Serabi Gold (SRB)

Sector:

Mining

Index:

FTSE AIM All-Share

86.00p
   
  • Change Today:
    -5.00p
  • 52 Week High: 93.50p
  • 52 Week Low: 30.10p
  • Currency: UK Pounds
  • Shares Issued: 75.73m
  • Volume: 721,281
  • Market Cap: £65.13m
  • RiskGrade: 196

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Serabi Gold agrees drawdown period extension on Greenstone facility

By Josh White

Date: Tuesday 04 Aug 2020

LONDON (ShareCast) - (Sharecast News) - Brazil-focussed gold mining and development company Serabi Gold announced on Tuesday that it has agreed with Greenstone Resources II to extend the period during which it can draw down on the $12m (£9.21m) convertible loan facility by six months.
The AIM-traded firm first announced the facility on 23 April, with the original period during which it could draw down funds due to expire on 31 December.

After that, any funds that had not been drawn down would no longer be available.

On Tuesday, Serabi said it and Greenstone had now agreed to extend the availability period to 30 June 2021.

All of the other terms of the convertible remained unchanged, and there was no consideration payable to Greenstone for the variation.

As at 3 August, Serabi said it had drawn down $2m of the convertible, and made payments of $2.5m to Equinox Gold for the $12m payment obligation for the Coringa gold project.

After those payments, the balance of the outstanding consideration amounted to $9.5m.

Under the arrangements agreed with Equinox, Serabi said it would continue to make payments of $1m per month, until Covid-19 restrictions on travel to and within Brazil are lifted./

At that time, any remaining balance of the outstanding consideration would become due within six weeks.

"Extending, by six months, the period in which we can draw down on the convertible, will relieve pressure to draw down funds earlier than might otherwise be necessary and avoid incurring additional debt under the Convertible that may ultimately not be required," said chief executive officer Mike Hodgson.

"This is excellent news for the company and its shareholders"

Hodgson said that, despite the Covid-19 pandemic, the company had continued mining operations at the Palito Complex, and with the gold prices that it had benefited from during the second quarter, it was able to pay down the remaining $3.5m of the loan with Sprott Resource Lending Partnership, while maintaining its cash position.

"Despite lower production levels, the second quarter was one of our best ever quarters from a cash flow perspective.

"Greenstone provided Serabi with the convertible as a means to help ensure that the Company was able to complete the acquisition of the Coringa gold project.

"With the gold price looking set to be maintained, the Sprott loan now repaid and projected production levels, we currently anticipate that Serabi can fund the $1m per month instalments that are due to Equinox Gold for Coringa, at least in the near term, from the cash flow generated from on-going operations."

At 1206 BST, shares in Serabi Gold were up 2.03% at 90.3p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Serabi Gold Market Data

Currency UK Pounds
Share Price 86.00p
Change Today -5.00p
% Change -5.49 %
52 Week High 93.50p
52 Week Low 30.10p
Volume 721,281
Shares Issued 75.73m
Market Cap £65.13m
RiskGrade 196

Serabi Gold Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
92.58% above the market average92.58% above the market average92.58% above the market average92.58% above the market average92.58% above the market average
36.51% above the sector average36.51% above the sector average36.51% above the sector average36.51% above the sector average36.51% above the sector average
Price Trend
96.52% above the market average96.52% above the market average96.52% above the market average96.52% above the market average96.52% above the market average
89.78% above the sector average89.78% above the sector average89.78% above the sector average89.78% above the sector average89.78% above the sector average
Income Not Available
Growth
33.13% below the market average33.13% below the market average33.13% below the market average33.13% below the market average33.13% below the market average
28.81% below the sector average28.81% below the sector average28.81% below the sector average28.81% below the sector average28.81% below the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Serabi Gold Dividends

No dividends found

Trades for 31-Oct-2024

Time Volume / Share Price
16:39 25,000 @ 87.30p
14:36 117,000 @ 86.10p
14:37 100,000 @ 87.30p
16:35 1,176 @ 86.00p
16:35 1,176 @ 86.00p

Serabi Gold Key Personnel

Finance Director Clive Malcolm Line
CEO Michael Hodgson

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