REG-Serabi Gold plc : Unaudited Interim Financial Results and MD&A to 30 June 2017 <Origin Href="QuoteRef">SRB.L</Origin>
14/08/2017 07:05
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14 August 2017
Serabi Gold plc
("Serabi" or the "Company")
Unaudited Interim Financial Results for the three and six month periods to 30
June 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 and six month periods ending 30 June 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 AND SIX MONTHS ENDING 30 JUNE 2017
3 months to 30 June 2017 US$ 6 months to 30 June 2017 US$ 3 months to 30 June 2016 US$ 6 months to 30 June 2016 US$
Revenue 10,142,676 23,316,260 14,232,086 25,911,175
Cost of Sales (6,849,960) (16,862,310) (8,923,316) (15,612,822)
Depreciation and amortisation charges (2,710,157) (4,610,861) (2,428,213) (3,644,940)
Gross profit 582,559 1,843,089 2,880,557 6,653,413
Profit / (loss) before tax (794,176) (827,667) 60,924 1,562,228
Profit after tax (891,637) (1,005,680) (341,483) 1,006,182
Earnings per ordinary share (basic) (0.13c) (0.15c) (0.05c) 0.15c
Average gold price received US$1,221 US$1,216
As at 30 June 2017 As at 31 Dec 2016
Cash and cash equivalents 3,832,218 4,160,923
Net assets 61,894,630 63,378,973
Cash Cost and All-In Sustaining Cost ("AISC")
6 months to 30 June 2017 6 months to 30 June 2016
Gold production for cash cost and AISC purposes 18,009 19,667
Total Cash Cost of production (per ounce) US$819 US$763
Total AISC of production (per ounce) US$1,072 US$945
Key Operational Information
SUMMARY PRODUCTION STATISTICS FOR THE TWO QUARTERS TO 30 JUNE 2017
Quarter 1 Quarter 2 Year to Date Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
2017 2017 2017 2016 2016 2016 2016 2016
Horizontal development - Total Metres 2,251 1,855 4,106 2,925 2,941 2,649 2,694 11,209
Mined ore - Total Tonnes 36,918 42,075 78,993 37,546 33,606 43,133 44,579 158,864
Gold grade (g/t) 10.12 7.80 8.89 11.02 9.56 9.61 8.94 9.74
Milled ore Tonnes 46,663 43,905 90,568 36,615 39,402 42,464 40,485 158,966
Gold grade (g/t) 7.09 6.26 6.69 8.58 8.17 8.08 7.60 8.11
Gold production ((1) (2)) Ounces 9,861 8,148 18,009 9,771 9,896 10,310 9,413 39,390
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 the first six months of 2017 include treatment
of 4,042 tonnes of flotation tails.
Financial Highlights
* Cash Cost for the year to date of US$819.
* All-In Sustaining Cost for the year to date of US$1,072.
* Temporary operational issues in Q2 2017, which have now been fully resolved,
restricted production and, in combination with a strengthening Brazilian Real,
impacted financial results for the first half of the year.
* Gross profit from operations for the first six months of 2017 of US$1.84
million.
* Loss per share of 0.15 cents for the first six months of 2017.
* Cash holdings of US$3.83 million at 30 June 2017.
* The Company has entered into a new US$5 million facility with Sprott
Resource Lending Partnership for a term expiring on 31 December 2019.
* Average gold price of US$1,221 received on gold sales in the first six
months of 2016.
2017 Guidance
* Serabi remains on track to meet forecast gold production for 2017 of
approximately 40,000 ounces at an All-In Sustaining Cost of US$950 to US$975
per ounce.
Operational Highlights
* Second quarter production of 8,148 ounces of gold.
* Mine production totalled 42,075 tonnes at 7.80 grammes per tonne ("g/t") of
gold.
* 43,905 tonnes processed through the plant for the combined mining
operations, with an average grade of 6.26 g/t of gold.
* 1,855 metres of horizontal mine development completed in the quarter.
* At the Palito sector, expansion of working areas continues, with development
and production now coming from eight veins from the 25 included in the
geological resource. The main ramp has now reached the -50 metre relative
level ("mRL"), with the G3 vein intersected, the deepest working area in the
deposit. To date grades have been very encouraging.
* At the Sao Chico sector, the main ramp has now been deepened to the 40mRL,
approximately 200 vertical metres below surface. Production is coming from
the 140mRL and 128mRL levels with levels 116mRL, 100mRL, 86mRL, 70mRL, 56mRL
and with the 40mRL now being developed, development remains well ahead of
production.
* By the end of the second quarter, surface ore stocks were approximately
12,000 tonnes (31 March 2017: 13,000 tonnes) with an average grade of 3.15 g/t
of gold.
* SRK Ltd hired to commence a new 43-101 Technical Report on the property,
hopefully to be issued early Q4, 2017.
Mike Hodgson, CEO of Serabi commented, "As I noted in the Company's
announcement of its second quarter production, the Company has achieved
mid-year production of over 18,000 ounces of gold and I remain very satisfied
with the production results for the year to date and the prospects for the
rest of the year. "The operational issues that we encountered and
restricted gold production in April and May, are now fully resolved, and June
and July has seen production levels return to those levels that we achieved
through much of 2016 and during the first quarter of 2017. Furthermore, the
month of July was the highest monthly production for the year to date and I
remain confident that we can recover shortfall over the remainder of the year
and will be able to meet our full year production guidance of 40,000 ounces.
"Nonetheless, in the short term, the production shortfalls during that six
week period have impacted on our financial results for the second quarter of
the year. Whilst at the operating level the Company has reported a gross
profit of approximately US$580,000 and a gross profit to date of US$1.8
million, revenue is probably some US$2 million lower than we might have
expected had production in the second quarter mirrored that of the first
quarter of 2017. That being said, if, I as I expect, we recover this lost
production through the second half of the year, we should recover the lost
revenue and cash flow with relatively low increase in operating cost and
therefore see a stronger financial performance in the second half of the year.
"The results when compared against 2016 have also been adversely affected
by the relative strength of the Brazilian Real. The average rate for the
first six months of 2017 is 14 per cent stronger than for the same period in
2016 which has the effect of increasing operating costs when reported in US
Dollars. In fact, when looked at in local currency terms, our operating
costs are in fact tracking slightly lower than in 2016 notwithstanding that
the mined and processed ore tonnages have been higher in the first six months
of 2017 than for the same six months period in 2016. "Our cash balances
remain relatively strong but again the production shortfalls have not allowed
us to build up our cash balances to the extent that we had hoped although
considering timing differences of sales receipts, particularly in relation to
sales of concentrate, the cash position is approximately US$1 million better
than at the start of the year. "The Company has, at the period end, taken
out a new working capital loan facility with Sprott Resource Lending
Partnership of US$5 million which is for a 30 month period. The new funding
from this was not, however, received until early July so is not reflected in
our cash holdings as at 30 June 2017. This loan funding will allow the
Company to expedite some of its capital investment programmes that it feels
will improve operations and bring costs efficiencies in the medium term and
thus reduce unit production costs. "Some of the areas of investment focus
on improving the quality of the mill feed. This includes a reduction in the
size of the underground development drives and continuing the trials on ore
sorting using x-ray technology to further eliminate waste and low grade ore in
the mill feed before it enters the plant. "Despite our success with narrow
vein mining, development still produces high and unavoidable levels of low
grade and waste material. This not only increases costs but this waste
material consumes vital capacity within the process plant. Reducing the size
of underground development galleries is now more of a reality with the
availability of numerous suppliers manufacturing smaller units of equipment
than were available when we re-opened Palito in 2013. The idea is to
initially purchase two to three units for trial and, if successful, more to
follow. "These ore sorting initiatives are very exciting and, I feel, could
bring a paradigm shift to vein mining in the region. We will seek to reduce
as much dilution as we can in the mining process, but inevitably cannot remove
all of it. If ore sorting can be successfully introduced the ramifications
are very significant, with the potential to reduce feed tonnage and
concurrently increase the grade of the ore delivered to the process plant."
SERABI GOLD PLC
Condensed Consolidated Statements of Comprehensive Income
For the three months ended 30 June For the six months ended 30 June
2017 2016 2017 2016
(expressed in US$) Notes (unaudited) (unaudited) (unaudited) (unaudited)
CONTINUING OPERATIONS
Revenue 10,142,676 14,232,086 23,316,260 25,911,175
Cost of sales (6,849,960) (8,923,316) (16,642,310) (15,612,822)
Provision for Impairment of Inventory - - (220,000) -
Depreciation of plant and equipment (2,710,157) (2,428,213) (4,610,861) (3,644,940)
Gross profit 582,559 2,880,557 1,843,089 6,653,413
Administration expenses (1,178,903) (1,412,120) (2,420,358) (2,544,320)
Share based payments (112,412) (25,640) (178,032) (148,756)
Gain on disposal of assets 115,975 24,401 115,975 26,969
Operating profit (592,781) 1,467,198 (639,326) 3,987,306
Foreign exchange loss (167,236) (31,609) (120,399) (72,408)
Finance expense (34,194) (1,374,699) (68,011) (2,352,739)
Finance income 35 34 69 69
(Loss) / profit before taxation (794,176) 60,924 (827,667) 1,562,228
Income tax expense (97,461) (402,407) (178,013) (556,046)
(Loss) / profit for the period from continuing operations ((1) (2)) (891,637) (341,483) (1,005,680) 1,006,182
Other comprehensive income (net of tax) Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations (2,124,542) 5,349,439 (656,695) 9,629,568
Total comprehensive income/(loss) for the period ((2)) (3,016,179) 5,017,956 (1,662,375) 10,635,750
(Loss) / profit per ordinary share (basic) ((1)) 3 (0.13c) (0.05c) (0.15c) 0.15c
(Loss) / profit per ordinary share (diluted) ((1)) 3 (0.13c) (0.05c) (0.15c) 0.14c
(1) All revenue and expenses arise from continuing operations.
SERABI GOLD PLC
Condensed Consolidated Balance Sheets
As at As at As at
30 June 30 June 31 December
2017 2016 2016
(expressed in US$) (unaudited) (unaudited) (audited)
Non-current assets
Deferred exploration costs 9,868,205 9,550,074 9,990,789
Property, plant and equipment 43,557,012 46,927,210 45,396,140
Deferred taxation 3,133,428 - 3,253,630
Total non-current assets 56,558,645 56,477,284 58,640,559
Current assets
Inventories 6,844,757 9,520,851 8,110,373
Trade and other receivables 2,865,877 7,783,763 1,233,049
Prepayments and accrued income 5,166,612 4,348,014 3,696,550
Cash and cash equivalents 3,832,218 4,774,537 4,160,923
Total current assets 18,709,464 26,427,165 17,200,895
Current liabilities
Trade and other payables 5,330,772 6,480,142 4,722,139
Interest bearing loan 1,371,489 2,516,667 1,371,489
Convertible loan facility - 1,892,624 -
Trade and asset finance facilities 1,338,475 7,608,526 1,592,568
Derivative financial liabilities 650,000 1,577,832 -
Accruals 512,649 443,601 635,446
Total current liabilities 9,203,385 20,519,392 8,321,642
Net current assets 9,506,079 5,907,773 8,879,253
Total assets less current liabilities 66,064,724 62,385,057 67,519,812
Non-current liabilities
Trade and other payables 2,133,294 2,298,786 2,211,078
Provisions 1,824,472 2,309,908 1,851,963
Interest bearing liabilities 212,328 208,212 77,798
Total non-current liabilities 4,170,094 4,816,906 4,140,839
Net assets 61,894,630 57,568,151 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 1,332,578 1,136,509 1,338,652
Other reserves 3,404,624 361,461 3,051,862
Translation reserve (31,264,543) (29,596,967) (30,607,848)
Retained earnings 81,158,789 80,403,966 82,333,125
Equity shareholders' funds 61,894,630 57,568,151 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 PLC
Condensed Consolidated Statements of Changes in Shareholders' Equity
(expressed in US$) Share Share Share option Other Translation Accumulated
capital premium reserve reserves ((1)) reserve loss Total equity
Equity shareholders' funds at 31 December 2015 (audited) 5,263,182 - 2,747,415 450,262 (39,226,535) 77,549,321 46,783,645
Foreign currency adjustments - - - - 9,629,568 - 9,629,568
Profit for the period - - - - - 1,006,182 1,006,182
Total comprehensive income for the period - - - - 9,629,568 1,006,182 10,635,750
Warrants lapsed - - - (88,801) - 88,801 -
Share options lapsed in period - - (1,759,662) - - 1,759,662 -
Share option expense - - 148,756 - - - 148,756
Equity shareholders' funds at 30 June 2016 (unaudited) 5,263,182 - 1,136,509 361,461 (29,596,967) 80,403,966 57,568,151
Foreign currency adjustments - - - - - - -
Loss for the period - - - - - - -
Total comprehensive income for the period - - - - - - -
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 option expense - - - - - - -
Equity shareholders' funds at 31 December 2016 (audited) 5,540,960 1,722,222 1,338,652 3,051,862 (30,607,848) 82,333,125 63,378,973
Foreign currency adjustments - - - - (656,695) - (656,695)
Loss for the period - - - - - (1,005,680) (1,005,680)
Total comprehensive income for the period - - - - (656,695) (1,005,680) (1,662,375)
Transfer to taxation reserve - - - 352,762 - (352,762) -
Share options lapsed in period - - (184,106) - - 184,106 -
Share option expense - - 178,032 - - - 178,032
Equity shareholders' funds at 30 June 2017 (unaudited) 5,540,960 1,722,222 1,332,578 3,404,624 (31,264,543) 81,158,789 61,894,630
1. Other reserves comprise a merger reserve of US$361,461 and a taxation
reserve of US$2,337,639 (31 December 2016: merger reserve of US$361,461 and a
taxation reserve of US$2,690,401)
SERABI GOLD PLC
Condensed Consolidated Cash Flow Statements
For the three months ended 30 June For the six months ended 30 June
2017 2016 2017 2016
(expressed in US$) (unaudited) (unaudited) (unaudited) (unaudited)
Operating activities
Operating (loss)/profit (891,637) (341,483) (1,005,680) 1,006,182
Depreciation - plant, equipment and mining properties 2,710,157 2,428,213 4,610,861 3,644,940
Net financial expense 201,395 1,406,273 188,341 2,425,077
Provision for impairment of inventory - - 220,000 -
Provision for Taxation 97,461 402,407 178,013 556,046
Share-based payments 112,412 25,639 178,032 148,756
Foreign exchange (loss) / gain (84,778) (302,227) 40,560 169,676
Changes in working capital
(Increase)/decrease in inventories (483,319) 1,189,635 987,364 (780,741)
(Increase) in receivables, prepayments and accrued income (333,475) (2,073,657) (2,577,285) (2,764,970)
Increase/(decrease) in payables, accruals and provisions 894,832 (22,698) 3,589 1,479,848
Net cash inflow from operations 2,223,048 2,712,102 2,823,795 5,884,814
Investing activities
Purchase of property, plant and equipment and projects in construction (815,924) (1,463,710) (1,083,839) (2,127,671)
Mine development expenditures (877,530) (729,010) (1,964,320) (1,249,151)
Exploration and other development expenditure 21 - (2,500) -
Proceeds from sale of assets 115,975 24,401 115,975 26,969
Interest received 35 34 69 69
Net cash outflow on investing activities (1,577,423) (2,168,285) (2,934,615) (3,349,784)
Financing activities
Repayment of short-term secured loan - (1,333,333) - (1,333,333)
Draw-down of short-term convertible loan facility - - - 2,000,000
Receipts from short-term trade finance - 6,750,809 - 11,901,098
Repayment of short-term trade finance - (5,194,131) - (11,509,875)
Payment of finance lease liabilities (132,164) (169,793) (132,164) (381,521)
Interest paid and other finance costs (55,807) (272,937) (67,455) (498,332)
Net cash (outflow)/ inflow from financing activities (187,971) (219,385) (199,619) 178,037
Net increase / (decrease) in cash and cash equivalents 457,654 324,432 (310,439) 2,713,068
Cash and cash equivalents at beginning of period 3,407,117 4,410,589 4,160,923 2,191,759
Exchange difference on cash (32,553) 39,516 (18,266) (130,289)
Cash and cash equivalents at end of period 3,832,218 4,774,537 3,832,218 4,774,537
Notes
1. General Information
The financial information set out above does not constitute statutory accounts
as defined in Section 434 of the Companies Act 2006. Whilst the financial
information included in this announcement has been compiled in accordance with
International Financial Reporting Standards ("IFRS") this announcement itself
does not contain sufficient financial information to comply with IFRS. A copy
of the statutory accounts for 2016 has been filed with the Registrar of
Companies following their adoption by shareholders at the last Annual General
Meeting. The full audited financial statements, for the year end 31 December
2016, do comply with IFRS.
2. Basis of Preparation
These interim condensed consolidated financial statements are for the three
and six month periods ended 30 June 2017. Comparative information has been
provided for the unaudited three and six month periods ended 30 June 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.
1. 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 was repayable by 31 August 2017 and at 31 June 2017, the
amount outstanding under this facility was US$1.37 million (31 December 2016:
US$1.37 million). On 30 June the Group completed a re-negotiation of an
increased secured loan facility of US$5 million (including the existing loan
to US$1.37 million). The new facility is repayable by 31 December 2019 and
the incremental funds were received by the Company on 5 July 2017.
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 condensed consolidated 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 judgements
There have been no material revisions to the nature and amount of changes in
estimates of amounts reported in the 2016 annual financial statements.
(iii) Impairment
At each balance sheet date, the Group reviews the carrying amounts of its
property, plant and equipment and intangible assets to determine whether there
is any indication that those assets have suffered impairment. Prior to
carrying out of impairment reviews, the significant cash generating units are
assessed to determine whether they should be reviewed under the requirements
of IFRS 6 - Exploration for and Evaluation of Mineral Resources or IAS 36 -
Impairment of Assets. Such determination is by reference to the stage of
development of the project and the level of reliability and surety of
information used in calculating value in use or fair value less costs to sell.
Impairment reviews performed under IFRS 6 are carried out on a project by
project basis, with each project representing a potential single cash
generating unit. An impairment review is undertaken when indicators of
impairment arise; typically when one of the following circumstances applies:
(i) sufficient data exists that render the resource
uneconomic and unlikely to be developed
(ii) title to the asset is compromised
(iii) budgeted or planned expenditure is not expected in the
foreseeable future
(iv) insufficient discovery of commercially viable resources
leading to the discontinuation of activities
Impairment reviews performed under IAS 36 are carried out when there is an
indication that the carrying value may be impaired. Such key indicators
(though not exhaustive) to the industry include:
(i) a significant deterioration in the spot price of
gold
(ii) a significant increase in production costs
(iii) a significant revision to, and reduction in, the life of
mine plan
If any indication of impairment exists, the recoverable amount of the asset is
estimated, being the higher of fair value less costs to sell and value in use.
In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated
to be less than its carrying amount, the carrying amount of the asset (or cash
generating unit) is reduced to its recoverable amount. Such impairment losses
are recognised in profit or loss for the year.
Where an impairment loss subsequently reverses, the carrying amount of the
asset (or cash-generating unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss
been recognised for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognised in profit or loss for the year.
3. Earnings per share
3 months ended 30 June 2017 US$ (unaudited) 3 months ended 30 June 2016 US$ (unaudited) 6 months ended 30 June 2017 US$ (unaudited) 6 months ended 30 June 2016 US$ (unaudited)
(Loss)/profit attributable to ordinary shareholders (US$) (891,637) (341,483) (1,005,680) 1,006,182
Weighted average ordinary shares in issue 698,701,772 656,389,204 698,701,772 656,389,204
Basic (loss)/profit per share (US cents) (0.13) (0.05) (0.14) 0.15
Diluted ordinary shares in issue ((1)) 698,701,772 656,389,204 698,701,772 706,299,204
Diluted (loss)/profit per share (US cents) (0.13) ((2)) (0.05) ((2)) (0.14) ((2)) 0.14
1. Assumes the exercise of 49,910,000 share options that were in issue but not
necessarily vested as at 31 March 2017.
2. As the effect of dilution is to reduce the loss per share, the diluted loss
per share is considered to be the same as the basic loss per share
4. Post balance sheet events
On 30 June 2017 the Company entered into a new secured loan agreement with
Sprott Resource Lending Partnership for US$5.0 million (to include the amount
of US$1.37 million outstanding as at that date), repayable on or before 31
December 2019. Whilst the documentation was signed on 30 June 2017, the
additional funds were not send or received until 5 July 2017 and accordingly
no liability for the increased level of the loan was recognized in these
financial statements.
Other than as set out above 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 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
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 TERMS
The following is a glossary of technical terms:
"Au" means gold.
"assay" in economic geology, means to analyse the proportions of metal in a
rock or overburden sample; to test an ore or mineral for composition, purity,
weight or other properties of commercial interest.
"development" - excavations used to establish access to the mineralised rock
and other workings.
"doré - a semi-pure alloy of gold silver and other metals produced by the
smelting process at a mine that will be subject to further refining.
"DNPM" is the Departamento Nacional de Produção Mineral.
"grade" is the concentration of mineral within the host rock typically quoted
as grams per tonne (g/t), parts per million (ppm) or parts per billion (ppb).
"g/t" means grams per tonne.
"granodiorite" is an igneous intrusive rock similar to granite.
"igneous" is a rock that has solidified from molten material or magma.
"Intrusive" is a body of igneous rock that invades older rocks.
"on-lode development" - Development that is undertaken in and following the
direction of the Vein.
"mRL" - depth in metres measured relative to a fixed point - in the case of
Palito and Sao Chico this is sea-level. The mine entrance at Palito is at
250mRL.
"saprolite" is a weathered or decomposed clay-rich rock.
"stoping blocks" - a discrete area of mineralised rock established for
planning and scheduling purposes that will be mined using one of the various
stoping methods.
"Vein" is a generic term to describe an occurrence of mineralised rock within
an area of non-mineralised rock.
Qualified Persons Statement
The scientific and technical information contained within this announcement
has been reviewed and approved by Michael Hodgson, a Director of the Company.
Mr Hodgson is an Economic Geologist by training with over 26 years' experience
in the mining industry. He holds a BSc (Hons) Geology, University of London, a
MSc Mining Geology, University of Leicester and is a Fellow of the Institute
of Materials, Minerals and Mining and a Chartered Engineer of the Engineering
Council of UK, recognising him as both a Qualified Person for the purposes of
Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining and
Oil & Gas Companies dated June 2009.
Forward Looking Statements
Certain statements in this announcement are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''will'' or the negative of
those, variations or comparable expressions, including references to
assumptions. These forward looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations, performance,
future capital and other expenditures (including the amount, nature and
sources of funding thereof), competitive advantages, business prospects and
opportunities. Such forward looking statements reflect the Directors' current
beliefs and assumptions and are based on information currently available to
the Directors. A number of factors could cause actual results to differ
materially from the results discussed in the forward looking statements
including risks associated with vulnerability to general economic and business
conditions, competition, environmental and other regulatory changes, actions
by governmental authorities, the availability of capital markets, reliance on
key personnel, uninsured and underinsured losses and other factors, many of
which are beyond the control of the Company. Although any forward looking
statements contained in this announcement are based upon what the Directors
believe to be reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with such forward looking statements.
ENDS
This announcement is distributed by Nasdaq Corporate Solutions on behalf of
Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
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