For immediate release
13 December 2022
Serabi Gold plc
(“Serabi” or the “Company”)
Unaudited interim results for the three and nine month periods ended 30 September 2022
Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian focused gold mining and development company, today releases its unaudited results for the three and nine month periods ended 30 September 2022.
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/3YjvbIU
- Gold production for the third quarter of 8,541 ounces brings total gold production for the first nine months of 2022 to 24,021 ounces.
- Cash held at 30 September 2022 of US$10.18 million (31 December 2021 : US$12.2 million).
- EBITDA for the nine-month period of US$5.9 million (2021: US$15.0 million).
- Post tax loss for the nine-month period of US$0.87 million, after provision of US$1.0 million against the recovery of historic tax debts owed to the Company in Brazil.
- Loss per share of 1.15 cents compared with a profit per share pf 10.64 cents for the same nine month period of 2021.
- Net cash inflow from operations for the nine-month period (after mine development expenditure of US$2.88 million) of US$0.11 million (2021: US$8.45 million inflow).
- Average gold price of US$1,810 per ounce received on gold sales during the nine month period (2021: US$1,772).
- Cash Cost for the three-month period to September 2022 of US$1,242 per ounce (Q2 2022 : US$1,395 per ounce) representing an 11.0% improvement quarter on quarter.
- All-In Sustaining Cost for the three-month period to September 2022 of US$1,564 per ounce (Q2 2022 : US$1,637 per ounce) represents a 4.5% improvement compared to Q2 2022.
Key Financial Information
|SUMMARY FINANCIAL STATISTICS|
|9 months to
30 September 2022
|9 months to
30 September 2021
|3 months to
30 September 2022
|3 months to
30 September 2021
|Cost of sales||(34,078,338)||(27,227,697)||(10,809,753)||(8,870,024)|
|Gross operating profit||10,309,966||19,513,525||2,377,688||5,340,725|
|Administration and share based payments||(4,443,642)||(4,514,034)||(1,676,866)||(1,391,574)|
|Depreciation and amortisation charges||(4,596,838)||(4,093,089)||(1,673,593)||(1,376,482)|
|Operating profit before finance and tax||1,269,486||10,906,402||(972,771)||2,572,669|
|Profit after tax||(870,520)||7,661,601||(2,943,459)||1,308,948|
|Earnings per ordinary share (basic)||(1.15c)||10.64c||(3.89c)||1.73c|
|Average gold price received (US$/oz)||US$1,810||US$1,772||US$1,720||US$1,753|
31 December 2021
|Cash and cash equivalents||10,177,647||12,217,751|
|Cash Cost and All-In Sustaining Cost (“AISC”)|
|9 months to
|3 months to
|6 months to
|12 months to 31 December 2021|
|Gold production for cash cost and AISC purposes||24,021 ozs||8,541 ozs||15,480 ozs||33,848 ozs|
|Total Cash Cost of production (per ounce)||US$1,353||US$1,242||US$1,415||US$1,090|
|Total AISC of production (per ounce)||US$1,662||US$1,564||US$1,716||US$1,429|
Clive Line, CFO of Serabi commented,
“Following good progress in the second quarter in realising improvements in cost efficiency it is very pleasing to report a continued reduction in quarterly AISC and Cash Costs. The margin over direct costs of sales increased by 3.6% to 34.4% compared to the second quarter of 2022. The reduction in AISC has also contributed to an improvement in the cash flow being generated from operations. We have reported cash flow from operations for the latest 3 month period of US$2.69 million (US$1.66 million after capitalised mine development costs) which compares with the second quarter when we reported figures of US$1.75 million and US$0.96 million respectively.
The revenue and operating costs reported for the third quarter also include revenues generated from the first sales of gold from the Coringa project together with the associated operating costs incurred. Revenues from these initial sales were US$1.45 million or 3% of the year to date sales revenue.
Whilst gold production of 8,541 ounces for the third quarter was slightly higher than that of the second quarter of this year, ounces sold in the third quarter were 1,696 lower than in the second quarter (which had included the release of some inventory as previously reported).. The lower sales volume in the third quarter, albeit it at a better margin, together with the lower gold price and the decision to make an additional provision against the recovery of historic tax debts owed to the Company in Brazil have however reduced the overall level of gross operating profit compared to the preceding quarter.
Increased costs of operations at the Palito Complex reflect the increased level of underground drilling being undertaken which is building mineral resources for the future and helping secure production for the coming years. The level of expenditure incurred in the first nine months of the year has increased by 51%. Whilst the Brazilian government has also reduced the level of taxes applied to diesel, nonetheless expenditure on diesel and electricity has also increased by 45% compared with the same nine month period of 2021. Headcount reductions have ensured that labour costs have remained static notwithstanding the mandatory cost of living increases that have been incurred.
“The cash position remains strong, with cash held at 30 September 2022 of US$10.2 million notwithstanding the continued investment being made in the development of the Coringa project. Whilst we anticipate gold production continuing to improve as we progress into 2023, with further mining levels developed, and new areas prepared for stoping, we expect Coringa to continue to require funding from the Palito cash flow in the immediate term.”
With gold sales from its Coringa deposit having started during this third quarter, the Company has reallocated the accumulated capitalised costs (including the initial acquisition cost) of approximately US$26.4 million from Deferred Exploration Costs to Property. Plant and Equipment. Development cost will continue to be capitalised until the Coringa project attains commercial production.
During the third quarter the tax authorities in Para approved the recovery of approximately BrR$8 million (US$1.5 million) of ICMS (state sales tax incurred on goods purchased) relating to the period 2016 to 2019 with an additional BrR$$14 million (US$2.67 million) of ICMS incurred over the same period still being audited by the authorities. Further amounts totalling BrR$13.0 million (US$2.98 million) in respect of taxes paid in 2020 and 2021 are also still to be reviewed and audited by the authorities. In 2020, the Company made a provision of approximately BrR$8.2 million against the recoverability of these taxes and in this quarter has made a further provision of BrR$5.14 million (US$1.0 million) in light of the continued uncertainty over the time period over which these taxes will be recovered. A finance cost has also been recorded arising from these same ICMS taxes although, having been set off against amounts owed to the Company, this has had no cash impact. Whilst the authorities confirmed the approval of BrR$8.2 million of taxes and allowed these to be set off against tax liabilities owed to the State of Para they determined that interest and penalties should be assessed on taxes owed to the State whilst refusing to recognise the Company’s claims for interest on amounts due to Serabi. Whilst this matter remains subject to legal appeal, the Company has reported a US$1.5 million charge in respect of the fines and interest levied.”
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.
The person who arranged the release of this statement on behalf of the Company was Clive Line, Director.
|Serabi Gold plc|
|Michael Hodgson||Tel: +44 (0)20 7246 6830|
|Chief Executive||Mobile: +44 (0)7799 473621|
|Clive Line||Tel: +44 (0)20 7246 6830|
|Finance Director||Mobile: +44 (0)7710 151692|
|Beaumont Cornish Limited
Nominated Adviser and Financial Adviser
|Roland Cornish / Michael Cornish||Tel: +44 (0)20 7628 3396|
|Peel Hunt LLP
Joint UK Broker
|Ross Allister / Alexander Allen||Tel: +44 (0)20 7418 9000|
|Tamesis Partners LLP
Joint UK Broker
|Charlie Bendon / Richard Greenfield||Tel: +44 (0)20 3882 2868|
|Gordon Poole / Emily Hall||Tel: +44(0) 20 3757 4980|
See www.serabigold.com for more information and follow us on twitter @Serabi_Gold
Copies of this announcement are available from the Company’s website at www.serabigold.com.
Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this announcement.
The following information, comprising, the Income Statement, the Group Balance Sheet, Group Statement of Changes in Shareholders’ Equity, and Group Cash Flow, is extracted from the unaudited interim financial statements for the three and nine months to 30 September 2022.
Statement of Comprehensive Income
For the three and nine month periods ended 30 September 2022
|For the three months ended
|For the nine months ended
|(expressed in US$)||Notes||(unaudited)||(unaudited)||(unaudited)||(unaudited)|
|Cost of sales||(9,808,516)||(8,870,024)||(33,077,101)||(27,227,697)|
|Provision for state sales taxes receivable||(1,001,237)||—||(1,001,237)||—|
|Depreciation and amortisation charges||(1,673,593)||(1,376,482)||(4,596,838)||(4,093,089)|
|Total cost of sales||(12,483,346)||(10,246,506)||(38,675,176)||(31,320,786)|
|Gain on disposal of assets||43,018||328,540||86,181||348,694|
|Foreign exchange (loss)/gain||(91,446)||125,566||47,659||81,823|
|(Loss)/profit before taxation||(2,658,307)||2,716,375||(190,846)||10,665,807|
|Income tax expense||3||(285,152)||(1,407,427)||(679,674)||(3,004,206)|
|(Loss)/profit after taxation||(2,943,459)||1,308,948||(870,520)||7,661,601|
|Other comprehensive income (net of tax)|
|Exchange differences on translating foreign operations||(1,827,939)||(4,468,408)||158,834||(2,240,458)|
|Total comprehensive (loss)/profit for the period(1)||(4,771,398)||(3,159,460)||(711,686)||5,421,143|
|(Loss)/profit per ordinary share (basic)||4||(3.89)||1.73c||(1.15c)||10.64c|
|(Loss)/profit per ordinary share (diluted)||4||(3.89)||1.62c||(1.15c)||9.93c|
(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 30 September
|(expressed in US$)||Notes||
30 September 2022
30 September 2021
31 December 2021
|Deferred exploration costs||6||12,236,052||33,034,342||34,857,905|
|Property, plant and equipment||7||54,088,968||26,476,342||27,575,335|
|Right of use assets||8||5,134,677||2,274,281||2,600,631|
|Total non-current assets||75,547,679||63,679,781||66,863,356|
|Trade and other receivables||2,133,787||2,147,503||2,307,458|
|Prepayments and accrued income||1,871,869||2,313,484||2,316,669|
|Cash and cash equivalents||10,177,647||15,165,875||12,217,751|
|Total current assets||22,499,988||27,398,289||23,815,085|
|Trade and other payables||5,576,575||7,155,764||5,624,511|
|Interest bearing liabilities||10||5,855,425||278,857||290,060|
|Total current liabilities||11,863,126||7,831,291||6,311,971|
|Net current assets||10,636,862||19,566,998||17,503,114|
|Total assets less current liabilities||86,184,541||83,246,779||84,366,470|
|Trade and other payables||463,323||83,722||427,663|
|Interest bearing liabilities||10||1,200,297||538,144||444,950|
|Deferred tax liability||628,231||903,421||861,430|
|Long term state tax||1,762,766||—||—|
|Derivative financial liabilities||11||—||394,529||165,495|
|Total non-current liabilities||6,731,609||3,309,415||4,480,969|
|Share premium reserve||36,158,068||36,158,068||36,158,068|
|Equity shareholders’ funds||79,452,932||79,937,364||79,885,501|
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 2021 prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 have been filed with the Registrar of Companies. 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 nine month period ended 30 September 2022
|(expressed in US$)|
|Share option reserve||Other reserves (1)||Translation reserve||Retained Earnings||Total equity|
|Equity shareholders’ funds at 31 Dec 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||—||—||—||—||(2,240,458)||—||(2,240,458)|
|Profit for the period||—||—||—||—||—||7,661,601||7,661,601|
|Total comprehensive income for the period||—||—||—||—||(2,240,458)||7,661,601||5,421,143|
|Transfer to taxation reserve||—||—||—||1,897,825||—||(1,897,825)||—|
|Share issued during period||2,308,502||14,252,092||—||—||—||—||16,560,594|
|Share options lapsed in period||—||—||(368,327)||—||—||368,327||—|
|Share option expense||—||—||208,103||—||—||—||208,103|
|Equity shareholders’ funds at 30 September 2021||11,213,618||36,158,068||1,012,820||12,151,873||(66,245,416)||85,646,401||79,937,364|
|Foreign currency adjustments||—||—||—||—||(2,402,754)||—||(2,402,754)|
|Profit for the period||—||—||—||—||—||2,288,363||2,288,363|
|Total comprehensive income for the period||—||—||—||—||(2,402,754)||2,288,363||2,288,363|
|Transfer to taxation reserve||—||—||—||1,542,858||—||(1,542,858)||—|
|Share incentives lapsed||—||—||—||—||—||—||—|
|Share incentives expense||—||—||62,528||—||—||—||62,528|
|Equity shareholders’ funds at 31 Dec 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||—||—||—||—||158,834||—||158,834|
|Profit for the period||—||—||—||—||—||(870,520)||(870,520)|
|Total comprehensive income for the period||—||—||—||—||158,834||(870,520)||(711,686)|
|Transfer to taxation reserve||—||—||—||768,916||—||(768,916)||—|
|Share incentives expense||—||—||279,117||—||—||—||279,117|
|Equity shareholders’ funds at 30 September 2022||11,213,618||36,158,068||1,354,465||14,463,647||(68,489,336)||84,752,470||79,452,932|
(1) Other reserves comprise a merger reserve of US$361,461 and a taxation reserve of US$14,102,186 (31 December 2021: merger reserve of US$361,461 and a taxation reserve of US$13,333,270).
Cash Flow Statement
For the three and nine month periods ended 30 September 2022
|For the three months
|For the nine months
|(expressed in US$)||(unaudited)||(unaudited)||(unaudited)||(unaudited)|
|Post tax profit for period||(2,943,459)||1,308,948||(870,520)||7,661,601|
|Depreciation – plant, equipment and mining properties||1,673,593||1,376,482||4,596,838||4,093,089|
|Increase in provision for long term taxes receivable||1,001,237||—||1,001,237||—|
|Gain/ (loss) on asset disposals||(43,018)||—||(86,181)||—|
|Net financial expense||1,685,536||(143,706)||1,460,332||240,595|
|Provision for taxation||285,152||1,407,427||679,674||3,004,206|
|Foreign exchange (loss) / gain||93,501||49,636||(62,406)||161,072|
|Changes in working capital|
|(Increase)/decrease in inventories||(731,322)||(663,820)||(1,126,128)||(763,112)|
|(Increase)/decrease in receivables, prepayments and accrued income||1,018,749||(259,673)||(2,893,573)||(1,104,846)|
|Increase/(decrease) in payables, accruals and provisions||562,581||287,149||222,587||378,041|
|Net cash inflow from operations||2,634,565||3,218,234||2,984,497||12,249,103|
|Purchase of property, plant and equipment and assets in construction||(917,558)||(1,698,160)||(3,408,060)||(2,439,463)|
|Mine development expenditure||(1,029,512)||(1,244,454)||(2,878,974)||(3,802,795)|
|Geological exploration expenditure||(68,519)||(1,474,640)||(761,499)||(3,274,609)|
|Pre-operational project costs||—||(1,753,513)||(2,266,252)||(3,019,404)|
|Acquisition payment for subsidiary||—||—||—||(5,500,000)|
|Acquisition of other property rights||—||(930)||—||(102,316)|
|Proceeds from sale of assets||38,198||340,664||102,960||365,745|
|Net cash outflow on investing activities||(1,874,296)||(5,831,033)||(9,108,730)||(17,772,842)|
|Issue of Ordinary share capital (net of costs)||—||—||—||16,560,594|
|Issue of warrants||—||—||—||333,936|
|Drawdown of unsecured loan||—||—||4,868,170||—|
|Repayment of convertible loan||—||—||—||(2,000,000)|
|Payment on arrangement fee on convertible loan||—||—||—||(300,000)|
|Payment of finance lease liabilities||(244,201)||(85,990)||(746,426)||(349,269)|
|Net cash (outflow) / inflow from financing activities||(244,201)||(85,990)||4,121,744||14,245,261|
|Net increase / (decrease) in cash and cash equivalents||516,068||(2,698,789)||(2,002,489)||8,721,522|
|Cash and cash equivalents at beginning of period||9,819,882||18,121,392||12,217,751||6,603,620|
|Exchange difference on cash||(158,303)||(256,728)||(37,615)||(159,267)|
|Cash and cash equivalents at end of period||10,177,647||15,165,875||10,177,647||15,165,875|
1. Basis of preparation
These interim condensed consolidated financial statements are for the nine month period ended 30 September 2022. Comparative information has been provided for the unaudited nine month period ended 30 September 2021 and, where applicable, the audited twelve month period from 1 January 2021 to 31 December 2021. 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 2021 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 2021 and those envisaged for the financial statements for the year ending 31 December 2022.
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
|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|
These financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.
(i) Going concern
At 30 September 2022, the Group held cash of US$10.2 million. The reduction in cash reflects the expenditure on the continued development of Coringa during the quarter.
Following operational challenges encountered during the first quarter of 2022 in mining the Julia Vein at São Chico, the Group reduced its production guidance for 2022. This reduced the Group’s expected revenues for 2022 and impacted on the level of positive operational cash flow that the Group could generate in 2022 to support its mine development and capital programmes including the pace of development of its Coringa operation. Management have taken action to reduce operational costs and continue to evaluate near-term options to generate additional gold production to improve cash generation. In May 2022, the Group started transporting high grade ore from Coringa for processing at its Palito Complex gold plant. The first gold sale was recorded in July 2022.
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 and will be able to increase gold production to exceed the levels of 2022. Limited gold production from its Coringa operation will continue, at least in the first quarter, with continued transportation of ore from Coringa to the Palito Complex for processing.
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 Group has debt comprising a 12 month, US$5 million bank loan maturing in May 2023. The Board considers that this facility can be renewed or replaced.
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 have received no indications that the necessary permits and licences will not be awarded.
2. Finance expense and income
|3 months ended
30 September 2022
30 September 2021
|9 months ended
30 September 2022
30 September 2021
|Interest expense on short term unsecured loan||(79,272)||—||(133,131)||—|
|Interest expense on short term trade loan||(22,838)||—||(35,504)||—|
|Interest and fines on state sales tax||(1,503,742)||—||(1,503,742)||—|
|Intertest on finance leases||(104,204)||—||(104,204)||—|
|Interest expense on convertible loan||—||—||—||(47,502)|
|Interest expense on mineral property acquisition liability||—||—||—||(23,854)|
|Loss in respect of non-substantial modification||—||—||—||(40,469)|
|Loss on revaluation of warrants||—||—||—||(60,593)|
|Amortisation of arrangement fee for convertible loan||—||—||—||(150,000)|
|Total finance expense||(1,710,056)||—||(1,776,581)||(322,418)|
|Gain on revaluation of warrants||12,871||18,140||165,495||—|
|Total finance income||115,966||—||268,590||—|
|Net finance (expense)/income||(1,594,090)||18,140||(1,507,991)||(322,418)|
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 US$92,612 as a deferred tax charge during the nine month period to 30 September 2022 (nine months to 30 September 2021 – US1,149,614).
The Group has also incurred a tax charge on profits in Brazil for the nine month period of US$587,062 (nine months to 30 September 2021 – US$1,854,592)
4. Earnings per Share
|3 months ended 30 September 2022
|3 months ended 30 September 2021
|9 months ended 30 September 2022
|9 months ended 30 September 2021
|Profit attributable to ordinary shareholders (US$)||(2,943,459)||1,308,948||(870,520)||7,661,601|
|Weighted average ordinary shares in issue||75.734,551||75,734,551||75,734,551||72,014,221|
|Basic (loss)/profit per share (US cents)||(3.89c)||1.73c||(1.15c)||10.64c|
|Diluted ordinary shares in issue (1)||81,488,078||80,904,748||81,488,078||77,184,418|
|Diluted (loss)/profit per share (US cents)||(3.89c)(2)||1.62c||(1.15c) (2)||9.93c|
- Based on 1,750,000 options vested and exercisable and 4,003,527 unexercised warrants as at 30 September 2022 (30 September 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
5. Post balance sheet events
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.
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.
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.
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.
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