Aim- and TSX-listed Serabi Gold has reported a significant drop in third-quarter revenue as a result of the timing of gold sales, with two shipments of concentrate, valued at about $1.6-million, having been delayed to the fourth quarter.
The miner, which operates the Palito Mining Complex in Brazil, recorded revenue of $47.52-million in the September quarter, compared with $12.91-million in the corresponding period of 2017.
With the reduced sales, Serabi’s level of inventory of goods awaiting sale has increased, negatively impacting on working capital and the quarter-end cash position. However, CEO Mike Hodgson said that the cash balance at the end of September remained relatively strong, at $15.2-million.
The company reported a net loss from continuing operations of $2.25-million, compared with a net profit of $235 051 a year earlier. Its total comprehensive loss, affected by exchange differences, came to $4.96-million, from a profit of $2.60-million in the corresponding period of 2017.
Serabi produced 8 101 oz of gold in the third quarter, bringing year-to-date output to 26 852 oz. Management does not anticipate a major shift in mine performance and, therefore, hard rock gold production in 2018, compared with 2017. However, the delay in processing the substantial surfaced stockpiled ore suggested that production would be in the range of 36 000 oz to 37 000 oz.