For immediate
release 15
May 2017
Serabi Gold plc("Serabi" or the
"Company")Unaudited Interim Financial Results for the three
month period to 31 March 2017 and Management's Discussion and
Analysis
Serabi Gold (AIM:SRB, TSX:SBI), the Brazilian
focused gold mining and development company, today releases its
unaudited interim financial results for the three month period
ending 31 March 2017 and at the same time has published its
Management's Discussion and Analysis for the same period.
Key Financial Information
SUMMARY FINANCIAL STATISTICS FOR THE THREE MONTHS
ENDING 31 MARCH 2017 |
|
|
3 months to 31 Mar 2017US$ |
12 months to 31 Dec 2016US$ |
3 months to 31 Mar 2016US$ |
Revenue |
|
13,173,584 |
52,593,751 |
11,679,089 |
Cost
of sales |
|
(9,792,350) |
32,906,426 |
(6,689,506) |
Provision for impairment of inventory |
|
(220,000) |
- |
- |
Depreciation and amortisation charges |
|
(1,900,704) |
8,384,738 |
(1,216,727) |
Gross
profit |
|
1,260,530 |
11,302,587 |
3,772,856 |
|
|
|
|
|
(Loss) / profit before tax |
|
(33,941) |
1,870,179 |
1,501,304 |
Profit / (loss) after tax |
|
(114,043) |
4,430,292 |
1,347,665 |
Earnings / (loss) per ordinary share (basic) |
|
(0.016 cents) |
0.659 cents |
0.195 cents |
|
|
|
|
|
Average gold price received |
|
US$1,204 |
US$1,245 |
US$1,165 |
|
|
|
|
|
|
|
|
As at 31 Mar 2017 |
As at 31 Dec 2016 |
Cash
and cash equivalents |
|
|
3,407,117 |
4,160,923 |
Net
assets |
|
|
64,798,397 |
63,378,973 |
|
|
|
|
|
|
|
|
|
|
Cash Cost and All-In Sustaining Cost ("AISC") |
|
3 months to 31 Mar 2017 |
12 months to 31 Dec 2017 |
3 months to 31 Mar 2016 |
Gold
production for cash cost and AISC purposes |
|
9,861 |
39,390 |
9,771 |
|
|
|
|
|
Total
Cash Cost of production (per ounce) |
|
US$800 |
US$770 |
US$662 |
Total AISC of production (per ounce) |
|
US$1,043 |
US$965 |
US$858 |
Key Operational Information
SUMMARY PRODUCTION STATISTICS FOR THE FIRST QUARTER
TO 31 MARCH 2017 |
|
|
Quarter 1 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
Total |
Total |
2017 |
2016 |
2016 |
2016 |
2016 |
2016 |
2015 |
Horizontal development
- Total |
Metres |
2,251 |
2,925 |
2,941 |
2,649 |
2,694 |
11,209 |
9,600 |
|
|
|
|
|
|
|
|
|
Mined ore - Total |
Tonnes |
36,918 |
37,546 |
33,606 |
43,133 |
44,579 |
158,864 |
135,847 |
|
Gold grade (g/t) |
10.12 |
11.02 |
9.56 |
9.61 |
8.94 |
9.74 |
9.80 |
|
|
|
|
|
|
|
|
|
Milled ore |
Tonnes |
46,663 |
36,615 |
39,402 |
42,464 |
40,485 |
158,966 |
130,299 |
|
Gold grade (g/t) |
7.09 |
8.58 |
8.17 |
8.08 |
7.60 |
8.11 |
8.43 |
Gold production (1)
(2) |
Ounces |
9,861 |
9,771 |
9,896 |
10,310 |
9,413 |
39,390 |
32,629 |
- Gold production figures are subject to amendment pending final
agreed assays of the gold content of the copper/gold concentrate
and gold doré that is delivered to the refineries.
- Gold production totals for the first quarter of 2016 include
treatment of 4,941 tonnes of flotation tails.
Financial Highlights
- Cash Cost for the quarter of US$800 per ounce (12 months to 31
December 2016: US$770).
- All-In Sustaining Cost for the quarter of US$1,043 per ounce
(12 months to 31 December 2016: US$965).
- Working capital increased by approximately US$0.75 million
since 31 December 2016.
- Cash holdings of US$3.4 million at 31 March 2017.
- Average gold price of US$1,204 received on gold sales in the
first quarter of 2017.
2017 Guidance
- Forecast gold production for 2017 expected to be approximately
40,000 ounces.
- Cost guidance for 2017 of an All-In Sustaining Cost of US$950
to US$975 per ounce.
First Quarter 2017 Operational
Highlights
- Strong first quarter production of 9,861 ounces of gold, on
budget and in line with guidance.
- Mine production totalled 36,918 tonnes at 10.12 grammes per
tonne ("g/t") of gold.
- 46,663 tonnes of ore processed through the plant for the
combined mining operations, at a combined grade of 7.09 g/t of
gold.
- 2,251 metres of horizontal mine development completed in the
quarter.
- At Palito, expansion of working areas continues, with
development and production now coming from eight veins from the 25
included in the geological resource.
- Test stopes using long-hole mining are underway in the Senna
vein, with good success to date. The Senna vein is showing
wider widths, potentially allowing for an increased level of
mechanisation. Four sublevels are already in development with a new
cross cut being established at the 180 metre relative level
("mRL").
- At Palito Main Zone, the main ramp has now reached the -50mRL,
where the G3 vein is now under development.
- At Sao Chico the main ramp has now been deepened to the 56mRL,
approximately 190 vertical metres below surface.
Production is coming from the 140mRL, and with
sublevels developed on levels 128mRL, 116mRL, 100mRL, 86mRL and
70mRL, development is well ahead of production.
- By the end of the first quarter, surface ore stocks were
approximately 13,000 tonnes (31 December 2016: 21,000 tonnes) with
an average grade of 4.0 g/t of gold.
- A ground induced polarisation ("IP") survey undertaken at Sao
Chico has identified some excellent targets within 500 metres of
the current operation.
Mike Hodgson, CEO of Serabi commented,
"Following on from a very successful 2016, I am pleased that
2017 has started with a strong first quarter during which the Group
produced almost 10,000 ounces of gold with a cash cost of
US$800.
"Cash holdings are slightly down compared with the end of
December 2016 but this is simply a consequence of the timing of
receipts from gold sales and at 31 March 2017 the Group was due
approximately US$1.8 million for sales made in March, which would
otherwise have improved the cash position to US$5.2 million
compared with US$4.2 million at the end of December 2016. The
overall working capital position of the Group has improved by
approximately US$0.75 million over the last three months.
This improvement also reflects the consumption of some of the
surface stockpiles during the quarter although the release of the
costs associated with these is reflected in our reported operating
costs being slightly higher than in prior quarters. The
treatment of this lower grade stockpiled material also impacted
slightly on the overall grades processed during the quarter.
"Our quarterly operating costs, compared with the same quarter
in 2016, are, in local currency terms, generally tracking well and
are also, for the most part, close to or below our internal
forecasts for 2017. The relative strength of the Brazilian
Real compared with the exchange rate that prevailed in the first
quarter of 2016, and even compared with the average exchange rate
for 2016 calendar year masks this. We estimate that had we
experienced the same exchange rate as prevailed for the first
quarter of 2016 our AISC for the first quarter of 2017 would have
reduced by approximately U$170 per ounce. Even considering
the average rate for the 2016 calendar year the effect is
approximately US$80 per ounce.
"We continue to look for improvements in the cost structure to
improve margins but in the longer term increased production and the
ability to spread costs over a larger production base will have the
greatest effect on unit costs. With this objective, I am keen to
re-start the exploration programmes on both the Sao Chico and
Palito orebodies, which were suspended late last year due to the
wet season. The results were very encouraging, especially at
Sao Chico with some excellent new targets identified within 500
metres of the current operation. Considering the extent of
past artisanal activity in the vicinity, we feel very confident the
programme will bring new discoveries. At Palito the
down-the-hole geophysics programme was completed and we have a
number of drill targets identified which I hope will confirm and
prove up the current known discoveries."
SERABI GOLD PLCCondensed Consolidated
Statements of Comprehensive Income
|
|
|
|
For the three months ended31 March |
|
|
|
|
2017 |
2016 |
(expressed in US$) |
Notes |
|
|
(unaudited) |
(unaudited) |
CONTINUING
OPERATIONS |
|
|
|
|
|
Revenue |
|
|
|
13,173,584 |
11,679,089 |
Cost of sales |
|
|
|
(9,792,350) |
(6,689,506) |
Provision for impairment
of Inventory |
|
|
|
(220,000) |
- |
Depreciation and amortisation charges |
|
|
|
(1,900,704) |
(1,216,727) |
Gross profit |
|
|
|
1,260,530 |
3,772,856 |
Administration
expenses |
|
|
|
(1,241,455) |
(1,132,200) |
Share-based payments |
|
|
|
(65,620) |
(123,116) |
Profit on sale of fixed
assets |
|
|
|
- |
2,568 |
Operating (loss) / profit |
|
|
|
(46,545) |
2,520,108 |
Foreign exchange
gain/(loss) |
|
|
|
46,837 |
(40,799) |
Finance expense |
|
|
|
(33,817) |
(978,040) |
Finance income |
|
|
|
34 |
35 |
(Loss) / profit before
taxation |
|
|
|
(33,491) |
1,501,304 |
Income tax expense |
|
|
|
(80,552) |
(153,639) |
(Loss) / profit for the period from continuing operations
attributable to the owners of the parent(1) |
|
|
|
(114,043) |
1,347,665 |
|
|
|
|
|
|
Other comprehensive
income (net of tax) |
|
|
|
|
|
Items that
may be reclassified subsequently to profit or loss |
|
|
|
Exchange differences on translating foreign operations |
|
|
|
1,467,847 |
4,270,129 |
Total comprehensive profit for the period operations
attributable to the owners of the parent |
|
|
|
1,353,804 |
5,617,794 |
|
|
|
|
|
|
(Loss) / profit per ordinary share (basic) (1) |
3 |
|
|
(0.016c) |
0.205c |
(Loss) / profit per ordinary share (diluted) (1) |
3 |
|
|
(0.016c) |
0.195c |
(1) All revenue and expenses arise from continuing
operations.
SERABI GOLD PLCCondensed Consolidated
Balance Sheets
|
|
|
As at |
As at |
As at |
|
|
|
31
March |
31
March |
31
December |
|
|
|
2017 |
2016 |
2016 |
(expressed in US$) |
|
|
(unaudited) |
(unaudited) |
(audited) |
Non-current
assets |
|
|
|
|
|
Deferred exploration
costs |
|
|
10,234,360 |
8,767,288 |
9,990,789 |
Property, plant and
equipment |
|
|
45,862,328 |
42,680,815 |
45,396,140 |
Deferred taxation |
|
|
3,313,099 |
- |
3,253,630 |
Total non-current assets |
|
|
59,409,787 |
51,448,103 |
58,640,559 |
Current assets |
|
|
|
|
|
Inventories |
|
|
6,534,060 |
9,709,839 |
8,110,373 |
Trade and other
receivables |
|
|
2,996,060 |
5,646,516 |
1,233,049 |
Prepayments and accrued
income |
|
|
4,417,677 |
3,325,117 |
3,696,550 |
Cash and cash equivalents |
|
|
3,407,117 |
4,410,589 |
4,160,923 |
Total current assets |
|
|
17,354,914 |
23,092,061 |
17,200,895 |
Current
liabilities |
|
|
|
|
|
Trade and other
payables |
|
|
4,713,274 |
5,045,368 |
4,722,139 |
Interest bearing loan |
|
|
1,371,489 |
3,812,500 |
1,371,489 |
Convertible loan
facility |
|
|
- |
1,846,605 |
- |
Trade and asset finance
facilities |
|
|
1,152,298 |
6,112,688 |
1,592,568 |
Derivative financial
liabilities |
|
|
- |
674,145 |
- |
Accruals |
|
|
485,765 |
263,520 |
635,446 |
Total current liabilities |
|
|
7,722,826 |
17,754,826 |
8,321,642 |
Net current assets |
|
|
9,632,088 |
5,337,235 |
8,879,253 |
Total assets less current liabilities |
|
|
69,041,875 |
56,785,338 |
67,519,812 |
Non-current
liabilities |
|
|
|
|
|
Trade and other
payables |
|
|
2,260,691 |
2,042,840 |
2,211,078 |
Provisions |
|
|
1,904,989 |
2,083,286 |
1,851,963 |
Interest bearing liabilities |
|
|
77,798 |
134,657 |
77,798 |
Total non-current liabilities |
|
|
4,243,478 |
4,260,783 |
4,140,839 |
Net assets |
|
|
64,798,397 |
52,524,555 |
63,378,973 |
Equity |
|
|
|
|
|
Share capital |
|
|
5,540,960 |
5,263,182 |
5,540,960 |
Share premium reserve |
|
|
1,722,222 |
- |
1,722,222 |
Option reserve |
|
|
1,404,272 |
2,481,576 |
1,338,652 |
Other reserves |
|
|
3,273,143 |
361,461 |
3,051,862 |
Translation reserve |
|
|
(29,140,001) |
(34,956,406) |
(30,607,848) |
Retained earnings |
|
|
82,688,801 |
79,374,742 |
82,333,125 |
Equity shareholders' funds |
|
|
64,798,397 |
52,524,555 |
63,378,973 |
The interim financial information has not been audited and does
not constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. Whilst the financial information included in
this announcement has been compiled in accordance with
International Financial Reporting Standards ("IFRS") this
announcement itself does not contain sufficient financial
information to comply with IFRS. The Group statutory accounts
for the year ended 31 December 2016 prepared under IFRS as adopted
in the EU and with IFRS and their interpretations adopted by the
International Accounting Standards Board will be filed with the
Registrar of Companies following their adoption by shareholders at
the next Annual General Meeting. The auditor's report on these
accounts was unqualified but did contain an Emphasis of Matter with
respect to the Company and the Group regarding Going Concern.
The auditor's report did not contain a statement under Section 498
(2) or 498 (3) of the Companies Act 2006.
SERABI GOLD PLCCondensed Consolidated
Statements of Changes in Shareholders' Equity
(expressed in US$) |
|
|
|
|
|
|
|
(unaudited) |
Share capital |
Sharepremium |
Share option reserve |
Other reserves (1) |
Translation reserve |
Retained Earnings |
Total equity |
Equity
shareholders' funds at 31 December 2015 |
5,263,182 |
- |
2,747,415 |
450,262 |
(39,226,535) |
77,549,321 |
46,783,645 |
Foreign currency
adjustments |
- |
- |
- |
- |
4,270,129 |
- |
4,270,129 |
Profit
for the period |
- |
- |
- |
- |
- |
1,347,665 |
1,347,665 |
Total comprehensive
income for the period |
- |
- |
- |
- |
4,270,129 |
1,347,665 |
5,617,794 |
Share options lapsed in
period |
- |
- |
(388,955) |
- |
- |
388,955 |
- |
Warrants lapsed |
- |
- |
- |
(88,801) |
- |
88,801 |
- |
Share
option expense |
- |
- |
123,116 |
- |
- |
- |
123,116 |
Equity
shareholders' funds at 31 March 2016 |
5,263,182 |
- |
2,481,576 |
361,461 |
(34,956,406) |
79,374,742 |
52,524,555 |
Foreign currency
adjustments |
- |
- |
- |
- |
4,348,558 |
- |
4,348,558 |
Profit
for the period |
- |
- |
- |
- |
- |
3,082,627 |
3,082,627 |
Total comprehensive
income for the period |
- |
- |
- |
- |
4,348,558 |
3,082,627 |
7,431,185 |
Transfer to
taxation reserve |
- |
- |
- |
2,690,401 |
- |
(2,690,401) |
- |
Shares Issued in
period |
277,778 |
1,722,222 |
- |
- |
- |
- |
2,000,000 |
Release of fair value
provision on convertible loan |
- |
- |
- |
- |
- |
1,195,450 |
1,195,450 |
Share options lapsed in
period |
- |
- |
(1,370,707) |
- |
- |
1,370,707 |
- |
Share
option expense |
- |
- |
227,783 |
- |
- |
- |
227,783 |
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) |
82,688,801 |
64,798,397 |
- Other reserves comprise a merger reserve of US$361,461 and a
taxation reserve of US$2,911,682 (31 December 2016: merger reserve
of US$361,461 and a taxation reserve of US$2,690,401)
SERABI GOLD PLCCondensed Consolidated
Cash Flow Statements
|
|
For the three monthsended31 March |
|
|
|
2017 |
2016 |
(expressed in US$) |
|
|
(unaudited) |
(unaudited) |
Operating
activities |
|
|
|
|
Operating
(loss) / profit |
|
|
(114,043) |
1,347,665 |
Net
financial expense |
|
|
13,054 |
1,018,804 |
Depreciation - plant, equipment and mining properties |
|
|
1,900,704 |
1,216,727 |
Provision
for impairment of inventory |
|
|
220,000 |
- |
Provision
for taxation |
|
|
80,552 |
153,639 |
Share based
payments |
|
|
65,620 |
123,116 |
Foreign
exchange |
|
|
99,230 |
202,883 |
Changes in
working capital |
|
|
|
|
|
Decrease / (Increase) in
inventories |
|
|
1,470,683 |
(607,704) |
|
Increase in
receivables, prepayments and accrued income |
|
(2,243,810) |
(26,441) |
|
Decrease in payables, accruals and provisions |
|
(891,243) |
(255,977) |
Net cash inflow from operations |
|
|
600,747 |
3,172,712 |
|
|
|
|
|
Investing
activities |
|
|
|
|
Purchase of
property, plant and equipment and assets in construction |
|
|
(267,915) |
(520,141) |
Capitalised
mine development costs |
|
|
(1,086,790) |
(663,961) |
Geological
exploration expenditure |
|
|
(2,521) |
- |
Proceeds from
sale of assets |
|
|
- |
2,568 |
Interest received |
|
|
34 |
35 |
Net cash outflow on investing activities |
|
|
(1,357,192) |
(1,181,499) |
|
|
|
|
|
Financing
activities |
|
|
|
|
Draw-down of
short-term loan facility |
|
|
- |
2,000,000 |
Receipts from
short-term trade finance |
|
|
- |
5,150,289 |
Repayment of
short-term trade finance |
|
|
- |
(6,315,744) |
Repayment of
finance lease liabilities |
|
|
- |
(211,728) |
Interest
paid and finance charges |
|
|
(11,648) |
(225,396) |
Net cash (outflow) / inflow from financing
activities |
|
|
(11,648) |
397,421 |
|
|
|
|
|
Net
(decrease) / increase in cash and cash equivalents |
|
(768,093) |
2,388,634 |
Cash and
cash equivalents at beginning of period |
|
|
4,160,923 |
2,191,759 |
Exchange difference on cash |
|
|
14,287 |
(169,804) |
Cash and cash equivalents at end of period |
|
|
3,407,117 |
4,410,589 |
Notes
1.
General InformationThe 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 2016 do comply with IFRS.
2.
Basis of PreparationThese interim condensed consolidated
financial statements are for the three month period ended 31 March
2017. Comparative information has been provided for the
unaudited three month period ended 31 March 2016 and, where
applicable, the audited twelve month period
from 1 January 2016 to 31 December 2016. These condensed
consolidated financial statements do not include all the
disclosures that would otherwise be required in a complete set of
financial statements and should be read in conjunction with the
2016 annual report.The condensed consolidated financial statements
for the periods have been prepared in accordance with International
Accounting Standard 34 "Interim Financial Reporting" and the
accounting policies are consistent with those of the annual
financial statements for the year ended 31 December 2016 and those
envisaged for the financial statements for the year ending 31
December 2017. The Group has not adopted any standards or
interpretation in advance of the required implementation
dates. It is not anticipated that the adoption in the future
of the new or revised standards or interpretations that have been
issued by the International Accounting Standards Board will have a
material impact on the Group's earnings or shareholders' funds.
These financial statements do not constitute statutory accounts as
defined in Section 434 of the Companies Act 2006.
- Going concern
On 1 February 2016, the Group announced that,
with effect from 1 January 2016, the Sao Chico Mine had achieved
Commercial Production. The Palito Mine has been in Commercial
Production since 1 July 2014.
The Directors anticipate the Group now has
access to sufficient funding for its immediate projected
needs. The Group expects to have sufficient cash flow from
its forecast production to finance its on-going operational
requirements, to repay its secured loan facilities and to, at least
in part, fund exploration and development activity on its other
gold properties. The secured loan facility is repayable by 31
August 2017 and at 31 March 2017, the amount outstanding under this
facility was US$1.37 million (31 December 2016: US$1.37
million). The Group is currently in negotiations to increase
and extend the terms of its loan facilities.
The Directors consider that the Group's
operations are performing at the levels that they anticipate, but
the Group remains a small scale gold producer with limited cash
resources to support any unplanned interruption or reduction in
gold production, unforeseen reductions in the gold price, or
appreciation of the Brazilian currency, all of which could
adversely affect the level of free cash flow that the Group can
generate on a monthly basis. In the event that the Group is
unable to generate sufficient free cash flow to meet its financial
obligations as they fall due, or to allow it to finance exploration
and development activity on its other gold properties, additional
sources of finance may be required. Should additional
working capital be required the Directors consider that further
sources of finance could be secured within the required
timescale.
On this basis, the Directors have therefore
concluded that it is appropriate to prepare the financial
statements on a going concern basis. However, there is no certainty
that such additional funds either for working capital or for future
development will be forthcoming and these conditions indicate the
existence of a material uncertainty, which may cast significant
doubt over the Group's ability to continue as a going concern and,
therefore, that it may be unable to realise its assets and
discharge its liabilities in the normal course of business.
The financial statements do not include the adjustments that would
result if the Group was unable to continue as a going concern.
(ii) Use of estimates and
judgementsThere have been no material revisions to the nature
and amount of changes in estimates of amounts reported in the 2016
annual financial statements.
(iii) ImpairmentAt 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 ended31 March 2017(unaudited) |
3
months ended31 March 2016 (unaudited) |
(Loss) / profit attributable to ordinary shareholders (US$) |
|
|
(114,043) |
1,347,665 |
Weighted average
ordinary shares in issue |
|
|
698,701,772 |
656,389,204 |
Basic
(loss) / profit per share (US cents) |
|
|
(0.016) |
0.205 |
Diluted ordinary shares
in issue (1) |
|
|
748,611,772 |
692,774,989 |
Diluted
(loss) / profit per share (US cents) |
|
|
(0.016) (2) |
0.195 |
- Assumes the exercise of 49,910,000 share options that were in
issue but not necessarily vested as at 31 March 2017.
- 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
Between the end of the financial period and the
date of this management discussion and analysis, there has been no
item, transaction or event of a material or unusual nature likely,
in the opinion of the Directors of the Group, to affect
significantly the continuing operations of the entity, the results
of these operations, or the state of affairs of the entity in
future financial periods.
Enquiries:
Serabi Gold plc |
|
Michael Hodgson |
Tel:
+44 (0)20 7246 6830 |
Chief
Executive |
Mobile: +44 (0)7799 473621 |
|
|
Clive
Line |
Tel:
+44 (0)20 7246 6830 |
Finance Director |
Mobile: +44 (0)7710 151692 |
|
|
Email: contact@serabigold.com |
|
Website: www.serabigold.com |
|
|
|
Beaumont Cornish LimitedNominated Adviser and Financial
Adviser |
|
Roland Cornish |
Tel:
+44 (0)20 7628 3396 |
Michael Cornish |
Tel:
+44 (0)20 7628 3396 |
|
|
Peel
Hunt LLPUK Broker |
|
Matthew Armitt |
Tel:
+44 (0)20 7418 9000 |
Ross
Allister |
Tel:
+44 (0)20 7418 9000 |
|
|
Blytheweigh Public Relations |
|
Tim
Blythe |
Tel:
+44 (0)20 7138 3204 |
Camilla Horsfall |
Tel:
+44 (0)20 7138 3224 |
Copies of this announcement are available from
the Company's website at www.serabigold.com.
Neither the Toronto Stock Exchange, nor any
other securities regulatory authority, has approved or disapproved
of the contents of this announcement.
The Company will, in compliance with Canadian
regulatory requirements, post the Unaudited Interim Financial
Statements and the Management Discussion and Analysis for the three
month period ended 31 March 2017 on SEDAR at www.sedar.com.
These documents will also available from the Company's website -
www.serabigold.com.
Serabi's Directors Report and Financial
Statements for the year ended 31 December 2016 together the
Chairman's Statement and the Management Discussion and Analysis,
are available from the Company's website - www.serabigold.com and
on SEDAR at www.sedar.com.
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
GLOSSARY OF TERMSThe following is a
glossary of technical terms: "Au" means gold. "assay" in
economic geology, means to analyse the proportions of metal in a
rock or overburden sample; to test an ore or mineral for
composition, purity, weight or other properties of commercial
interest."development" - excavations used to establish access
to the mineralised rock and other workings."doré - a semi-pure
alloy of gold silver and other metals produced by the smelting
process at a mine that will be subject to further refining."DNPM"
is the Departamento Nacional de Produção Mineral."grade" is the
concentration of mineral within the host rock typically quoted as
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 StatementThe scientific
and technical information contained within this announcement has
been reviewed and approved by Michael Hodgson, a Director of the
Company. Mr Hodgson is an Economic Geologist by training with over
26 years' experience in the mining industry. He holds a BSc (Hons)
Geology, University of London, a MSc Mining Geology, University of
Leicester and is a Fellow of the Institute of Materials, Minerals
and Mining and a Chartered Engineer of the Engineering Council of
UK, recognising him as both a Qualified Person for the purposes of
Canadian National Instrument 43-101 and by the AIM Guidance Note on
Mining and Oil & Gas Companies dated June 2009.
Forward Looking StatementsCertain
statements in this announcement are, or may be deemed to be,
forward looking statements. Forward looking statements are
identified by their use of terms and phrases such as ''believe'',
''could'', "should" ''envisage'', ''estimate'', ''intend'',
''may'', ''plan'', ''will'' or the negative of those, variations or
comparable expressions, including references to assumptions. These
forward looking statements are not based on historical facts but
rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive
advantages, business prospects and opportunities. Such forward
looking statements reflect the Directors' current beliefs and
assumptions and are based on information currently available to the
Directors. A number of factors could cause actual results to differ
materially from the results discussed in the forward looking
statements including risks associated with vulnerability to general
economic and business conditions, competition, environmental and
other regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with such
forward looking statements.
ENDS
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