Serabi Gold plc : Unaudited Interim Financial Results for the three and nine month periods to 30 September 2015 <Origin Href="QuoteRef">SRB.L</Origin>
13/11/2015 07:00
For immediate release
13 November 2015
Serabi Gold plc
("Serabi" or the "Company")
Unaudited Interim Financial Results for the three and nine month periods to
30 September 2015 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 and nine month periods ending 30 September 2015 and at the
same time has published its Management's Discussion and Analysis for the same
period.
Key Financial Information (1)
3 months to 30 September 2015 US$ 9 months to 30 September 2015 US$ 3 months to 30 September 2014 US$ 9 months to 30 September 2014 US$
Revenue 8,365,289 27,043,682 5,253,323 5,253,323
Cost of Sales (6,302,006) (19,350,056) (3,378,532) (3,378,532)
Depreciation and amortisation charges (871,576) (3,603,810) (917,404) (1,183,709)
Gross profit 1,191,707 4,089,816 957,387 691,082
Profit/(loss) before and after tax 114,176 191,073 (405,430) (3,331,787)
Profit/(loss) per ordinary share (basic) 0.02c 0.03c (0.06c) (0.54c)
Average gold price received US$1,122 US$1,156 US$1,199 US$1,199
As at 30 September 2015 As at 31 December 2014
Cash and cash equivalents 3,814,439 9,813,602
Net assets 46,229,378 66,918,551
Cash Costs and All-In Sustaining Costs
3 months to 30 September 2015 9 months to 30 September 2015
Gold ounces produced 9,078 24,704
Gold production from Sao Chico (1,200) (1,984)
Gold production for cash costs and AISC purposes 7,878 22,720
Total Cash Cost of production (per ounce) US$580 US$702
Total All-In Sustaining Cost of production (per ounce) US$756 US$894
2 The Sao Chico Mine has not yet been declared to be in Commercial Production
and therefore all costs and revenues relating to this mine are being
capitalised. The Income Statements therefore only reflect the revenues and
costs arising from the gold produced from the Palito Mine and the Cash Costs
and AISC therefore also only reflect the activities from the Palito Mine.
Key Operational Information
SUMMARY PRODUCTION STATISTICS FOR THE THREE QUARTERS ENDING 30 th SEPTEMBER 2015 (Palito & Sao Chico)
Quarter 1 Quarter 2 Quarter 3 Year to Date
Horizontal development Metres 1,491 2,078 2,691 6,260
Mined ore Tonnes 25,812 31,488 36,587 93,887
Gold grade (g/t) 10.90 9.18 10.65 10.23
Milled ore Tonnes 31,412 33,279 31,789 96,480
Gold grade (g/t) 8.52 8.28 9.47 8.75
Gold production (1) Ounces 7,389 8,237 9,078 24,704
(1) Gold production figures are subject
to amendment pending final agreed assays of the gold content of the
copper/gold concentrate and gold dore that is delivered to the refineries.
Amendments when realised are applied retrospectively to the relevant month of
production and therefore figures reported for past periods are subject to
change.
Financial Highlights
* All-In Sustaining Costs of US$894 for the year to date with cash costs of
US$702.
* All-In Sustaining Costs of US$756 for the third quarter of 2015 with cash
costs of US$580.
* Cash holdings of US$3.81 million at 30 September 2015.
* Average gold price of US$1,122 received on gold sales in the third quarter
of 2015 and US$1,156 for the year to date.
* All-In Sustaining Costs ("AISC") for the full year expected to be
approximately US$900 per ounce.
* At 30 September 2015, the Brazilian Real to US Dollar exchange rate had
weakened by approximately 50% compared against 31 December 2014 and by 41% as
at 11 November 2015.
* Annual inflation in Brazil for October 2015 was 9.93% the highest rate
since November 2003.
Operational Highlights
* Record gold production for the quarter totaled 9,078 ounces (1) a 10.1%
increase compared with the second quarter; 7,878 ounces from the processing of
Palito run of mine ore ("ROM") and surface stockpiles, and 1,200 ounces from
Sao Chico ore.
* Combined quarterly mill throughput, for both Palito and Sao Chico ore,
totalled 31,789 tonnes.
* Quarterly mine production totalled 36,587 tonnes, 28,625 tonnes at 11.04
g/t for Palito and 7,962 tonnes at 9.27 g/t gold for Sao Chico.
* At the end of the third quarter, surface stockpiles at Palito and Sao Chico
totalled 11,392 tonnes at 3.50 g/t gold.
* A third Ball mill has been purchased and is planned to be installed and
operational together with other improvements in throughput for the Flotation
and Carbon in Pulp ("CIP") process circuits at the start of the second quarter
2016.
* Forecast for gold production in 2015 of approximately 33,000 ounces being
an 80% improvement on 2014.
2 Gold production figures are subject to amendment pending final agreed
assays of the gold content of the copper/gold concentrate and gold dore that
is delivered to the refineries.
Palito development
* Quarterly mine development at Palito totalled 1,850 metres, exceeding
internal plans by 35%.
Sao Chico development
* Quarterly mine development total was 841 metres.
* The main ramp at Sao Chico has now almost reached the next planned
development level at 156mRL. Ore development is on-going on the three higher
levels at 216mRL, 199mRL and 186mRL.
* At the end of September 2015, 39 holes totalling 6,014 metres had been
drilled from the surface diamond drilling programme.
Mike Hodgson, CEO of Serabi commented,
"As reported in the news release of 29 October 2015, the third quarter of
2015 represented the best quarterly production to date with a 10% increase in
overall gold production, including a 53% increase in gold production from Sao
Chico over the preceding quarter.
"The reported financial results do however only reflect the gold production,
revenues and costs associated with the Palito Mine, as Sao Chico remains in
development and has not yet reached commercial production. I am pleased to
report that the Group has generated a gross operating profit for the nine
months to the end of September 2015 of US$4.1 million, and has achieved good
cash-flow from operations of US$3.6 million over the same period. The AISC
for the Palito operation for the nine months to 30 September 2015 was US$894
per ounce and has been decreasing progressively over the last few months.
"Serabi is continuing to invest in the development of the Sao Chico Mine
though much of the investment in the mine development and pre-operating
activities is being covered by the revenues that are generated. The grades
at Sao Chico are, at times, truly spectacular, but the nature of the
mineralisation means that we are more reliant on assay control to identify the
gold bearing mineralisation. At Palito we can place a higher level of
reliance on visual control, whilst at Sao Chico, closer spaced sampling is a
necessity. We are however building, through the combination of on-going
underground mine development and surface and underground drilling, a much
better understanding of the mineralisation.
"As also reported in the news release of 29 October 2015, it is becoming
evident that the operation will require an increase in milling capacity to
allow us to run down our existing stockpiles and provide the opportunity to
create excess capacity that will enable better production and maintenance
scheduling. A third ball mill has been acquired and delivered to site and
this, along with improvements in the flotation and cyanidation plant, will
allow us to increase throughputs. Whilst we would plan to operate during
2016 at around 500 tonnes per day ("tpd"), the capacity of the milling circuit
could be up to 600 tpd. We anticipate that these upgrades, which are being
financed out of cash flow, will be completed early in the second quarter of
2016.
"In addition to funding the upgrade programme, operational cash flow is being
used to pay down the short term debt facility with Sprott. With the timing of
the debt retirement and the increase in production capacity expected early in
the second quarter of 2016, I anticipate that the Group will be generating a
strong cash-flow for pursuing its organic growth opportunities thereafter.
"At this time we now have the benefit of being well into the fourth quarter,
and can provide a better estimate of 2015 total production. With the
excellent third quarter performance we now anticipate the AISC will be
approximately US$900 per ounce for the full year. A combination of energy
problems, slow production progress at Sao Chico, and slightly reduced
production grades at Palito, will mean slightly reduced total production for
2015 of 33,000 ounces. Nevertheless this will be almost double the gold
production of 2014 which I see as being a very satisfactory years' work.
SERABI GOLD PLC
Condensed Consolidated Statements of Comprehensive Income
For the three months ended 30 September For the nine months ended 30 September
2015 2014 2015 2014
(expressed in US$) Notes (unaudited) (unaudited) (unaudited) (unaudited)
CONTINUING OPERATIONS
Revenue 8,365,289 5,253,323 27,043,682 5,253,323
Operating expenses (6,302,006) (3,378,532) (19,350,056) (3,378,532)
Depreciation of plant and equipment (871,576) (917,404) (3,603,810) (1,183,709)
Gross profit 1,191,707 957,387 4,089,816 691,082
Administration expenses (871,153) (1,243,580) (3,024,671) (3,637,598)
Share based payments (101,019) (76,006) (303,056) (149,433)
Operating profit / (loss) 219,535 (362,199) 762,089 (3,095,949)
Foreign exchange (loss) (364,869) (68,037) (171,238) (59,161)
Finance expense (388,074) (154,982) (1,206,276) (360,938)
Investment income 647,584 179,788 806,498 184,261
Profit / (loss) before taxation 114,176 (405,430) 191,073 (3,331,787)
Income tax expense - - - -
Profit / (loss) for the period from continuing operations (2) (3) 114,176 (405,430) 191,073 (3,331,787)
Other comprehensive income (net of tax) Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations (11,995,969) (7,129,622) (21,183,302) (3,411,657)
Total comprehensive (loss) for the period (3) (11,881,793) (7,535,052) (20,992,229) (6,743,444)
Profit / (loss) per ordinary share (basic) (2) 3 0.02c (0.06c) 0.03c (0.54c)
Profit / (loss) per ordinary share (diluted) (2) 3 0.01c (0.06c) 0.02c (0.54c)
2 The Sao Chico Mine has not yet been declared to be in Commercial Production
and therefore all costs and revenues relating to this mine are being
capitalised. The Income Statements therefore only reflect the revenues and
costs arising from the gold produced from the Palito Mine.
(2) All revenue and expenses arise from continuing operations.
(3) The Group has no non-controlling interests and all losses are
attributable to the equity holders of the Parent Company.
SERABI GOLD PLC
Condensed Consolidated Balance Sheets
As at As at As at
30 September 30 September 31 December
2015 2014 2014
(expressed in US$) (unaudited) (unaudited) (audited)
Non-current assets
Deferred exploration costs 9,018,777 24,888,399 11,799,271
Property, plant and equipment 39,181,535 39,381,145 54,103,898
Total non-current assets 48,200,312 64,269,544 65,903,169
Current assets
Inventories 7,677,056 7,554,145 8,070,215
Trade and other receivables 6,683,465 5,164,216 6,772,046
Prepayments and accrued income 2,248,960 2,441,265 2,503,877
Cash and cash equivalents 3,814,439 6,719,202 9,813,602
Total current assets 20,423,920 21,878,828 27,159,740
Current liabilities
Trade and other payables 3,989,936 4,416,758 4,601,337
Interest bearing liabilities 13,619,743 8,611,693 16,228,220
Derivative financial liabilities 70,038 - 528,503
Accruals 167,237 137,739 167,377
Total current liabilities 17,846,954 13,166,190 21,525,437
Net current assets 2,576,966 8,712,638 5,634,303
Total assets less current liabilities 50,777,278 72,982,182 71,537,472
Non-current liabilities
Trade and other payables 2,226,238 - 1,424,798
Provisions 2,075,105 1,415,165 2,829,468
Interest bearing liabilities 246,557 1,678,556 364,655
Total non-current liabilities 4,547,900 3,093,721 4,618,921
Net assets 46,229,378 69,888,461 66,918,551
Equity
Share capital 5,263,182 61,668,212 61,668,212
Share premium - 67,809,848 67,656,848
Option reserve 2,646,397 2,290,914 2,400,080
Other reserves 450,262 2,241,144 450,262
Translation reserve (39,919,594) (14,182,830) (18,736,292)
Distributable surplus 77,789,131 (49,938,827) (46,520,559)
Equity shareholders' funds 46,229,378 69,888,461 66,918,551
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 2014 prepared under IFRS as adopted in the EU and with IFRS
and their interpretations adopted by the International Accounting Standards
Board have been filed with the Registrar of Companies following their adoption
by shareholders at the last 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.
S ERABI GOLD PLC
Condensed Consolidated Statements of Changes in Shareholders' Equity
(expressed in US$) Share Share Share option Other Translation Distributable
(unaudited) capital premium reserve reserves (1) reserve surplus Total equity
Equity shareholders' funds at 31 December 2013 60,003,212 54,479,151 2,330,789 789,076 (10,771,173) (46,796,348) 60,034,707
Foreign currency adjustments - - - - (3,411,657) - (3,411,657)
Loss for the period - - - - - (3,331,787) (3,331,787)
Total comprehensive income for the period - - - - (3,411,657) (3,331,787) (6,743,444)
Issue of new ordinary shares for acquisition 1,665,000 13,455,000 - 1,530,000 - - 16,650,000
Costs associated with issue of new ordinary shares for cash - (202,235) - - - - (202,235)
Warrants lapsed in period - 77,932 - (77,932) - - -
Share options lapsed in period - - (189,308) - - 189,308 -
Share option expense - - 149,433 - - - 149,433
Equity shareholders' funds at 30 September 2014 61,668,212 67,809,848 2,290,914 2,241,144 (14,182,830) (49,938,827) 69,888,461
Foreign currency adjustments - - - - (4,553,462) - (4,553,462)
Profit for the period - - - - - 3,157,386 3,157,386
Total comprehensive income for the period - - - - (4,553,462) 3,157,386 (1,396,076)
Correction relating to treatment of warrants - (153,000) - (1,530,000) - - (1,683,000)
Convertible Loan Stock Repaid - - - (260,882) - 260,882 -
Share option expense - - 109,166 - - - 109,166
Equity shareholders' funds at 31 December 2014 61,668,212 67,656,848 2,400,080 450,262 ( 18,736,292 ) (46,520,559) 66,918,551
Foreign currency adjustments - - - - (21,183,302) - (21,183,302)
Profit for the period - - - - - 191,073 191,073
Total comprehensive income for the period - - - - (21,183,302) 191,073 (20,992,229)
Cancellation of Share Premium and Deferred Shares (2) (56,405,030) (67,656,848) - - - 124,061,878 -
Share options lapsed in period - - (56,739) - - 56,739 -
Share option expense - - 303,056 - - - 303,056
Equity shareholders' funds at 30 September 2015 5,263,182 - 2,646,397 450,262 (39,919,594) 77,789131 46,229,378
2 Other reserves comprise a merger reserve of US$361,461 (2014: US$ 361,461)
and a warrant reserve of US$88,801 (December 2014: US$88,801). 4 The Company
cancelled its Share Premium Account totalling US$67,656,848 as well as all of
its Deferred Shares totalling US$56,405,030 pursuant a Court Order dated 29
July 2015 and the total amount of US$124,061,878 has been transferred to the
Profit and Loss Reserve Account as a realised gain.
SERABI GOLD PLC
Condensed Consolidated Cash Flow Statements
For the three months ended 30 September For the nine months ended 30 September
2015 2014 2015 2014
(expressed in US$) (unaudited) (unaudited) (unaudited) (unaudited)
Operating activities
Profit / (loss) before taxation 114,176 (405,430) 191,073 (3,331,787)
Depreciation - plant, and equipment 871,576 917,404 3,603,810 1,183,709
Net financial expense 105,359 43,231 571,016 235,838
Option costs 101,019 76,005 303,056 149,433
Interest paid (84,406) (146,985) (854,276) (301,738)
Foreign exchange gain 112,300 487,955 276,788 491,976
Changes in working capital
(Increase) in inventories (1,103,999) (3,785,301) (2,552,479) (4,115,534)
(Increase) / decrease in receivables, prepayments and accrued income 791,116 (359,087) (775,400) (6,523,986)
Increase in payables, accruals and provisions 1,219,436 1,010,240 2,860,354 1,505,621
Net cash inflow/(outflow) from operations 2,126,577 (2,161,968) 3,623,942 (10,706,468)
Investing activities
Sales revenues recognised to date 1,340,259 (1,094,635) 2,267,350 4,126,078
Capitalised pre-operating costs (1,724,903) 522,231 (2,392,111) (7,610,695)
Purchase of property, plant and equipment and projects in construction (997,540) (783,869) (4,285,435) (3,075,714)
Other development expenditures (150,801) - (948,633) -
Exploration and development expenditure (108,083) (459,673) (570,318) (1,222,341)
Interest received 1 184,261 842 184,261
Net cash outflow on investing activities (1,641,067) (1,631,685) (5,928,305) (7,598,411)
Financing activities
Issue of ordinary share capital - - - 16,650,000
Payment of share issue costs - - - (202,235)
Repayment of short-term secured loan (1,000,000) - (3,000,000) (5,500,000)
Drawdown of short term shareholder loan facility - - - 2,750,000
Drawdown of bank loan facility - 3,000,000 - 3,000,000
Receipts from short-term trade finance 6,435,952 5,965,847 17,123,401 9,154,249
Repayment of short-term trade finance (6,130,683) (4,018,394) (16,994,618) (4,018,394)
Payment of finance lease liabilities (303,380) (263,392) (570,445) (518,542)
Net cash (outflow) / inflow from financing activities (998,111) 4,684,088 (3,441,662) 21,314,881
Net (decrease) / increase in cash and cash equivalents (512,601) 890,435 (5,746,025) 3,010,002
Cash and cash equivalents at beginning of period 4,481,970 5,920,963 9,813,602 3,789,263
Exchange difference on cash (154,930) (92,196) (253,138) (80,063)
Cash and cash equivalents at end of period 3,814,439 6,719,202 3,814,439 6,719,202
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 2014 has been delivered
to the Registrar of Companies. The full audited financial statements for the
years end 31 December 2014 do comply with IFRS.
2. Basis of Preparation
The financial statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS") in force at the reporting date and
their interpretations issued by the International Accounting Standards Board
("IASB") as adopted for use within the European Union and with IFRS and their
interpretations issued by the IASB. The consolidated financial statements have
also been prepared in accordance with those parts of the Companies Act 2006
applicable to companies reporting under IFRS. The financial statements do
not constitute statutory accounts as defined in Section 434 of the Companies
Act 2006.
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 but are not yet effective will have a material
impact on the Group's earnings or shareholders' funds. The Company has not
adopted any new standards in advance of the effective dates.
Going concern and availability of project finance
The Group commenced gold production operations at the Palito Mine at the
start of 2014 having completed the first phase construction of the gold
recovery plant in December 2013. The operations during the first six months
of 2014 were in a re-commissioning and ramp-up phase. On 23 July 2014 the
Group announced that with effect from 1 July 2014 the Palito mine had achieved
Commercial Production. During the 3 months ended 30 September 2014, the
Group completed work and commissioned the Carbon in Pulp ("CIP") leaching
circuit allowing the Group to maximise the potential recovery of gold from the
ore processed. The first "gold pour" of gold recovered from the CIP
operations took place in October 2014. During the first nine months of 2015
the Group has been undertaking the initial development of its Sao Chico
operation and for the remainder of 2015 plans to steadily increase the
production of ore from Sao Chico for processing using the Palito gold process
plant. The Group began processing of ore from its Sao Chico operation during
April 2015.
On 3 March 2014 the Group completed a share placement raising gross proceeds
of UK£10 million which provided additional working capital to the Group
during the start-up phase of production at Palito and also to fund the initial
development and further evaluation of the Sao Chico gold project. On 26
September 2014 the Group also entered into a US$8 million secured loan
facility which is required to be repaid in full on or before 31 March 2016
with the Sprott Resource Lending Partnership ("the Facility") providing
additional working and development capital. The first tranche of US$3
million of this Facility was drawdown on 26 September 2014 with the remaining
tranches drawn down in full on 28 December 2014. The Group also makes use of a
borrowing facility of US$7.5 million to provide advance payment on sales of
copper/gold concentrate. This current facility extends to 31 December 2015.
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 and to, at least in part, fund exploration and development
activity on its other gold properties. However the forecasted cash flow
projections for the next twelve months include a significant contribution
arising from the Sao Chico development. As noted above, whilst development
has commenced commercial production has yet to be declared. There are risks
associated with the commencement of any new mining operation whereby
unforeseen technical and logistical events result in additional time being
required for commissioning or additional costs needing to be incurred, giving
rise to the possibility that additional working capital may be required to
fund these delays or additional capital requirements. 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.
3. Earnings per Share
3 months ended 30 Sept 2015 3 months ended 30 Sept 2014 6 months ended 30 Sept 2015 9 months ended 30 Sept 2014 12 months ended 31 Dec 2014
Profit/(loss) attributable to ordinary shareholders (US$) 114,176 (405,430) 191,073 (3,331,787) (174,401)
Weighted average ordinary shares in issue 656,389,204 656,389,204 656,389,204 611,700,559 656,389,204
Basic profit/(loss) per share (US cents) 0.02 (0.06) 0.03 (0.54) (0.03)
Diluted ordinary shares in issue 792,265,830 (1) 656,389,204 792,265,830 (1) 611,700,559 656,389,204
Diluted profit /(loss) per share (US cents) 0.01 (0.06) (2) 0.02 (0.54) (2) (0.03) (2)
2 Assumes exercise of 100,000,000 warrants and 35,876,626 options that have
vested as of 30 September 2015. 4 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 that these unaudited
interim financial statements were approved by the Board, the Brazilian Real,
the national currency of Brazil, following a 12 month period where its value
declined by approximately 60% against the US dollar has shown some stability
and slight strengthening. On 31 December 2014 the exchange rate for US$1.00
was BrR$2.6556. As at 30 September 2015 the exchange rate for US$1.00 was
BrR$3.9722. As at 11 November 2015 the exchange rate for US$1.00 was
BrR$3.7722. Many of the Group's assets and liabilities and in particular the
value attributed to non-current assets are recorded in Brazilian Reais. The
value of the Group's net assets and liabilities has been significantly
impacted by the devaluation of the Brazilian Real during the first nine months
of 2015. The Group sources a majority proportion of its operational
consumables in Brazilian Reais and the salaries of all its Brazilian employees
are denominated and paid in Brazilian Reais. Therefore the Group's operating
costs are subject to variation as a result of movements in the exchange rate
between the United States Dollar and the Brazilian Real.
Other than as set out above, between the end of the financial period and the
date that the financial statements were approved by the board of directors
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 operations of the company, the results of these
operations, or the state of affairs of the company 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 and the six month periods ended 30 June 2015 on
SEDAR at www.sedar.com . These documents will also available from the
Company's website - www.serabigold.com .
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 OMX Corporate Solutions on behalf
of NASDAQ OMX 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.
Source: Serabi Gold plc via Globenewswire
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