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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
  +7.50p +15.15% 57.00p 56.00p 58.00p 57.50p 49.50p 49.50p 318,005 16:25:25
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 33.9 -3.8 -8.8 - 33.58

Serabi Gold plc 1st Quarter Results

15/05/2019 7:01am

UK Regulatory (RNS & others)


 
TIDMSRB 
 
 
   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 to       3 months to      12 months to 
                         31 March 2019      31 March 2018   31 December 2018 
                              US$                US$              US$ 
-------------------   -------------------  --------------  ----------------- 
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 at 
                                                 31 March              As at 
                                                     2019   31 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     3 months to       12 months to 
                               March 2019   31 March 2018   31 December 2018 
-------------------   -------------------  --------------  ----------------- 
Gold production for 
 cash cost and AISC 
 purposes                          10,164           9,188             37,108 
                      -------------------  --------------  ----------------- 
 
Total Cash Cost of                 US$796          US$907             US$821 
 production (per 
 ounce) 
                      -------------------  --------------  ----------------- 
Total AISC of                    US$1,021        US$1,166           US$1,093 
 production (per 
 ounce) 
                      -------------------  --------------  ----------------- 
 
 
 
 
   Key Operational Information 
 
 
 
 
                     SUMMARY PRODUCTION STATISTICS TO DATE FOR 2019 AND 
                                  FOR THE 2018 CALAR 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 
 
 
   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 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). 
 
   3. 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 PLC 
 
   Condensed Consolidated Statements of Comprehensive Income 
 
 
 
 
                                                                    For the three months ended 
                                                                             31 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 PLC 
 
   Condensed 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 PLC 
 
   Condensed Consolidated Statements of Changes in Shareholders' Equity 
 
 
 
 
(expressed in 
US$) 
                                         Share      Other 
                  Share      Share      option    reserves   Translation    Retained 
(unaudited)      capital     premium    reserve      (1)       reserve      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 
--------------  ---------  ----------  ---------  ---------  ------------  -----------  ------------ 
 
 
   1. 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 PLC 
 
   Condensed Consolidated Cash Flow Statements 
 
 
 
 
                                                               For the three months 
                                                                       ended 
                                                                     31 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 preparation 
 
   These 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 2019 
 
   The 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. 
 
 
   1. 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 judgements 
 
   There 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 ended 
                                     31 March 2019        3 months ended 
                                      (unaudited)    31 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 ended 
                                                              31 March 2019        3 months ended 
                                                               (unaudited)    31 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 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 
 
 
   Copies of this announcement are available from the Company's website at 
https://www.globenewswire.com/Tracker?data=a2G-nfYx4_W_s4jxh9mvf_WgvQfAikXp-PWVyiWMR3Zobt_Wdnhax4Xl7uND4R_oxd0OY-sVjFDzi-mDVMWcIdAxzOsGVN_t9fPt5crRVI8= 
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 
https://www.globenewswire.com/Tracker?data=a2G-nfYx4_W_s4jxh9mvf5IfmKK-ABnsy4jj-WUzg8kwX1Z4It9YMFK23zy08xjwLvQi4-jijeqxMr7-kFQA0w== 
www.sedar.com.  These documents will also available from the Company's 
website -- 
https://www.globenewswire.com/Tracker?data=a2G-nfYx4_W_s4jxh9mvf3bnop3Fu0-ree--sOVM2rTgl7f66lXtI5_hsRW80zh2cmlTdC8FowfO6qbZOfRV5Cc_no7ZJglGlEVMHKd52-Y= 
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 -- 
https://www.globenewswire.com/Tracker?data=a2G-nfYx4_W_s4jxh9mvf5Nvoj676DN3djarbUVmlwIqitUNuAXUZTQ8bbJlomllQ5BNVluTVhjPB2T-I_Og-p9zKrg4ephwClniVD5rbXU= 
www.serabigold.com and on SEDAR at 
https://www.globenewswire.com/Tracker?data=a2G-nfYx4_W_s4jxh9mvf8OctcYwql-zO2CW_5AgH-rP1ULvhX-pLNr5OmdaVeCXMqB6dJWoTyfp5xsQIjJysA== 
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 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 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 identi ed 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 re ect 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 
 
   Attachments 
 
 
   -- Press Release - Q1 results 2019 
      https://ml-eu.globenewswire.com/Resource/Download/2cae27ad-e41e-4152-9873-afe6b27d14fb 
 
 
   -- Q1 2019 Financial Statements 
      https://ml-eu.globenewswire.com/Resource/Download/5381162f-c1e0-48fe-93a7-d623f14240ff 
 
 
 
 
 

(END) Dow Jones Newswires

May 15, 2019 02:01 ET (06:01 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

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