Unaudited interim results for the three-and nine-month periods ended 30 September 2024
28/11/2024 07:00
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Unaudited interim results for the three-and nine-month periods ended 30
September 2024
Serabi (AIM:SRB, TSX:SBI, OTCQX:SRBIF), the Brazilian focused gold mining and
development company, is pleased to release its unaudited interim results for
the three and nine-month periods ended 30 September 2024.
A copy of the full interim statements together with commentary can be accessed
on the Company’s website using the following link:- https://bit.ly/3Z8CJiX
“This has been another excellent quarter for Serabi, in particular for cash
generation, said Clive Line, Serabi’s CFO. “The cash balance at the end of
September was $20.0 million with $8.0 million generated during the quarter.
EBITDA of $11.7 million for the quarter brings EBITDA for the year to date to
a total of $24.7 million, a 42 per cent improvement compared with the second
quarter.
"We benefited from inventory realisation to the sum of approximately $3.0M,
boosting quarter sales, and whilst I do not expect similar additional
inventory sales for Q4, I do anticipate cash growth to continue to the end of
the year notwithstanding the cyclical effects of tax payments and 13(th)
salary accruals that are due. The ability of the business to produce healthy
cash flow is being further supported by the Coringa classification plant which
is now operational and in the final stages of commissioning. We are already
passing run of mine ore through this plant and will also start to work our way
through the lower grade stockpiles that have been accumulated at Coringa. As a
result of processing this stockpiled material we hope that this final quarter
will continue the pattern of increasing production quarter on quarter that we
have so far experienced in 2024.
"During the quarter we announced the results of the Preliminary Economic
Assessment for Coringa which indicate an average project AISC of $1,241 over
the project life from 1 January 2025 onwards. The full NI 43-101 compliant
Technical Report was published on 21 November 2024."
Financial Highlights (all currency amounts are expressed in US Dollars unless
otherwise stated)
* Gold production for the first nine months of 2024 of 27,499 ounces (2023:
25,262 ounces).
* Cash held on 30 September 2024 of $20.0 million (31 December 2023: $11.6
million including US$0.6 million relating to the exploration alliance with
Vale).
* EBITDA for the nine-month period of $24.7 million (2023: $8.8 million).
* Post-tax profit for the nine-month period of $17.8 million (2023: $4.6
million),
* Profit per share of 23.55 cents compared with a profit per share of 6.10
cents for the same nine month period of 2023.
* Net cash inflow from operations for the nine-month period (after mine
development expenditure of US$4.9 million) of US$18.2 million (2023: US$10.7
million inflow, after mine development expenditure of US$2.6 million).
* Average gold price of US$2,338 per ounce received on gold sales during the
nine month period (2023: US$1,940).
* Cash Cost for the nine month period to 30 September 2024 of US$1,405 per
ounce (nine months 2023: US$1,253 per ounce).
* All-In Sustaining Cost for the nine-month period to 30 September 2024 of
US$1,790 per ounce (nine months 2023: US$1,553 per ounce).
Overview of the financial results
In the first nine months of 2024, the Group has reported revenue and operating
costs related to the sale of 28,912 ounces in the period (27,499 ounces
produced). This compares to sales reported of only 23,733 ounces in the first
nine months of 2023. Reported revenues and costs reflect the ounces sold in
each period and as a result total costs for the nine-month period are
significantly higher than for the corresponding period of 2023.
During the month of January 2024, the Group also completed and drew down a new
US$5 million loan with Itaú Bank in Brazil. This new arrangement has an
interest coupon of 8.47 per cent and is repayable as a bullet payment on 6
January 2025. This replaced a similar loan arranged with Santander Bank in
Brazil that was repaid during the month of February 2024.
Final commissioning of the ore sorter and crushing plant for Coringa is almost
complete, with the crushing plant operational during October and the
ore-sorter starting up during November. During the remainder of the fourth
quarter in addition to passing run of mine ore extracted from Coringa, the
Company will also be processing some of the lower grade material that has been
stockpiled at Coringa providing an additional boost to gold production in the
remainder of the fourth quarter.
Key Financial Information
SUMMARY FINANCIAL STATISTICS FOR THE THREE-AND NINE MONTHS ENDING 30 SEPTEMBER 2024
9 months to 30 September 2024 US$ (unaudited) 9 months to 30 September 2023 US$ (unaudited) 3 months to 30 September 2024 US$ (unaudited) 3 months to 30 September 2023 US$ (unaudited)
Revenue 70,290,641 47,897,264 27,626,034 17,373,682
Cost of sales (39,840,803) (34,405,882) (14,160,734) (13,341,448)
Gross operating profit 30,449,838 13,491,382 13,465,300 4,032,234
Administration and share based payments (5,728,359) (4,702,467) (1,719,359) (1,864,200)
EBITDA 24,721,479 8,788,915 11,745,941 2,168,034
Depreciation and amortisation charges (3,297,323) (3,409,994) (1,056,517) (1,384,957)
Operating profit before finance and tax 21,424,156 5,378,921 10,689,424 783,077
Profit after tax 17,837,221 4,620,779 8,615,387 (359,112)
Earnings per ordinary share (basic) 23.55c 6.10c 11.38c 0.47c
Average gold price received (US$/oz) US$2,338 US$1,940 US$2,478 US$1,930
As at 30 September 2024 US$ (unaudited) As at 31 December 2023 US$ (audited)
Cash and cash equivalents 20,029,407 11,552,031
Net funds (after finance debt obligations) 14,007,367 5,148,947
Net assets 103,439,147 92,792,049
Cash Cost and All-In Sustaining Cost (“AISC”)
9 months to 30 September 2024 9 months to 30 September 2023 12 months to 31 December 2023
Gold production for cash cost and AISC purposes 27,499 ozs 25,262 ozs 33,152 ozs
Total Cash Cost of production (per ounce) US$1,405 US$1,253 US$1,300
Total AISC of production (per ounce) US$1,790 US$1,553 US$1,635
Engage Investor Presentation – 3 December 2024
Shareholders and investors are advised that Mike Hodgson, Chief Executive
Officer of the Company will provide a live interactive presentation via the
Engage Investor platform, on the 3rd of December at 2:30pm GMT.
Serabi Gold plc welcomes all current shareholders and interested investors to
join and encourages investors to pre-submit questions. Investors can also
submit questions at any time during the live presentation.
Investors can sign up to Engage Investor at no cost and follow Serabi
Gold plc from their personalised investor hub.
Shareholders and investors can register interest in this event using the
following link - https://engageinvestor.news/SRB_Ei
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 Clive Line, Director.
Enquiries
SERABI GOLD plc
Michael Hodgson t +44 (0)20 7246 6830
Chief Executive m +44 (0)7799 473621
Clive Line t +44 (0)20 7246 6830
Finance Director m +44 (0)7710 151692
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 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.
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 35 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 release.
See www.serabigold.com for more information and follow us on twitter
@Serabi_Gold
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 the unaudited interim financial statements for the
three and nine months to 30 September 2024.
Statement of Comprehensive Income
For the three and nine-month periods ended 30 September 2024.
For the three months ended 30 September For the nine months ended 30 September
2024 2023 2024 2023
(expressed in US$) Notes (unaudited) (unaudited) (unaudited) (unaudited)
CONTINUING OPERATIONS
Revenue 27,626,034 17,373,682 70,290,641 47,897,264
Cost of sales (14,160,734) (11,769,256) (39,840,803) (32,463,690)
Stock impairment provision — — — (370,000)
Depreciation and amortisation charges 2 (1,056,517) (2,957,149) (3,297,323) (4,982,186)
Total cost of sales (15,217,251) (14,726,405) (43,138,126) (37,815,876)
Gross profit 12,408,783 2,647,277 27,152,515 10,081,388
Administration expenses (1,679,357) (1,934,235) (5,484,788) (4,834,129)
Share-based payments (65,010) (52,151) (183,902) (138,017)
Gain on disposal of assets 25,008 122,186 (59,669) 269,679
Operating profit 10,689,424 783,077 21,424,156 5,378,921
Other income – exploration receipts 3 __ 1,992,344 351,186 3,042,879
Other expenses – exploration expenses 3 __ (1,856,520) (317,746) (2,876,431)
Foreign exchange gain/(loss) 129,429 (43,421) (690,927) 56,645
Finance expense 4 (127,729) (381,478) (438,032) (500,588)
Finance income 4 109,262 199,792 345,727 703,823
Profit/(loss) before taxation 10,800,386 693,794 20,674,364 5,805,249
Income tax expense 5 (2,184,999) (1,052,906) (2,837,143) (1,184,470)
Profit/(loss) after taxation 8,615,387 (359,112) 17,837,221 4,620,779
Other comprehensive income (net of tax)
Exchange differences on translating foreign operations 808,689 (2,952,047) (7,374,025) 1,751,104
Total comprehensive profit/(loss) for the period ((1)) 9,424,076 (3,311,159) 10,463,196 6,371,883
Profit/(loss) per ordinary share (basic) 6 11.38c (0.47c) 23.55c 6.10c
Profit/(loss) per ordinary share (diluted) 6 11.38c (0.47c) 23.55c 6.10c
(1) The Group has no non-controlling interest and all profits
are attributable to the equity holders of the Parent Company
Balance Sheet as at 30 September 2024
(expressed in US$) As at 30 September 2024 (unaudited) As at 30 September 2023 (unaudited) As at 31 December 2023 (audited)
Non-current assets
Deferred exploration costs 20,211,858 19,775,603 20,499,257
Property, plant and equipment 56,310,566 49,107,705 53,340,903
Right of use assets 4,928,263 5,214,315 5,316,330
Deferred taxes 7,110,445 1,520,710 4,653,063
Taxes receivable 1,903,307 3,891,201 1,791,983
Total non-current assets 90,464,439 79,509,534 85,601,536
Current assets
Inventories 12,338,958 9,819,171 12,797,951
Trade and other receivables 2,100,956 1,579,886 2,858,072
Derivative financial assets — 197,864 115,840
Prepayments and accrued income 1,633,602 1,750,470 2,320,256
Cash and cash equivalents 20,029,407 15,352,099 11,552,031
Total current assets 36,102,923 28,699,490 29,644,150
Current liabilities
Trade and other payables 10,672,705 7,798,873 8,626,292
Interest bearing liabilities 5,886,714 6,211,791 6,403,084
Accruals 431,716 593,435 649,225
Total current liabilities 16,991,135 14,604,099 15,678,601
Net current assets 19,111,788 14,095,391 13,965,549
Total assets less current liabilities 109,576,227 93,604,925 99,567,085
Non-current liabilities
Trade and other payables 3,676,181 3,884,102 3,960,920
Interest bearing liabilities 135,326 304,262 150,224
Deferred tax liability — 130,967 —
Provisions 2,325,573 1,252,631 2,663,892
Total non-current liabilities 6,137,080 5,571,962 6,775,036
Net assets 103,439,147 88,032,963 92,792,049
Equity
Share capital 11,213,618 11,213,618 11,213,618
Share premium reserve 36,158,068 36,158,068 36,158,068
Option reserve 359,475 116,246 175,573
Other reserves 17,609,380 16,167,780 15,960,006
Translation reserve (69,154,766) (64,525,667) (61,780,741)
Retained surplus 107,253,372 88,902,918 91,065,525
Equity shareholders’ funds 103,439,147 88,032,963 92,792,049
Statements of Changes in Shareholders’ Equity
For the nine-month period ended 30 September 2024
(expressed in US$)
(unaudited) Share capital Share premium Share option reserve Other reserves ((1)) Translation reserve Retained Earnings Total equity
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 — — — — 1,751,104 — 1,751,104
Profit for the period — — — — — 4,620,779 4,620,779
Total comprehensive income for the period — — — — 1,751,104 4,620,779 6,371,883
Transfer to taxation reserve — — — 1,708,525 — (1,708,525) —
Share Options Expired — — (1,346,329) — — 1,346,329 —
Share incentives expense — — 138,017 — — — 138,017
Equity shareholders’ funds at 30 September 2023 11,213,618 36,158,068 116,246 16,167,780 (64,525,667) 88,902,918 88,032,963
Foreign currency adjustments — — — — 2,744,926 — 2,744,926
Profit for the period — — — — — 1,954,833 1,954,833
Total comprehensive income for the period — — — — 2,744,926 1,954,833 4,699,759
Transfer to taxation reserve — — — (207,774) — 207,774 —
Share Options Expired — — — — — — —
Share incentives expense — — 59,327 — — — 59,327
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 — — — — (7,374,025) — (7,374,025)
Profit for the period — — — — — 17,837,221 17,837,221
Total comprehensive income for the period — — — — (7,374,025) 17,837,221 10,463,196
Transfer to taxation reserve — — — 1,649,374 — (1,649,374) —
Share incentives expense — — 183,902 — — — 183,902
Equity shareholders’ funds at 30 September 2024 11,213,618 36,158,068 359,475 17,609,380 (69,154,766) 107,253,372 103,439,147
(1) Other reserves comprise a merger reserve of US$361,461 and a
taxation reserve of US$17,247,919 (31 December 2023: merger reserve of
US$361,461 and a taxation reserve of US$15,598,545).
Condensed Consolidated Cash Flow Statement
For the three and nine-month periods ended 30 September 2024
For the three months ended 30 September For the nine months ended 30 September
2024 2023 2024 2023
(expressed in US$) (unaudited) (unaudited) (unaudited) (unaudited)
Post tax profit/(loss) for period 8,615,387 (359,112) 17,837,221 4,620,779
Depreciation – plant, equipment and mining properties 1,056,517 2,957,149 3,297,323 4,982,186
Provision for inventory impairment — — — 370,000
Gain on asset disposals (25,008) (122,186) 59,669 (269,679)
Net financial expense (110,962) 225,107 749,792 (259,880)
Provision for taxation 2,184,999 1,052,906 2,837,143 1,184,470
Share-based payments 65,010 52,151 183,902 138,017
Taxation paid (347,589) (415,722) (789,287) (811,612)
Interest paid (10,091) (22,900) (39,599) (408,714)
Foreign exchange (loss) / gain (291,702) (45,098) (343,986) (117,170)
Changes in working capital
Decrease/(increase) in inventories 217,474 (696,001) (1,049,888) (696,782)
Decrease/(increase)/decrease in receivables, prepayments and accrued income 1,238,492 (1,477) (1,002,244) 2,763,565
Increase/(decrease) in payables, accruals and provisions 979,209 1,550,835 1,384,012 1,798,796
Net cash inflow from operations 13,571,736 4,175,652 23,124,058 13,293,976
Investing activities
Purchase of property, plant and equipment and assets in construction (2,219,242) (706,419) (6,231,132) (1,686,505)
Mine development expenditure (1,977,182) (1,274,305) (4,913,351) (2,613,395)
Geological exploration expenditure (922,400) (101,611) (1,835,856) (459,035)
Pre-operational project costs (393,044) — (865,728) —
Proceeds from sale of assets 21,474 123,408 73,955 314,923
Interest received 109,262 101,574 338,895 181,373
Net cash outflow on investing activities (5,381,132) (1,857,353) (13,433,217) (4,262,639)
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 finance lease liabilities (210,366) (295,583) (708,816) (906,565)
Net cash (outflow) / inflow from financing activities (210,366) (295,583) (708,816) (1,002,962)
Net increase / (decrease) in cash and cash equivalents 7,980,238 2,022,716 8,982,025 8,028,375
Cash and cash equivalents at beginning of period 12,041,017 13,285,447 11,552,031 7,196,313
Exchange difference on cash 8,152 43,936 (504,649) 127,411
Cash and cash equivalents at end of period 20,029,407 15,352,099 20,029,407 15,352,099
Notes
1. Basis of preparation
1. Basis of preparation
These interim condensed consolidated financial statements are for the three
and nine month periods ended 30 September 2024. Comparative information has
been provided for the unaudited three and nine month periods ended 30
September 2023 and, where applicable, the audited twelve month period from 1
January 2023 to 31 December 2023. 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 2023 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 2023 and
those envisaged for the financial statements for the year ending 31 December
2024.
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
2023 prepared in accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006 have been filed
with the Registrar of Companies. The auditor’s report on these accounts was
unqualified. The auditor’s report did not contain a statement under Section
498 (2) or 498 (3) of the Companies Act 2006.
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 have not yet been ratified in UK law but
are expected to be ratified during 2024. The Group expects to make appropriate
compliant disclosures in its Annual Report for the year needed 31 December
2024.
IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
IFRS S2 Climate-related Disclosures
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.
Management do not consider that the following other amendments to existing
standards are applicable to the current operations of the Group or will have
any material impact on the financial statements.
Lease Liability in a Sale and Leaseback (amendments to IFRS 16)
Supplier Finance Arrangements (amendments to IAS 7 and IFRS 17))
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.
These financial statements do not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006.
(i) Going concern
On 30 September 2024 the Group held cash of US$20.03 million which represents
an increase of US$8.45 million compared to 31 December 2023.
On 7 January 2024, the Group completed a US$5.0 million unsecured loan
arrangement with Itaú Bank in Brazil. The loan is repayable as a bullet
payment on 6 January 2025 and carries an interest coupon of 8.47 per cent. The
proceeds raised from the loan are being used for working capital and secure
adequate liquidity to repay a similar arrangement which was repaid on 22
February 2024.
Management prepares, for Board review, regular updates of its operational
plans and cash flow forecasts based on their best judgement of the expected
operational performance of the Group and using economic assumptions that the
Directors consider are reasonable in the current global economic climate. The
current plans assume that during 2024 the Group will continue gold production
from its Palito Complex operation as well as increase production from the
Coringa mine and will be able to increase gold production to exceed the levels
of 2023.
The Directors will limit the Group’s discretionary expenditures, when
necessary, to manage the Group’s liquidity.
The Directors acknowledge that the Group remains subject to operational and
economic risks and any unplanned interruption or reduction in gold production
or unforeseen changes in economic assumptions may adversely affect the level
of free cash flow that the Group can generate on a monthly basis. 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.
2. Depreciation and amortisation
Whilst the Coringa Gold Project has been in production for some time, it is
still in a development and ramp-up stage and has not yet attained the
operational scale that the Board considers is required to be considered in
Commercial Production. As a result no amortisation charge in respect of the
underlying mine asset costs has been reflected in the financial statements to
date.
3. Other Income and Expenses
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 has been recognised through
the income statement. As this is not a principal business activity of the
Group these receipts and expenditures are classified as other income and other
expenses.
4. Finance expense and income
3 months ended 30 September 2024 (unaudited) 3 months ended 30 September 2023 (unaudited) 9 months ended 30 September 2024 (unaudited) 9 months ended 30 September 2023 (unaudited)
US$ US$ US$ US$
Loss on revaluations of hedging derivatives — (226,883) — —
Interest expense on short term loan (93,486) (106,197) (335,563) (349,515)
Interest expense on trade finance (22,120) (24,267) (54,333) (66,158)
Interest expense on finance leases — — — —
Total Financial expense (12,123) (24,131) (48,136) (84,915)
(127,729) (381,478) (438,032) (500,588)
Gain on revaluation of hedging derivatives — — — 385,512
Realised gain on hedging derivatives — 98,217 6,832 136,938
Interest income 109,262 101,575 338,895 181,373
Total Financial income 109,262 199,792 345,727 703,823
Net finance (expense) / income (18,467) (181,686) (92,305) 203,235
5. Taxation
The Group has recognised a deferred tax asset to the extent that the Group has
reasonable certainty as to the level and timing of future profits that might
be generated and against which the asset may be recovered. The deferred tax
liability arising on unrealised exchange gains has been eliminated in the
nine-month period to 30 September 2024 reflecting the movement in the
Brazilian Real exchange rate at the end of the period and resulting in
deferred tax income of US$946,220 (nine months to 30 September 2023 – income
of US$23,113).
The Group has also incurred a tax charge in Brazil for the six-month period of
US$3,783,403 (nine months to 30 September 2023 tax charge - US$1,207,583).
6. Earnings per Share
6 months ended 30 June 2024 (unaudited) 6 months ended 30 June 2023 (unaudited) 3 months ended 30 June 2024 (unaudited) 3 months ended 30 June 2023 (unaudited)
Profit/(loss) attributable to ordinary shareholders (US$) 8,615,387 (359,112) 17,837,221 4,620,779
Weighted average ordinary shares in issue 75,734,551 75,734,551 75,734,551 75,734,551
Basic profit/(loss) per share (US cents) 11.38c (0.47c) 23.55c 6.10c
Diluted ordinary shares in issue ((1)) 75,734,551 75,734,551 75,734,551 75,734,551
Diluted profit/(loss) per share (US cents) 11.38c (0.47c) 23.55c 6.10c
(1) On 30 September 2024 there were 2,814,541 conditional share awards in
issue (30 September 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.
7. Post balance sheet events
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
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