Business
Final Results
Final Results.
About this update from Serabi Gold Plc
[{"type":"text","content":"\n \n\n\n\n\n SERABI MINING plc (\"Serabi\" or \"the Company\")\n Preliminary un-audited Results for the year ended 31 December 2006\n\nSerabi Mining plc (AIM: SRB), the gold mining and exploration Company with its operations in Brazil, today announces preliminary un-audited results for the year ended 31 December 2006.\n\nHighlights\n\n* Commercial production at Palito gold mine announced from 1\nOctober 2006\n* 2006 production of 39,197 ounces gold equivalent represents a 127%\nimprovement over 2005\n* Cash operating costs achieved of US$252 per ounce of gold\nequivalent production for the final quarter of 2006\n* Serabi reports a loss of US$2.2 million for 2006, with underlying\nprofit from operations from the Palito mine of US$2.4 million for the\nfourth quarter\n* Palito West to be first satellite ore source developed for Palito\n* Improved geological and exploration facilities should allow\nconsiderable progress in exploration in 2007; recent results from the\nJardim do Ouro district already encouraging\n\n\nChairman's Statement\nWhilst 2005 was a period of discovery for the Company, 2006 has been\none of consolidation. Substantial strides were made during the year\nculminating with the achievement of commercial production at the\nPalito gold mine from 1 October, in addition to numerous underlying\nimprovements to operating, support and exploration facilities. As a\nresult production increased throughout the year, reaching another\nrecord in the fourth quarter of 11,687 ounces of gold equivalent and\nresulting in a 127% year-on-year increase to 39,197 ounces gold\nequivalent. Furthermore, the average cash cost of US$252 per\nequivalent ounce (US$328 per ounce of gold) over that last quarter\nreflects very favourably on Serabi's progress.\n\nAs a result of these activities, Serabi reports a loss of US$2.2\nmillion for 2006 but with underlying profit from operations from the\nPalito mine of US$2.4 million for the fourth quarter since declaring\ncommercial production. In considering these results for the year two\nimportant points need to be borne in mind. Firstly, that the revenue\nand costs reported are only for the three months since the\ndeclaration of commercial production, whilst other expenses are for\nthe full twelve month period. We would therefore expect to see\nsubstantial improvement in 2008 over the 2007 figures. ...