15th May 2015 08:43
LONDON (Alliance News) - Serabi Gold PLC shares rose on Friday after it said it has swung to a small, but its first pretax profit in the first quarter of 2015 as production reaches a steady state.
Serabi shares were up 5% to 4.73 pence per share on Friday morning.
The Brazilian focused gold mining and development company reported a USD191,398 pretax profit in the first quarter of 2015, compared to a USD1.3 million loss a year earlier as the company generated USD7.5 million in revenue compared to nil. Serabi began generating revenue in July when commercial production at the Palito mine started.
Its pretax loss for 2014 was USD174,701, compared with a USD6.3 million in 2013. Revenue in 2014 totalled USD12.6 million.
Production in the quarter totalled 7,759 gold ounces, which is down from 7,819 ounces in the fourth quarter of 2014. In the quarter, cash costs per ounce were USD599 whilst all-in sustaining cash costs were USD759 per ounce. The average gold price of USD1,212 was achieved on gold sales in the first quarter.
In March, production totalled 3,509 ounces which the company said was the highest monthly production to date, adding it has now reached "steady production". The company reiterated its full year production guidance of 35,000 gold ounces.
"We achieved excellent production results at Palito during the first quarter of 2015 and have benefited from a cost perspective during this first quarter from the sudden devaluation of the Brazilian Real that occurred especially during March 2015," said Chief Executive Mike Hodgson.
Hodgson warned the real has improved since and said the positive effects may not last trhoughout the rest of 2015.
At the end of March, Serabi had a cash balance of USD5.8 million, which is down from USD9.8 million at the end of December 2014.
By Joshua Warner; [email protected]; @JoshAlliance
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