TIDMSRB
Unaudited interim results for the three period ended 31 March
2023
Serabi (AIM:SRB, TSX:SBI), the Brazilian focused gold mining and
development company, today releases its unaudited results for the
three month period ended 31 March 2023.
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/
https://www.globenewswire.com/Tracker?data=va6RXfql1a90-IBhA5GRtGuSsbniFEroPM-OJekcd6_Z89LRk2Sv5IgQ3lF8T-Up
43ziLi4
https://www.globenewswire.com/Tracker?data=CbnWT2aSEXmnX1Tq-yX0_nkvKczQs8BssAsntax3nmj4VFM4nu0BEPahgEHpp8UfODlVlqvSQ568katXqW60NA==
Financial Highlights
-- Gold production for the first quarter of 8,055 ounces.
-- Cash held at 31 March 2023 of US$13.9 million (31 December 2022: US$7.2
million).
-- EBITDA for the three-month period of US$2.3 million (2022: US$2.1
million).
-- Post tax profit for the three-month period of US$1.5 million (2022: 1.7
million),
-- Profit per share of 1.94 cents compared with a profit per share of 2.28
cents for the same three month period of 2022.
-- Net cash inflow from operations for the three-month period (after mine
development expenditure of US$0.4 million) of US$2.7 million (2022:
US$2.5 million outflow).
-- Average gold price of US$1,892 per ounce received on gold sales during
the nine month period (2022: US$1,844).
-- Cash Cost for the three-month period to March 2023 of US$1,281 per ounce
(Q1 2022 : US$1,438 per ounce) representing an 11% improvement quarter on
quarter.
-- All-In Sustaining Cost for the three-month period to March 2023 of
US$1,516 per ounce (Q1 2022 : US$1,810 per ounce) represents a 16%
improvement compared to Q1 2022.
Key Financial Information
SUMMARY FINANCIAL STATISTICS
--------------------------------------------------------------------------
3 months to 3 months to
31 March 2023 31 March 2022
US$ US$
(unaudited) (unaudited)
---------------------------------------- -------------- --------------
Revenue 13,437,369 12,885,020
Cost of sales (9,767,003) (9,273,472)
Gross operating profit 3,670,366 3,611,548
Administration and share based payments (1,354,575) (1,559,142)
EBITDA 2,315,791 2,052,406
Depreciation and amortisation charges (834,514) (1,171,888)
Operating profit before finance and tax 1,481,277 880,518
-------------- --------------
Profit after tax 1,467,479 1,729,603
-------------- --------------
Earnings per ordinary share (basic) 1.94c 2.28c
-------------- --------------
Average gold price received (US$/oz) US$1,892 US$1,844
-------------- --------------
As at
31 March As at
2023 31 December 2022
US$ US$
(unaudited) (audited)
-------------------------- ------------ -----------------
Cash and cash equivalents 13,920,999 7,196,313
Net assets 84,032,856 82,523,603
Cash Cost and
All-In Sustaining
Cost ("AISC")
-------------------
3 months to 3 months to 31 March 12 months to 31
31 March 2022 December 2022
2023
------------------- ----------- -------------------- --------------------
Gold production for 8,005 ozs 7,062 ozs 31,819 ozs
cash cost and AISC
purposes
----------- -------------------- --------------------
Total Cash Cost of US$1,281 US$1,438 US$1,322
production (per
ounce)
----------- -------------------- --------------------
Total AISC of US$1,516 US$1,810 US$1,615
production (per
ounce)
----------- -------------------- --------------------
Clive Line, CFO of Serabi commented,
"The first quarter of 2023 has benefitted from continued gold
price strength and increasing levels of gold production generated
from the Coringa operation. Gold production for the quarter of
8,005 ounces means that the Group is on schedule for its annual
2023 production guidance of between 33,500 and 35,000 ounces of
gold. Subsequent to the quarter end, we were very pleased to
conclude the signing of an exciting exploration alliance with Vale
SA focused on the Matilda prospect and other large regional targets
in the Tapajos region of Para, Brazil. The discovery of the Matilda
porphyry prospect in 2022 was a major milestone for Serabi and our
ability to jointly develop this prospect and other non-gold related
opportunities with Vale represents a hugely exciting opportunity
for Serabi and its shareholders
"Gold sales in the quarter were for 6,881 ounces, the result of
an accumulation of inventory within the leaching circuit where new
tanks have been installed and commissioned. The Group has reported
an impairment provision of $370,000 in respect of the low-grade ore
stockpiles at Coringa which will not currently be transported to
Palito for processing. In time we anticipate this material being
subject to ore-sorting and the subsequent beneficiated product
being processed. Amortisation costs are lower in this quarter than
previously, which is the result of the reduced activity at Sao
Chico and therefore minimal amortisation costs associated with this
and Coringa which because the project is only in a trail mining
phase and has not attained commercial production, is not yet
subject to amortisation charges. In accordance with accounting
regulations the gold sales and related operating costs of Coringa
are being reflected in the Group's income statement.
"Notwithstanding the increase in work in progress inventory,
cash generated from operations in the quarter was US$2.7 million
(including expenditure on capitalised mine development costs of
US$0.4 million) although this was boosted by the receipt of US$2.2
million in early January for a gold sale that was registered at the
end of December 2022.
"Unit costs of production are at similar levels to those
achieved in the fourth quarter of 2022, and well below the levels
of the equivalent period of 2022. With the expectation of continued
development of Coringa during the rest of 2023, this will impact on
the ASIC as we look to build the underground mining inventory and
ensure that ramp and gallery development levels stay appropriately
ahead of stoping activity.
"Exploration activity under the alliance with Vale started in
April with the understanding that Vale would cover this initial
expenditure whilst the final contractual details were completed.
This ensured rigs were secured and onsite at the end of the rainy
season, and we could maximise the benefit of the drier months. The
parties expect that the initial Phase 1 period will be completed
during the first quarter of 2024 during which time an exploration
budget of up to US$5.0 million is planned. Whilst the priority for
Vale is to identify potential copper ore-bodies, the Phase 1
programme covers a number of Serabi's gold targets as well and we
will benefit directly from the exploration activities that are
planned to be conducted over these areas.
"During the first quarter we took advantage of the offer of an
additional export backed 12 month loan facility with Santander Bank
in Brazil for US$5.0 million. This provided the Group with adequate
liquidity to allow the repayment of a similar arrangements with
Itau BBA Bank which was repaid on 12 May 2023. The facility with
Santander is repayable as a bullet payment in February 2024 and
carries a fixed interest rate of 7.96%."
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
e contact@serabigold.com
https://www.globenewswire.com/Tracker?data=f7QYyPakqbYMXObH8W172iaKZMflQOkeMcWNA7nHhRiIHijEq8I4YguevR4FZsZb_YuLIp6FrDbY6wSyuUaNjgQL0rGKR8NrNDcinX2_lxk=
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
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
identi ed 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 re ect 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.
Neither the Toronto Stock Exchange, nor any other securities
regulatory authority, has approved or disapproved of the contents
of this news release.
See
https://www.globenewswire.com/Tracker?data=f7QYyPakqbYMXObH8W172u7qu1So5ecjO7yUST2jpCeQz_su5zApsQt0uReQ1eDmuV3ycFoKqLNcC70XHRUzJgYsHNbFzpQAJzUlKaUWFFY=
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 months to 31 March
2023.
Statement of Comprehensive Income
For the three month period ended 31 March 2023
For the three months ended
31 March
2023 2022
(expressed in US$) Notes (unaudited) (unaudited)
------------------------------------- ----- ------------- -------------
CONTINUING OPERATIONS
Revenue 13,437,369 12,885,020
Cost of Sales (9,397,003) (9,273,472)
Stock impairment provision (370,000) --
Depreciation and amortisation charges (834,514) (1,171,888)
------------------------------------- ----- ------------- -------------
Total cost of sales (10,601,517) (10,445,360)
Gross profit 2,835,852 2,439,660
Administration expenses (1,450,168) (1,445,953)
Share-based payments (48,067) (112,125)
Gain on sales of assets disposal 143,660 (1,064)
------------------------------------- ----- ------------- -------------
Operating profit 1,481,277 880,518
Foreign exchange gain 82,611 176,586
Finance expense 2 (161,170) (1,839)
Finance income 2 42,819 104,780
------------------------------------- ----- ------------- -------------
Profit before taxation 1,445,537 1,160,045
Income and other taxes 3 21,942 569,558
------------------------------------- ----- ------------- -------------
Profit after taxation 1,467,479 1,729,603
------------------------------------- ----- ------------- -------------
Other comprehensive income (net of
tax)
Exchange differences on translating
foreign operations 994,247 8,859,456
------------------------------------- ----- ------------- -------------
Total comprehensive profit for the
period(1) 2,461,726 10,589,059
------------------------------------- ----- ------------- -------------
Profit per ordinary share (basic) 4 1.94c 2.28c
------------------------------------- ----- ------------- -------------
Profit per ordinary share (diluted) 4 1.80c 2.14c
------------------------------------- ----- ------------- -------------
(1) The Group has no non-controlling interests, and all losses are attributable to the equity holders of the parent company.
Balance Sheet as at 31 March 2023
As at As at
(expressed in As at 31 March 2022 31 December 2022
US$) 31 March 2023 (unaudited) (unaudited (audited)
-------------- -------------------------- -------------- -----------------
Non-current
assets
Deferred
exploration
costs 19,280,937 41,624,903 18,621,180
Property, plant
and equipment 49,522,379 30,748,907 48,482,519
Right of use
assets 5,386,091 4,481,942 5,374,042
Taxes receivable 3,719,376 824,172 3,446,032
Deferred
taxation 1,638,907 1,456,454 1,545,684
---------------- -------------------------- -------------- -----------------
Total
non-current
assets 79,547,690 79,136,378 77,469,457
---------------- -------------------------- -------------- -----------------
Current assets
Inventories 8,973,919 10,271,853 8,706,351
Trade and other
receivables 3,109,923 3,247,685 5,291,924
Prepayments and
accrued income 1,704,596 3,592,942 1,572,149
Cash and cash
equivalents 13,920,999 6,932,625 7,196,313
---------------- -------------------------- -------------- -----------------
Total current
assets 27,709,437 24,045,105 22,766,737
---------------- -------------------------- -------------- -----------------
Current
liabilities
Trade and other
payables 5,017,471 6,860,327 5,830,872
Interest bearing
liabilities 11,442,130 769,698 6,111,126
Accruals 533,573 378,868 461,857
-------------------------- -------------- -----------------
Total current
liabilities 16,993,174 8,008,893 12,403,855
---------------- -------------------------- -------------- -----------------
Net current
assets 10,716,263 16,036,212 10,362,882
---------------- -------------------------- -------------- -----------------
Total assets
less current
liabilities 90,263,953 95,172,590 87,832,339
---------------- -------------------------- -------------- -----------------
Non-current
liabilities
Trade and other
payables 4,188,728 499,042 3,800,886
Provisions 1,230,667 3,090,450 1,190,175
Deferred tax
liability 250,274 -- 480,922
Derivative
financial
liabilities -- 60,175 --
Interest bearing
liabilities 561,428 935,698 837,293
Total
non-current
liabilities 6,231,097 4,585,905 6,309,276
---------------- -------------------------- -------------- -----------------
Net assets 84,032,856 90,586,685 81,523,063
---------------- -------------------------- -------------- -----------------
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 1,372,625 1,187,473 1,324,558
Other reserves 14,812,078 14,114,049 14,459,255
Translation
reserve (65,282,524) (59,788,714) (66,276,771)
Retained surplus 85,758,991 87,702,191 84,644,335
---------------- -------------------------- -------------- -----------------
Equity
shareholders'
funds 84,032,856 90,586,685 81,523,063
---------------- -------------------------- -------------- -----------------
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 2022 prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006 will be filed with the
Registrar of Companies before 30 June 2023. 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.
Statements of Changes in Shareholders' Equity
For the three month period ended 31 March 2023
(expressed in US$)
Share Other
Share Share option reserves Translation Retained Total
(unaudited) capital premium reserve (1) reserve Earnings equity
--------------------------------------- ---------- ---------- --------- ---------- ------------ ------------ -----------
Equity shareholders' funds at 31
December 2021 11,213,618 36,158,068 1,075,348 13,694,731 (68,648,170) 86,391,906 79,885,501
--------------------------------------- ---------- ---------- --------- ---------- ------------ ------------ -----------
Foreign currency adjustments -- -- -- -- 8,859,456 -- 8,859,456
Profit for the period -- -- -- -- -- 1,729,603 1,729,603
--------------------------------------- ---------- ---------- --------- ---------- ------------ ------------ -----------
Total comprehensive income for the
period -- -- -- -- 8,859,456 1,729,603 10,589,059
Transfer to taxation reserve -- -- -- 419,318 -- (419,318) --
Share option expense -- -- 112,125 -- -- -- 112,125
--------------------------------------- ---------- ---------- --------- ---------- ------------ ------------ -----------
Equity shareholders' funds at 31 March
2022 11,213,618 36,158,068 1,187,473 14,114,049 (59,788,714) (87,702,191) 90,586,685
--------------------------------------- ---------- ---------- --------- ---------- ------------ ------------ -----------
Foreign currency adjustments -- -- -- -- (6,488,057) -- (6,488,057)
Profit for the period -- -- -- -- -- (2,712,650) (2,712,650
--------------------------------------- ---------- ---------- --------- ---------- ------------ ------------ -----------
Total comprehensive income for the
period -- -- -- -- (6,488,057) (2,712,650) (9,200,707)
Transfer to taxation reserve -- -- -- 345,206 -- (345,206) --
Share option expense -- -- 137,085 -- -- -- 137,085
--------------------------------------- ---------- ---------- --------- ---------- ------------ ------------ -----------
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 -- -- -- -- 994,247 -- 994,247
Profit for the period -- -- -- -- -- 1,467,479 1,467,479
--------------------------------------- ---------- ---------- --------- ---------- ------------ ------------ -----------
Total comprehensive income for the
period -- -- -- -- 994,247 1,467,479 2,461,726
Transfer to taxation reserve -- -- -- 352,823 -- (352,823) --
Share option expense -- -- 48,067 -- -- -- 48,067
--------------------------------------- ---------- ---------- --------- ---------- ------------ ------------ -----------
Equity shareholders' funds at 31 March
2023 11,213,618 36,158,068 1,372,625 14,812,078 (65,282,524) 85,758,991 84,032,856
--------------------------------------- ---------- ---------- --------- ---------- ------------ ------------ -----------
(1) Other reserves comprise a merger reserve of US$361,461 and a taxation reserve of US$14,450,617 (31 December 2022: merger reserve of US$361,461 and a taxation reserve of US$14,097,794).
Condensed Consolidated Cash Flow Statement
For the three month period ended 31 March 2023
For the three months
ended
31 March
2023 2022
(expressed in US$) (unaudited) (unaudited)
------------------------------------------------------ ----------- -----------
Operating activities
Post tax profit for period 1,467,479 1,729,603
Depreciation -- plant, equipment and mining properties 834,514 1,171,888
Stock provision 370,000 --
Net financial income/(expense) 35,740 (279,527)
(Gain)/loss on asset disposals (143,660) 1,064
Provision for taxation (21,942) (569,558)
Share-based payments 48,067 112,125
Taxation Paid (286,737) (127,649)
Interest Paid (26,410) (20,226)
Foreign exchange loss (90,421) (139,928)
Changes in working capital
Increase in inventories (349,744) (1,899,699)
Decrease/(increase) in receivables, prepayments and
accrued income 1,881,445 (1,747,341)
(Decrease)/increase in payables, accruals and provisions (686,484) 317,743
---------------------------------------------------------- ----------- -----------
Net cash inflow/(outflow) from operations 3,031,847 (1,451,505)
------------------------------------------------------ ----------- -----------
Investing activities
Purchase of property, plant and equipment and assets
in construction (741,907) (968,887)
Mine development expenditure (372,400) (1,065,885)
Geological exploration expenditure (206,546) (469,250)
Pre-operational project costs -- (1,141,582)
Proceeds from sale of assets 158,471 13,157
Interest received 42,819 --
Net cash outflow on investing activities (1,119,563) (3,632,447)
------------------------------------------------------ ----------- -----------
Financing activities
Drawdown of secured loan 5,000,000 --
Payment of finance lease liabilities (303,141) (187,317)
Net cash inflow/(outflow) from financing activities 4,696,859 (187,317)
------------------------------------------------------ ----------- -----------
Net increase / (decrease) in cash and cash equivalents 6,609,143 (5,271,269)
Cash and cash equivalents at beginning of period 7,196,313 12,217,751
Exchange difference on cash 115,543 (13,857)
------------------------------------------------------ ----------- -----------
Cash and cash equivalents at end of period 13,920,999 6,932,625
------------------------------------------------------ ----------- -----------
Notes
1. Basis of preparation
These interim condensed consolidated financial statements are
for the three month period ended 31 March 2023. Comparative
information has been provided for the unaudited three month period
ended 31 March 2022 and, where applicable, the audited twelve month
period from 1 January 2022 to 31 December 2022. 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
2022 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 2022 and those envisaged
for the financial statements for the year ending 31 December
2023.
Accounting standards, amendments and interpretations effective
in 2023
The Group has not adopted any standards or interpretations in
advance of the required implementation dates.
The following Accounting standards came into effect as of 1
January 2023
IFRS 17 Insurance Contracts, including Amendments 1 January 2023
to IFRS 17
Classification of Liabilities as Current or Non-current 1 January 2023
(Amendments to IAS 1) and Classification of Liabilities
as Current or Non-current -- Deferral of Effective
Date
There is no material impact on the financial statements from the
adoption of these new accounting standards or amendments to
accounting standards,
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 31 March 2023 the Group held cash of US$13.92 million which
represents an increase of US$6.72 million compared to 31 December
2022. This increase includes the receipt of a US$5.0 million loan,
from Santander Bank in Brazil, on 22 February 2023. The proceeds
raised from the loan will be used for working capital and provided
the Group with adequate liquidity to repay a similar arrangement
which was repaid on 12 May 2023.
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 most recent
plans assume that during 2023 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 2022.
The Directors will, however, continue to limit the Group's
discretionary expenditures including the continued development of
Coringa which, on a longer term basis, requires additional external
sources of finance to be secured.
The Directors have concluded that, based on the current
operational projections, it remains appropriate to adopt the going
concern basis of accounting in the preparation of these interim
unaudited financial statements. 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 and its ability to secure further finance as and when
required The Directors consider that the Group will be able to
secure the necessary external finance for the development of its
Coringa project but that the timing of this may be dependent on the
receipt of further permits and licences. The Directors believe that
all the necessary permits and licenses will be awarded when all
current information requests of the relevant authorities have been
met.
2. Finance expense and income
3 months ended
31 March 2023 3 months ended
(unaudited) 31 March 2022 (unaudited)
US$ US$
Interest expense on secured loan (111,710) --
Interest expense on finance leases (32,625) --
Other (16,835) (1,839)
(161,170) (1,839)
Gain on revaluation of warrants -- 104,780
Interest income 42,819 --
-------------- --------------------------
Net finance expense (118,351) 102,941
-------------- --------------------------
3. 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 31
March 2023 reflecting the stronger Brazilian Real exchange rate at
the end of the period and resulting in deferred tax income of
US$287,667 (three months to 31 March 2022 -- charge of
US$932,133).
The Group has also incurred a tax charge in Brazil for the
three-month period of US$265,725 (three months to 31 March 2022 tax
charge - US$362,575).
4. Earnings per Share
3 months ended 31 March 2023 3 months ended 31 March 2022
(unaudited) (unaudited)
------------------ ---------------------------- ----------------------------
Profit
attributable to
ordinary
shareholders
(US$) 1,467,479 1,729,603
------------------ ---------------------------- ----------------------------
Weighted average
ordinary shares
in issue 75,734,551 75,734,551
Basic profit per
share (US cents) 1.94 2.28
------------------ ---------------------------- ----------------------------
Diluted ordinary
shares in issue
(1) 81,488,078 80,907,748
Diluted profit per
share (US cents) 1.80 2.14
------------------ ---------------------------- ----------------------------
(1) Based on 1,750,000 options vested and exercisable and
4,003,527 unexercised warrants as at 31 March 2023 (31 March 2022:
1,166,670 options and 4,003,428 unexercised warrants).)
5. Post balance sheet events
On 10 May 2023, the Group entered in a strategic exploration
alliance with Vale SA through it subsidiary Salobo Metais S.A
focused on the Mathilda prospect and other large regional targets
in the Tapajos region of Para, Brazil. The exploration alliance is
focused on the discovery of a large-scale copper project within
Serabi's Palito Complex tenement area.. The exploration alliance is
structured over a number of phases and during Phase 1, Vale will
sole fund up to US$5.0 million exploration programme and in Phase 2
Vale may elect to continue exploration activities and to sole fund
one or more selected copper projects to Pre-feasibility Study
("PFS") stage. At the end of Phase 2, Vale will have an option
to,acquire a 75% share of a legal entity to be incorporated by
Serabi ("JV Company"), . Immediately after the incorporation of the
JV Company, Serabi shall transfer to the JV Company the copper
project. Serabi shall sell 75% of the JV Company ownership to Vale
for US$5 million ("Exercise Price"). Vale will continue to sole
fund the JV by capital contributions to completion of a Definitive
Feasibility Study ("DFS"), while Serabi retains a 25% interest
(Phase 3)
Upon completion of Phase 3 Vale can acquire an additional 15%
interest in the JV Company for a further payment of the higher of
US$5 million or 1.5% of the net present value of the project,
taking their interest to 90%. Serabi then has a put option to sell
their remaining 10% interest in the JV Company for a further US$10
million and a 1.5% Net Smelter Royalty ("NSR"). The JV Company may
acquire additional copper projects from Serabi, in which case
Serabi will be entitled to additional payments of the higher of
US$5 million or 1.5% of the net present value of the project for
each, when a DFS has been completed.
Save as set out above, subsequent to the end of the period,
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
-- Q1 Results 2023
https://ml-eu.globenewswire.com/Resource/Download/7bcebd2f-2ba1-482f-a273-46904dd71de6
(END) Dow Jones Newswires
May 31, 2023 02:00 ET (06:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Serabi Gold (LSE:SRB)
Historical Stock Chart
From Apr 2024 to May 2024
Serabi Gold (LSE:SRB)
Historical Stock Chart
From May 2023 to May 2024