Business
Announcement of Interim Financial Results
Announcement of Interim Financial Results.
About this update from Serabi Gold Plc
[{"type":"text","content":"\n \n\n\n\nPRESS RELEASE - 29th September 2008\n\nSERABI MINING plc (\"Serabi\" or \"the Company\")\n\nAnnouncement of Interim Financial Results for the 6 months ended 30\nJune 2008\n\n\nReport of the Chairman and Chief Executive\n\nActivity has been intense over the first half of 2008, with the dual\nobjectives of trying to optimise the mining operation at Palito and\nrapidly assessing the mineral potential of Serabi's assets,\nparticularly over the near-mine Palito district. However, in the\nlight of continuing mining problems at Palito the recent decision to\nreduce, in the short term, the scale of the Company's operational\nactivities, whilst carrying out a review of available strategic\noptions, has overshadowed other events of this year.\n\nThis was not a decision taken lightly. The production shortfalls of\nthe first part of 2008 and the reasons for them have been well\nreported. Production levels improved in June and July following the\narrival of the additional mining fleet towards the end of the second\nquarter. Indications from management in Brazil were that this\nimprovement would be sustained during August and they were confident\nthat a successful turnaround was underway.\n\nThe results for August, however, fell significantly short of planned\nlevels of ounces produced, rates of mining and productivity per man\nhour. This shortfall was of great concern, particularly given that\nthe preceding operational difficulties encountered during the first\nhalf of 2008 had already resulted in the rate of mine development\nachieved being lower than required for future production plans. The\npossibility of continuing delays in recovering mine development rates\nwas considered likely to compromise the ability of the mine to\nachieve production and cost targets in 2009 and beyond if not dealt\nwith.\n\nAs reported earlier this month, in the light of these difficulties a\ndetailed review of operations at the Palito mine has been undertaken\nby the Company's Chief Executive in conjunction with the Company's\nBrazilian management. The findings of this review were that mining\nshortfalls were now arising as a result of operating problems which\nwere only apparent following the introduction of the new equipment,\nplans and targets, namely;\n\n\n * daily production targets were not being adequately communicated\n and enforced;\n * equi...