income for the period - - - - (656,695) (1,005,680) (1,662,375)
Transfer to taxation reserve - - - 352,762 - (352,762) -
Share options lapsed in period - - (184,106) - - 184,106 -
Share option expense - - 178,032 - - - 178,032
Equity shareholders' funds at 30 June 2017
(unaudited) 5,540,960 1,722,222 1,332,578 3,404,624 (31,264,543) 81,158,789 61,894,630
1. Other reserves comprise a merger reserve of US$361,461 and a taxation
reserve of US$2,337,639 (31 December 2016: merger reserve of US$361,461
and a taxation reserve of US$2,690,401)
SERABI GOLD PLC
Condensed Consolidated Cash Flow Statements
For the three months For the six months
ended ended
30 June 30 June
2017 2016 2017 2016
(expressed in US$) (unaudited) (unaudited) (unaudited) (unaudited)
Operating activities
Operating (loss)/profit (891,637) (341,483) (1,005,680) 1,006,182
Depreciation - plant, equipment and mining properties 2,710,157 2,428,213 4,610,861 3,644,940
Net financial expense 201,395 1,406,273 188,341 2,425,077
Provision for impairment of inventory - - 220,000 -
Provision for Taxation 97,461 402,407 178,013 556,046
Share-based payments 112,412 25,639 178,032 148,756
Foreign exchange (loss) / gain (84,778) (302,227) 40,560 169,676
Changes in working capital
(Increase)/decrease in inventories (483,319) 1,189,635 987,364 (780,741)
(Increase) in receivables, prepayments and accrued
income (333,475) (2,073,657) (2,577,285) (2,764,970)
Increase/(decrease) in payables, accruals and
provisions 894,832 (22,698) 3,589 1,479,848
Net cash inflow from operations 2,223,048 2,712,102 2,823,795 5,884,814
Investing activities
Purchase of property, plant and equipment and projects
in construction (815,924) (1,463,710) (1,083,839) (2,127,671)
Mine development expenditures (877,530) (729,010) (1,964,320) (1,249,151)
Exploration and other development expenditure 21 - (2,500) -
Proceeds from sale of assets 115,975 24,401 115,975 26,969
Interest received 35 34 69 69
Net cash outflow on investing activities (1,577,423) (2,168,285) (2,934,615) (3,349,784)
Financing activities
Repayment of short-term secured loan - (1,333,333) - (1,333,333)
Draw-down of short-term convertible loan facility - - - 2,000,000
Receipts from short-term trade finance - 6,750,809 - 11,901,098
Repayment of short-term trade finance - (5,194,131) - (11,509,875)
Payment of finance lease liabilities (132,164) (169,793) (132,164) (381,521)
Interest paid and other finance costs (55,807) (272,937) (67,455) (498,332)
Net cash (outflow)/ inflow from financing activities (187,971) (219,385) (199,619) 178,037
Net increase / (decrease) in cash and cash equivalents 457,654 324,432 (310,439) 2,713,068
Cash and cash equivalents at beginning of period 3,407,117 4,410,589 4,160,923 2,191,759
Exchange difference on cash (32,553) 39,516 (18,266) (130,289)
Cash and cash equivalents at end of period 3,832,218 4,774,537 3,832,218 4,774,537
Notes
1. General Information
The financial information set out above 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. A copy of the statutory accounts for
2016 has been filed with the Registrar of Companies following their
adoption by shareholders at the last Annual General Meeting. The full
audited financial statements, for the year end 31 December 2016, do
comply with IFRS.
2. Basis of Preparation
These interim condensed consolidated financial statements are for the
three and six month periods ended 30 June 2017. Comparative information
has been provided for the unaudited three and six month periods ended 30
June 2016 and, where applicable, the audited twelve month period from 1
January 2016 to 31 December 2016. 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 2016 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 2016 and those envisaged for the financial statements for the
year ending 31 December 2017. The Group has not adopted any standards or
interpretation in advance of the required implementation dates. It is
not anticipated that the adoption in the future of the new or revised
standards or interpretations that have been issued by the International
Accounting Standards Board will have a material impact on the Group's
earnings or shareholders' funds.
These financial statements do not constitute statutory accounts as
defined in Section 434 of the Companies Act 2006.
1. Going concern
On 1 February 2016, the Group announced that, with effect from 1 January
2016, the Sao Chico Mine had achieved Commercial Production. The Palito
Mine has been in Commercial Production since 1 July 2014.
The Directors anticipate the Group now has access to sufficient funding
for its immediate projected needs. The Group expects to have sufficient
cash flow from its forecast production to finance its on-going
operational requirements, to repay its secured loan facilities and to,
at least in part, fund exploration and development activity on its other
gold properties. The secured loan facility was repayable by 31 August
2017 and at 31 June 2017, the amount outstanding under this facility was
US$1.37 million (31 December 2016: US$1.37 million). On 30 June the
Group completed a re-negotiation of an increased secured loan facility
of US$5 million (including the existing loan to US$1.37 million). The
new facility is repayable by 31 December 2019 and the incremental funds
were received by the Company on 5 July 2017.
The Directors consider that the Group's operations are performing at the
levels that they anticipate, but the Group remains a small scale gold
producer with limited cash resources to support any unplanned
interruption or reduction in gold production, unforeseen reductions in
the gold price, or appreciation of the Brazilian currency, all of which
could adversely affect the level of free cash flow that the Group can
generate on a monthly basis. In the event that the Group is unable to
generate sufficient free cash flow to meet its financial obligations as
they fall due, or to allow it to finance exploration and development
activity on its other gold properties, additional sources of finance may
be required. Should additional working capital be required the
Directors consider that further sources of finance could be secured
within the required timescale.
On this basis, the Directors have therefore concluded that it is
appropriate to prepare the financial statements on a going concern
basis. However, there is no certainty that such additional funds either
for working capital or for future development will be forthcoming and
these conditions indicate the existence of a material uncertainty, which
may cast significant doubt over the Group's ability to continue as a
going concern and, therefore, that it may be unable to realise its
assets and discharge its liabilities in the normal course of business.
The condensed consolidated financial statements do not include the
adjustments that would result if the Group was unable to continue as a
going concern.
(ii) Use of estimates and judgements
There have been no material revisions to the nature and amount of
changes in estimates of amounts reported in the 2016 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.
3. Earnings per share
3 months ended 30 June 2017 3 months ended 30 June 2016 6 months ended 30 June 2017 6 months ended 30 June 2016
US$ US$ US$ US$
(unaudited) (unaudited) (unaudited) (unaudited)
(Loss)/profit attributable to ordinary shareholders
(US$) (891,637) (341,483) (1,005,680) 1,006,182
Weighted average ordinary shares in issue 698,701,772 656,389,204 698,701,772 656,389,204
Basic (loss)/profit per share (US cents) (0.13) (0.05) (0.14) 0.15
Diluted ordinary shares in issue(1) 698,701,772 656,389,204 698,701,772 706,299,204
Diluted (loss)/profit per share
(US cents) (0.13)(2) (0.05)(2) (0.14)(2) 0.14
1. Assumes the exercise of 49,910,000 share options that were in issue but
not necessarily vested as at 31 March 2017.
2. As the effect of dilution is to reduce the loss per share, the diluted
loss per share is considered to be the same as the basic loss per share
4. Post balance sheet events
On 30 June 2017 the Company entered into a new secured loan agreement
with Sprott Resource Lending Partnership for US$5.0 million (to include
the amount of US$1.37 million outstanding as at that date), repayable on
or before 31 December 2019. Whilst the documentation was signed on 30
June 2017, the additional funds were not send or received until 5 July
2017 and accordingly no liability for the increased level of the loan
was recognized in these financial statements.
Other than as set out above between the end of the financial period and
the date of this management discussion and analysis, there has been no
item, transaction or event of a material or unusual nature likely, in
the opinion of the Directors of the Group, to affect significantly the
continuing operations of the entity, the results of these operations, or
the state of affairs of the entity in future financial periods.
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 Limited
Nominated Adviser and Financial Adviser
Roland Cornish Tel: +44 (0)20 7628 3396
Michael Cornish Tel: +44 (0)20 7628 3396
Peel Hunt LLP
UK Broker
Matthew Armitt Tel: +44 (0)20 7418 9000
Ross Allister Tel: +44 (0)20 7418 9000
Blytheweigh
Public Relations
Tim Blythe Tel: +44 (0)20 7138 3204
Camilla Horsfall Tel: +44 (0)20 7138 3224
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 2017
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 2016 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.
GLOSSARY OF TERMS
The 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 grams per tonne (g/t), parts per million (ppm) or parts per
billion (ppb).
"g/t" means grams 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 Statement The 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 Statements Certain 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 This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients. The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Serabi Gold plc via Globenewswire http://www.serabigold.com
(END) Dow Jones Newswires
August 14, 2017 02:00 ET (06:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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