Business
Interim Results for the six months ended 30 Jun...
Interim Results for the six months ended 30 Jun....
About this update from Serabi Gold Plc
[{"type":"text","content":"\n \n\n\n\nPRESS RELEASE - 22nd September 2009\n\nSERABI MINING plc (\"Serabi\" or \"the Company\")\n\nAnnouncement of Interim Financial Results for the 6 months to 30 June\n2009\n\n\nHighlights\n\n* Production for the first six months of the year was 3,775\n ounces\n\n* Operating profit of US$539,000\n\n* Results impacted by strong gold price and relative\n weakness of the Brazilian Real\n\n* Drill programme underway to identify additional oxide ore\n sources\n\nThe continuing modest success of the oxide mining operations at\nPalito has made a valuable contribution to the Company's cash flow\nthis year, potentially allowing us the opportunity to benefit from\nthe improved markets and investor sentiment, compared with those\nprevailing in the earlier part of this year. The oxide ores had not\npreviously formed a significant part of our production strategy for\nPalito because of processing issues when being treated together with\nthe sulphide ore. For this reason we had never focused before on\nestablishing significant oxide resources; what resources had been\nidentified were an incidental consequence of exploration targeted\ntowards the underlying sulphide mineral deposits.\n\nProduction for the first six months of the year was 3,775 ounces with\nan average head grade of 3.42 g/t gold. Whilst this represents a\nhigh grade for an open pit operation, the nature of the ore bodies\nmeans that ore volumes are limited and thus by necessity each pit is\nfairly small. From this production we have recorded a small\noperating profit for the six months ended 30 June 2009 of $539,000,\nalthough after taking account of administration costs and\ndepreciation charges the Group recorded an overall loss of $2.02\nmillion (before impairment charges), compared with $3.33 million for\nthe corresponding period of 2008.\n\nWe have benefited during the period from a strong gold price and the\nrelative weakness of the Brazilian Real. The gold price for the\nfirst six months averaged US$915 per ounce and traded in a range of\nUS$813 to US$990, whilst the average exchange rate of the Brazilian\nReal to the US Dollar was 2.208. However, the Brazilian Real has\nbeen strengthening throughout this year as inward flows of foreign\nmoney have helped rebuild the country's currency reserves. These\ninward flows are a mixture of direct infrastructure and manufact...