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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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 64.00 | 63.00 | 65.00 | 64.00 | 64.00 | 64.00 | 42,940 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 58.71M | -983k | -0.0130 | -49.23 | 48.47M |
Hot Features
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TIDMSRB
For immediate release
11 November 2019
Serabi Gold plc
("Serabi" or the "Company")
Unaudited Interim Financial Results for the three and nine month periods
to 30 September 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 and nine month periods ending 30 September 2019
and at the same time has published its Management's Discussion and
Analysis for the same period.
FINANCIAL HIGHLIGHTS
-- EBITDA for the third quarter of U$4.6 million compared with a small
EBITDA loss for the same quarter in 2018.
-- EBITDA for the year to date of US$12.1 million up 120% on the same period
in 2018.
-- Profit before tax of US$3.8 million for the year to date with earnings
per share of 4.84 cents.
-- Cash holdings at the end of September 2019 of US$13.4 million an increase
of US$4.2 million since the end of 2018.
-- AISC for the year to date of US$1,078 per ounce with a Cash Cost of
US$844 per ounce.
-- Operational cash inflow for the third quarter of US$5.1 million (US$3.7
million after mine development costs), compared with a net operational
outflow of US$1.2 million (outflow of US$2.2 million after mine
development costs) for the same period in 2018.
-- Operational cash flow for the year to date of US$14.5 million (US$11.7
million after mine development costs), compared with US$3.2 million
(US$0.3 million after mine development costs) for the same period in
2018.
Key Financial Information
9 months to 3 months to 9 months to 3 months to
30 Sept 2019 30 Sept 2019 30 Sept 2018 30 Sept 2018
US$ US$ US$ US$
--------------- ------------- ------------- ------------- -----------------
Revenue 43,939,510 14,353,771 33,223,837 7,523,203
Cost of Sales (27,661,873) (8,496,884) (23,653,392) (6,380,505)
------------- ------------- ------------- -----------------
Gross Operating
Profit 16,277,637 5,856,887 9,570,445 1,142,698
Administration
and share
based
payments (4,169,623) (1,239,688) (4,075,015) (1,230,206)
------------- ------------- ------------- -----------------
EBITDA 12,108,014 4,617,199 5,495,430 (87,508)
Depreciation
and
amortisation
charges (6,336,813) (2,212,747) (6,148,284) (1,721,708)
------------- ------------- ------------- -----------------
Operating
profit/(loss)
before finance
and tax 5,771,201 2,404,452 (652,854) (1,809,216)
------------- ------------- ------------- -----------------
Profit/(loss)
after tax 2,849,341 1,129,701 (2,731,110) (2,248,476)
------------- ------------- ------------- -----------------
Earnings per
ordinary share
(basic) 4.84c 1.92c (5.59c) (3.82c)
------------- ------------- ------------- -----------------
Average gold
price received US$1,351 US$1,472 US$1,285 US$1,213
As at
30 September As at
2019 31 December 2018
--------------- ------------- ------------- ------------- -----------------
Cash and cash
equivalents 13,440,173 9,216,048
Net assets 67,460,556 69,110,287
Cash Cost and
All-In
Sustaining Cost
("AISC")
---------------
9 months to 9 months to
30 Sept 2019 30 Sept 2018
--------------- ------------- ------------- ------------- -----------------
Gold production
for cash cost
and AISC
purposes 29,878 26,852
------------- -----------------
Total Cash Cost US$844 US$846
of production
(per ounce)
------------- -----------------
Total AISC of US$1,078 US$1,108
production
(per ounce)
------------- -----------------
OPERATIONAL AND DEVELOPMENT HIGHLIGHTS
-- Third quarter gold production of 10,187 ounces of gold, resulting in
total production for the year to date of approximately 30,000 ounces, an
eleven per cent improvement over the same period in 2018.
-- Total ore mined for the quarter of 44,757 tonnes at 7.14 grams per tonne
("g/t") of gold.
-- 45,378 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 6.84 g/t of gold.
-- 2,433 metres of horizontal development completed during the quarter.
-- The Group anticipates full year production for 2019 will be between
40,000 and 41,000 ounces.
-- Completion of the Group's Preliminary Economic Assessment ("PEA") on the
Coringa Gold Project in September, demonstrating strong positive
economics.
Key Operational Information
SUMMARY PRODUCTION STATISTICS TO DATE FOR 2019 AND
FOR 2018
Qtr 1 Qtr 2 Qtr 3 Total Qtr 1 Qtr 2 Qtr 3 Qtr 4 Total
------------ -------
2019 2019 2019 2019 2018 2018 2018 2018 2018
------------ ------- ------ ------ ------ ------- ------ ------ ------ ------ -------
Gold
production
(1) (2) Ounces 10,164 9,527 10,187 29,878 9,188 9,563 8,101 10,256 37,108
Mined ore --
Total Tonnes 42,609 44,784 44,757 132,151 39,669 36,071 42,725 44,257 162,722
Gold grade (g/t) 7.47 6.72 7.14 7.10 7.49 8.12 6.23 7.45 7.29
Milled ore Tonnes 43,451 43,711 45,378 132,540 43,145 38,155 41,405 45,548 168,253
Gold grade (g/t) 7.69 6.72 6.84 7.08 7.04 7.71 6.11 7.39 7.06
Horizontal
development
-- Total Metres 1,868 2,419 2,433 9,139 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 20,554 tonnes of
flotation tails at a grade of 4.13 g/t (2018 full year: 16,466 tonnes at
3.71g/t)
3. The table may not sum due to rounding
Copies of the Financial Statements and the MD&A can be accessed from the
Company's website using the following links
-- Financial Statements - https://bit.ly/2NvK5cB https://bit.ly/2NvK5cB
-- MD&A - https://bit.ly/2rkWpnr
An interview with Clive Line, Finance Director of Serabi, can be
accessed using the following ink
--
https://www.globenewswire.com/Tracker?data=RiwBVZyIJTydGmMkwFwpYsLNY2V1d7wsR-ZP6s2NvHiZX1bkozjHh1o65DIq6rL2YHLdl-XvB37JEa-qur32takvCUo426t2iBTX_WU4toBuP-rpZJsIztRR3qKT-LTQ-c8PZLjwdWvGR65r6zhEiA==
https://www.brrmedia.co.uk/event/164485
Mike Hodgson, CEO of Serabi commented:
"This third quarter has again been very pleasing in terms of both
operational and financial performance. As we reported in our third
quarter operational update on 14 October, we achieved the highest
quarterly production level for 2019 which was only 70 ounces short of
being our best quarter ever. This production combined with the improved
gold price has resulted in an EBITDA for the year to date of US$12.1
million of which 38% is attributable to this third quarter.
"The average gold price realised in the quarter was US$1,472 which
compares with US$1,287 and US$1,292 for the first and second quarters of
2019 respectively.
"The strong performance has also been translated into good cash flow.
Cash generation for the quarter, at an operational level after allowing
for on-going mine development costs, was US$3.7 million which was an
improvement of US$5.9 million compared with the same quarter in 2018
when operations consumed US$2.2 million of cash. For the year to date
operational cash flow now totals US$11.7 million. Cash holdings at the
end of the quarter were US$13.4 million with of more than US$4.2 million
of net free cash flow generated for the year to date.
"We are continuing to re-invest this cash flow to advance the growth
opportunities for the business. Whilst we are still in the licencing
and permitting stages for the Coringa project, there are nonetheless
ongoing expenditures for maintaining the project site, refurbishment of
the plant and equipment. We are also continuing to advance the
exploration around the Palito and Sao Chico deposits and during the
quarter have spent over US$500,000 on our exploration activity.
"The AISC for the year to date has reduced to US$1,078 per ounce
compared with the AISC of US$1,085 for the six months to 30 June 2018.
The exchange rate has, in recent months, been favourable and at the end
of September 2019 was BrR$4.16 to US$1.00. However, the average rate of
BrR$3.89 to US$1:00 for the year to date remains very similar to the
rate at the end of December 2018 of BrR$3.87.
"The improved gold price did however have some adverse impacts on the
results for the quarter. Sprott Resource Lending ("Sprott") opted to
exercise in July their call options over 6,109 ounces of gold which
resulted in a charge being incurred during the quarter of US$241,000
being the change in the value from 30 June 2019, when these options were
last revalued.
"In most other respects the cost profile of the Group remains consistent
quarter on quarter. It is for this reason that the introduction of
Coringa will be so important, spreading the Group's fixed costs over a
larger production base and improving margins. The PEA projects that
Coringa will have an AISC of US$852 per ounce, significantly lower than
the US$1,078 per ounce achieved in the first nine months of 2019 at the
current operations which are carrying all the fixed corporate and
administrative costs of the business overheads. Simply averaging the
current operations with the longer term potential of Coringa would imply
that the Group's AISC with Coringa at full projected production would be
between US$950 and US$975 per ounce, significantly improving the margin
and the cash flow generation for the Group. This excludes the potential
cost benefits that could also accrue from the introduction of the
ore-sorter and the organic growth potential at Palito and Sao Chico.
"I remain very excited by both the near and long term outlook for
Serabi. Our exploration potential around the existing operations is
very exciting and will, I am sure, yield opportunities for further
production growth to enhance the improvements that our ore-sorter and
the development of the Coringa project will bring. By maintaining a
focus of near mine site potential, we should be able to develop any
further growth at relatively low cost."
SERABI GOLD PLC
Condensed Consolidated Statements of Comprehensive Income
For the three months ended For the nine months ended
30 September 30 September
2019 2018 2019 2018
(expressed in US$) Notes (unaudited) (unaudited) (unaudited) (unaudited)
------------------------------------------- --------------- ------------ -------------- ------------- ------------
CONTINUING OPERATIONS
Revenue 14,353,771 7,523,203 43,939,510 33,223,837
Cost of sales (8,496,884) (6,380,505) (28,161,873) (23,853,392)
Release of impairment provision -- -- 500,000 200,000
Depreciation of and amortization charges (2,204,030) (1,765,849) (6,454,531) (6,256,749)
------------------------------------------- --------------- ------------ -------------- ------------- ------------
Gross profit / (loss) 3,652,857 (623,151) 9,823,106 3,313,696
Administration expenses (1,174,204) (1,171,660) (3,973,168) (3,860,898)
Share based payments (65,484) (58,546) (196,455) (214,117)
(Loss) / gain on disposals (8,717) 44,141 117,718 108,465
------------ -------------- ------------- ------------
Operating profit / (loss) 2,404,452 (1,809,216) 5,771,201 (652,854)
Foreign exchange (loss) / gain (169,113) 260,606 (235,216) (295,027)
Finance expense 2 (735,003) (403,759) (1,818,702) (1,103,277)
Finance income -- 440 121,917 474
------------------------------------------- --------------- ------------ -------------- ------------- ------------
Profit / (loss) before taxation 1,500,336 (1,951,929) 3,839,200 (2,050,684)
Income tax expense (370,635) (296,547) (989,859) (680,426)
------------------------------------------- --------------- ------------ -------------- ------------- ------------
Profit / (loss) for the period from continuing operations
(1) 1,129,701 (2,248,476) 2,849,341 (2,731,110)
------------------------------------------------------------ ------------ -------------- ------------- ------------
Exchange differences on translating foreign
operations (5,187,377) (2,708,319) (4,695,527) (11,968,323)
------------------------------------------- --------------- ------------ -------------- ------------- ------------
Total comprehensive loss for the period (4,057,676) (4,956,795) (1,846,186) (14,699,433)
------------------------------------------- --------------- ------------ -------------- ------------- ------------
Profit / (loss) per ordinary share (basic)
(1) 4 1.92c (3.82c) 4.84c (5.59c)
------------------------------------------- --------------- ------------ -------------- ------------- ------------
Profit / (loss) per ordinary share
(diluted) (1) 4 1.85c (3.82c) 4.67c (5.59c)
(1) All revenue and expenses arise from continuing operations.
SERABI GOLD PLC
Condensed Consolidated Balance Sheets
As at As at As at
30 September 30 September 31 December
2019 2018 2018
(expressed in US$) (unaudited) (unaudited) (audited)
------------------------------ ------------ ------------ ------------
Non-current assets
Deferred exploration costs 28,439,970 25,578,156 27,707,795
Property, plant and equipment 38,807,114 40,834,470 42,342,102
Taxes receivable 1,549,463 1,551,593 1,555,170
Deferred taxation 1,542,803 2,170,458 2,162,180
-------------------------------- ------------ ------------
Total non-current assets 70,339,350 70,134,677 73,767,247
-------------------------------- ------------ ------------ ------------
Current assets
Inventories 6,610,477 7,335,282 8,511,474
Trade and other receivables 872,325 898,773 758,209
Prepayments and accrued income 4,390,107 4,379,203 4,166,916
Cash and cash equivalents 13,440,173 15,204,568 9,216,048
-------------------------------- ------------ ------------ ------------
Total current assets 25,313,082 27,817,826 22,652,647
-------------------------------- ------------ ------------ ------------
Current liabilities
Trade and other payables 7,158,839 5,755,426 6,273,321
Interest bearing liabilities 6,949,152 4,571,126 4,302,798
Acquisition payment outstanding 11,810,372 -- 10,997,757
Derivative financial liabilities -- 168,609 390,976
Accruals 344,502 342,632 372,327
------------
Total current liabilities 26,262,865 10,837,793 22,337,179
-------------------------------- ------------ ------------ ------------
Net current assets (949,783) 16,980,033 315,468
-------------------------------- ------------ ------------ ------------
Total assets less current
liabilities 67,460,556 87,114,710 74,082,715
-------------------------------- ------------ ------------ ------------
Non-current liabilities
Trade and other payables 564,524 2,150,732 955,521
Provisions 1,364,487 1,788,844 1,543,811
Acquisition payment
outstanding -- 10,736,702 --
Interest bearing loan
liabilities -- 2,780,984 2,473,096
------------
Total non-current liabilities 1,929,011 17,457,262 4,972,428
-------------------------------- ------------ ------------ ------------
Net assets 67,460,556 69,657,448 69,110,287
-------------------------------- ------------ ------------ ------------
Equity
Share capital 8,882,803 8,882,803 8,882,803
Share premium reserve 21,752,430 21,752,430 21,752,430
Option reserve 1,171,501 1,247,865 1,363,367
Other reserves 6,464,152 5,108,940 4,763,819
Translation reserve (45,502,650) (43,167,891) (40,807,123)
Retained surplus 74,692,320 75,833,301 73,154,991
-------------------------------- ------------ ------------ ------------
Equity shareholders' funds 67,460,556 69,657,448 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 have been filed with the
Registrar of Companies following their adoption by shareholders at the
2019 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 -- -- -- -- (11,968,323) -- (11,968,323)
Profit for the
period -- -- -- -- -- (2,731,110) (2,731,110)
-------------- --------- ---------- --------- --------- ------------ ----------- ------------
Total
comprehensive
income for
the period -- -- -- -- (11,968,323) (2,731,110) (14,699,433)
Transfer to
taxation
reserve -- -- -- 1,051,427 -- (1,051,427) --
Share options
lapsed in
period -- -- (391,277) -- -- 391,277 --
Shares issued
in period 3,341,843 20,030,208 -- -- -- -- 23,372,051
Share option
expense -- -- 214,118 -- -- -- 214,118
-------------- --------- ---------- --------- --------- ------------ ----------- ------------
Equity
shareholders'
funds at 30
September
2018 8,882,803 21,752,430 1,247,865 5,066,796 (43,167,891) 75,875,445 69,657,448
-------------- --------- ---------- --------- --------- ------------ ----------- ------------
Foreign
currency
adjustments -- -- -- -- 2,360,768 -- 2,360,768
Loss for the
period -- -- -- -- -- (3,023,431) (3,023,431)
-------------- --------- ---------- --------- --------- ------------ ----------- ------------
Total
comprehensive
income for
the period -- -- -- -- 2,360,768 (3,023,431) (662,663)
Transfer to
taxation
reserve -- -- -- (302,977) -- 302,977 --
Share option
expense -- -- 115,502 -- -- -- 115,502
-------------- --------- ---------- --------- --------- ------------ ----------- ------------
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 -- -- -- -- (4,695,527) -- (4,695,527)
Profit for the
period -- -- -- -- -- 2,849,341 2,849,341
-------------- --------- ---------- --------- --------- ------------ ----------- ------------
Total
comprehensive
income for
the period -- -- -- -- (4,695,527) 2,849,341 (1,846,186)
Transfer to
taxation
reserve -- -- -- 1,700,333 -- (1,700,333) --
Share options
lapsed in
period -- -- (388,321) -- -- 388,321 --
Share option
expense -- -- 196,455 -- -- -- 196,455
-------------- --------- ---------- --------- --------- ------------ ----------- ------------
Equity
shareholders'
funds at 30
September
2019 8,882,803 21,752,430 1,171,501 6,464,152 (45,502,650) 74,692,320 67,460,556
-------------- --------- ---------- --------- --------- ------------ ----------- ------------
(1) Other reserves comprise a merger reserve of US$361,461
and a taxation reserve of US$6,102,691 (31 December 2018: merger reserve
of US$361,461 and a taxation reserve of US$4,402,358).
SERABI GOLD PLC
Condensed Consolidated Cash Flow Statements
For the three months For the nine months
ended ended
30 September 30 September
2019 2018 2019 2018
(expressed in US$) (unaudited) (unaudited) (unaudited) (unaudited)
-------------------------------------------------------- ----------- ----------- ----------- ------------
Operating activities
Post tax profit / (loss) for period 738,725 (2,248,476) 2,458,365 (2,731,110)
Depreciation -- plant, equipment and mining properties 2,204,030 1,765,849 6,454,531 6,256,749
Net financial expense 1,295,092 52,713 2,322,977 1,217,830
Provision for impairment of inventory -- -- (500,000) (200,000)
Provision for taxation 370,635 296,547 989,859 680,426
Share-based payments 65,484 148,546 196,455 394,117
Foreign exchange gain / (loss) 22,685 259,258 (360,116) 413,608
Changes in working capital
(Increase)/decrease in inventories (193,156) (1,733,345) 1,972,184 (1,616,199)
Decrease/(increase) in receivables, prepayments and
accrued income 119,905 (628,425) (993,117) (2,131,720)
Increase/(decrease) in payables, accruals and
provisions 461,603 841,546 1,979,991 954,626
-------------------------------------------------------- ----------- ----------- ----------- ------------
Net cash inflow from operations 5,085,003 (1,245,787) 14,521,129 3,238,327
-------------------------------------------------------- ----------- ----------- ----------- ------------
Investing activities
Acquisition payments (196,037) -- (1,352,112) (4,740,928)
Purchase of property, plant and equipment and projects
in construction (1,138,120) (1,457,399) (2,599,412) (2,775,325)
Capitalised mine development costs (1,342,675) (934,169) (2,835,238) (2,964,658)
Geological exploration expenditure (290,503) (1,222,559) (1,087,027) (3,234,361)
Pre-operational project costs (433,526) (562,969) (1,277,048) (1,852,448)
Proceeds from sale of assets 16,741 44,141 169,822 108,465
Interest received -- 440 2,217 474
-------------------------------------------------------- ----------- ----------- ----------- ------------
Net cash outflow on investing activities (3,384,120) (4,132,515) (8,978,798) (15,458,781)
-------------------------------------------------------- ----------- ----------- ----------- ------------
Financing activities
Issue of ordinary share capital -- -- -- 23,807,346
Costs associated with issue of share capital -- -- -- (566,518)
Drawdown of secured loan -- -- -- 3,000,000
Repayment of secured loan -- (333,333) -- (1,333,333)
Payment of finance lease liabilities (125,804) (156,519) (588,025) (582,729)
Interest paid and other finance costs (117,308) (122,803) (421,241) (509,390)
Net cash (outflow) / inflow from financing activities (243,112) (612,655) (1,009,266) 23,815,376
-------------------------------------------------------- ----------- ----------- ----------- ------------
Net increase / (decrease) in cash and cash equivalents 1,457,771 (5,990,957) 4,533,065 11,594,922
Cash and cash equivalents at beginning of period 12,366,683 21,052,325 9,216,048 4,093,866
Exchange difference on cash (384,281) 143,200 (308,940) (484,220)
-------------------------------------------------------- ----------- ----------- ----------- ------------
Cash and cash equivalents at end of period 13,440,173 15,204,568 13,440,173 15,204,568
-------------------------------------------------------- ----------- ----------- ----------- ------------
Notes
1. Basis of preparation
These interim condensed consolidated financial statements are for the
three and nine month period ended 30 September 2019. Comparative
information has been provided for the unaudited three and nine month
period ended 30 September 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.
(i) Going concern
As at 30 September 2019 the Group had cash in hand of US$13.44 million
and net assets of US$67.07 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, both the deferred consideration of US$12 million payable for the
acquisition of Coringa which falls due in December 2019 and the secured
loan repayments due during the first six months of 2020.
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 and the secured loan repayment obligations or
renegotiating the timing of these payments 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 3 months ended 9 months ended 9 months ended
30 September 2019 30 September 2018 30 September 2019 30 September 2018
US$ US$ US$ US$
(unaudited) (unaudited) (unaudited) (unaudited)
------------------ ------------------ ------------------ ------------------
Interest on secured loan (173,637) (172,284) (474,177) (530,183)
Unwinding of discount on acquisition payment (280,344) (254,858) (812,615) (738,741)
Amortisation of fair value of derivatives -- (65,000) -- (195,000)
Amortisation of effective interest rate adjustment (39,900) -- (53,212) --
Loss upon valuation of derivative (241,122) -- (531,910) --
Arrangement fee for secured loan -- (90,000) -- (180,000)
------------------ ------------------ ------------------ ------------------
(735,003) (582,142) (1,871,914) (1,643,924)
Gain on revaluation of derivatives -- 178,383 -- 540,647
Recognition of variation in effective interest rate
of secured loan -- -- 172,912 --
Interest income -- 440 2,217 474
------------------ ------------------ ------------------ ------------------
Net finance expense (735,003) (403,319) (1,686,785) (1,102,803)
------------------ ------------------ ------------------ ------------------
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$683,146 as a
deferred tax charge during the nine month period to 30 September 2019.
The Group has also incurred a tax charge for the period in Brazil of
US$306,713.
.
4. Earnings per share
3 months ended 30 September 2019 3 months ended 30 September 2018 9 months ended 30 September 2019 9 months ended 30 September 2018
(unaudited) (unaudited) (unaudited) (unaudited)
---------------------------------------------------- -------------------------------- -------------------------------- -------------------------------- --------------------------------
Profit/(loss) attributable to ordinary shareholders
(US$) 1,129,701 (2,248,476) 2,849,341 (2,731,110)
---------------------------------------------------- -------------------------------- -------------------------------- -------------------------------- --------------------------------
Weighted average ordinary shares in issue 58,909,551 58,790,954 58,909,551 48,865,897
Basic profit/(loss) per share (US cents) 1.92 (3.82c) 4.84 (5.59c)
---------------------------------------------------- -------------------------------- -------------------------------- -------------------------------- --------------------------------
Diluted ordinary shares in issue(2) 60,997,145 58,790,954(1) 60,997,145 48,865,897(1)
Diluted loss per share (US cents) 1.85 (3.82c) (1) 4.67 (5.59c) (1)
---------------------------------------------------- -------------------------------- -------------------------------- -------------------------------- --------------------------------
1. As the effect of dilution is to reduce the loss per share, the diluted
shares in issue are the same as the basic shares in issue and the diluted
loss per share is considered to be the same as the basic loss per share.
2. Based on 2,087,594 options vested and exercisable as at 30 September
2019.
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=j97rtAwd7uWXaS87mOBaQTtIimClyRBE0dtpGLqDykrL0SIOJ5nSz44jwqYDr_MpNY7DrT74OmFPJ7sTVi5VU1lHMn1Z2epkCJhyW30OwYc=
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 and nine month periods ended 30
September 2019 on SEDAR at
https://www.globenewswire.com/Tracker?data=j97rtAwd7uWXaS87mOBaQeEo-I5_8_NMPq200VkCZQyWubqc7t3keZCbiG1a9oRj9itQR-o0Hj0e5-1bC55f9w==
www.sedar.com. These documents will also available from the Company's
website --
https://www.globenewswire.com/Tracker?data=j97rtAwd7uWXaS87mOBaQdzKQh23RO_bbxKdA4b47hvpLhizSYO-X5ZXfz1SDaHojEAr_78r96ZEwevQLsJNXHIfqRcmXjr_8f_uGTsSiow=
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=j97rtAwd7uWXaS87mOBaQch1AFZgRAJYKy8ezgv7fsO0bAbPVRbvGoVtDGfH_MnZL-njyI5d2JxeG9KaRTYghgBXDOeLpzQf5JDhyQnoTVM=
www.serabigold.com and on SEDAR at
https://www.globenewswire.com/Tracker?data=j97rtAwd7uWXaS87mOBaQYPLP2qMhZ4u9pazALXvAa6vCNa1jQvRDOHJxT34_fyd_2AMzP82kYFVLr1QDJvZ0A==
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
(END) Dow Jones Newswires
November 11, 2019 02:00 ET (07:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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