30th Mar 2016 07:01
LONDON (Alliance News) - Serabi Gold PLC Wednesday said it turned to a profit in 2015 after reporting its first full year of production from the Palito mine, and said it expects production to rise further this year now that the Sao Chico mine has officially entered commercial production.
The gold miner operating in Brazil reported a pretax profit of USD476,294 in 2015, swinging from the USD174,401 loss reported in 2014 after revenue soared to USD35.1 million from only USD12.6 million the year before.
The jump in revenue led its gross profit to rise to USD5.7 million from only USD296,451 last year.
Administrative costs were slightly higher year-on-year and the company's finance costs rose to USD1.5 million from only USD687,282 in 2014. Serabi also had a USD2.6 million gain from reversing an impairment in 2014 that was not repeated in 2015.
Gold prices were lower in 2015 at an average of USD1,151 per ounce from the USD1,243 per ounce in 2014, but Serabi produced considerably more in 2015, yielding 32,629 ounces of gold in the year compared to only 13,334 ounces in the previous year.
"For what has been our first full year of gold production from Palito, 2015 has been a year that I can look back on with great satisfaction at what has been achieved," said Chief Executive Mike Hodgson.
The all-in sustaining cash cost averaged USD892 per ounce in 2015 compared to USD1,034 per ounce last year.
Production in 2016 is expected to rise to around 37,000 ounces, boosted by the Sao Chico mine which officially entered commercial production at the start of 2016, whilst that all-in sustaining cost will fall in the region of USD840 to USD870 per ounce, it said.
"We have a current target of 37,000 ounces of gold production for this year and with three consecutive months of over 3,000 ounces of gold production per month and approximately 6,500 ounces produced during first two months of 2016 we are on target to achieve our best quarter. What is even more satisfying is that these production levels have been achieved before the plant capacity improvements that we expect to complete for the beginning of May 2016," said Hodgson.
By Joshua Warner; [email protected]; @JoshAlliance
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