ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

SRB Serabi Gold Plc

67.50
3.00 (4.65%)
28 Mar 2024 - Closed
Delayed by 15 minutes
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 4.65% 67.50 67.00 68.00 67.50 64.50 64.50 153,855 12:35:15
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Gold Ores 58.71M -983k -0.0130 -51.92 51.12M

Serabi Gold plc Serabi Gold Plc : Unaudited Interim Financial Results For The Three Month Period To 31 March 2018

15/05/2018 7:00am

UK Regulatory


 
TIDMSRB 
 
   For immediate release 
 
   15 May 2018 
 
   Serabi Gold plc 
 
   ("Serabi" or the "Company") 
 
   Unaudited Interim Financial Results for the three month period to 31 
March 2018 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 2018 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 MONTHSING 31 MARCH 2018 
                          3 months to 
                            31 March      12 months to        3 months to 
                              2018       31 December 2017    31 March 2017 
                               US$             US$                US$ 
Revenue                     13,826,851         48,449,868         13,173,584 
Cost of Sales              (9,489,102)       (32,015,498)        (9,792,350) 
Provision for impairment 
 of inventory                        -          (950,000)          (220,000) 
Depreciation and 
 amortisation charges      (1,992,853)       (10,465,283)        (1,900,704) 
Gross profit                 2,344,896          5,019,087          1,260,530 
 
(Loss) / profit before 
 tax                           339,866        (1,745,503)           (33,941) 
(Loss) / profit after 
 tax                            10,786        (2,397,903)          (114,043) 
Earnings per ordinary 
share (basic)             0.0015 cents      (0.343 cents)      (0.016 cents) 
 
Average gold price 
received                      US$1,319           US$1,244           US$1,204 
 
                                                    As at 
                                                 31 March              As at 
                                                     2018   31 December 2017 
                                                    (US$)              (US$) 
Cash and cash 
 equivalents                                    6,695,525          4,093,866 
Net assets                                     60,614,360         60,770,712 
 
Cash Cost and All-In 
Sustaining Cost 
("AISC") 
                           3 months to       12 months to        3 months to 
                           31 Mar 2018   31 December 2017      31 March 2017 
Gold production for cash 
 cost and AISC purposes          9,188             37,004              9,861 
 
Total Cash Cost of              US$907             US$799             US$800 
 production (per ounce) 
Total AISC of production      US$1,166           US$1,071           US$1,043 
 (per ounce) 
 
 
 
 
 
   Key Operational Information 
 
 
 
 
              SUMMARY PRODUCTION STATISTICS FOR 2018 YEAR TO DATE 
               AND 2017 
                                  Year 
                                   to 
                         Qtr 1    Date   Qtr 1   Qtr 2   Qtr 3   Qtr 4    Total 
                         2018     2018    2017    2017    2017    2017    2017 
Horizontal 
 development 
 - Total      Metres      2,353   2,353   2,251   1,855   2,996   2,762    9,864 
 
Mined ore - 
 Total        Tonnes     39,669  39,669  36,918  41,684  41,263  49,011  168,876 
 Gold grade (g/t)          7.49    7.49   10.12    7.80    9.80    8.25     8.92 
 
Milled ore    Tonnes     43,145  43,145  41,722  43,294  44,205  43,345  172,565 
 Gold grade (g/t)          7.04    7.04    7.62    6.29    7.28    7.27     7.11 
Gold 
 production 
 (1) (2)      Ounces      9,188   9,188   9,861   8,148   9,657   9,337   37,004 
 
 
   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 2018 include treatment of 1,763 tonnes of 
      flotation tails at a grade of 2.70 g/t (2017 full year : 4,568 tonnes) 
 
   3. The table may not sum due to rounding. 
 
 
   Financial Highlights 
 
 
   -- Concluding, in January 2018, an additional US$3 million loan with Sprott 
      Resource Lending Partnership ("Sprott"). 
 
   -- Gross profit from operations of US$2.3 million (Q1 2017  US$1.3 million) 
 
   -- Cash holdings at 31 March 2018 of US$6.7 million (31 December 2017: 
      US$4.09 million). 
 
   -- Completion, on 12 April 2018, of a share subscription by Greenstone 
      Resources LP raising US$15 million. 
 
   -- Announcement, on 29 March 2018, of a brokered share placing raising gross 
      proceeds of GBP6.36 million, which is expected to complete on 15 May 
      2018. 
 
   -- Payment, on 16 April 2018, of second US$5 million instalment for the 
      purchase of Chapleau Resource Ltd and the Coringa Gold Project. 
 
   -- Estimated cash following completion of brokered share placing of 
      approximately US$23 million. 
 
 
   2018 Guidance 
 
 
   -- Management expects that gold production for 2018 will exceed that of 2017 
      and be up to 40,000 ounces. 
 
 
   Operational Highlights 
 
 
   -- First quarter production of 9,188 ounces of gold. 
 
   -- Mine production totalling 39,669 tonnes at 7.49 grammes per tonne ("g/t") 
      of gold. 
 
   -- 43,145 tonnes processed through the plant for the combined mining 
      operations, with an average grade of 7.04 g/t of gold. 
 
   -- 2,353 metres of horizontal mine development completed during the quarter. 
 
   -- Palito development and production continues to focus on the four main 
      sectors of Senna, Pipocas, G3 and Mogno, whilst in the Sao Chico orebody, 
      the main ramp has now reached level -3mRL, approximately 260 vertical 
      metres below surface.   Production is coming from levels 86mRL, 70mRL and 
      56mRL.  With levels 40mRL, 26mRL and 10mRL all either developed or being 
      developed, ahead of production. 
 
   -- By the end of the quarter, surface ore stocks were approximately 10,200 
      tonnes, (December 2017:  15,000 tonnes) with an average grade of 3.0 g/t 
      of gold, together with approximately 40,000 tonnes of flotation tailings 
      grading approximately 3.0 g/t of gold. 
 
 
 
 
 
 
 
 
 
   Mike Hodgson, CEO of Serabi commented, 
 
 
 
   "This first quarter of 2018 has been extremely exciting for the Company 
and represents a step change in its growth and development. 
 
 
 
   "Gold production was in line with both guidance and our internal plans 
and, after allowing for capital expenditure and mine development costs, 
the gold production operations generated approximately US$1.7 million 
after tax in cash flow which has been used to fund the exploration 
programmes and the working capital requirements of the newly acquired 
Coringa project. 
 
 
 
   "On 11 May 2018, shareholders of the Company approved the issue of new 
shares required to complete the placing of shares arranged through our 
brokers Peel Hunt LLP as announced on 29 March 2018. This share placing 
is due to be finally completed and funds received on 15 May 2018. 
Together with the placing of shares with Greenstone Resources which was 
completed in April the Company will have raised gross proceeds of 
approximately US$23.5 million. 
 
 
 
   "We are now well funded, the exploration programmes that we have been 
planning are being implemented, and the permitting and planning of the 
Coringa project being progressed. 
 
 
 
   "The financial results for the quarter are very satisfying, and even 
before the cash received form the share issues, cash holdings had grown 
from US$4.1million at the end of 2017 to US$6.7 million at the end the 
first quarter, whilst gross profit from operations improved from US$1.26 
million for the same quarter in 2017 to US$2.34 million for the first 
quarter of 2018. Administration costs were slightly higher but the 
Company has incurred some one-off costs in the period, including costs 
associated with the acquisition of Coringa, the debt renegotiation with 
Sprott that was completed in January 2018 and of course some costs 
associated with the raising of new equity. 
 
 
 
   "Finance costs are significantly higher than the comparative quarter, 
but in fact many of these are non-cash items, with actual interest 
charges on loans being US$152,000, with US$348,000 arising from 
accounting treatment of a derivatives transaction and the future payment 
obligations for Coringa. 
 
 
 
   "Whilst we have past tax losses, regulations regarding the use of these 
mean our profits in Brazil remain subject to profits taxes. We benefit 
however from being in a designated development area and therefore enjoy 
a lower tax rate than for other parts of the county. This dispensation 
was recently renewed for a further 10 year period and is something that 
we will seek to have extended to the Coringa project when the project is 
in production. 
 
 
 
   "The rest of the year promises to be very interesting and we expect to 
generate steady positive news flow from a successful exploration 
campaign from Palito and Sao Chico as well as progress at Coringa. The 
new funds that have been raised will allow significant acceleration of 
our organic growth plans and outstanding capital programmes whilst 
continuing the progress at Coringa, where completing the first stages of 
the initial permitting remains the immediate objective.  We have made 
the first significant steps to realising our ambition to establish 
ourselves as a significant gold producer in Brazil with a target of an 
annualised production rate of 100,000 ounces within the next two years." 
 
 
 
 
 
 
 
   SERABI GOLD PLC 
 
   Condensed Consolidated Statements of Comprehensive Income 
 
 
 
 
                                                                    For the three months ended 
                                                                             31 March 
                                                                       2018           2017 
(expressed in US$)                                          Notes  (unaudited)    (unaudited) 
CONTINUING OPERATIONS 
Revenue                                                              13,826,851      13,173,584 
Cost of sales                                                       (9,489,101)     (9,792,350) 
Provision for impairment of Inventory                                         -       (220,000) 
Depreciation and amortisation charges                               (1,992,853)     (1,900,704) 
Gross profit                                                          2,344,897       1,260,530 
Administration expenses                                             (1,331,424)     (1,241,455) 
Share-based payments                                                   (77,293)        (65,620) 
Gain on sales of assets disposal                                         51,115               - 
Operating profit / (loss)                                               987,295        (46,545) 
Foreign exchange (loss) / gain                                         (57,090)          46,837 
Finance expense                                                       (590,373)        (33,817) 
Finance income                                                               34              34 
Profit / (loss) before taxation                                         339,866        (33,491) 
Income tax expense                                                    (329,080)        (80,552) 
Profit / (loss) for the period from continuing operations 
 attributable to the owners of the parent(1)                             10,786       (114,043) 
 
Other comprehensive income (net of tax) 
Items that may be reclassified subsequently to profit 
 or loss 
Exchange differences on translating foreign operations                (334,431)       1,467,847 
Total comprehensive profit for the period operations 
 attributable to the owners of the parent                             (323,645)       1,353,804 
 
Profit / (loss) per ordinary share (basic) (1)                  3       0.0015c        (0.016c) 
Profit / (loss) per ordinary share (diluted) (1)                3       0.0015c        (0.016c) 
 
   (1) All revenue and expenses arise from continuing operations. 
 
 
 
 
 
   SERABI GOLD PLC 
 
   Condensed Consolidated Balance Sheets 
 
 
 
 
                                     As at         As at         As at 
                                    31 March      31 March    31 December 
                                      2018          2017          2017 
(expressed in US$)                (unaudited)   (unaudited)    (audited) 
Non-current assets 
Deferred exploration costs          25,295,721    10,234,360    23,898,819 
Property, plant and equipment       47,736,835    45,862,328    48,980,381 
Taxes receivable                     1,569,140             -     1,474,062 
Deferred taxation                    2,772,101     3,313,099     2,939,634 
Total non-current assets            77,373,797    59,409,787    77,292,896 
Current assets 
Inventories                          6,160,750     6,534,060     6,934,438 
Trade and other receivables          1,151,999     2,996,060     1,277,142 
Prepayments and accrued income       3,914,034     4,417,677     3,237,412 
Cash and cash equivalents            6,695,525     3,407,117     4,093,866 
Total current assets                17,922,308    17,354,914    15,542,858 
Current liabilities 
Trade and other payables             5,291,005     4,713,274     5,347,964 
Interest bearing liabilities         5,760,390     2,523,787     2,845,712 
Acquisition payment outstanding      5,000,000             -     5,000,000 
Derivative financial liabilities       754,462             -       709,255 
Accruals                               591,830       485,765       614,198 
Total current liabilities           17,397,687     7,722,826    14,517,129 
Net current assets                     524,621     9,632,088     1,025,729 
Total assets less current 
 liabilities                        77,898,418    69,041,875    78,318,625 
Non-current liabilities 
Trade and other payables             2,590,883     2,260,691     2,753,409 
Provisions                           2,157,944     1,904,989     2,047,131 
Acquisition payment outstanding     10,235,707             -     9,997,961 
Interest bearing liabilities         2,299,524        77,798     2,749,412 
Total non-current liabilities       17,284,058     4,243,478    17,547,913 
Net assets                          60,614,360    64,798,397    60,770,712 
Equity 
Share capital                        5,555,775     5,540,960     5,540,960 
Share premium reserve                1,797,407     1,722,222     1,722,222 
Option reserve                       1,111,040     1,404,272     1,425,024 
Other reserves                       4,406,657     3,273,143     4,015,369 
Translation reserve               (31,533,999)  (29,140,001)  (31,199,568) 
Retained surplus                    79,277,480    81,997,801    79,266,705 
Equity shareholders' funds          60,614,360    64,798,397    60,770,712 
 
 
   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 2017 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 PLC 
 
   Condensed Consolidated Statements of Changes in Shareholders' Equity 
 
 
 
 
(expressed in 
US$) 
                                        Share      Other 
                  Share      Share     option    reserves   Translation    Retained       Total 
(unaudited)      capital    premium    reserve      (1)       reserve      Earnings      equity 
Equity 
 shareholders' 
 funds at 31 
 December 
 2016           5,540,960  1,722,222  1,338,652  3,051,862  (30,607,848)   82,333,125   63,378,973 
Foreign 
 currency 
 adjustments            -          -          -          -     1,467,847            -    1,467,847 
Loss for the 
 period                 -          -          -          -             -    (114,043)    (114,043) 
Total 
 comprehensive 
 income for 
 the period             -          -          -          -     1,467,847    (114,043)    1,353,804 
 Transfer to 
  taxation 
  reserve               -          -          -    221,281             -    (221,281)            - 
Share option 
 expense                -          -     65,620          -             -            -       65,620 
Equity 
 shareholders' 
 funds at 31 
 March 2017     5,540,960  1,722,222  1,404,272  3,273,143  (29,140,001)   81,997,801   64,798,397 
Foreign 
 currency 
 adjustments            -          -          -          -   (2,059,567)            -  (2,059,567) 
Loss for the 
 period                 -          -          -          -             -  (2,283,860)  (2,283,860) 
Total 
 comprehensive 
 income for 
 the period             -          -          -          -   (2,059,567)  (2,283,860)  (4,343,427) 
 Transfer to 
  taxation 
  reserve               -          -          -    742,226             -    (742,226)            - 
Share options 
 lapsed in 
 period                 -          -  (294,990)          -             -      294,990            - 
Share option 
 expense                -          -    315,742          -             -            -      315,742 
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)            - 
Share options 
 lapsed in 
 period                 -          -  (391,277)          -             -      391,277            - 
 Shares issued 
  in period        14,815     75,185          -          -             -            -       90,000 
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 
 
 
   1. Other reserves comprise a merger reserve of US$361,461 and a taxation 
      reserve of US$4,045,196 (31 December 2017: merger reserve of US$361,461 
      and a taxation reserve of US$3,653,908). 
 
 
 
 
 
   SERABI GOLD PLC 
 
   Condensed Consolidated Cash Flow Statements 
 
 
 
 
                                                               For the three months 
                                                                       ended 
                                                                     31 March 
                                                                2018         2017 
(expressed in US$)                                           (unaudited)  (unaudited) 
Operating activities 
Operating profit / (loss)                                         10,786    (114,043) 
Net financial expense                                            557,429       13,054 
Depreciation - plant, equipment and mining properties          1,992,853    1,900,704 
Provision for impairment of inventory                                  -      220,000 
Provision for taxation                                           329,080       80,552 
Share based payments                                             167,293       65,620 
Foreign exchange                                                (68,424)       99,230 
Changes in working capital 
 Decrease / (Increase) in inventories                            737,113    1,470,683 
 (Increase) / Decrease in receivables, prepayments 
  and accrued income                                           (499,348)  (2,243,810) 
 Increase / (Decrease) in payables, accruals and 
  provisions                                                   (129,853)    (891,243) 
Net cash inflow from operations                                3,096,929      600,747 
 
Investing activities 
Purchase of property, plant and equipment and assets 
 in construction                                               (425,694)    (267,915) 
Capitalised mine development costs                             (965,523)  (1,086,790) 
Geological exploration expenditure                             (568,418)      (2,521) 
Pre-operational project costs                                  (793,430)            - 
Proceeds from sale of assets                                      51,115            - 
Interest received                                                     34           34 
Net cash outflow on investing activities                     (2,701,916)  (1,357,192) 
 
Financing activities 
Draw-down of secured loan                                      3,000,000            - 
Repayment of secured loan                                      (333,333)            - 
Repayment of finance lease liabilities                         (283,147)            - 
Interest paid and finance charges                              (152,420)     (11,648) 
Net cash inflow / (outflow) from financing activities          2,231,100     (11,648) 
 
Net increase / decrease in cash and cash equivalents           2,626,113    (768,093) 
Cash and cash equivalents at beginning of period               4,093,866    4,160,923 
Exchange difference on cash                                     (24,454)       14,287 
Cash and cash equivalents at end of period                     6,695,525    3,407,117 
 
 
 
 
 
   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 will be filed with the Registrar of Companies following their 
adoption by shareholders at the next Annual General Meeting.  The full 
audited financial statements for the years end 31 December 2017 do 
comply with IFRS. 
 
   2.             Basis of Preparation 
 
   These interim condensed consolidated financial statements are for the 
three month period ended 31 March 2018. Comparative information has been 
provided for the unaudited three month period ended 31 March 2017 and, 
where applicable, the audited twelve month period from 1 January 2017 to 
31 December 2017. 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 2017 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 2017 and those envisaged for the financial statements for the 
year ending 31 December 2018. 
 
   The Group has not adopted any standards or interpretations in advance of 
the required implementation dates. 
 
   As of 1 January 2018, lFRS 9 - Financial Instruments, and lFRS 15 - 
Revenue from Contracts, became effective and have been adopted.  The 
effect of implementation has not had a material impact on the financial 
results of the Group 
 
   As of the date of authorisation of these financial statements, IFRS 16 - 
Leases, was in issue but not effective and has not been applied to these 
financial statements. 
 
   IFRS 16 will require the recognition of an asset and liability with 
respect to the material operating lease commitments that the group have. 
Management are currently considering the impact that this will have on 
the financial statements.  The Group does not at this time anticipate 
voluntary early adoption of IFRS 16. 
 
   These financial statements do not constitute statutory accounts as 
defined in Section 434 of the Companies Act 2006. 
 
 
   1. Going concern 
 
 
   On 12 April 2018 the Company completed a Subscription Agreement with 
Greenstone Resources II LP ("Greenstone"), whereby Greenstone agreed to 
subscribe ("the Subscription") for 297,759,419 New Ordinary Shares ("the 
Subscription Shares") at a price of 3.6 pence per share (the 
"Subscription Price"). The New Ordinary Shares issued pursuant to the 
Subscription rank pari passu with the existing Ordinary Shares. 
 
   On 29 March 2018 the Company announced the conditional placing of a 
further 176,678,445 new ordinary shares ("Placing Shares") at a price of 
3.6 pence per Placing Share (the "Placing Price"), raising gross 
proceeds of approximately US$9.0 million (GBP6.36 million) for the 
Company.  The Placing was conditional upon, among other things, the 
completion of the Greenstone Subscription and approval of the Placing by 
the Company's shareholders at the General Meeting held on 11 May 2018. 
The Placing Shares will, upon issue, rank pari passu with the existing 
ordinary shares. Application has been made to the London Stock Exchange 
for the Placing Shares to be admitted to trading on AIM ("Admission") 
and listed for trading on the TSX. It is currently expected that 
settlement of all of the Placing Shares and Admission will take place at 
8.00 a.m. on 15 May 2018. 
 
   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 
fund planned exploration and development activity on its other gold 
properties. However additional funding will be required to bring the 
newly acquired Coringa gold project into production including the final 
acquisition payment. The secured loan facility is repayable by 30 June 
2020 and at 31 March 2018, the amount outstanding under this facility 
was US$7.21 million (2017: US$4.48 million). 
 
   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.  Any unplanned interruption or reduction in gold production, 
unforeseen reductions in the gold price or appreciation of the Brazilian 
currency, could adversely affect the level of free cash flow that the 
Group can generate on a monthly basis.  Nonetheless with the proceeds to 
be received from the Subscription, the Directors consider that they will 
nonetheless be able to meet its financial obligations as they fall due. 
 
   On this basis, the Directors have therefore concluded that it is 
appropriate to prepare the financial statements on a going concern 
basis. 
 
   (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 2017 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 
                                                              31 March 2018        3 months ended 
                                                               (unaudited)    31 March 2017 (unaudited) 
Profit / (loss) attributable to ordinary shareholders 
 (US$)                                                               10,786                   (114,043) 
Weighted average ordinary shares in issue                       700,320,019                 698,701,772 
Basic profit / (loss) per share (US cents)                           0.0015                     (0.016) 
Diluted ordinary shares in issue                                735,055,019                 748,611,772 
Diluted profit/ (loss) per share (US cents)                          0.0015                 (0.016) (1) 
 
 
   1. 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 12 April 2018 the Company completed a Subscription Agreement with 
Greenstone Resources II LP ("Greenstone"). Greenstone subscribed ("the 
Subscription") for 297,759,419 New Ordinary Shares ("the Subscription 
Shares") at a price of 3.6 pence per share (the "Subscription Price"). 
The New Ordinary Shares issued pursuant to the Subscription rank pari 
passu with the existing Ordinary Shares. 
 
   On 29 March 2018 the Company announced the conditional placing of a 
further 176,678,445 new ordinary shares ("Placing Shares") at a price of 
3.6 pence per Placing Share (the "Placing Price"), raising gross 
proceeds of GBP6.36 million for the Company.  The Placing was 
conditional upon, among other things, the completion of the Greenstone 
Subscription and approval of the Placing by the Company's shareholders 
at the General Meeting held on 11 May 2018.  The Placing Shares will, 
upon issue, rank pari passu with the existing ordinary shares. 
Application has been made to the London Stock Exchange for the Placing 
Shares to be admitted to trading on AIM ("Admission") and listed for 
trading on the TSX. It is currently expected that settlement of all of 
the Placing Shares and Admission will take place at 8.00 a.m. on 15 May 
2018. 
 
   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 
Ross Allister                             Tel: +44 (0)20 7418 9000 
James Bavister                            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 2018 
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 2017 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 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

May 15, 2018 02:00 ET (06:00 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.

1 Year Serabi Gold Chart

1 Year Serabi Gold Chart

1 Month Serabi Gold Chart

1 Month Serabi Gold Chart

Your Recent History

Delayed Upgrade Clock