Unaudited interim results for the three-and six-month periods ended 30 June 2025

Serabi Gold

28/08/2025 06:30

Unaudited interim results for the three-and six-month periods ended 30 June 2025

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 six-month periods ended 30 June 2025 (all currency amounts are expressed in US Dollars unless otherwise stated).

HIGHLIGHTS

Gold production for the first half of 2025 of 20,545 ounces (corresponding six-month period of 2024: 18,010 ounces).

Cash held at 30 June 2025 of $30.4 million (31 December 2024: $22.2 million).

EBITDA for the six-month period of $26.3 million (corresponding six-month period of 2024: $13.0 million).

Post-tax profit for the six-month period of $18.9 million (corresponding six-month period of 2024: $9.2 million).

Profit per share of 24.99 cents (corresponding six-month period of 2024: 12.18 cents).

Net cash inflow from operations for the six-month period (after mine development expenditure of $2.7 million) of $19.2 million (corresponding six-month period of 2024: $6.6 million inflow, after mine development expenditure of $3.0 million).

Average gold price of $3,093 per ounce received on gold sales during the six-month period (corresponding six-month period of 2024: $2,209).

Cash Cost for the six-month period to 30 June 2025 of $1,379 per ounce (corresponding six-month period of 2024: $1,401 per ounce).

All-In Sustaining Cost for the six-month period to 30 June 2025 of $1,792 per ounce (corresponding six-month period of 2024: $1,782 per ounce).

The full interim statements together with commentary can be accessed on the Company’s website using the following LINK.

Colm Howlin, CFO, Commented

“This has been an exceptional period of financial performance. Gold production for the first half of 2025 totaled 20,545 ounces, representing a 14 per cent increase on the same period in 2024. This robust operational performance, combined with an average realised gold price of $3,093 per ounce, drove EBITDA to $26.3 million for the period – more than double the $13.0 million reported in the first half of 2024.

The Company ended the period with a cash balance of $30.4 million, up significantly from $22.2 million at the end of 2024. This reflects strong cash generation from operations and our continued discipline in capital deployment. Net cash inflow from operations, after mine development expenditure of $2.7 million, was $19.2 million compared with $6.6 million in the same period of 2024. With exploration activity accelerating and a 30,000-metre drill programme underway across both Palito Complex and Coringa, the Company is positioning itself for future resource growth and long-term value creation.

While mine development expenditure has increased year-on-year, the investment continues to underpin our growth and expansion plans. All-In Sustaining Costs (AISC) for the period were $1,792 per ounce, reflecting both inflationary pressures and the increased development activity. Nevertheless, the Company continues to deliver strong margins, underpinned by the high gold price environment and improved production profile.

A post-tax profit of $18.9 million for the period – up from $9.2 million in 2024 – translated into earnings of 24.99 cents per share, compared to 12.18 cents for the same six-month period last year. These results underscore the strength of Serabi’s operations and the positive momentum as we advance through 2025.”

Overview of the financial results

In the first half of 2025, the Group has reported revenue and operating costs related to the sale of 20,215 ounces in the period (20,545 ounces produced). This compares to sales reported of only 18,535 ounces in the first half of 2024. Reported revenues and costs reflect the ounces sold in each period and as a result total costs for the six-month period are higher than for the corresponding period of 2024.

On 7 January 2024, the Group completed a $5.0 million unsecured loan arrangement with Brazilian bank Itau which carried a fixed interest coupon of 8.47 per cent. The loan was repaid as a bullet payment on 6 January 2025. On 22 January 2025, the Group completed a further $5.0 million unsecured loan arrangement with a different Brazilian bank (Santander) which carries a fixed interest coupon of 6.16 per cent. This loan is repayable on 16 January 2026.

The ore sorter at Coringa has now been operational for six months and has performed exceptionally during this period. Benefiting from favourable economics, the ore sorter has been utilised to process low-grade ore that had been stockpiled since the commencement of operations at the mine, while higher-grade ROM has continued to be transported directly to the Palito Complex plant. As a result of this approach, gold production from Coringa is expected to exceed the original plan for the year.

Key Financial Information

SUMMARY FINANCIAL STATISTICS FOR THE THREE-AND SIX MONTHS ENDING 30 JUNE 2025
6 months to
30 June 2025
US$
(unaudited)
6 months to
30 June 2024
US$
(unaudited)
3 months to
30 June 2025
US$
(unaudited)
3 months to
30 June 2024
US$
(unaudited)
Revenue
62,527,643
42,664,607
34,934,280
22,418,207
Cost of sales
(30,531,839)
(25,680,069)
(17,393,674)
(12,123,470)
Gross operating profit
31,995,804
16,984,538
17,540,606
10,294,737
Administration and share based payments
(5,660,536)
(4,009,000)
(3,654,091)
(2,024,010)
EBITDA
26,335,268
12,975,538
13,886,515
8,270,727
Depreciation and amortisation charges
(3,679,555)
(2,240,806)
(1,844,782)
(1,194,245)
Operating profit before finance and tax
22,655,713
10,734,732
12,041,733
7,076,482
Profit after tax
18,928,951
9,221,834
10,159,192
5,584,271
Earnings per ordinary share (basic)
24.99c
12.18c
13.41c
7.37c
Average gold price received (US$/oz)
US$3,093
US$2,209
US$3,303
US$2,339


As at
30 June
2025
US$
(unaudited)
As at
31 December 2024
US$
(audited)
Cash and cash equivalents
30,432,470
22,183,049
Net funds (after finance debt obligations)
25,103,094
16,341,245
Net assets
135,144,660
104,181,654


Cash Cost and All-In Sustaining Cost (“AISC”)
6 months to 
30 June
 2025
6 months to 30 June
2024
12 months to 31 December 2024
Gold production for cash cost and AISC purposes
20,545 ozs
18,010 ozs
37,520 ozs
Total Cash Cost of production (per ounce)
US$1,379
US$1,401
US$1,326
Total AISC of production (per ounce)
US$1,792
US$1,782
US$1,700

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 Andrew Khov, Vice President, Investor Relations & Business Development.

Enquiries

Michael Hodgson        t +44 (0)20 7246 6830
Chief Executive        m +44 (0)7799 473621

Colm Howlin        
Chief Financial Officer        m +353 89 6078171

Andrew Khov         m +1 647 885 4874
Vice President, Investor Relations &
Business Development
        e contact@serabigold.com

        www.serabigold.com

BEAUMONT CORNISH Limited
Nominated Adviser & Financial Adviser
Roland Cornish / Michael Cornish        t +44 (0)20 7628 3396

PEEL HUNT LLP
Joint UK Broker
Ross Allister / Georgia Langoulant        t +44 (0)20 7418 9000

TAMESIS PARTNERS LLP
Joint UK Broker
Charlie Bendon/ Richard Greenfield        t +44 (0)20 3882 2868

CAMARCO
Financial PR - Europe
Gordon Poole / Emily Hall                t +44 (0)20 3757 4980

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 six months to 30 June 2025.

Statement of Comprehensive Income
For the three and six-month periods ended 30 June 2025.

For the six months ended
For the three months ended
30 June
 2025
30 June 
2024
30 June 
2025
30 June 
2024
(expressed in US$)
Notes
(unaudited)
(unaudited)
(unaudited)
(unaudited)
CONTINUING OPERATIONS
Revenue
62,527,643
42,664,607
34,934,280
22,418,207
Cost of sales
(30,531,839)
(25,680,069)
(17,393,674)
(12,123,470)
Depreciation and amortisation charges
(3,679,555)
(2,240,806)
(1,844,782)
(1,194,245)
Total cost of sales
(34,211,394)
(27,920,875)
(19,238,456)
(13,317,715)
Gross profit 
28,316,249
14,743,732
15,695,824
9,100,492
Administration expenses
(5,544,617)
(3,805,431)
(3,566,378)
(1,862,691)
Share-based payments
(204,028)
(118,892)
(136,314)
(65,009)
Gain on asset disposals
88,109
(84,677)
48,601
(96,310)
Operating profit
22,655,713
10,734,732
12,041,733
7,076,482
Other income – exploration receipts
2
—
351,186
—
11,332
Other expenses – exploration expenses
2
—
(317,746)
—
(5,228)
Foreign exchange (loss)/gain
108,005
(820,356)
37,579
(785,790)
Finance expense
3
(228,469)
(310,303)
(117,495)
(135,698)
Finance income
3
409,302
236,465
203,224
94,910
Profit before taxation
22,944,551
9,873,978
12,165,041
6,256,008
Income tax expense
4
(4,015,600)
(652,144)
(2,005,849)
(671,737)
Profit after taxation
18,928,951
9,221,834
10,159,192
5,584,271
Other comprehensive income (net of tax)
Exchange differences on translating foreign operations
11,881,692
(8,182,714)
4,892,090
(6,401,786)
Total comprehensive profit / (loss) for the period(1)
30,810,643
1,039,120
15,051,282
(817,515)
Profit per ordinary share (basic)
5
24.99c
12.18c
13.41c
7.37c
Profit per ordinary share (diluted)
5
24.99c
12.18c
13.41c
7.37c

(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 June 2025

(expressed in US$)


As at
30 June 2025 (unaudited)


As at
30 June 2024 (unaudited)
As at
31 December 2024
(audited)
Non-current assets
Deferred exploration costs
25,104,242
18,952,915
18,839,836
Property, plant and equipment
66,974,329
52,438,422
53,593,723
Right of use assets
5,147,282
4,887,175
4,287,020
Taxes receivable
6,742,249
5,839,555
6,246,352
Deferred taxation
3,279,129
1,688,554
1,878,081
Total non-current assets
107,247,231
83,806,621
84,845,012
Current assets
Inventories
16,057,105
13,041,361
13,115,648
Trade and other receivables
3,208,992
3,402,714
2,533,450
Prepayments and accrued income
3,956,160
2,758,307
2,220,463
Cash and cash equivalents
30,432,470
12,041,017
22,183,049
Total current assets
53,654,727
31,243,399
40,052,610
Current liabilities
Trade and other payables
14,531,780
8,562,520
9,695,560
Interest bearing liabilities
5,329,376
5,943,236
5,841,804
Accruals
569,261
412,291
419,493
Total current liabilities
20,430,417
14,918,047
15,956,857
Net current assets
33,224,310
16,325,352
24,095,753
Total assets less current liabilities
140,471,541
100,131,973
108,940,765
Non-current liabilities
Trade and other payables
1,956,161
3,738,633
2,809,243
Provisions
3,170,488
2,282,580
1,839,916
Interest bearing liabilities
200,232
160,699
109,952
Total non-current liabilities
5,326,881
6,181,912
4,759,111
Net assets
135,144,660
93,950,061
104,181,654
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
358,228
294,465
221,613
Other reserves
21,266,122
17,609,380
19,486,684
Translation reserve
(66,578,073)
(69,963,455)
(78,459,765)
Retained surplus
132,726,697
98,637,985
115,561,436
Equity shareholders’ funds
135,144,660
93,950,061
104,181,654

Statements of Changes in Shareholders’ Equity
For the six-month period ended 30 June 2025

(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 2023
11,213,618
36,158,068
175,573
15,960,006
(61,780,741) 
91,065,525 
92,792,049
Foreign currency adjustments
—
—
—
—
(8,182,714)
—
(8,182,714)
Profit for the period
—
—
—
—
—
9,221,834
9,221,834
Total comprehensive income for the period
—
—
—
—
(8,182,714)
9,221,834
1,039,120
Transfer to taxation reserve
—
—
—
1,649,374
—
(1,649,374)
—
Share incentives expired
—
—
—
—
—
—
—
Share incentives expense
—
—
118,892
—
—
—
118,892
Equity shareholders’ funds at 30 June 
2024
11,213,618
36,158,068
294,465
17,609,380
(69,963,455)
98,637,985
93,950,061
Foreign currency adjustments
—
—
—
—
(8,496,310)
—
(8,496,310)
Profit for the period
—
—
—
—
—
18,597,884
18,597,884
Total comprehensive income for the period
—
—
—
—
(8,496,310)
18,597,884
10,101,574
Transfer to taxation reserve
—
—
—
1,877,304
—
(1,877,304)
—
Share based incentives lapsed in period
—
—
(202,871)
—
—
202,871
—
Share option expense
—
—
130,019
—
—
—
130,019
Equity shareholders’ funds at 31 December 
2024
11,213,618
36,158,068
221,613
19,486,684
(78,459,765)
115,561,436
104,181,654
Foreign currency adjustments
—
—
—
—
11,881,692
—
11,881,692
Profit for the period
—
—
—
—
—
18,928,951
18,928,951
Total comprehensive income for the period
—
—
—
—
11,881,692
18,928,951
30,810,643
Transfer to taxation reserve
—
—
—
1,779,438
—
(1,779,438)
—
Share option expense
—
—
204,028
—
—
—
204,028
Share options settled in period
—
—
(51,665)
—
—
—
(51,665)
Share based incentives lapsed in period
—
—
(15,748)
—
—
15,748
—
Equity shareholders’ funds at 30 June 
2025
11,213,618
36,158,068
358,228
21,266,122
(66,578,073)
132,726,697
135,144,660


(1) Other reserves comprise a merger reserve of US$361,461 and a taxation reserve of US$20,904,661 (31 December 2023: merger reserve of US$361,461 and a taxation reserve of US$19,125,223).

Condensed Consolidated Cash Flow Statement
For the three and six-month periods ended 30 June 2025

For the six months
 ended
30 June
For the three months
 ended
30 June
2025
2024
2025
2024
(expressed in US$)
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Operating activities
Post tax profit for period
18,928,951
9,221,834
10,159,192
5,584,271
Depreciation – plant, equipment and mining properties
3,679,555
2,240,806
1,844,782
1,194,245
Net financial expense/(income)
(288,838)
860,754
(123,308)
793,138
Provision for taxation
4,015,600
652,144
2,005,849
671,737
Gain / (loss) on disposals
(88,109)
84,677
(48,601)
96,310
Share-based payments
204,028
118,892
136,314
65,009
Taxation paid
(5,468,999)
(441,698)
(3,537,248)
(426,344)
Interest paid
(413,385)
(29,508)
(32,615)
362,760
Foreign exchange (loss) / gain
358,096
(52,284)
175,709
(120,031)
Changes in working capital
(Increase)/decrease in inventories
(1,685,070)
(1,267,362)
222,592
(12,077)
(Increase)decrease in receivables, prepayments and accrued income
(1,289,565)
(2,240,736)
(218,201)
(1,482,794)
Increase in payables, accruals and provisions
3,909,253
404,803
1,057,215
925,657
Net cash inflow from operations
21,861,517
9,552,322
11,641,680
7,651,881
Investing activities
Purchase of property, plant and equipment and assets in construction
(3,721,220)
(4,011,890)
(2,120,071)
(3,572,905)
Mine development expenditure
(2,729,530)
(2,936,169)
(1,103,316)
(1,346,542)
Geological exploration expenditure
(3,792,747)
(913,456)
(2,267,239)
(763,872)
Pre-operational project costs
(4,162,587)
(472,684)
(2,626,734)
(472,684)
Proceeds from sale of assets
96,760
52,481
49,508
40,573
Interest Received
409,302
229,633
203,224
94,910
Net cash outflow on investing activities
(13,900,022)
(8,052,085)
(7,866,884)
(6,020,520)
Financing activities
Receipt of short-term loan
5,000,000
5,000,000
—
—
Repayment of short-term loan
(5,153,577)
(5,000,000)
—
—
Payment of finance lease liabilities
(240,467)
(498,450)
(98,813)
(243,205)
Net cash (outflow)/inflow from financing activities
(394,044)
(498,450)
(98,813)
(243,205)
Net increase/(decrease) in cash and cash equivalents
7,567,451
1,001,787
3,675,983
1,388,156
Cash and cash equivalents at beginning of period
22,183,049
11,552,031
26,504,939
11,056,317
Exchange difference on cash
681,970
(512,801)
251,548
(403,456)
Cash and cash equivalents at end of period
30,432,470
12,041,017
30,432,470
12,041,017

Notes

Basis of preparation

1. Basis of preparation
These interim condensed consolidated financial statements are for the three and six-month periods ended 30 June 2025. Comparative information has been provided for the unaudited three and six-month periods ended 30 June 2024 and, where applicable, the audited twelve-month period from 1 January 2024 to 31 December 2024. 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 2024 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 2024 and those envisaged for the financial statements for the year ending 31 December 2025.

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 2024 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 2025
The Group has not adopted any standards or amendments in advance of their effective date. The following new amendment has been issued by the IASB and is effective for annual periods beginning on or after 1 January 2025:

Amendments to IAS 21 – The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability
The amendments provide guidance for determining the spot exchange rate when exchangeability between two currencies is lacking. They clarify when a currency is considered exchangeable and introduce a methodology for estimating an appropriate exchange rate when necessary. The Group does not expect a material impact on its financial statements from these amendments.

No other standards or amendments are expected to be effective in 2025.

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

At 30 June 2025 the Group held cash of US$30.4 million which represents an increase of US$8.2 million compared to 31 December 2024.

On 7 January 2024, the Group completed a US$5.0 million unsecured loan arrangement with Brazilian bank Itau which carried a fixed interest coupon of 8.47 per cent. The loan was repaid as a bullet payment on 6 January 2025. On 22 January 2025, the Group completed a further US$5.0 million unsecured loan arrangement with a different Brazilian bank (Santander) which carries a fixed interest coupon of 6.16 per cent. This loan is repayable on 16 January 2026.

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 2025 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 2024.

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.         Other Income and Expenses

Under the copper exploration alliance with Vale announced on 10 May 2024, 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.

3.         Finance expense and income

6 months ended
30 June 2025
(unaudited)
6 months ended
30 June 2024
(unaudited)
3 months ended
30 June 2025
(unaudited)
3 months ended
30 June 2024
(unaudited)
US$
US$
US$
US$
Interest expense on short term loan
(160,593)
(242,077)
(81,582)
(100,430)
Interest expense on trade finance
(41,418)
(32,213)
(23,742)
(13,291)
Interest expense on finance leases
(26,458)
(36,013)
(12,171)
(21,977)
Total Financial expense
(228,469)
(310,303)
(117,495)
(135,698)
Interest Income
409,302
229,633
203,224
94,910
Realised gain on hedging derivatives
—
6,832
—
—
Total Financial income
409,302
236,465
203,224
94,910
Net finance (expense) / income
180,833
(73,838)
85,729
(40,788)

4.         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 three-month period to 30 June 2025 reflecting the stronger Brazilian Real exchange rate at the end of the period and resulting in deferred tax income of US$1,054,859 (six months to 30 June 2024 – income of US$796,454).

The Group has also incurred a tax charge in Brazil for the six-month period of US$5,070,459 (six months to 30 June 2024 tax charge - US$1,448,598).

5.        Earnings per Share

6 months ended 30 June 2025
(unaudited)
6 months ended 30 June 2024
(unaudited)
3 months ended 30 June 2025
(unaudited)
3 months ended 30 June 2024
(unaudited)
Profit attributable to ordinary shareholders (US$)
18,928,951
9,221,834
10,159,192
5,584,271
Weighted average ordinary shares in issue
75,734,551
75,734,551
75,734,551
75,734,551
Basic profit per share (US cents)
24.99c
12.18c
13.41c
7.37c
Diluted ordinary shares in issue (1)
75,734,551
75,734,551
75,734,551
75,734,551
Diluted profit per share (US cents)
24.99c
12.18c
13.41c
7.37c

(1) At 30 June 2025 there were 2,728,049 conditional share awards in issue (30 June 2024 – 2,814,541). 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.

6.        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.