10:00 Fri 18 Jun 2021
Finance update and extension to reporting deadline
For immediate release
18
Serabi Gold plc
(“Serabi” or the “Company”)
Finance update and extension to reporting deadline
Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to update the market on financial performance for the year to date and to provide an update on the audit of the financial results for the 2020 calendar year.
Highlights
- Following the successful equity placing closed on
9 March 2021 raising gross proceeds of £12.5 million:
- The convertible loan notes that had been issued during 2020 (the “Loan Notes”) have been fully repaid together with accrued interest and arrangement fees (
- Acquisition of Coringa project completed with payments during 2021 (including accrued interest) made to Anfield Gold Corp (“Anfield”) of
- Cash balances at end of
May 2021 wereUS$16.4 million with all debt obligations now repaid. - Cash balance at end
June 2021 projected to be in excess ofUS$17.25 million .
Financial Performance for the year to date
During the five months ended
In the Period cash expenditure for the mine operating costs, including all mine development and underground drilling, amounted to
Net cash generation in the Period before Group administration costs, loan repayments, acquisition payments, taxes and capital expenditure amounted to
In the Period the outstanding convertible loan notes together with accrued interest and fees totalling approximately
Cash balances at the Period end were
The Group’s unaudited management accounts statement of cash movements for the Period is set out below:
UNAUDITED STATEMENT OF CASH MOVEMENTS (Note 1) | For the 5 months to US$000’s |
OPERATING ACTIVITIES | |
Net cash receipts from sales of bullion | 16,289 |
Net cash receipts from sales of copper/gold concentrate | 9,631 |
Cash payments for mine operating costs | (18,554) |
Net cash generated by operations | 7,365 |
Administration expenditures | (2,260) |
Profits tax payments | (145) |
Net cash inflow from operational activities | 4,960 |
INVESTING ACTIVITIES | |
Capital expenditure | (980) |
Exploration expenditure | (1,236) |
Predevelopment activities for Coringa | (603) |
Other acquisition payments | (101) |
Proceeds from sale of assets | |
Cash used for investing activities | (2,920) |
FINANCING ACTIVITIES | |
Net proceeds from issue of new equity | 16,763 |
Repayment of Convertible Loan Notes, interest and fee | (2,534) |
Purchase consideration for Coringa including interest | (6,560) |
Lease liabilities | (158) |
Net cash generated from financing activities | 7,511 |
Net increase in cash and cash equivalents | 9,551 |
Cash and cash equivalents at beginning of period | 6,603 |
Exchange differences on cash | 237 |
Cash and cash equivalents at end of period | 16,391 |
(1) The above statement of cash movements does not represent accounting information prepared under IFRS or any other applicable accounting standards. The figures quoted represent cash payments and receipts only. The level of cash payments may include movements in working capital, including increases or decreases in inventories, amounts receivable or amount payable that may have occurred between
Reporting timetable update
Further to the guidance provided in "Inside AIM" on
As previously reported, the 2020 audit process identified that cash had been withdrawn without authorisation from the Group’s Brazilian subsidiary Serabi Mineracão SA (“SMSA”). This has delayed the completion of the audit and the issue of the 2020 Financial Statements. The 2020 audit identified that cash withdrawals amounting to approximately
At this stage, the Company has received confirmation that all the payments under review, were recorded through the accounts of SMSA and expensed in the period in which they were incurred. Management is therefore also satisfied that previously issued financial statements of all periods being reviewed have accurately reported the profit before tax of the Group and as a result management does not expect there to be any requirement to restate the previously reported profit before tax of any prior period. This remains subject to finalisation of the Deloitte review and any further work that the Group’s
The work of Deloitte was initially focussed on the verification of the initial findings of FFA to support any legal proceedings that the Company may wish to instigate against any individuals and at the request of the Board has been expanded to give the Board comfort that the matter has been thoroughly investigated and all control weaknesses identified and rectified as well as to cover the work that the Group’s
“I am pleased to report that we have carried the momentum of the fourth quarter of last year into the first five months of this year, with operations continuing to perform well. The positive cash flow being generated by the Company is being used to help fund the exploration programmes as well as prepare for the commencement of the portal development at Coringa which is expected to begin in
“The Company’s financial performance has continued to be relatively strong and following the successful equity placing completed in
“With the delay in the completion of the 2020 Financial Statements, the Company has been unable to provide its usual quarterly financial updates. We have chosen to provide this five-month cash flow report to keep the market updated with the most recent financial information that it is able to provide. As soon as it is practical and possible to do so, the Company will revert to its normal quarterly reporting schedule.”
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
The person who arranged for the release of this announcement on behalf of the Company was
Enquiries:
Serabi Gold plc | |
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 | |
Beaumont Cornish Limited Nominated Adviser and Financial Adviser | |
Tel: +44 (0)20 7628 3396 | |
Peel Hunt LLP Joint | |
Tel: +44 (0)20 7418 9000 | |
Tamesis Partners LLP Joint | |
Tel: +44 (0)20 3882 2868 | |
Camarco Financial PR | |
Tel: +44(0) 20 3757 4980 |
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.
See www.serabigold.com for more information and follow us on twitter @Serabi_Gold
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