For immediate release
3 May 2023
Serabi Gold plc
(“Serabi” or the “Company”)
Audited Results for the year ended 31
December 2022
Serabi Gold plc (AIM:SRB, TSX:SBI), the
Brazilian focused gold mining and development company, today
releases its audited results for the year ended 31 December 2022,
and the unaudited results for the three month period to 31 December
2022.
A copy of the Annual Report and audited
Financial Statements can be accessed on the Company’s website using
the following link –https://bit.ly/41SlAKy
Highlights
- Revenue of US$58.7 million (2021: US$63.1 million) reflecting
lower production year on year.
- Gold production for the full year of 2022 of 31,819 ounces,
with fourth quarter production of 7,798 ounces .
- EBITDA for the year of US$8.8 million (2021: US$19.1
million).
- Post tax loss for the year of US$1.0 million, after provision
of US$1.2 million against the recovery of historic tax debts owed
to the Company in Brazil.
- Cash held at 31 December 2022 of US$7.2 million (31 December
2021: US$12.2 million).
- Loss per share of 1.30 cents compared with a profit per share
of 13.85 cents for the 2021 calendar year.
- Net cash outflow from operations for the year (after mine
development expenditure of US$3.6 million) of US$1.7 million (2021:
US$9.4 million inflow).
- Average gold price of US$1,785 per ounce received on gold sales
during the year (2021: US$1,776).
- Cash Cost for the three-month period to December 2022 of
US$1,227 per ounce (Q3 2022: US$1,242 per ounce) representing a
1.2% improvement quarter on quarter.
- All-In Sustaining Cost for the three-month period to December
2022 of US$1,473 per ounce (Q3 2022 : US$1,564 per ounce)
represents a 5.8% improvement compared to Q3 2022.
- Cash Costs for the full year of US$1,322 per ounce (2021:
US$1,090) and AISC for the full year of US$1,615 per ounce (2021:
US$1,429).
- Robust first quarter of 2023 with 8,005 ounces of gold
production. Production guidance of between 33,500 and 35,000 ounces
of gold for the 2023 calendar year.
Key Financial Information
SUMMARY FINANCIAL STATISTICS FOR THE THREE AND TWELVE
MONTHS ENDING 31 DECEMBER 2022 |
|
12 months to 31 Dec 2022
US$ |
3 months to 31 Dec 2022
US$ |
12 months to 31 Dec 2021 US$ |
3 months to 31 Dec 2021 US$ |
Revenue |
58,709,328 |
14,321,024 |
63,141,437 |
16,400,215 |
Cost of Sales |
(44,262,769) |
(10,184,431) |
(37,759,318) |
(10,531,621) |
Gross Operating Profit |
14,446,559 |
4,136,593 |
25,382,119 |
5,868,594 |
Administration and share based payments |
(5,662,441) |
(1,218,799) |
(6,256,505) |
(1,742,471) |
EBITDA |
8,784,118 |
2,917,794 |
19,125,614 |
4,126,123 |
Depreciation and amortisation charges |
(6,572,461) |
(1,975,623) |
(6,049,628) |
(1,956,539) |
Operating profit before finance and tax |
2,211,657 |
942,171 |
13,075,986 |
2,169,584 |
|
|
|
|
|
Profit/(loss) after tax |
(983,047) |
(112,527) |
9,949,964 |
2,288,363 |
Earnings per ordinary share (basic) |
(1.30) cents |
(0.15) cents |
13.85 cents |
3.02 cents |
|
|
|
|
|
Average gold price received |
US$1,785 |
US$1,726 |
US$1,776 |
US$1,772 |
|
|
|
|
|
|
|
|
As at 31 December
2022 |
As at 31 December 2021 |
Cash and cash equivalents |
|
|
7,196,313 |
12,217,751 |
Net assets |
|
|
81,523,063 |
79,885,501 |
|
|
|
|
|
Cash Cost and All-In Sustaining Cost (“AISC”) |
|
|
|
|
|
3 months to 31 December 2022 |
3 months to 31 December 2021 |
12 months to 31 December
2022 |
12 months to 31 December 2021 |
Gold production for cash cost and AISC
purposes |
7,798 ozs |
7,658 ozs |
31,819 ozs |
33,848 ozs |
|
|
|
|
|
Total Cash Cost of production (per ounce) |
US$1,227 |
US$1,238 |
US$1,322 |
US$1,090 |
Total AISC of production (per ounce) |
US$1,473 |
US$1,608 |
US$1,615 |
US$1,429 |
Clive Line, CFO of Serabi
commented,
“The past twelve month period was always planned
to be a year of investment as the Group continued its work on the
development of the Coringa project that had started midway through
2021. The ability to process and sell gold from the development ore
being mined from Coringa was not originally planned for but with
approximately 1,000 ounces of gold produced in the second six
months of 2022 the additional cash flow that this has generated has
helped offset the operating costs of the initial mine
development.
“The year was also one when we needed to push
ahead with rebuilding the mineral resource inventory particularly
for the Palito deposit. During the pandemic period of 2020 and 2021
with, at times, a significantly reduced work force at site,
resource drilling was reduced or halted impacting the ability to
maintain required resource replenishment rates. It was essential
that this situation be reversed, and the Board agreed to a
significant programme during 2022 to meet this objective. US$2.1
million has been spent on this programme in 2022 and before the end
of the second quarter of 2023, the results from this will be
confirmed in a new NI 43-101 mineral resource estimate for the
Palito and Sao Chico deposits. We anticipate that there should be a
significant increase in the reported mineral resources at Palito
which will more than offset the expected reduction in the level of
mineral resources at Sao Chico a result of the mining issues
encountered there in the first quarter of 2022.
“We have also seen steady quarter on quarter
improvements in cash costs and AISC as the year progressed. This is
despite the heavy investment on underground drilling the cost of
which has been taken as an operating expense during 2022, the
general headwind of costs inflation affecting key consumables such
as cyanide, mill liners and grinding materials as well as rising
costs of diesel and electricity. Whilst these remain subject to
price controls in Brazil, as with other countries they have
nonetheless risen year on year which has impacted on the plant
operating costs particularly the costs of power generation but also
vehicle running costs for the annual dam recycling programmes.
“We were successful in generating US$5 million
of short-term loan funding through a Brazilian bank to provide some
additional working capital which was necessary to compensate for
the lower than forecast production levels that became apparent
towards the end of the first quarter of 2022, resulting from the
mining problems encountered at the Sao Chico deposit. The nature of
this arrangement is such that it must be physically repaid through
the Brazilian Central Bank. In February 2023 the Group was offered
a further similar unsecured loan arrangement for US$5.0 million
with Santander Bank in Brazil. The Santander loan is repayable as a
bullet payment on 22 February 2024 and carries an interest coupon
of 7.96 per cent. The proceeds raised from the loan will be used
for working capital and secure adequate liquidity to repay the
initial loan which is due to be repaid on 12 May 2023. During the
year, the Group also finalised an unsecured facility with HSBC Bank
plc allowing the Group to enter into leasing of precious metals for
up to 12 months at a time. The Group has not utilised this
facility, but it provides a further opportunity for accessing
short-term working capital.”
We have already seen a strong start to the year
with production from Coringa being especially pleasing,
demonstrating the potential that this project has to support the
Group’s future growth. The completion of the ECI study is, we
believe, a significant step to securing the longer-term licencing
for Coringa. A strong gold price is helping cash flow and we look
forward to keeping shareholders informed on further good news
through the rest of 2023.”
STATEMENT FROM THE CHAIR OF
SERABI
Dear Shareholder
I am very pleased to introduce this Annual
Report, the first since I took on the role of Chair of Serabi in
August 2022. These first nine months have served to reinforce my
belief in Serabi’s potential to deliver strong growth for its
shareholders. We have seen initial gold production being generated
from the Coringa mine as development of this mine continues. Gold
production from Coringa was more than 2,000 ounces during the first
quarter of 2023 and the grades being mined and the continuity of
these high-grade areas have, so far, exceeded our expectations.
This bodes well for the future, and we remain hopeful that the
completion of the licencing process later this year will provide
the opportunity to secure financing and allow the Group to develop
Coringa to its full potential.
The indigenous impact report (“ECI”) that has
been undertaken on behalf of the Group in relation to Coringa, was
finalised at the end of April 2023, and is now being reviewed by
the indigenous communities and will then be passed to FUNAI, the
government agency responsible for the Brazilian indigenous people,
for their final approval. We expect that these approvals will
unlock the delay in the award of the Installation Licence by SEMAS,
the state environmental authority. In the meantime, we are
separately progressing the renewal of the existing trial mining
licence (“GUIA”) under which the current mining activities are
authorised, to ensure that mine development and ore production can
continue. With the ECI completed and therefore the requirement of
the Brazilian court order satisfied, we believe the legal
departments of SEMAS and the ANM will not be restricted in their
ability to issue new licences for the project.
After a difficult start to 2022, it was pleasing
to see that management were able to deliver on and in fact exceed
the revised production guidance for 2022. The Palito deposit
continues to grow and it seems that every month the geological team
identifies a new vein either through mine development or from
underground drilling for mine planning purposes. From the
information available to us today, we anticipate that the Palito
deposit will continue to be able to successfully produce in the
region of 30,000 ounces per annum potentially for many years to
come, as the ore body remains open at depth and along strike. The
ability to start gold production from Coringa so early in its
development has helped offset the ongoing mining and development
costs and will help take up some of the shortfall in production
that will arise from the plan to focus on growing the mineable
resource at Sao Chico over the next twelve to eighteen months,
during which time the mining activities at Sao Chico will be
suspended.
The strategy to initially install only a
crushing plant and ore sorter at Coringa, and trucking the upgraded
ore for processing at Palito, will significantly reduce the upfront
capital requirements for the project. We have all become aware of
significant cost inflation affecting all industry sectors over the
past two years, and this provides a solution with a much reduced
financial and operational risk compared with building a full-scale
process plant from the outset. We want to retain the optionality to
construct a full plant in the future, but this strategy will
nonetheless allow the Group’s gold production to expand to
approximately 60,000 ounces over the next couple of years as output
from Coringa grows. Depending on how further evaluation of Sao
Chico and Coringa develops during this time, an optimised decision
can be made and, with an expanded production base and therefore
cash flow, this should make financing of any new plant easier.
Whilst I and the rest of your Board will
continue to work closely with management on the operational and
financial aspects of the business, I will also be focussed on
enhancing some other aspects and in particular to ensure that the
Board is closely monitoring the Group’s Health and Safety
obligations and also improving its level of ESG reporting and
seeking to ensure that it is meeting best practice. Increasingly we
are seeing institutional investors adopting stricter mandates for
their qualifying investments and we need to ensure that Serabi
continues to attract the widest possible investor audience. We have
recently established a Sustainability Committee and its scope is
summarised later in this Annual Report. It will investigate ways in
which the Group can improve its environmental performance, monitor
our tailings dam exposure and our commitments to local communities.
Serabi is already in the lower half for gold producers for
greenhouse gas emissions and reduced its CO2 levels per gold ounce
by 10% between 2021 and 2022. However, we will look at ways in
which we can continue to improve, in particular given the
sensitivities that we face in operating in this part of Brazil.
I am aware that the last couple of years have
been challenging for Serabi and it has faced some difficult
headwinds in being able to move forward with the development of
Coringa. Whilst I have no doubt regarding the challenges ahead, I
do believe that there are many reasons to have optimism for the
future. I would like to convey my thanks to my predecessor, Nicolas
Bañados, for his work in helping to guide Serabi through this
period and leaving the Group in a position where it is now able to
capitalise on the opportunities that are presented. I hope that
over the coming months I will have the opportunity to meet in
person with some of our shareholders and look forward to sharing
the challenges and rewards that the next 12 months present.
Michael D Lynch-Bell
Chair
2 May 2023
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 the release of
this statement on behalf of the Company was Clive Line,
Director.
Enquiries:
Serabi
Gold plc |
|
Michael
Hodgson |
Tel: +44
(0)20 7246 6830 |
Chief
Executive |
Mobile:
+44 (0)7799 473621 |
|
|
Clive
Line |
Tel: +44
(0)20 7246 6830 |
Finance
Director |
Mobile:
+44 (0)7710 151692 |
|
|
Email:
contact@serabigold.com |
|
Website:
www.serabigold.com |
|
|
|
Beaumont
Cornish Limited Nominated Adviser and Financial Adviser |
|
Roland
Cornish / Michael Cornish |
Tel: +44
(0)20 7628 3396 |
|
|
Peel Hunt
LLP Joint UK Broker |
|
Ross
Allister |
Tel: +44
(0)20 7418 9000 |
|
|
Tamesis
Partners LLP Joint UK Broker |
|
Charlie
Bendon / Richard Greenfield |
Tel: +44
(0)20 3882 2868 |
|
|
Camarco Financial
PR |
|
Gordon
Poole / Emily Hall |
Tel:
+44(0) 20 3757 4980 |
See
www.serabigold.com for more information
and follow us on twitter @Serabi_Gold
Copies of this announcement are available from
the Company's website at www.serabigold.com.
Neither the Toronto Stock Exchange, nor any
other securities regulatory authority, has approved or disapproved
of the contents of this announcement.
Annual Report
The Annual Report has been published by the
Company on its website at www.serabigold.com and printed copies are
expected to be available before 31 May 2023. Additional copies will
be available to the public, free of charge, from the Company's
offices at The Long Barn, Cobham Park Road, Downside, Surrey, KT11
3NE and will be available to download from the Company’s website at
www.serabigold.com.
The data included in the selected annual
information tables below is taken from the Company’s annual audited
financial statements for the year ended 31 December 2022, which
were prepared in accordance with international accounting standards
in conformity with the requirements of the Companies Act 2006. The
Parent Company financial statements have also been prepared in
accordance with those parts of the Companies Act 2006 applicable to
companies reporting under International Financial Reporting
Standards (“IFRS”).
The audited financial statements for the year
ended 31 December 2022 will be presented to shareholders for
adoption at the Annual General Meeting of the Company’s
shareholders and filed with the Registrar of Companies.
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 year ended 31 December 2022
|
|
|
Group |
|
|
|
For the
year ended 31 December 2022 |
For the
year ended 31 December 2021 |
|
Notes |
|
US$ |
US$ |
|
|
|
|
|
Revenue |
|
|
58,709,328 |
63,141,437 |
Cost of
sales |
|
|
(43,110,870) |
(37,759,318) |
Provision
for impairment of taxes receivable |
|
|
(1,151,899) |
– |
Depreciation and amortisation charges |
|
|
(6,572,461) |
(6,049,628) |
Total cost of sales |
|
|
(50,835,230) |
(43,808,946) |
Gross profit |
|
|
7,874,098 |
19,332,491 |
Administration expenses |
|
|
(5,447,224) |
(5,825,655) |
Share-based
payments |
|
|
(249,210) |
(270,631) |
Gain /(loss)on disposal of fixed assets |
|
|
33,993 |
(160,219) |
Operating profit |
3 |
|
2,211,657 |
13,075,986 |
Foreign
exchange (loss)/gain |
|
|
131,938 |
(41,456) |
Finance
expense |
4 |
|
(3,411,784) |
(261,825) |
Finance income |
4 |
|
291,885 |
585,840 |
(Loss) / profit before taxation |
|
|
(776,304) |
13,358,545 |
Income tax expense |
5 |
|
(206,743) |
(3,408,581) |
(Loss) / profit for the
period(1) |
|
|
(983,047) |
9,949,964 |
|
|
|
|
|
Other comprehensive income (net of tax) |
|
|
|
|
Items that may be reclassified subsequently to profit or
loss |
|
|
|
|
Exchange differences on translating foreign operations |
|
|
2,371,399 |
(4,643,212) |
Total comprehensive profit for the
period(1) |
|
|
1,388,352 |
5,306,752 |
Earnings per ordinary share (basic) (1) |
7 |
|
(1.30c) |
13.85c |
Earnings per ordinary share (diluted) (1) |
7 |
|
(1.30c) |
12.92c |
(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
December
2022
|
|
|
|
Group |
|
|
|
|
At 31 December 2022 |
At 31 December 2021 |
|
Note |
|
|
US$ |
US$ |
Non-current assets |
|
|
|
|
|
Deferred
exploration costs |
8 |
|
|
18,621,180 |
34,857,905 |
Property,
plant and equipment |
8 |
|
|
48,482,519 |
27,575,335 |
Right of use
assets |
|
|
|
5,374,042 |
2,600,631 |
Taxes
receivable |
|
|
|
3,446,032 |
605,125 |
Deferred taxation |
|
|
|
1,545,684 |
1,224,360 |
Total non-current assets |
|
|
|
77,469,457 |
66,863,356 |
Current assets |
|
|
|
|
|
Inventories |
|
|
|
8,706,351 |
6,973,207 |
Trade and
other receivables |
|
|
|
5,291,924 |
2,307,458 |
Prepayments |
|
|
|
1,572,149 |
2,316,669 |
Cash and cash equivalents |
|
|
|
7,196,313 |
12,217,751 |
Total current assets |
|
|
|
22,766,737 |
23,815,085 |
Current liabilities |
|
|
|
|
|
Trade and
other payables |
|
|
|
5,830,872 |
5,624,511 |
Interest-bearing liabilities |
|
|
|
6,111,126 |
290,060 |
Accruals |
|
|
|
461,857 |
397,400 |
Total current liabilities |
|
|
|
12,403,855 |
6,311,971 |
Net current assets |
|
|
|
10,362,882 |
17,503,114 |
Total assets less current liabilities |
|
|
|
87,832,339 |
84,366,470 |
Non-current liabilities |
|
|
|
|
|
Trade and
other payables |
|
|
|
3,800,886 |
427,663 |
Provisions |
|
|
|
1,190,175 |
2,581,431 |
Deferred tax
liability |
|
|
|
480,922 |
861,430 |
Derivative
financial liabilities |
|
|
|
– |
165,495 |
Interest-bearing liabilities |
|
|
|
837,293 |
444,950 |
Total non-current liabilities |
|
|
|
6,309,276 |
4,480,969 |
Net assets |
|
|
|
81,523,063 |
79,885,501 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Share
capital |
|
|
|
11,213,618 |
11,213,618 |
Share
premium reserve |
|
|
|
36,158,068 |
36,158,068 |
Option
reserve |
|
|
|
1,324,558 |
1,075,348 |
Other
reserves |
|
|
|
14,459,255 |
13,694,731 |
Translation
reserve |
|
|
|
(66,276,771) |
(68,648,170) |
Retained surplus |
|
|
|
84,644,335 |
86,391,906 |
Equity shareholders’ funds attributable to owners of the
parent |
|
|
|
81,523,063 |
79,885,501 |
Statements of Changes in Shareholders’
Equity
For the twelve month period ended 31 December
2022
Group |
Share
capital |
Share
premium |
Share
option reserve |
Other
reserves |
Translation
reserve |
Retained
surplus |
Total
equity |
|
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
Equity shareholders’ funds at 31 December
2020 |
8,905,116 |
21,905,976 |
1,173,044 |
10,254,048 |
(64,004,958) |
79,514,298 |
57,747,524 |
Foreign currency adjustments |
– |
– |
– |
– |
(4,643,212) |
– |
(4,643,212) |
Profit for year |
– |
– |
– |
– |
– |
9,949,964 |
9,949,964 |
Total comprehensive income for the year |
– |
– |
– |
– |
(4,643,212) |
9,949,964 |
5,306,752 |
Shares
issued in period |
2,308,502 |
14,252,092 |
– |
– |
– |
– |
16,560,594 |
Transfer to
taxation reserve |
– |
– |
– |
3,440,683 |
– |
(3,440,683) |
– |
Share
options lapsed in period |
– |
– |
(368,327) |
– |
– |
368,327 |
– |
Share option expense |
– |
– |
270,631 |
– |
– |
– |
270,631 |
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 |
– |
– |
– |
– |
– |
(983,047) |
(983,047) |
Profit for year |
– |
– |
– |
– |
2,371,399 |
– |
2,371,399 |
Total comprehensive income for the year |
– |
– |
– |
– |
2,371,399 |
(983,047) |
1,388,352 |
Transfer to
taxation reserve |
– |
– |
– |
764,524 |
– |
(764,524) |
– |
Share option expense |
– |
– |
249,210 |
– |
– |
– |
249,210 |
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 |
Other reserves comprise a merger reserve of
US$361,461 and a taxation reserve of US$14,097,794 (2021: merger
reserve of US$361,461 and taxation reserve of US$13,333,270).
Cash Flow Statement
For the twelve month period ended 31 December
2022
|
|
|
Group |
|
|
|
|
For the year ended 31 December 2022 |
For the year ended 31 December 2021 |
|
|
|
|
US$ |
US$ |
Cash outflows from operating activities |
|
|
|
|
|
(Loss)/profit for the period |
|
|
|
(983,047) |
9,949,964 |
Net
financial expense |
|
|
|
2,987,961 |
(282,559) |
Depreciation
– plant, equipment and mining properties |
|
|
|
6,572,461 |
6,049,628 |
Provision
for impairment of taxes receivable |
|
|
|
1,151,899 |
– |
Taxation
expense |
|
|
|
206,743 |
3,408,581 |
Share-based
payments |
|
|
|
249,210 |
270,631 |
(Gain)/loss
on fixed asset sales |
|
|
|
(33,993) |
160,219 |
Taxation
paid |
|
|
|
(129,426) |
(1,125,382) |
Interest
paid |
|
|
|
(208,592) |
(1,302,708) |
Foreign
exchange (loss)/gain |
|
|
|
(191,328) |
(104,531) |
|
|
|
|
|
|
Changes in working capital |
|
|
|
|
|
Increase in
inventories |
|
|
|
(1,435,025) |
(331,400) |
Increase in
receivables, prepayments and accrued income |
|
|
|
(6,465,608) |
(1,259,952) |
Increase/(decrease) in payables, accruals and provisions |
|
|
|
234,314 |
(637,285) |
Net cash inflow/(outflow) from operations |
|
|
|
1,955,569 |
14,795,206 |
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Acquisition
payment for subsidiary |
|
|
|
– |
(5,500,000) |
Acquisition
of other property rights |
|
|
|
– |
(101,106) |
Purchase of
property, plant, equipment, and projects in construction |
|
|
|
(4,447,588) |
(4,132,914) |
Mine
development expenditure |
|
|
|
(3,629,505) |
(5,400,933) |
Geological
exploration expenditure |
|
|
|
(855,607) |
(4,102,530) |
Pre-operational project costs |
|
|
|
(2,328,113) |
(4,354,954) |
Proceeds
from sale of assets |
|
|
|
171,824 |
379,347 |
Interest received and other finance income |
|
|
|
126,390 |
– |
Net cash outflow on investing activities |
|
|
|
(10,962,599) |
(23,213,090) |
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Issue of
ordinary share capital (net of costs) |
|
|
|
– |
16,560,593 |
Issue of
warrants |
|
|
|
– |
333,936 |
Receipt of
short-term loan |
|
|
|
4,917,775 |
– |
Repayment of
convertible loan |
|
|
|
– |
(2,000,000) |
Payment of
convertible loan arrangement fee |
|
|
|
– |
(300,000) |
Payment of
lease liabilities |
|
|
|
(1,027,151) |
(355,836) |
Net cash inflow/(outflow) from financing
activities |
|
|
|
3,890,624 |
14,238,694 |
|
|
|
|
|
|
Net
(decrease)/increase in cash and cash equivalents |
|
|
|
(5,116,406) |
5,820,810 |
Cash
and cash equivalents at beginning of period |
|
|
|
12,217,751 |
6,603,620 |
Exchange difference on cash |
|
|
|
94,968 |
(206,679) |
Cash and cash equivalents at end of period |
|
|
|
7,196,313 |
12,217,751 |
Notes
1. General
Information
The financial information set out above for the
years ended 31 December 2022 and 31 December 2021 does not
constitute statutory accounts as defined in Section 434 of the
Companies Act 2006 but is derived from those accounts. Whilst the
financial information included in this announcement has been
compiled in accordance with UK-adopted international accounting
standards (UK IAS), this announcement itself does not contain
sufficient financial information to comply with UK IAS. A copy of
the statutory accounts for 2021 has been delivered to the Registrar
of Companies and those for 2022 will be delivered to the Registrar
of Companies following approval by shareholders at the Annual
General Meeting. The full audited financial statements for the
years end 31 December 2022 and 31 December 2021 comply with
IFRS.
2. Auditor’s
Opinion
The auditor has issued an unqualified opinion in
respect of the financial statements for both 2022 and 2021 which do
not contain any statements under the Companies Act 2006, Section
498(2) or Section 498(3).
3. Basis of
Preparation
The financial statements have been prepared in
accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006. The parent and
consolidated financial statements have been prepared in accordance
with UK-adopted international accounting standards (UK IAS) and
with the requirements of the Companies Act 2006 as applicable to
companies reporting under those standards.
On 31 December 2020, IFRS as adopted by the
European Union at that date was brought into the UK law and became
UK-adopted international accounting standards, with future changes
being subject to endorsement by the UK Endorsement Board. The Group
prepares its consolidated financial statements in accordance with
UK IAS.
Accounting standards, amendments and
interpretations effective in 2022
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 2022
|
Effective
Date |
Property,
Plant and Equipment – Proceeds before Intended Use (amendments to
IAS 16) |
1 January
2022 |
Onerous
Contracts- Cost of Fulfilling a Contract (Amendments to IAS
37) |
1 January
2022 |
Annual
Improvements to IFRS Standards 2018-2020 |
1 January
2022 |
Reference to
Conceptual Framework (Amendments to IFRS 3) |
1 January
2022 |
The adoption of these standards has had no
effect to date on the financial results of the Group. The updated
standard Property, Plant and Equipment – Proceeds before Intended
Use (amendments to IAS 16) which is effective 1 January 2022 will
impact the Group as it develops the Coringa mine. At such time as
the Group generates revenues from the processing of ore from
Coringa in future periods, this will be reflected as operational
revenue of the business and the Group will account for the costs
incurred in relation to this income as a cost of sale. Previously,
under IAS16, the sales would have been treated as a deduction from
the cost of bringing an item (or items) of property, plant and
equipment to the location and condition necessary to be capable of
operating in the manner intended by management.
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.
IFRS 17
Insurance Contracts, including Amendments to IFRS 17 |
1 January
2023 |
Classification of Liabilities as Current or Non-current (Amendments
to IAS 1) and Classification of Liabilities as Current or
Non-current – Deferral of Effective Date |
1 January
2023 |
4. Going
concern and availability of finance
The Group’s business activities, together with
the factors likely to affect its future development, performance
and position, are set out in the Group Strategic Report. The
financial position of the Group, its cash flows, and liquidity
position are described in the Chief Financial Officer’s Review and
set out in the Group Financial Statements. Further details of the
Group’s commitments and maturity analysis of financial liabilities
are set out in note 23 and 25 respectively of the Group Financial
Statements. In addition, note 22 to the Group Financial Statements
includes the Group’s objectives, policies and processes for
managing its capital; its financial risk management objectives;
details of its financial instruments; and its exposures to credit
risk and liquidity risk.
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.
Further details are provided in Going Concern section of the Group
Strategic Report on pages 23 and 24.
5. Finance
expense and income
|
Group |
|
12 months ended December
2022 |
12 months ended December
2021 |
|
US$ |
US$ |
Interest and
fines on state sales tax |
(1,819,909) |
— |
Provision
for interest on disputed tax refunds claimed |
(1,090,586) |
— |
Interest on
short term unsecured bank loan |
(211,793) |
— |
Interest in
finance leases |
(148,650) |
— |
Interest on
short term trade loan |
(59,942) |
— |
Variation on
discount on rehabilitation provision |
(80,904) |
— |
Interest
expense on property acquisition payment |
— |
(23,854) |
Interest
expense on convertible loan |
— |
(47,502) |
Loss in
respect of non-substantial modification |
— |
(40,469) |
Amortisation of arrangement fee for convertible loan |
— |
(150,000) |
Total finance expense |
(3,411,784) |
(261,825) |
Gain on
revaluation of warrants |
165,495 |
168,441 |
Variation on
discount on rehabilitation provision |
— |
417,399 |
Interest income |
126,390 |
— |
Total finance income |
291,885 |
585,840 |
Net finance (expense)/income |
(3,119,899) |
324,015 |
6.
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 registered an
increase of US$683,433 in its deferred tax asset during the year to
31 December 2022 (31 December 2021 – deferred tax release of
US1,121,976). The Group has also incurred a tax charge on profits
in Brazil for the year to 31 December 2022 of US$890,176 (31
December 2021 - US$2,286,605)
7. Earnings
per share
|
|
For the year ended 31 December 2022 |
For the year ended 31 December 2021 |
(Loss) / profit attributable to ordinary shareholders (US$) |
(983,047) |
9,949,964 |
Weighted average ordinary shares in issue |
75,734,551 |
71,829,223 |
Basic profit per share (US cents) |
(1.30) |
13.85 |
Diluted ordinary shares in issue (1) |
81,488,078 |
76,999,420 |
Diluted profit per share (US cents) |
(1.30)(2) |
12.92 |
- Based on 1,750,000 options vested and exercisable and 4,003,527
unexercised warrants as at 31 December 2022 (31 December 2021:
1,166,670 options and 4,003,527 unexercised warrants)
- As the effect of dilution is to reduce the loss per share, the
diluted loss per share is considered to be the same as the basic
loss per share
8.
Deferred
exploration costs and Property, plant and equipment
Reflecting the commencement of gold production
from the Coringa project and notwithstanding that this project is
not yet in commercial production, management has reallocated
capitalised costs of US$20,287,902 related to Coringa from Deferred
exploration costs to Mining property.
9. Post
balance sheet events
On 14 February 2023, the Group entered into
hedging contracts with an international bank whereby it acquired
sell options over monthly quantities of gold over the period March
2023 to February 2024 totalling 10,215 ounces of gold at a price of
US$1,800. At the same time, it sold to the bank options in favour
of the bank to buy the equivalent monthly quantities of gold at
prices ranging between US$2,000 and US$2,065 per ounce. It also
acquired options to sell monthly receipts of US Dollars ranging
between US$2.3 million and US$1.15 million for Brazilian Real at an
exchange rate of BRL5.10 to USD1.00. At the same time, it sold to
the bank options in favour of the bank to buy from the Group the
equivalent Brazilian Real receipts at exchange rates ranging from
5.325 to 5.800 over the same 12 month period. In this way the Group
has secured a minimum equivalent gold price in Brazilian Real of
BRL9,180 per ounce in respect of 10,215 ounces and sold options in
favour of the bank of future prices ranging between BRL10,650 per
ounce and BRL11,997 per ounce depending on the option expiry date.
Since January 2021 the BRL price for gold peaked at BRL10,340 in
November 2021 and was at a low of BRL8,556 in October 2022. The
hedging arrangements are unsecured and not subject to margin
calls.
On 28 February 2023, the Group completed a
US$5.0 million unsecured loan arrangement with Santander Bank in
Brazil. The loan is repayable as a bullet payment on 22 February
2024 and carries an interest coupon of 7.96 per cent. The proceeds
raised from the loan will be used for working capital and secure
adequate liquidity to repay a similar arrangement which is due to
be repaid on 12 May 2023.
Except as set out above, 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 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, recognising
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.
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
Serabi Gold (TSX:SBI)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Serabi Gold (TSX:SBI)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024