Serabi Gold (SRB:AIM) (SBI-CN)
In the quarter the company was able to achieve record production, reduce debt and dramatically increase profit for the nine months ended September 30, 2016.
The company achieved record Q3 2016 gold production of 10,233 oz, compared to 9,896 in Q2 2016. The addition of a third ball mill, a second flotation line and enhancements in the carbon in pulp, increased the plant capacity from 380-400 tonnes per day to over 500 tpd.
Clive Line, CFO of Serabi commented: “The third quarter has produced another satisfying result, both operationally and financially. We continue to strengthen the balance sheet and pay down debt reflected in the improvement in the current asset position of the Company.”
Revenue has almost doubled from Q3 2015 to US$16.2m. Profit after tax for the nine months ended September 30, 2016 was US$1.4m or 0.35c per share (9-months 2015 US$191k or 0.02 per share). All-in sustaining cost of production per ounce for nine months was US$951. Cash on hand was US$3.12m, with secured debt facilities reduced to US$1.4m from US$4.7m in Q2 2016.
The average grade processed through the plant was 8.27 g/t Au including the processing of low grade stockpiles. The first 17 holes of the underground 6000 metre drill program at Sao Chico were completed in the quarter, to test the continuity of the central ore-zone below the current deepest workings at 86m to level -20m.
A new carbon regeneration kiln, for the purpose of enhancing gold recoveries should be completed in Q4.
Full year gold production for 2016 is expected to be approximately 39k oz at AISC of US$950-US$985/oz.