For immediate release
(“Serabi” or the “Company”)
Unaudited Results for the three and six month periods ended
Serabi (AIM:SRB, TSX:SBI), the Brazilian focused gold mining and development company, today releases its unaudited results for the three and six month periods ended
Financial Highlights
- Cash Cost for the year to date of
US$961 per ounce. - All-In Sustaining Cost for the year to date of
US$1,265 per ounce. - EBITDA for the second quarter of 2020 of
US$6.2 million (Q2 2019:US$3.3 million ) an improvement of 89 per cent. - EBITDA for the year to date (“ytd”) of
US$9.4 million (2019 ytdUS$7.6 million ) an improvement of 24 per cent. - Post tax profit for the year to date of
US$4.2 million (2019 ytd:US$1.7 million ) an improvement of 142 per cent. - Earnings per share for the year to date of
7.05 cents . - Average gold price of
US$1,647 received on gold sales in 2020. - Outstanding loan from Sprott (
US$6.9 million at start of year) repaid in full at30 June 2020 . - Agreement, concluded in
April 2020 , withGreenstone Resources II LP (“Greenstone”) to subscribe forUS$12 million Convertible Loan Notes –US$2.0 million drawn down to date with balance available to be drawn until30 June 2021 . - Agreement reached with Equinox Gold Corp. (“Equinox”) allowing the Company to pay, in monthly instalments, the remaining
US$12 million consideration for purchase of Coringa, until travel restrictions caused by Coronavirus are lifted –US$2.5 million settled to date.
Key Financial Information
6 months to US$ | 3 months to US$ | 6 months to US$ | 3 months to US$ | |
Revenue | 29,461,830 | 16,364,143 | 29,585,739 | 12,459,699 |
Cost of sales | (16,421,213) | (8,188,157) | (19,164,989) | (7,803,002) |
Gross operating profit | 13,040,617 | 8,175,986 | 10,420,750 | 4,656,697 |
Administration and share based payments | (3,670,066) | (2,005,436) | (2,803,500) | (1,378,996) |
EBITDA | 9,370,551 | 6,170,550 | 7,617,250 | 3,277,701 |
Depreciation and amortisation charges | (3,232,094) | (1,527,733) | (4,250,501) | (1,960,956) |
Operating profit / (loss) before finance and tax | 6,138,457 | 4,642,817 | 3,366,749 | 1,316,745 |
Profit / (loss) after tax | 4,156,467 | 3,383,835 | 1,719,640 | 169,678 |
Earnings per ordinary share (basic) | 7.05c | 5.74c | 2.92c | 0.29c |
Average gold price received (US$/oz) | ||||
As at 30 June 2020 US$ | As at US$ | As at US$ | ||
Cash and cash equivalents | 9,627,412 | 14,234,612 | 9,216,048 | |
Net assets | 56,492,450 | 69,733,388 | 69,110,287 | |
Cash Cost and All-In Sustaining Cost (“AISC”) | ||||
6 months to | 6 months to | 12 months to | 12 months to | |
Gold production for cash cost and AISC purposes | 17,524 ozs | 19,691 ozs | 40,101 ozs | 37,108 ozs |
Total Cash Cost of production (per ounce) | ||||
Total AISC of production (per ounce) |
Operational Highlights
- Second quarter gold production of 8,504 ounces, resulting in 17,524 ounces for the year to date.
- 43,519 tonnes of ore mined during the quarter at 5.85 grams per tonne (“g/t”) of gold.
- 44,235 tonnes of run of mine (“ROM”) ore were processed through the plant from the combined Palito and Sao Chico orebodies, with an average grade of 5.91 g/t of gold.
- 3,004 metres of horizontal development completed during the quarter, the highest level of development metres to date.
SUMMARY PRODUCTION STATISTICS FOR 2020 AND FOR 2019 | |||||||||
Qtr 1 | Qtr 2 | YTD | Qtr 1 | Qtr 2 | Qtr 3 | Qtr 4 | Total | ||
2020 | 2020 | 2020 | 2019 | 2019 | 2019 | 2019 | 2019 | ||
Gold production (1) (2) | Ounces | 9,020 | 8,504 | 17,524 | 10,164 | 9,527 | 10,187 | 10,233 | 40,101 |
Mined ore – Total | Tonnes | 42,036 | 43,519 | 85,555 | 42,609 | 44,784 | 44,757 | 44,092 | 176,243 |
Gold grade (g/t) | 6.54 | 5.85 | 6.19 | 7.47 | 6.72 | 7.14 | 6.69 | 7.00 | |
Milled ore | Tonnes | 40,465 | 44,235 | 84,700 | 43,451 | 43,711 | 45,378 | 44,794 | 177,335 |
Gold grade (g/t) | 6.66 | 5.91 | 6.27 | 7.69 | 6.72 | 6.84 | 6.81 | 7.02 | |
Horizontal development – Total | Metres | 2,878 | 3,004 | 5,882 | 1,868 | 2,419 | 2,433 | 2,908 | 9,628 |
- Gold production figures are subject to amendment pending final agreed assays of the gold content of the copper/gold concentrate and gold doré that is delivered to the refineries.
- Gold production totals for 2020 include treatment of 18,939 tonnes of flotation tails at a grade of 3.80 g/t (H1 2019: 10,892 tonnes at a grade of 4.38 g)
- The table may not sum due to rounding.
Exploration and Development Highlights
·Results reported in the second quarter for a further eight surface holes and ten underground holes at Sao Chico. These results demonstrate the Main Vein structure now continues to host gold bearing mineralisation for approximately 375 metres to the west of the current mine limits, an extension of a further 75 metres.
Results included:
- 5.30m @ 12.10g/t Au (Hole: 20-SC-166)
- 3.40m @ 3.94g/t Au (Hole: 20-SC-164)
- 1.37m @ 28.77g/t Au (Hole: 20-SCUD-341)
- 2.72m @ 5.06g/t Au (Hole: 20-SCUD-343)
- Reverse circulation percussion drilling on the Cicada terrestrial geophysics anomaly indicates the strong likelihood that the anomaly is a western extension of the Sao Chico vein structure, approximately 1,000 metres to the west of the current mine limits. Results include:
- 3m @ 2.09g/t Au (Hole: SCRC-004)
- 1m @ 1.17g/t Au (Hole: SCRC-007)
- Regional geochemical sampling has highlighted an area, referred to as Mata Cobra, which represents an eight kilometre by two kilometre soil copper anomaly exceeding 100ppm. This anomaly is coincidental with multiple molybdenum, bismuth, tellurium and arsenic multi-element anomalies as well as the original airborne electromagnetic (“AEM”) anomalies
Key Objectives for 2020
- Continue to implement measures to minimise short term impacts of Coronavirus (“CV-19”) on current operations and provide a safe and responsible work environment for staff during the crisis.
- Continue advancing the licensing process for Coringa along with ongoing engineering studies.
- Secure financing package for the Coringa project to fund plant assembly and other site developments.
- Complete, as soon as practically possible, exploration drilling at Sao Chico with a view to producing a new resource estimation.
- Complete exploration discovery drilling programme over the geophysical anomalies to the west and south of Sao Chico.
- Maintain payment programme required to complete acquisition of Coringa gold project.
2020 Production Guidance
The impact of CV-19 pandemic has resulted in production of 17,524 ounces of gold for the first six months of the year. The company is working hard to expand the camp allowing for a return to full staffing levels before the end of the third quarter. With this in mind third quarter performance is anticipated to be similar to that of the second quarter, with a return to full levels of production in the early part of the fourth quarter. Should this be achieved, full year production would be expected to be between 34,000 and 37,000 ounces.
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“The second quarter of the year has proved, financially, to be one of our most successful ever and viewed in the context of the uncertainties that we were facing at the end of March, both from a financial and operational perspective, the workforce have produced an exceptional result in extremely challenging circumstances.
“Cashflow generated from operations was
“Operating profit (before finance costs) of
“The Company was able to repay the
“The cash cost per ounce and the AISC per ounce for the year to date need to be viewed in context. Gold production for the year to date has been lower than was originally forecast. In the first quarter this was the result of a breakdown of the largest of the three ball mils during February, and although we quickly bounced back and were able to report our highest ever monthly level of production for
“Looking at the operational statistics during the first six months of the 2020, mined tonnage and plant throughput have been at similar levels to the same period in 2019 with lower mine grades being the major contributor to the reduction in gold production. The original plan for 2020 was to increase mining rates compared with 2019, and to use the ore sorter to beneficiate the lower grade material and deliver a sorted higher grade product to the process plant. The mine plan was therefore deliberately designed to undertake more development (more diluted ore given the mining method) as well as more lower grade stopes. The intention was to beneficiate this lower grade material through the ore sorter, screen out the majority of the waste and send the resultant lower volume of higher grade product to the plant. However, despite the Company continuing to follow the original mine plan, the reduced workforce meant the mining rates could not attain budgeted levels. As we begin to return to normal mining rates during the second part of this year mine output is expected to exceed the current plant capacity and with that, the effects of the ore sorter will really come into their own. With this, I would fully expect to see unit costs coming down as we spread the costs of the operation, many of which are relatively fixed in the short term, over a growing production base.
“We have re-started some of the investment programmes that were put on hold at the end of
“It has been said before, but I would like to take this opportunity to personally thank all of our Brazilian staff and management for the efforts they have made over the recent months. They have shown a commitment, flexibility, patience and loyalty that has allowed the Company to weather this storm and emerge in a strong position and the
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014. The person who arranged the release of this statement on behalf of the Company was
Enquiries:
Tel: +44 (0)20 7246 6830 | |
Chief Executive | Mobile: +44 (0)7799 473621 |
Tel: +44 (0)20 7246 6830 | |
Finance Director | Mobile: +44 (0)7710 151692 |
Email: contact@serabigold.com | |
Website: www.serabigold.com | |
Nominated Adviser | |
Tel: +44 (0)20 7628 3396 | |
Tel: +44 (0)20 7628 3396 | |
Tel: +44 (0)20 7418 8900 | |
Copies of this announcement are available from the Company's website at www.serabigold.com.
Neither the
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 these financial statements.
Statement of Comprehensive Income
For the three and six month periods ended
For the three months ended 30 June | For the six months ended 30 June | ||||
2020 | 2019 | 2020 | 2019 | ||
(expressed in US$) | Notes | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
CONTINUING OPERATIONS | |||||
Revenue | 16,364,143 | 12,459,699 | 29,461,830 | 29,585,739 | |
Cost of sales | (8,188,157) | (7,803,002) | (16,421,213) | (19,664,989) | |
Release of inventory impairment provision | – | – | – | 500,000 | |
Depreciation and amortisation charges | (1,527,733) | (1,960,956) | (3,232,094) | (4,250,501) | |
Total cost of sales | (9,715,890) | (9,763,958) | (19,653,307) | (23,415,490) | |
Gross profit | 6,648,253 | 2,695,741 | 9,808,523 | 6,170,249 | |
Administration expenses | (1,922,181) | (1,415,133) | (3,663,145) | (2,798,964) | |
Share-based payments | (136,600) | (65,486) | (161,838) | (130,971) | |
Gain on sales of assets disposal | 53,345 | 101,623 | 154,917 | 126,435 | |
Operating profit | 4,642,817 | 1,316,745 | 6,138,457 | 3,366,749 | |
Foreign exchange loss | (141,816) | (51,486) | (150,674) | (66,103) | |
Finance expense | 2 | (918,061) | (849,336) | (1,103,052) | (1,123,599) |
Finance income | 2 | 725,349 | 159,600 | 725,349 | 161,817 |
Profit before taxation | 4,308,289 | 575,523 | 5,610,080 | 2,338,864 | |
Income tax expense | 3 | (924,454) | (405,845) | (1,453,613) | (619,224) |
Profit after taxation | 3,383,835 | 169,678 | 4,156,467 | 1,719,640 | |
Other comprehensive income (net of tax) | |||||
Items that may be reclassified subsequently to profit or loss | |||||
Exchange differences on translating foreign operations | (2,637,441) | 1,053,943 | (17,613,949) | 491,850 | |
Total comprehensive profit /(loss) for the period(1) | 746,394 | 1,223,621 | (13,457,482) | 2,211,490 | |
Profit per ordinary share (basic)) | 4 | 5.74c | 0.29c | 7.05c | 2.92c |
Profit per ordinary share (diluted) | 4 | 5.56c | 0.28c | 6.83c | 2.85c |
(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
As at | As at | As at | |||
30 June | 30 June | 31 December | |||
2020 | 2019 | 2019 | |||
(expressed in US$) | (unaudited) | (unaudited) | (audited) | ||
Non-current assets | |||||
Deferred exploration costs | 25,724,189 | 29,591,753 | 30,686,652 | ||
Property, plant and equipment | 28,413,097 | 39,055,069 | 37,597,100 | ||
Right of use assets | 1,863,595 | 2,173,269 | 1,997,176 | ||
Taxes receivable | 829,555 | 1,556,125 | 848,845 | ||
Deferred taxation | 490,890 | 2,008,732 | 1,321,782 | ||
Total non-current assets | 57,321,326 | 74,384,948 | 72,451,555 | ||
Current assets | |||||
Inventories | 5,587,300 | 6,898,033 | 6,577,968 | ||
Trade and other receivables | 1,344,595 | 1,291,505 | 802,275 | ||
Prepayments and accrued income | 2,078,415 | 4,706,018 | 3,473,288 | ||
Cash and cash equivalents | 9,627,412 | 12,366,683 | 14,234,612 | ||
Total current assets | 18,637,722 | 25,262,239 | 25,088,143 | ||
Current liabilities | |||||
Trade and other payables | 5,514,477 | 7,389,818 | 6,113,789 | ||
Acquisition payment outstanding | 10,430,799 | 11,530,027 | 12,000,000 | ||
Other interest bearing liabilities | – | 6,122,584 | 6,952,542 | ||
Derivative financial liabilities | – | 681,765 | – | ||
Accruals | 281,712 | 335,142 | 319,670 | ||
Total current liabilities | 16,226,988 | 26,059,336 | 25,386,001 | ||
Net current assets | 2,410,734 | (797,097) | (297,858) | ||
Total assets less current liabilities | 59,732,060 | 73,587,851 | 72,153,697 | ||
Non-current liabilities | |||||
Trade and other payables | 88,707 | 562,627 | 183,043 | ||
Other interest bearing liabilities | 1,163,683 | – | – | ||
Derivative financial liabilities | 340,508 | – | – | ||
Provisions | 1,646,712 | 1,572,476 | 2,237,266 | ||
Total non-current liabilities | 3,239,610 | 2,135,103 | 2,420,309 | ||
Net assets | 56,492,450 | 71,452,748 | 69,733,388 | ||
Equity | |||||
Share capital | 8,888,963 | 8,882,803 | 8,882,803 | ||
Share premium reserve | 21,800,976 | 21,752,430 | 21,752,430 | ||
Option reserve | 833,370 | 1,106,017 | 1,019,589 | ||
Other reserves | 9,017,420 | 5,590,190 | 7,149,274 | ||
Translation reserve | (61,892,895) | (40,315,273) | (44,278,946) | ||
Retained surplus | 77,844,616 | 74,436,581 | 75,208,238 | ||
Equity shareholders’ funds | 56,492,450 | 71,452,748 | 69,733,388 |
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
Statements of Changes in Shareholders’ Equity
For the three and six month periods ended
(expressed in US$) | |||||||
(unaudited) | Share capital | Share premium | Share option reserve | Other reserves (1) | Translation reserve | Retained Earnings | Total equity |
Equity shareholders’ funds at | 8,882,803 | 21,752,430 | 1,363,367 | 4,763,819 | (40,807,123) | 73,154,991 | 69,110,287 |
Foreign currency adjustments | — | — | — | — | 491,850 | — | 491,850 |
Profit for the period | — | — | — | — | — | 1,719,640 | 1,719,640 |
Total comprehensive income for the period | — | — | — | — | 491,850 | 1,719,640 | 2,211,490 |
Transfer to taxation reserve | — | — | — | 826,371 | — | (826,371) | — |
Share options lapsed in period | — | — | (388,321) | — | — | 388,321 | — |
Share option expense | — | — | 130,971 | — | — | — | 130,971 |
Equity shareholders’ funds at | 8,882,803 | 21,752,430 | 1,106,017 | 5,590,190 | (40,315,273) | 74,436,581 | 71,452,748 |
Foreign currency adjustments | — | — | — | — | (3,963,673) | — | (3,963,673) |
Profit for the period | — | — | — | — | — | 2,113,344 | 2,113,344 |
Total comprehensive income for the period | — | — | — | — | (3,963,673) | 2,113,344 | (1,850,329) |
Transfer to taxation reserve | — | — | — | 1,559,084 | — | (1,559,084) | — |
Share options lapsed in period | — | — | (217,397) | — | — | 217,397 | — |
Share option expense | — | — | 130,969 | — | — | — | 130,969 |
Equity shareholders’ funds at | 8,882,803 | 21,752,430 | 1,019,589 | 7,149,274 | (44,278,946) | 75,208,238 | 69,733,388 |
Foreign currency adjustments | — | — | — | — | (17,613,949) | — | (17,613,949) |
Profit for the period | — | — | — | — | — | 4,156,467 | 4,156,467 |
Total comprehensive income for the period | — | — | — | — | (17,613,949) | 4,156,467 | (13,457,482) |
Shares issued in the period | 6,160 | 48,546 | — | — | — | — | 54,706 |
Transfer to taxation reserve | — | — | — | 1,868,146 | — | (1,868,146) | — |
Share options lapsed in period | — | — | (348,057) | — | — | 348,057 | — |
Share option expense | — | — | 161,838 | — | — | — | 161,838 |
Equity shareholders’ funds at | 8,888,963 | 21,800,976 | 833,370 | 9,017,420 | (61,892,895) | 77,844,616 | 56,492,450 |
(1) Other reserves comprise a merger reserve of
Cash Flow Statement
For the three and six month periods ended
For the three months ended 30 June | For the six months ended 30 June | ||||
2020 | 2019 | 2020 | 2019 | ||
(expressed in US$) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |
Operating activities | |||||
Post tax (loss) / profit for period | 3,383,835 | 169,678 | 4,156,467 | 1,719,640 | |
Depreciation – plant, equipment and mining properties | 1,527,733 | 1,960,956 | 3,232,094 | 4,250,501 | |
Net financial expense | 334,528 | 741,222 | 528,377 | 1,027,885 | |
Provision for impairment of inventory | — | — | — | (500,000) | |
Provision for taxation | 924,454 | 405,845 | 1,453,613 | 619,224 | |
Share-based payments | 191,306 | 65,486 | 216,544 | 130,971 | |
Foreign exchange (loss) / gain | (123,744) | (404,652) | (45,805) | (382,801) | |
Changes in working capital | |||||
(Increase)/decrease in inventories | 568,519 | (572,470) | (789,533) | 2,165,340 | |
(Increase) in receivables, prepayments and accrued income | (521,624) | (376,417) | (1,000,176) | (1,113,022) | |
Increase/(decrease) in payables, accruals and provisions | (800,544) | 979,894 | (57,232) | 1,518,388 | |
Net cash inflow from operations | 5,484,463 | 2,969,542 | 7,694,349 | 9,436,126 | |
Investing activities | |||||
Purchase of property, plant and equipment and assets in construction | (181,643) | (1,071,564) | (1,189,953) | (1,461,292) | |
Mine development expenditure | (634,068) | (654,253) | (1,221,677) | (1,492,563) | |
Geological exploration expenditure | (248,911) | (208,062) | (1,085,272) | (796,524) | |
Pre-operational project costs | (262,344) | (403,580) | (477,640) | (843,522) | |
Acquisition of mining project | (1,000,000) | — | (1,000,000) | — | |
Acquisition of other property rights | (149,274) | (120,988) | (332,513) | (1,156,075) | |
Proceeds from sale of assets | 88,856 | 118,039 | 327,859 | 153,081 | |
Interest received | 911 | — | 911 | 2,217 | |
Net cash outflow on investing activities | (2,386,473) | (2,340,408) | (4,978,285) | (5,594,678) | |
Financing activities | |||||
Drawdown of convertible loan | 1,500,000 | — | 1,500,000 | — | |
Repayment of secured loan | (3,491,746) | (195,043) | (6,983,492) | (195,043) | |
Payment of finance lease liabilities | (9,966) | (81,573) | (46,274) | (267,178) | |
Interest paid and other finance costs | (58,330) | (151,137) | (262,999) | (303,933) | |
Net cash (outflow) / inflow from financing activities | (2,060,042) | (427,753) | (5,792,765) | (766,154) | |
Net increase / (decrease) in cash and cash equivalents | 1,037,948 | 201,381 | (3,076,701) | 3,075,294 | |
Cash and cash equivalents at beginning of period | 9,149,274 | 12,133,712 | 14,234,612 | 9,216,048 | |
Exchange difference on cash | (559,810) | 31,590 | (1,530,499) | 75,341 | |
Cash and cash equivalents at end of period | 9,627,412 | 12,366,683 | 9,627,412 | 12,366,683 |
Notes
1. Basis of Preparation
These interim condensed consolidated financial statements are for the three and six month periods ended
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
.
Accounting standards, amendments and interpretations effective in 2020
The Group has not adopted any standards or interpretations in advance of the required implementation dates.
The following Accounting standard has come into effect as of
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (Amendment – Definition of Material)
The adoption of this standard has had no effect on the financial results of the Group.
There are a number of standards, amendments to standards, and interpretations which have been issued that are effective in future periods and which the Group has chosen not to adopt early. None of these are expected to have a significant effect on the Group, in particular
IAS 1 Presentation of Financial Statements
IFRS 3 Business Combinations (Amendment – Definition of a Business)
These financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006
Going concern and availability of finance
As at
The occurrence of the Coronavirus (COVID-19) pandemic has created significant uncertainty for all business sectors including Serabi. However during the second quarter of 2020, the Group has maintained its gold mining operations without interruption, albeit that the Group took the decision to reduce the levels of workforce at site as a pre-cautionary measure to improve social distancing whilst additional accommodation and other facilities could be put in place prior to a return to full workforce numbers. Whilst production levels during the second quarter of 2002 were approximately 85 per cent of the levels that the Group had originally forecast, the weakness of the Brazilian Real and the increased gold price that prevailed during the second quarter, resulted in strong cash flow being generated by the Group. This has permitted the Group to repay in full
At the current time the Directors have assumed that mining operations and gold production will continue at the
The Group has renegotiated the terms relating to the settlement of a final acquisition payment of
The Company announced on
Under the Amended Subscription Deed and a further subsequent amendment agreed with Greenstone
(a) the Company may, prior to the satisfaction of the Travel Restriction Condition only submit a subscription request in respect of Convertible Loan Notes in the amount of
(b) the Convertible Loan Notes were initially unsecured and subordinated to the Sprott Loan. Following the completion of the repayment of the Sprott Loan on
(d) The period during which the Company may issue an Issue Notice to Greenstone expires on
(e) Subject to Greenstone not having exercised its option to convert the amount outstanding into Conversion Shares, the Convertible Loan Notes are due to be repaid 16 months after the first Issue Date which was
Based on the performance of the Group during the second quarter, and having discharged the Sprott Loan, the Board considers, if current production levels can be maintained and gold prices remain at current levels, that the Group can generate adequate cash flow, at least in the short term, to satisfy the on-going commitment in respect of the Coringa Deferred Consideration without needing to make further drawdowns against the Convertible Loan Notes. As at the current date,
The Balance Sheet of the Group shows a net liability position of
Whilst the Directors consider that the assumptions they have used are reasonable and based on the information currently available to them, there remains significant uncertainty regarding further actions that have not been anticipated but which may be required or imposed and may impact on the ability of the Group to meet the operational plan and cash flow forecast.
Whilst recognising all the above uncertainties, the Directors have prepared the financial statements on a going concern basis. In the event that additional short term funding is required, the Directors believe there is a reasonable prospect of the Group securing further funds as and when required in order that the Group can meet all liabilities including the Coringa Deferred Consideration as and when they fall due in the next 12 months. The Directors have been successful in raising funding as and when required in the past and consider that the Group continues to have strong support from its major shareholders who been supportive of and provided additional funding when required on previous occasions.
As at the date of this report both the medium and long term impact of COVID-19 on the underlying operations, and the outcome of raising any further funds that may be required, remains uncertain and this represents a material uncertainty surrounding going concern. If the Group fails to achieve the operational plan or to raise any additional necessary funds, the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. The matters explained indicate that a material uncertainty exists that may cast significant doubt on the Group and Company’s ability to continue as a going concern. These financial statements do not show the adjustments to the assets and liabilities of the Group or the Company if this was to occur.
2. Finance expense and income
3 months ended (unaudited) | 3 months ended (unaudited) | 6 months ended (unaudited) | 6 months ended | |
US$ | US$ | US$ | US$ | |
Interest expense on secured loan | (58,036) | (150,956) | (203,127) | (300,540) |
Interest expense on convertible loan | (38,907) | — | (38,907) | — |
Interest expense on mineral property acquisition liability | (584,290) | — | (584,290) | — |
Unwinding of discount on mineral property acquisition liability | — | (270,750) | — | (532,271) |
Expense in respect of non-substantial modification | (195,137) | (13,300) | (235,037) | (13,300) |
Amortisation of arrangement fee for convertible loan | (37,500) | — | (37,500) | — |
Loss on revaluation of derivatives | (4,191) | (427,630) | (4,191) | (290,788) |
(918,061) | (862,636) | (1,103,052) | (1,136,899) | |
Gain in respect of non-substantial modification | 724,438 | 172,900 | 724,438 | 172,900 |
Interest income | 911 | — | 911 | 2,217 |
Net finance expense | (192,712) | (689,736) | (377,703) | (961,782) |
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 Group has released the amount of
The Group has also incurred a tax charge in
4. Earnings per Share
3 months ended (unaudited) | 3 months ended (unaudited) | 6 months ended (unaudited) | 6 months ended (unaudited) | |
Profit attributable to ordinary shareholders (US$) | 3,383,835 | 169,678 | 4,156,467 | 1,719,640 |
Weighted average ordinary shares in issue | 58,947,463 | 58,909,551 | 58,928,611 | 58,909,551 |
Basic profit per share (US cents) | 5.74c | 0.29c | 7.05c | 2.92c |
Diluted ordinary shares in issue (1) | 62,459,640 | 60,430,473 | 62,440,788 | 60,430,473 |
Diluted profit per share (US cents) | 5.42c | 0.28c | 6.66c | 2.85c |
(1) Based on 1,903,425 options vested and exercisable as at
4. Post balance sheet events
On
Save for the above and subsequent to the end of the quarter, 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.
Qualified Persons Statement
The scientific and technical information contained within this announcement has been reviewed and approved by
Assay Results
The assay results reported within this release include those provided by the Company's own on-site laboratory facilities at Palito which may not have been independently verified. Serabi closely monitors the performance of its own facility against results from independent laboratory analysis for quality control purpose. As a matter of normal practice the Company sends duplicate samples derived from a variety of the Company's activities to accredited laboratory facilities for independent verification. Based on the results of this work, the Company's management are satisfied that the Company's own facility shows good correlation with independent laboratory facilities. The Company would expect that in the preparation of any future independent Reserve/Resource statement undertaken in compliance with a recognised standard, the independent authors of such a statement would not use Palito assay results but only use assay results reported by an appropriately certificated laboratory.
Forward Looking Statements
Certain statements in this announcement are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ‘‘believe’’, ‘‘could’’, “should” ‘‘envisage’’, ‘‘estimate’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘will’’ or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.
ENDS
Attachment
- Serabi - Q2 Results News Release
Source:
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