REG-Unaudited interim results for the three and nine-month periods ended 30 September 2025
Today 06:30
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Unaudited interim results for the three and nine-month periods ended 30
September 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 nine-month periods ended 30 September 2025 (all currency amounts
are expressed in US Dollars unless otherwise stated).
HIGHLIGHTS
* Gold production for the first nine months of 2025 of 32,634 ounces
(corresponding nine-month period of 2024: 27,499 ounces), positioning the
Company on track for full year guidance, with record Q3 production of 12,090
ounces.
* Cash held at 30 September 2025 of $38.8 million (31 December 2024: $22.2
million).
* Net cash at quarter-end (after interest bearing loans and lease liabilities)
of $33.0 million (Q2-2025: $24.6 million).
* EBITDA for the nine-month period of $48.2 million (corresponding nine-month
period of 2024: $24.7 million).
* Post-tax profit for the nine-month period of $34.9 million (corresponding
nine-month period of 2024: $17.8 million).
* Profit per share of 46.10 cents (corresponding nine-month period of 2024:
23.55 cents).
* Net cash inflow from operations for the nine-month period (after mine
development expenditure of $4.1 million) of $34.3 million (corresponding
nine-month period of 2024: $18.2 million inflow, after mine development
expenditure of $4.9 million).
* Average gold price of $3,244 per ounce received on gold sales during the
nine-month period (corresponding nine-month period of 2024: $2,338).
* Cash Cost for the nine-month period to 30 September 2025 of $1,429 per ounce
(corresponding nine-month period of 2024: $1,405 per ounce).
* All-In Sustaining Cost for the nine-month period to 30 September 2025 of
$1,816 per ounce (corresponding nine-month period of 2024: $1,790 per ounce).
The full interim statements together with commentary can be accessed on the
Company’s website using the following LINK
(https://www.globenewswire.com/Tracker?data=nnXQY0S2QVeW4HcMVpflXm39v1MBKV9TRjpRFCN22A6ZxbYALBPkF_YDkuuYAb48SveyHu2lXwauebRx49xPno7VlINQirOd-33Ec4krU0wBqtKILv1sw3ShiAxjkZW2BE9cl18MocfX9cLBBf7_74c1TmjTGgSBgXgFuCgzr8mLD-dQudI7aueyEVz7fQYRabdN52b6Ucoo5CBOToXxflj2mutna9gDKr6yGQ_iTAiWw35Hb9TJPIx95Cnyr_CoJMG9W8YZyA26p3uNz14SiqRkI-pWBfWi7nOpG4LxXQ5y2IpGJm_PEq2fF7t4yYE7TCf3c886YjzdLZEHBfwK7_hSt24FRNoA3gBjN0eAJ5LknK2Pz8i6V95gMTDt1xI2gnEZGq2nr2QdZjWm1rsauqsSBodPu7hBvSwCkIfzdii2Reww84HcKcXUeNziuUPkGatd334uicyOdg9nI-QXgzFgjL1BdDgKKqcZnULmZF3o-1rVvIMCXSMD_VlfbgFGd0G_ASac3QeROXjXm8bUM8z7rHj-ATd-77Na7WwKFRSxiGeJFtsjlsXIUrgfQQdJY54wkKLjqjganGgVcIZEmGRcRhVfCHSq8PJvMgjXILxD0H1C82xC2KkNoK6gkNb8ooUvnlOmuhqe-3voXU_VV2qcsZa7znTA5_aVtcVkwVKhnY-Yv41RozBKKnUsO89mr2WC85pBcAg6PmIwliFUxw==).
YTD Q3-2025 YTD Q3-2024 Change %
Gold production (oz) 32,634 27,499 +19%
EBITDA ($m) $48.2 $24.7 +95%
Cash in flow ($m) $34.3 $18.2 +88%
EPS ($c) 46.10 23.55 +96%
AISC ($/oz) $1,816 $1,790 +1%
Colm Howlin, CFO, Commented
“The nine months to 30 September 2025 have delivered strong financial and
operational performance for the Company placing us firmly on track to meet
full-year guidance. Gold production for the year to date totalled 32,634
ounces, a 19% increase compared with the same period of 2024.
The continued strong operational performance combined with higher average gold
prices has driven a 95% year-on-year increase in EBITDA to $48.2 million and
the Company closed the quarter with a cash balance of $38.8 million, up from
$22.2 million at 31 December 2024. Net cash inflow from operations for the
nine-month period, after mine development expenditure of $4.1 million, was
$34.3 million, highlighting the strong cash-generating capacity of the
business.
All-In Sustaining Cost (AISC) averaged $1,816 per ounce for the period,
reflecting the impact of ongoing development investment and inflationary cost
pressures. We continue to strengthen our balance sheet with margins remaining
robust, supported by firm gold prices, higher production volumes, and
disciplined cost control.
Post-tax profit for the nine months was $34.9 million, equating to earnings of
46.10 cents per share, compared with $17.8 million and 23.55 cents per share
in 2024.
In parallel, exploration and resource development drilling continued across
both the Palito Complex and Coringa, with approximately 27,937 metres
completed year to date. Early results are encouraging, supporting the
Company’s objective of increasing resources to the 1.5-2.0Moz range in the
oncoming years as part of Phase 2 of our growth strategy.
With strong cash generation, a solid balance sheet, and a clear focus on
operational excellence, the Company remains well positioned to close 2025 with
continued momentum and to deliver further growth into 2026.”
Overview of the financial results
In the first nine months of 2025, the Group has reported revenue and operating
costs related to the sale of 32,106 ounces (32,634 ounces produced). This
compares to sales reported of 28,912 ounces in the first nine months of 2024.
Reported revenues and costs reflect the ounces sold in each period and as a
result total costs for the nine-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 Company had a net cash balance at the end of Q3-2025 (after interest
bearing loans and lease liabilities) of $33.0 million (31 December 2024: net
cash $16.2 million).
The ore sorter at Coringa has now been operational for nine months and has
performed exceptionally during this period. Benefiting from favourable
economics, the ore sorter has been utilised to process low-grade ore that had
been stockpiled since the commencement of operations at the mine, while
higher-grade ROM has continued to be transported directly to the Palito
Complex plant. As a result of this approach, gold production from Coringa is
expected to exceed the original plan for the year.
Key Financial Information
SUMMARY FINANCIAL STATISTICS FOR THE THREE AND NINE-MONTHS ENDING 30 SEPTEMBER 2025
9 months to 30 September 2025 US$ (unaudited) 9 months to 30 September 2024 US$ (unaudited) 3 months to 30 September 2025 US$ (unaudited) 3 months to 30 September 2024 US$ (unaudited)
Revenue 104,524,009 70,290,641 41,996,366 27,626,034
Cost of sales (48,152,798) (39,840,803) (17,620,959) (14,160,734)
Gross operating profit 56,371,211 30,449,838 24,375,407 13,465,300
Administration and share based payments (8,178,467) (5,728,359) (2,517,931) (1,719,359)
EBITDA 48,192,744 24,721,479 21,857,476 11,745,941
Depreciation and amortisation charges (6,475,006) (3,297,323) (2,795,451) (1,056,517)
Operating profit before finance and tax 41,717,738 21,424,156 19,062,025 10,689,424
Profit after tax 34,914,606 17,837,221 15,985,655 8,615,387
Earnings per ordinary share (basic) 46.10c 23.55c 21.11c 11.38c
Average gold price received (US$/oz) US$3,244 US$2,338 US$3,501 US$2,478
As at 30 September 2025 US$ (unaudited) As at 31 December 2024 US$ (audited)
Cash and cash equivalents 38,772,337 22,183,049
Net funds (after finance debt obligations) 33,070,053 16,341,245
Net assets 154,314,145 104,181,654
Cash Cost and All-In Sustaining Cost (“AISC”)
9 months to 30 September 2025 9 months to 30 September 2024 12 months to 31 December 2024
Gold production for cash cost and AISC purposes 32,634 ozs 27,499 ozs 37,520 ozs
Total Cash Cost of production (per ounce) US$1,429 US$1,405 US$1,326
Total AISC of production (per ounce) US$1,816 US$1,790 US$1,700
About Serabi Gold plc
Serabi Gold plc is a gold exploration, development and production company
focused on the prolific Tapajós region in Para State, northern Brazil. The
Company has consistently produced 30,000 to 40,000 ounces per year with the
Palito Complex and is planning to double production in the coming years with
the construction of the Coringa Gold project. Serabi Gold plc recently made a
copper-gold porphyry discovery on its extensive exploration licence. The
Company is headquartered in the United Kingdom with a secondary office in
Toronto, Ontario, Canada.
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 / Fergus Young 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 nine months to 30 September 2025.
Statement of Comprehensive Income
For the three and nine-month periods ended 30 September 2025.
For the three months ended For the nine months ended
30 September 2025 30 September 2024 30 September 2025 30 September 2024
(expressed in US$) Notes (unaudited) (unaudited) (unaudited) (unaudited)
CONTINUING OPERATIONS
Revenue 41,996,366 27,626,034 104,524,009 70,290,641
Cost of sales (17,620,959) (14,160,734) (48,152,798) (39,840,803)
Depreciation and amortisation charges (2,795,451) (1,056,517) (6,475,006) (3,297,323)
Total cost of sales (20,416,410) (15,217,251) (54,627,804) (43,138,126)
Gross profit 21,579,956 12,408,783 49,896,205 27,152,515
Administration expenses (2,695,260) (1,679,357) (8,239,877) (5,484,788)
Share-based payments (89,232) (65,010) (293,260) (183,902)
Gain on asset disposals 266,561 25,008 354,670 (59,669)
Operating profit 19,062,025 10,689,424 41,717,738 21,424,156
Other income – exploration receipts 2 — — — 351,186
Other expenses – exploration expenses 2 — — — (317,746)
Foreign exchange (loss)/gain (21,403) 129,429 86,602 (690,927)
Finance expense 3 (125,596) (127,729) (354,065) (438,032)
Finance income 3 268,694 109,262 677,996 345,727
Profit before taxation 19,183,720 10,800,386 42,128,271 20,674,364
Income tax expense 4 (3,198,065) (2,184,999) (7,213,665) (2,837,143)
Profit after taxation 15,985,655 8,615,387 34,914,606 17,837,221
Other comprehensive income (net of tax)
Exchange differences on translating foreign operations 3,128,112 808,689 15,009,804 (7,374,025)
Total comprehensive profit / (loss) for the period ((1)) 19,113,767 9,424,076 49,924,410 10,463,196
Profit per ordinary share (basic) 5 21.11c 11.38c 46.10c 23.55c
Profit per ordinary share (diluted) 5 21.11c 11.38c 46.10c 23.55c
(1) The Group has no non-controlling interests and all profits are
attributable to the equity holders of the Parent Company
Balance Sheet as at 30 September 2025
(expressed in US$) As at 30 September 2025 (unaudited) As at 30 September 2024 (unaudited) As at 31 December 2024 (audited)
Non-current assets
Deferred exploration costs 27,985,884 20,211,858 18,839,836
Property, plant and equipment 72,750,486 56,310,566 53,593,723
Right of use assets 5,680,426 4,928,263 4,287,020
Taxes receivable 8,106,612 7,110,445 6,246,352
Deferred taxation 3,670,994 1,903,307 1,878,081
Total non-current assets 118,194,402 90,464,439 84,845,012
Current assets
Inventories 16,739,178 12,338,958 13,115,648
Trade and other receivables 4,831,280 2,100,956 2,533,450
Prepayments and accrued income 4,106,439 1,633,602 2,220,463
Cash and cash equivalents 38,772,337 20,029,407 22,183,049
Total current assets 64,449,234 36,102,923 40,052,610
Current liabilities
Trade and other payables 15,903,235 10,672,705 9,695,560
Interest bearing liabilities 5,702,284 5,886,714 5,841,804
Accruals 901,515 431,716 419,493
Total current liabilities 22,507,034 16,991,135 15,956,857
Net current assets 41,942,200 19,111,788 24,095,753
Total assets less current liabilities 160,136,602 100,131,973 109,576,227
Non-current liabilities
Trade and other payables 1,857,937 3,676,181 2,809,243
Provisions 3,222,732 2,325,573 1,839,916
Interest bearing liabilities 741,788 135,326 109,952
Total non-current liabilities 5,822,457 6,137,080 4,759,111
Net assets 154,314,145 103,439,147 104,181,654
Equity
Share capital 11,213,618 11,213,618 11,213,618
Share premium reserve 36,158,068 36,158,068 36,158,068
Option reserve 447,460 359,475 221,613
Other reserves 22,839,025 17,609,380 19,486,684
Translation reserve (63,483,475) (69,154,766) (78,459,765)
Retained surplus 147,139,449 107,253,372 115,561,436
Equity shareholders’ funds 154,314,145 103,439,147 104,181,654
Statements of Changes in Shareholders’ Equity
For the nine-month period ended 30 September 2025
(expressed in US$)
(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 — — — — (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
Foreign currency adjustments — — — — (9,304,999) — (9,304,999)
Profit for the period — — — — — 9,982,497 9,982,497
Total comprehensive income for the period — — — — (9,304,999) 9,982,497 677,498
Transfer to taxation reserve — — — 1,877,304 — (1,877,304) —
Share based incentives lapsed in period — — (202,871) — — 202,871 —
Share option expense — — 65,009 — — — 65,009
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 — — — — 14,976,290 — 14,976,290
Profit for the period — — — — — 34,914,606 34,914,606
Total comprehensive income for the period — — — — 14,976,290 34,914,606 49,890,896
Transfer to taxation reserve — — — 3,352,341 — (3,352,341) —
Share option expense — — 293,260 — — — 293,260
Share options settled in period — — (51,665) — — — (51,665)
Share based incentives lapsed in period — — (15,748) — — 15,748 —
Equity shareholders’ funds at 30 September 2025 11,213,618 36,158,068 447,460 22,839,025 (63,483,475) 147,139,449 154,314,145
(1) Other reserves comprise a merger reserve of US$361,461 and a taxation
reserve of US$22,477,564 (31 December 2024: merger reserve of US$361,461 and a
taxation reserve of US$19,125,223).
Condensed Consolidated Cash Flow Statement
For the three and nine-month periods ended 30 September 2025
For the three months ended 30 September For the nine months ended 30 September
2025 2024 2025 2024
(expressed in US$) (unaudited) (unaudited) (unaudited) (unaudited)
Operating activities
Post tax profit for period 15,985,655 8,615,387 35,451,763 17,837,221
Depreciation – plant, equipment and mining properties 2,795,451 1,056,517 6,475,006 3,297,323
Net financial expense/(income) (121,695) (110,962) (410,533) 749,792
Provision for taxation 3,198,065 2,184,999 7,213,665 2,837,143
Gain / (loss) on disposals (266,561) (25,008) (354,670) 59,669
Share-based payments 89,232 65,010 293,260 183,902
Taxation paid (2,057,272) (347,589) (7,526,271) (789,287)
Interest paid (33,789) (10,091) (447,174) (39,599)
Foreign exchange (loss) / gain 18,255 (291,702) 369,194 (343,986)
Changes in working capital
(Increase)/decrease in inventories (657,797) 217,474 (2,342,867) (1,049,888)
(Increase)decrease in receivables, prepayments and accrued income (4,030,722) 1,238,492 (5,320,287) (1,002,244)
Increase in payables, accruals and provisions 1,027,939 979,209 4,937,192 1,384,012
Net cash inflow from operations 16,476,761 13,571,736 38,338,278 23,124,058
Investing activities
Purchase of property, plant and equipment and assets in construction (2,275,094) (2,219,242) (5,996,314) (6,231,132)
Mine development expenditure (1,347,803) (1,977,182) (4,077,333) (4,913,351)
Geological exploration expenditure (2,219,836) (922,400) (6,012,583) (1,835,856)
Pre-operational project costs (2,895,281) (393,044) (7,057,868) (865,728)
Proceeds from sale of assets 267,014 21,474 363,774 73,955
Interest Received 268,694 109,262 677,996 338,895
Net cash outflow on investing activities (8,202,306) (5,381,132) (22,102,328) (13,433,217)
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 (54,387) (210,366) (294,854) (708,816)
Net cash (outflow)/inflow from financing activities (54,387) (210,366) (448,431) (708,816)
Net increase/(decrease) in cash and cash equivalents 8,220,068 7,980,238 15,787,519 8,982,025
Cash and cash equivalents at beginning of period 30,432,470 12,041,017 22,183,049 11,552,031
Exchange difference on cash 119,799 8,152 801,769 (504,649)
Cash and cash equivalents at end of period 38,772,337 20,029,407 38,772,337 20,029,407
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 2025. Comparative information has
been provided for the unaudited three and nine-month periods ended 30
September 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 September 2025 the Group held cash of US$38.8 million which represents
an increase of US$16.6 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
3 months ended 30 September 2025 (unaudited) 3 months ended 30 September 2024 (unaudited) 9 months ended 30 September 2025 (unaudited) 9 months ended 30 September 2025 (unaudited)
US$ US$ US$ US$
Interest expense on short term loan (84,905) (93,486) (245,498) (335,563)
Interest expense on trade finance (25,724) (22,120) (67,142) (54,333)
Interest expense on finance leases (14,967) (12,123) (41,425) (48,136)
Total Financial expense (125,596) (127,729) (354,065) (438,032)
Interest Income 268,694 109,262 677,996 338,895
Realised gain on hedging derivatives — — — 6,832
Total Financial income 268,694 109,262 677,996 345,727
Net finance (expense) / income 143,098 (18,467) 323,931 (92,305)
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 previous
periods, and the stronger Brazilian Real exchange rate at the end of the
period has resulted in deferred tax income of US$1,405,796 (nine months to 30
September 2024 – income of US$946,220).
The Group has also incurred a tax charge in Brazil for the nine-month period
of US$8,619,461 (nine months to 30 September 2024 tax charge - US$3,783,403).
5. Earnings per Share
3 months ended 30 September 2025 (unaudited) 3 months ended 30 September 2024 (unaudited) 9 months ended 30 September 2025 (unaudited) 9 months ended 30 September 2025 (unaudited)
Profit attributable to ordinary shareholders (US$) 15,985,655 8,615,387 34,914,606 17,837,221
Weighted average ordinary shares in issue 75,734,551 75,734,551 75,734,551 75,734,551
Basic profit per share (US cents) 21.11c 11.38c 46.10c 23.55c
Diluted ordinary shares in issue ((1)) 75,734,551 75,734,551 75,734,551 75,734,551
Diluted profit per share (US cents) 21.11c 11.38c 46.10c 23.55c
(1) At 30 September 2025 there were 2,728,049 conditional share awards in
issue (30 September 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.
Attachment
* PR Q3 F2025 Financial Results 2025 vF
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