Serabi Gold plc (AIM: SRB, TSX: SBI), the Brazilian focused gold mining and development company, today releases its unaudited results for the nine month period ended 30 September 2021.
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/3E8x0Ok
Financial Highlights
Post tax profit of US$7.66 million in the Period (2020: US$7.42 million).
Earnings per share of 10.64 cents compared with 12.58 cents for the same nine month period of 2020.
EBITDA of US$15.00 million in the Period (2020: US$15.66 million).
Net cash generated from operations of US$8.1 million in the Period (after mine development capital of US$3.8 million)
Net cash and cash equivalents of US$15.2 million as at 30 September 2021 (31 December 2020: US$6.6 million).
Average gold price of US$1,772 per ounce received on gold sales during the Period. (2020: US$1,647 per ounce)
Cash Cost for the Period of US$976 per ounce (2020: US$1,013 per ounce)
All-In Sustaining Cost for the Period of US$1,307 per ounce (2020: US$1,298 per ounce)
Clive Line, CFO of Serabi commented, 'Gold sales completed during the nine months to 30 September 2021 have totalled 25,434 ounces with total production for the period being 26,190 ounces with the third quarter representing another solid quarter of production with 9,035 ounces of gold. 'Operating costs have increased year on year by US$2.3 million, following the return of contractors to undertake underground drilling activities. US$1.0 million has been incurred in underground drilling year to date to improve short term and long term mine planning. Labour costs have also increased by US$0.76 million compared with 2020 reflecting the return to normal working routines compared with the lower staffing levels experienced during 2020 when at the peak of the pandemic it was necessary to reduce staff headcount at the mine sites.
'Whilst the AISC for the year to date of US$1,307 per ounce is slightly higher than that for the equivalent period in 2020, this is reflective of the increased level of mine development. The cash cost of production has reduced by 4% to US$976 per ounce. 'Cash holdings of US$15.2 million at the end of the period reflect operating cash flow of US$8.15 million from the Palito Complex operations, including mine development of US$3.8 million. Expenditure during the last 3 months on the Coringa operation has increased significantly following the start of the initial mine development including the establishment of the mine portal for the Serra deposit.
The ramp has now achieved approximately 90 metres of development. Expenditure on the project in the nine months to the end of September was US$3.0 million with US$1.7 million incurred in the third quarter. 'Expenditure on purchases of new plant and equipment, exploration activities and the development of Coringa has totalled US$8.7 million for the year to date which has been met by the cash flow being generated by the current production operations. 'The financial results reflect the continuing benefits of solid gold production over the first nine months of 2021, a continued strong gold price and favourable exchange rates resulting in an EBITDA of US$15 million for the year to date. 'Gold prices, in USD terms, have fluctuated over the last two months in reaction to perceptions of world economies starting to improve and in particular signals of future interest rate increases in the United States and risk appetite. These fluctuations generally have been following movements in the US dollar against other world currencies and has been reflected in the relative movements of the Brazilian Real. The gold price in BRL terms remains strong.'
Contact:
Michael Hodgson
Tel: +44 (0)20 7246 6830
Email: contact@serabigold.com
Web: 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.
SERABI GOLD PLC 
