14th May 2014 11:41
LONDON (Alliance News) - Serabi Gold PLC Wednesday said its pretax loss narrowed slightly in the first quarter, as lower foreign exchange costs helped the company in its move towards revenue from its Palito mine.
The Brazil-focused gold miner, which is yet to produce any revenues, said its pretax loss narrowed to USD1.3 million for the three months ended March 31, from USD1.4 million a year earlier.
The company said the slight narrowing was due to a lower foreign exchange cost of USD9,918, down from USD255,218, which offset growth in net finance costs to USD180,154, from USD39,742.
Serabi said its foreign exchange savings occurred as most of its funds are now held in US dollars reducing its exposure to losses on currencies, after funds in euros and UK pounds were hit in 2013.
In April, the company announced that it had achieved mixed production rates from its Palito Mine following successful commissioning and initial switch-on in December.
Serabi said at the time that said its first quarter gold production was 2,300 ounces, from 11,387 tonnes of ore mined at an average grade of 7.09 grams per tonne during the period.
"With a successful first quarter start up at Palito now behind us, we can look forward to the second quarter, where we will see operational throughput achieve long term monthly rates," Chief Executive Mike Hodgson said in a statement.
The company also said on Wednesday that its cash balances at the end of the quarter were USD11.6 million and its net assets at the end of the quarter totalled USD77.2 million.
Serabi Gold shares were up 2.0% to 5.10 pence on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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