Business
Unaudited financial results for the 9 months en...
Unaudited financial results for the 9 months en....
About this update from Serabi Gold Plc
[{"type":"text","content":"\n \n\n\n\n\n\n\n SERABI MINING plc (\"Serabi\" or \"the Company\")\n\n Release of Unaudited Financial Results for the 9 months to 30 September 2010\n\nThe Board of Serabi announces the unaudited financial results for the Company\nfor the nine months to 30 September 2010.  As announced on 2 December 2010, the\nCompany is taking the steps required to apply to list the Ordinary Shares on a\nCanadian stock exchange in early 2011.  As part of this process the Company will\nbe required to include in its prospectus the financial results of the nine month\nperiod ended on 30 September 2010 and on an on-going basis, and if its listing\napplication is successful, will be required to report its financial results on a\nquarterly basis as part of its on-going reporting obligations under Canadian\nrequirements.\n\nThe Company is focussed on its exploration strategy at the Palito Mine and the\nsurrounding Jardim do Ouro district and commenced in December 2010, a 7,500\nmetre discovery drilling programme on nine targets located in close proximity to\nthe Palito Mine. It has also approved a helicopter borne electro-magnetic survey\ncovering an 8,000 hectare area to the south and north east of the Palito Mine to\nidentify other potentially mineralised areas within the wider region that it\nhopes will create additional targets for further evaluation.\n\nDiscussion of Results\n\nAn operating loss for the nine-month period ended September 30, 2010 of US$3.84\nmillion (2009: US$7.41million) is reported, including non-cash elements of\nUS$1.7 million (2009: US$6.27 million), being primarily depreciation charges.\nThe cash expended on operations of the Company during this nine month period, as\nshown in the cash flow statements, was approximately US$2.9 million (2009:\nUS$285,000).\n\nThe suspension of mining operations at the Palito Mine, following the issuance\nof a suspension notice by IBAMA in June 2010, contributed to a gross loss for\nthe nine month period of US$733,581 compared to a gross profit of US$224,875 for\nthe nine-month period ended September 30, 2009.  While the suspension notice was\nlifted on September 23, 2010, it is not foreseen that there will be any\nimmediate resumption of mining activities which was in any event limited to the\nprocessing of oxide ore mined from small scale surface mining activities.\n ...