REG-Audited Results for the year ended 31 December 2024
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Audited Results for the year ended 31 December 2024
Serabi Gold plc (“Serabi” or the “Company”) (AIM:SRB, TSX:SBI,
OTCQX:SRBIF), the Brazilian focused gold mining and development company, is
pleased to announce the Company’s audited results for the year ended 31
December 2024 (all financial amounts are expressed in U.S. dollars unless
otherwise indicated).
HIGHLIGHTS
* Revenue of $94.5 million (2023: $63.7 million) reflecting higher production
year on year as well as positive movement in the average gold price achieved
of $2,407 (2023: $1,945).
* Cash held at 31 December 2024 of $22.2 million (31 December 2023: $11.6
million).
* Net cash at 31 December 2024 (after interest bearing loans and lease
liabilities) of $16.2 million (31 December 2023: $5.0 million.
* Gold production for the 2024 full year of 37,520 ounces (2023: 33,153
ounces).
* EBITDA for the year of $35.9 million (2023: $13.8 million), a 160%
improvement year on year.
* Post-tax profit for the year of $27.8 million (2023: Post-tax profit of $6.6
million), a 321% improvement year on year.
* Profit per share of 36.73 cents compared with a profit per share of 8.68
cents for the 2023 calendar year.
* Net cash inflow from operations for the year was $24.5 million after mine
development expenditure of $6.3 million, compared to $7.7 million in 2023
after accounting for mine development of $4.4 million.
* Cash costs for the full year of $1,326 per ounce (2023: $1,300) and AISC for
the full year of $1,700 per ounce (2023: $1,635).
* The Board announces a new shareholder return policy, where Serabi will
target a return of up to 20% - 30% of the Group’s free cash flow to
shareholders through dividends or buy-backs.
* Robust first quarter of 2025 with 10,013 ounces of gold production.
Production guidance of between 44,000 and 47,000 ounces of gold for the 2025
calendar year.
* Serabi is targeting production of 60,000 ounces by 2026 and aiming to be a
+100,000 ounces producer thereafter through its 2025 and 2026 brownfield
exploration programmes.
Key Financial Information
SUMMARY FINANCIAL STATISTICS FOR THE THREE AND TWELVE MONTHS ENDING 31 DECEMBER 2024
12 months to 31 Dec 2024 US$ 3 months to 31 Dec 2024 US$ 12 months to 31 Dec 2023 US$ 3 months to 31 Dec 2023 US$
Revenue 94,536,392 24,245,751 63,707,468 15,810,204
Cost of Sales (50,710,007) (10,869,204) (43,414,739) (10,581,049)
Gross Operating Profit 43,826,385 13,376,547 20,292,729 5,229,155
Administration and share based payments (7,966,166) (2,237,807) (6,508,543) (1,806,076)
EBITDA 35,860,219 11,138,740 13,784,186 3,423,079
Depreciation and amortisation charges (4,273,324) (976,001) (6,239,556) (1,257,370)
Operating profit before finance and tax 31,586,895 10,162,739 7,544,630 2,165,709
Profit/(loss) after tax 27,819,718 9,982,497 6,575,612 1,954,833
Earnings per ordinary share (basic) 36.73 cents 13.18 cents 8.68 cents 2.58 cents
Average gold price received US$2,407 US$2,670 US$1,945 US$1,972
As at 31 December 2024 As at 31 December 2023
Cash and cash equivalents 22,183,049 11,552,031
Net funds 16,231,293 4,998,723
Net assets 104,181,654 92,792,049
Cash Cost and All-In Sustaining Cost (“AISC”)
12 months to 31 December 2024 3 months to 31 December 2024 12 months to 31 December 2023 3 months to 31 December 2023
Gold production for cash cost and AISC purposes 37,520 ozs 10,022 ozs 33,152 ozs 7,891 ozs
Total Cash Cost of production (per ounce) US$1,326 US$1,169 US$1,300 US$1,343
Total AISC of production (per ounce) US$1,700 US$1,512 US$1,635 US$1,721
Colm Howlin, CFO of Serabi commented,
“2024 was another significant year of progress for the Group with gold
production of 37,520 ounces, permitting progress at Coringa with the renewal
for three years of the trial mining permit, the successful build and
commissioning of the Coringa classification plant and the issuing of a new
Technical Report for the Coringa mine with 180,000 ounces of Measured and
Indicated Resources. More importantly, despite continued development of the
Coringa mine with increased activity at the Serra vein, as well as the portal
and ramp development commencing at the Meio vein, cash has also improved, with
cash almost doubling, increasing by $10.6 million from $11.6 million at 31st
December 2023 to $22.2 million at 31st December 2024. The Group has started
2025 positively with an excellent first quarter being recorded with cash
balances further increasing to $26.5 million as at 31st March 2025.
During 2024 cash generated from operations and after capitalised mine
development expenditure was $22.6 million, a significant improvement on the
net cash inflow of $7.7 million in 2023.
While gold production improved by 13 percent year on year, sales revenue was
up by almost 48 percent as a result of the strengthening of the gold price
during 2024 with the average gold price achieved during 2024 being up 24
percent in comparison to the previous year. At the same time, total operating
expenses only increased by 10 percent resulting in Post-Tax Profit being up by
$21.2 million, a 321 percent increase, and EBITDA of $35.9 million being up by
$22.1 million, a 160 percent improvement year on year.
Twelve months ago, we communicated that 2024 would be another year of
investment for the Group as we sought to continue development of the Coringa
mine as well as installing and commissioning the classification plant at the
Coringa mine. We completed both of these long-term project plans within the
planned timelines and under budget which is a great reflection on our entire
Operations team. This will allow us to increase production in 2025 to our
target of 44,000 - 47,000 ounces with the increase in production primarily
attributable to Coringa, a direct result of the development work performed
over the last 24 months.
The Group currently has a strong balance sheet with no long-term debt and only
a short-term working capital facility with a local bank in Brazil of $5.0
million. With $22.2 million cash in bank at the end of 2024 which increased to
$26.5 million at the end of first quarter of 2025, the aim of the Group is to
use this money as effectively as possible during 2025 to bring value to all of
our shareholders and we are actively researching and planning the best way to
deploy this cash.
Production for the first quarter of 2025 was positive with over 10,000 ounces
produced and $4.3 million added to our bank balance. This strong operational
performance together with the commencement of an exciting exploration
programme involving two diamond drill rigs at both the Palito Complex and the
Coringa mine means the future for the Group is looking very exciting.
2024 was a year for investment and development and we will continue to look at
both organic and inorganic growth opportunities which should help the Group
fulfil its potential of moving from the junior mining space into becoming a
mid-tier producer in the medium term.”
Statement from the Chair of Serabi, Michael Lynch-Bell:
Dear Shareholders,
“Whilst 2024 was a remarkable year for Serabi, I am pleased to report that
the momentum in our growth has continued into 2025, as the Company remains on
track to execute its growth strategy, ramping up annual production to a
potential run rate of 60,000 oz per annum by 2026 year-end and ultimately
growing into a +100,000 oz per annum producer thereafter through our 2025 and
2026 brownfield exploration programmes at the Palito Complex and Coringa.
Serabi kicked off the year with the announcement of the renewal of the 3-year
GU trial mining license, a testament to the support from the Brazilian
National Mining Agency - Agência Nacional de Mineração (“ANM”) and the
state environmental agency - Secretaria de Meio Ambiente e Sustentabilidade
(“SEMAS”), which from a permitting perspective, underpins our ability in
achieving the 60,000 oz per annum run rate target for 2026. Alongside this, we
remain in pursuit of the Installation License (“LI”) at Coringa, which
awaits final acceptance of the indigenous impact study (“ECI”) by
Fundação Nacional dos Povos Indígenas (“FUNAI”), the government agency
for the indigenous population.
I am pleased to report that the progress in the ramp up of Coringa did not end
there. Our operations team were able to install and commission the crusher and
ore sorter (“Classification Plant”) within a span of 10 months.
Additionally, the Company published an updated Preliminary Economic Assessment
for the Coringa Mine outlining the economics of utilising the Classification
Plant at Coringa with preconcentrated ore being processed at the Palito
Complex. This demonstrated improved economics in comparison to building a
stand-alone processing plant as contemplated in our 2019 Preliminary Economic
Assessment. Dependent on the success of Phase 2 of our growth strategy, which
has the goal of delineating a consolidated resource of 1.5 - 2.0 million
ounces of gold with our upcoming brownfield drill programme, we will maintain
the optionality of constructing a stand-alone processing plant in the future.
I commend the management team for increasing production 13% year-over-year.
The production growth continues well into 2025 as guidance was issued by
management at 44,000 to 47,000 oz, demonstrating the focus of the management
team to execute our growth strategy.
The macroeconomic backdrop during 2024 resulted in a rise in the price of
gold, reaching record highs, a trend that has continued into 2025. Interest
rate cuts by the US Federal Reserve, geopolitical uncertainty in Eastern
Europe and the Middle East, the US Presidential Election, increased global
central bank demand for gold, and market volatility all contributed to a
higher-than-expected realised gold price at Serabi.
Significant free cash flow generation contributed to a strengthening balance
sheet, as cash grew during the year, after the capital investment for the
installation and commissioning of the Classification Plant and underground
development at Coringa. At the date of this report, the price of gold has
maintained its elevated levels with multiple market analysts calling for
additional increases to the price of gold in 2025. Whilst I do not possess a
crystal ball, our operations remain robust at current gold price levels and
given we don’t have any significant capital investment required for the
year, one can reasonably expect the cash flow generation of our operations to
remain strong.
Our stand-alone strategy envisions growing the Palito Complex and Coringa into
a consolidated +100,000 oz per annum producer, however, we remain amenable to
inorganic growth opportunities, continuing to utilise a disciplined approach
to M&A. While we do not intend to pay a dividend in respect of our 2024
results, the Board announce Serabi’s policy going forward will be to target
returns to shareholders through dividends or share buyback programmes of up to
20% to 30% of the Group’s free cash flow, defined as net cash generated from
operating activities less sustaining capital expenditure and necessary
brownfield exploration. This reflects our confidence in the business, our
commitment to delivering long-term value and our balanced capital allocation
strategy.
Whilst we believe that the best use of surplus cash in the short-term would be
to further drive organic growth, we will continue to evaluate investment
opportunities and risk against shareholder return strategies.
On 31 December 2024, we bid farewell to Clive Line, who served Serabi for over
20 years. I would like to extend my thanks for his significant contributions
to the Company and wish him the best of luck in his future endeavours. Colm
Howlin, who was appointed to the role of Chief Financial Officer on 31
December 2024, to replace Clive Line, joined the Board on 25 April 2025. In
April 2025, we have had personnel changes at the Board of Directors. I would
like to express sincere gratitude to Mark Sawyer and Carolina Margozzini for
their significant contributions to Serabi during their tenure and wish them
well on all of their future endeavours.
My tenure as the Chair of Serabi continues to be exciting. Having joined the
Board in August 2022, I remain pleased to be part of the transformation the
Board and management have envisioned. Whilst I have no doubt there may be
challenges which lie ahead, I do believe there are many reasons to remain
confident and optimistic for the future of Serabi. The remainder of the year
will be significant for Serabi, as we embark on Phase 2 of our growth strategy
and plan for positive drilling success through our brownfield drill programme.
I hope that I will be able to report further positive progress at the Annual
General Meeting to be held in June and over the rest of the year.
My continuing thanks to the efforts from the management team and our employees
and for the support of my fellow Board members.
Michael D Lynch-Bell
Chair
30 April 2025
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018.
The person who arranged for the release of this announcement on behalf of the
Company was Colm Howlin, Director.
Enquiries
SERABI GOLD plc
Michael Hodgson t +44 (0)20 7246 6830
Chief Executive m +44 (0)7799 473621
Colm Howlin
Chief Financial Officer m +353 89 6078171
Andrew Khov m +1 647 885 4874
Vice President, Investor Relations &
Business Development
e contact@serabigold.com
www.serabigold.com
BEAUMONT CORNISH Limited
Nominated Adviser & Financial Adviser
Roland Cornish / Michael Cornish t +44 (0)20 7628 3396
PEEL HUNT LLP
Joint UK Broker
Ross Allister / Georgia Langoulant t +44 (0)20 7418 9000
TAMESIS PARTNERS LLP
Joint UK Broker
Charlie Bendon/ Richard Greenfield t +44 (0)20 3882 2868
CAMARCO
Financial PR - Europe
Gordon Poole / Emily Hall t +44 (0)20 3757 4980
HARBOR ACCESS
Financial PR – North America
Jonathan Patterson / Lisa Micali t +1 475 477
9404
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.
See www.serabigold.com for more information and follow us on X @Serabi_Gold
Annual Report
The Annual Report has been published by the Company on its website at
www.serabigold.com and printed copies are expected to be available before 31
May 2025. Additional copies will be available to the public, free of charge,
from the Company's offices at The Long Barn, Cobham Park Road, Downside,
Surrey, KT11 3NE and will be available to download from the Company’s
website at www.serabigold.com.
The data included in the selected annual information tables below is taken
from the Company’s annual audited financial statements for the year ended 31
December 2024, which were prepared in accordance with international accounting
standards in conformity with the requirements of the Companies Act 2006. The
Parent Company financial statements have also been prepared in accordance with
those parts of the Companies Act 2006 applicable to companies reporting under
International Financial Reporting Standards (“IFRS”).
The audited financial statements for the year ended 31 December 2024 will be
presented to shareholders for adoption at the Annual General Meeting of the
Company’s shareholders and filed with the Registrar of Companies.
The following information, comprising, the Income Statement, the Group Balance
Sheet, Group Statement of Changes in Shareholders’ Equity, and Group Cash
Flow, is extracted from these financial statements.
Statement of Comprehensive Income
For the year ended 31 December 2024
Group
For the year ended 31 December 2024 For the year ended 31 December 2023
Notes US$ US$
Revenue from continuing operations 94,536,392 63,707,468
Cost of sales (50,940,007) (43,184,739)
Stock impairment provision 230,000 (230,000)
Depreciation and amortisation charges (4,273,324) (6,239,556)
Total cost of sales (54,983,331) (49,654,295)
Gross operating profit 39,553,061 14,053,173
Administration expenses (7,442,698) (6,492,165)
Share-based payments (248,911) (197,344)
Gain on disposal of fixed assets (274,557) 180,966
Operating profit 31,586,895 7,544,630
Foreign exchange gain (1,515,370) 174,105
Other income – exploration receipts 5 331,144 4,680,414
Other expenses – exploration expenses 5 (299,612) (4,339,554)
Finance expense 6 (674,399) (739,245)
Finance income 6 2,848,358 847,523
Profit before taxation 32,277,016 8,167,873
Income tax expense 7 (4,457,298) (1,592,261)
Profit for the period ((1) ) 27,819,718 6,575,612
Other comprehensive income (net of tax) Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations (16,679,024) 4,496,030
Total comprehensive profit for the period ((1)) 11,140,694 11,071,642
Earnings per ordinary share (basic) ((1) ) 8 36.73 8.68c
Earnings per ordinary share (diluted) ( (1) ) 8 36.73 8.68c
(1) The Group has no non-controlling interests, and all losses are
attributable to the equity holders of the parent company
Balance Sheet as at 31 December 2024
Group
At 31 December 2024 At 31 December 2023
US$ US$
Non-current assets
Deferred exploration costs 18,839,836 20,499,257
Property, plant and equipment 53,593,723 53,340,903
Right of use assets 4,287,020 5,316,330
Taxes receivable 6,246,352 4,653,063
Deferred taxation 1,878,081 1,791,983
Total non-current assets 84,845,012 85,601,536
Current assets
Inventories 13,115,648 12,797,951
Trade and other receivables 2,533,450 2,858,072
Prepayments 2,220,463 2,320,256
Derivative financial assets — 115,840
Cash and cash equivalents 22,183,049 11,552,031
Total current assets 40,052,610 29,644,150
Current liabilities
Trade and other payables 9,695,560 8,626,292
Interest-bearing liabilities 5,841,804 6,403,084
Accruals 419,493 649,225
Total current liabilities 15,956,857 15,678,601
Net current assets 24,095,753 13,965,549
Total assets less current liabilities 108,940,765 99,567,085
Non-current liabilities
Trade and other payables 2,809,243 3,960,920
Provisions 1,839,916 2,663,892
Interest-bearing liabilities 109,952 150,224
Total non-current liabilities 4,759,111 6,775,036
Net assets 104,181,654 92,792,049
Equity
Share capital 11,213,618 11,213,618
Share premium reserve 36,158,068 36,158,068
Share incentive reserve 221,613 175,573
Other reserves 19,486,684 15,960,006
Translation reserve (78,459,765) (61,780,741)
Retained surplus 115,561,436 91,065,525
Equity shareholders’ funds attributable to owners of the parent 104,181,654 92,792,049
Statements of Changes in Shareholders’ Equity
For the twelve month period ended 31 December 2024
Group Share capital Share premium Share incentive reserve Other reserves Translation reserve Retained surplus Total equity
US$ US$ US$ US$ US$ US$ US$
Equity shareholders’ funds at 31 December 2022 11,213,618 36,158,068 1,324,558 14,459,255 (66,276,771) 84,644,335 81,523,063
Foreign currency adjustments – – – – 4,496,030 – 4,496,030
Profit for year – – – – – 6,575,612 6,575,612
Total comprehensive income for the year – – – – 4,496,030 6,575,612 11,071,642
Transfer to taxation reserve – – – 1,500,751 – (1,500,751) –
Share based incentives lapsed in period – – (1,346,329) – – 1,346,329 –
Share based incentive expense – – 197,344 – – – 197,344
Equity shareholders’ funds at 31 December 2023 11,213,618 36,158,068 175,573 15,960,006 (61,780,741) 91,065,525 92,792,049
Foreign currency adjustments – – – – (16,679,024) (16,679,024)
Profit for year – – – – 27,819,718 27,819,718
Total comprehensive income for the year – – – – (16,679,024) 27,819,718 11,140,694
Transfer to taxation reserve – – – 3,526,678 – (3,526,678) –
Share based incentives lapsed in period – – (202,871) – – 202,871 –
Share based incentive expense – – 248,911 – – – 248,911
Equity shareholders’ funds at 31 December 2024 11,213,618 36,158,068 221,613 19,486,684 (78,459,765) 115,561,436 104,181,654
Other reserves comprise a merger reserve of US$361,461 and a taxation reserve
of US$19,125,223 (2023: merger reserve of US$361,461 and taxation reserve of
US$15,598,545).
Cash Flow Statement
For the twelve month period ended 31 December 2024
Group
For the year ended 31 December 2024 For the year ended 31 December 2023
US$ US$
Cash outflows from operating activities
Profit/(loss) for the period 27,819,718 6,575,612
Net financial income (690,121) (623,243)
Depreciation – plant, equipment and mining properties 4,273,324 6,239,556
Provision for inventory impairment (230,000) 230,000
Taxation expense 4,457,298 1,592,261
Share-based payments 248,911 197,344
Gain on fixed asset sales and other items 274,557 (180,966)
Taxation paid (1,967,258) (1,400,365)
Interest paid (547,397) (426,366)
Foreign exchange (loss)/gain 34,072 (82,829)
Changes in working capital
Increase in inventories (2,730,297) (2,830,651)
Increase in receivables, prepayments and accrued income (2,507,371) 1,614,497
Increase in payables, accruals and provisions 2,444,483 1,188,337
Increase in short-term intercompany payables – –
Net cash inflow from operations 30,879,919 12,093,187
Investing activities
Purchase of property, plant, equipment, and projects in construction (7,902,368) (2,378,317)
Mine development expenditure (6,332,004) (4,425,839)
Geological exploration expenditure (2,717,201) (571,411)
Pre-operational project costs (2,001,086) –
Proceeds from sale of assets 64,956 326,727
Investment in subsidiaries – –
Interest received and other finance income 499,138 313,106
Net cash outflow on investing activities (18,388,565) (6,735,734)
Financing activities
Receipt of short-term loan 5,000,000 5,000,000
Repayment of short-term loan (5,000,000) (5,096,397)
Payment of lease liabilities (885,344) (1,171,602)
Net cash outflow from financing activities (885,344) (1,267,999)
Net increase) in cash and cash equivalents 11,606,010 4,089,454
Cash and cash equivalents at beginning of period 11,552,031 7,196,313
Exchange difference on cash (974,992) 266,264
Cash and cash equivalents at end of period 22,183,049 11,552,031
Notes
1. General Information
The financial information set out above for the years ended 31 December 2024
and 31 December 2023 does not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006 but is derived from those accounts.
Whilst the financial information included in this announcement has been
compiled in accordance with UK-adopted international accounting standards (UK
IAS), this announcement itself does not contain sufficient financial
information to comply with UK IAS. A copy of the statutory accounts for 2023
has been delivered to the Registrar of Companies and those for 2024 will be
delivered to the Registrar of Companies following approval by shareholders at
the Annual General Meeting. The full audited financial statements for the
years end 31 December 2024 and 31 December 2023 comply with IFRS.
2. Auditor’s Opinion
The auditor has issued an unqualified opinion in respect of the financial
statements for both 2024 and 2023 which do not contain any statements under
the Companies Act 2006, Section 498(2) or Section 498(3).
3. Basis of Preparation
The financial statements have been prepared in accordance with international
accounting standards in conformity with the requirements of the Companies Act
2006. The parent and consolidated financial statements have been prepared in
accordance with UK-adopted international accounting standards (UK IAS) and
with the requirements of the Companies Act 2006 as applicable to companies
reporting under those standards.
On 31 December 2020, IFRS as adopted by the European Union at that date was
brought into the UK law and became UK-adopted international accounting
standards, with future changes being subject to endorsement by the UK
Endorsement Board. The Group prepares its consolidated financial statements in
accordance with UK IAS.
Accounting standards, amendments and interpretations effective in 2024
The Group has not adopted any standards or interpretations in advance of the
required implementation dates.
The following Accounting standards came into effect as of 1 January 2024
IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information 1 January 2024
IFRS S2 Climate-related Disclosures 1 January 2024
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures – Supplier Finance Arrangements 1 January 2024
Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback 1 January 2024
Amendments IAS 1 – Classification of Liabilities as Current or Non Current
and Non Current Liabilities with Covenants
The IASB issued amendments to IAS 1 Presentation of Financial Statements
(“IAS 1”). The amendments clarify that the classification of liabilities
as current or non-current is based on rights that are in existence at the end
of the reporting period. Classification is unaffected by the entity’s
expectation or events after the reporting date. Covenants of loan arrangements
will affect the classification of a liability as current or non-current if the
entity must comply with a covenant either before or at the reporting date,
even if the covenant is only tested for compliance after the reporting date.
There was no significant impact on the Company’s consolidated interim
financial statements as a result of the adoption of these amendments.
There is no material impact on the financial statements from the adoption of
these new accounting standards or amendments to accounting standards,
Certain new accounting standards and interpretations have been published that
are not mandatory for the current period and have not been early adopted.
These standards are not expected to have a material impact on the Company’s
current or future reporting periods.
4. Going concern and availability of finance
The Group’s business activities, together with the factors likely to affect
its future development, performance and position, are set out in the Group
Strategic Report. The financial position of the Group, its cash flows, and
liquidity position are described in the Chief Financial Officer’s Review and
set out in the Group Financial Statements. Further details of the Group’s
commitments and maturity analysis of financial liabilities are set out in note
24 and 26 respectively of the Group Financial Statements. In addition, note 23
to the Group Financial Statements includes the Group’s objectives, policies
and processes for managing its capital; its financial risk management
objectives; details of its financial instruments; and its exposures to credit
risk and liquidity risk.
The Directors have a reasonable expectation that, after taking into account
reasonably possible changes in trading performance, and the current
macroeconomic situation, the Group has adequate resources to continue in
operational existence for the foreseeable future. Thus, they continue to adopt
the going concern basis of accounting in preparing the Financial Statements.
Further details are provided in Going Concern section of the Group Strategic
Report.
5. Other income and expense
Under the copper exploration alliance with Vale announced on 10 May 2023, the
related exploration activities undertaken by the Group under the management of
a working committee (comprising representatives from Vale and Serabi), were
funded in their entirety by Vale during Phase 1 of the programme. Following
the completion of Phase 1, Vale advised the Group, in April 2024, that it did
not wish to continue the exploration alliance.
Exploration and development of copper deposits is not the core activity of the
Group and further funding beyond the Phase 1 commitment would be required
before a judgment could be made as to a project being commercially viable.
There is a significant cost involved in developing new copper deposits and it
is unlikely that, without the financial support of a partner, the Group would
independently seek to develop a copper project in preference to any of its
existing gold projects and discoveries. As a result, both the funding received
from Vale and the related exploration expenditures was recognised through the
income statement. As this is not a principal business activity of the Group
these receipts and expenditures were classified as other income and other
expenses.
6. Finance expense and income
Group
12 months ended 31 December 2024 12 months ended 31 December 2023
US$ US$
Interest on short term unsecured bank loan (424,639) (453,675)
Interest in finance leases (60,404) (103,568)
Interest on short term trade loan (62,354) (90,586)
Variation on discount on rehabilitation provision (127,002) (91,416)
Total finance expense (674,399) (739,245)
PIS/COFINS recovered 2,342,388 —
Gain on revaluation of derivatives — 431,348
Realised gain on hedging activities 6,832 103,069
Interest income 499,138 313,106
Total finance income 2,848,358 847,523
Net finance income 2,173,959 108,278
7. Taxation
The Group has incurred a tax charge on profits in Brazil for the year to 31
December 2024 of US$4,999,173 (31 December 2023 - US$2,199,658)
The Group has also 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 registered a net deferred tax credit of US$541,875 during the year
to 31 December 2023 (31 December 2023 – credit of US$607,397).
8. Earnings per share
For the year ended 31 December 2024 For the year ended 31 December 2023
Profit/(loss) attributable to ordinary shareholders (US$) 27,819,718 6,575,612
Weighted average ordinary shares in issue 75,734,551 75,734,551
Basic profit per share (US cents) 36.73 8.68
Diluted ordinary shares in issue ((1)) 75,734,551 75,734,551
Diluted profit per share (US cents) 36.73 8.68
(1) At 31 December 2024 there were 2,814,632 conditional
share awards in issue (31 December 2023 - 2,075,400). These are subject to
performance conditions which may or not be fulfilled in full or in part. These
CSAs have not been included in the calculation of the diluted earnings per
share.
9. Post balance sheet events
On 7 January 2024, the Group completed a US$5.0 million unsecured loan
arrangement with Brazilian bank Itau which carried a fixed interest coupon of
8.47 per cent. The loan was repaid as a bullet payment on 6 January 2025. On
22 January 2025, the Group completed a further US$5.0 million unsecured loan
arrangement with a different Brazilian bank (Santander) which carries a fixed
interest coupon of 6.16 per cent. This loan is repayable on 16 January 2026.
Except as set out above, there has been no item, transaction or event of a
material or unusual nature likely, in the opinion of the Directors of the
Company, to affect significantly the continuing operation of the entity, the
results of these operations, or the state of affairs of the entity in future
financial periods.
Assay Results
Assay results reported within this release include those provided by the
Company's own on-site laboratory facilities at Palito and have not yet been
independently verified. Serabi closely monitors the performance of its own
facility against results from independent laboratory analysis for quality
control purpose. As a matter of normal practice, the Company sends duplicate
samples derived from a variety of the Company's activities to accredited
laboratory facilities for independent verification. Since mid-2019, over
10,000 exploration drill core samples have been assayed at both the Palito
laboratory and certified external laboratory, in most cases the ALS laboratory
in Belo Horizonte, Brazil. When comparing significant assays with grades
exceeding 1 g/t gold, comparison between Palito versus external results record
an average over-estimation by the Palito laboratory of 6.7% over this period.
Based on the results of this work, the Company's management are satisfied that
the Company's own facility shows sufficiently good correlation with
independent laboratory facilities for exploration drill samples. The Company
would expect that in the preparation of any future independent
Reserve/Resource statement undertaken in compliance with a recognised
standard, the independent authors of such a statement would not use Palito
assay results without sufficient duplicates from an appropriately certificated
laboratory.
Forward-looking statements
Certain statements in this announcement are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ‘‘believe’’, ‘‘could’’, “should”
‘‘envisage’’, ‘‘estimate’’, ‘‘intend’’,
‘‘may’’, ‘‘plan’’, ‘‘will’’ or the negative of those,
variations or comparable expressions, including references to assumptions.
These forward-looking statements are not based on historical facts but rather
on the Directors’ current expectations and assumptions regarding the
Company’s future growth, results of operations, performance, future capital
and other expenditures (including the amount, nature and sources of funding
thereof), competitive advantages, business prospects and opportunities. Such
forward looking statements reflect the Directors’ current beliefs and
assumptions and are based on information currently available to the Directors.
A number of factors could cause actual results to differ materially from the
results discussed in the forward-looking statements including risks associated
with vulnerability to general economic and business conditions, competition,
environmental and other regulatory changes, actions by governmental
authorities, the availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which are beyond
the control of the Company. Although any forward-looking statements contained
in this announcement are based upon what the Directors believe to be
reasonable assumptions, the Company cannot assure investors that actual
results will be consistent with such forward looking statements.
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 30 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, recognizing 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.
Notice
Beaumont Cornish Limited, which is authorised and regulated in the United
Kingdom by the Financial Conduct Authority, is acting as nominated adviser to
the Company in relation to the matters referred herein. Beaumont Cornish
Limited is acting exclusively for the Company and for no one else in relation
to the matters described in this announcement and is not advising any other
person and accordingly will not be responsible to anyone other than the
Company for providing the protections afforded to clients of Beaumont Cornish
Limited, or for providing advice in relation to the contents of this
announcement or any matter referred to in it.
Neither the Toronto Stock Exchange, nor any other securities regulatory
authority, has approved or disapproved of the contents of this news releaseRecent news on Serabi Gold
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