- Serabi Gold's [LON:SRB] shares were up in late trading after its March-quarter pre-tax profit profits rose to USD1.5m from USD0.2m. Revenue firmed to USD11.7m, from USD7.5m. Gold output was 9771 oz, from 7759 oz.

Average gold price received was USD1165/oz, from USD1212/oz. Total cash cost of production was USD662/oz, from USD599/oz, and total all-in sustaining cost of production was USD858/oz., from USD759/oz.

CEO Mike Hodgson commented, "The Board and management of Serabi feel that a production level of 9771 ounces at an All-In-Sustaining Cost of US$858 per ounce is an extremely satisfying performance for this first quarter of 2016.

"It is an excellent start to the year and puts Serabi in a strong position to meet our guidance of 37,000 ounces with an All-In-Sustaining Cost of between US$840 and US$870 per ounce.

"Gross profit from operations has increased by over 150% from US$1.5 million to US$3.8 million compared to the same quarter in 2015 with post tax profit rising to US$1.35 million compared with US$0.19 million for the same quarter in 2015.

"This improvement in revenue reflects the increased level of gold production which, as was reported in April 2016, represented a 32% improvement compared to the same quarter in 2015.

"Whilst, in part, this reflects the contribution from the Sao Chico Mine, it also reflects the increase in plant capacity that was achieved with the installation of a second ball mill during the second quarter of 2015. Plant capacity will be further increased by the introduction of a third ball mill later this month. "Serabi's cash generation and revenue recognition always lags behind production because approximately 50% of the Group's production is from sales of copper / gold concentrate which is shipped to a refinery outside of Brazil for processing and sale.

"This affects when the actual sale occurs and also when cash is received. During this first quarter of 2016 we have also experienced an increase in the level of unsold production of copper/gold concentrate that is waiting to be shipped from Brazil and therefore waiting to be sold.

"At the end of the quarter the volume of production waiting to be sold has increased since 31 December 2015 by approximately 180 tonnes having an estimated sales value of US$1.75 million with 140 tonnes of this increase being held in Brazil at the quarter end.

"This is simply a timing issue linked to vessel sailing dates and we expect an increased level of shipments during the second quarter. These shipments will be reflected in the reported revenues in the second quarter and increased level of cash receipts once the copper/gold concentrate leaves Brazil."

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Sirius Minerals [LON:SXX] has created two share-award schemes, as recommended by the Remuneration Committee. As a result, and among the majority of employees set to benefit, CEO and MD Chris Fraser will be issued 833,340 shares.

This will take Fraser's total direct and indirect beneficial interest to 123,747,368 shares, or 5.36% of the new total voting rights. He also has the potential to have a beneficial interest in a further 1,239,006 shares if significant milestones are met.


In recognition of the milestones achieved on approvals, sales progress and the definitive feasibility study completion, the Committee has recommended the granting of short term incentive ("STI") share awards to various employees.

In addition to the award of STIs, the Committee has also recommended, and the board of directors ("the Board") has approved, the creation of an employee benefit trust ("EBT") to manage new long term incentive ("LTI") awards for key employees.

The LTIs will vest for relevant employees if the Company meets significant milestones that increase shareholder value, linked to the delivery of its North Yorkshire polyhalite project.

The majority of the Company's employees are set to benefit from these schemes as Sirius is committed to ensuring that employee incentives remain aligned to the interests of shareholders. The awards are being made under the Sirius Minerals Plc Shares Based Incentive Plan.

In addition to the newly created STIs and LTIs, the final tranche of shares under the Company's existing long term incentive plan have vested and shares are due to be issued to certain employees ("Existing Awards"). These were the last employee incentive awards issued and were previously announced on 21 March 2013.

The Board has accepted these recommendations and will award a total of 12,649,417 ordinary shares of 0.25p each ("Ordinary Shares") in relation to the STIs, the LTIs and the Existing Awards.

Of these shares 4,772,732 Ordinary Shares, representing 0.2 per cent of the Company's new total voting rights, are being issued to the EBT to satisfy potential LTI awards.

An application has been made for the 12,649,417 Ordinary Shares, which will rank pari passu with the Company's existing ordinary shares, to be admitted to trading on AIM and trading in such shares is expected to commence at 8am on 16 May 2016.

Following the issue of the Ordinary Shares, the total number of shares in issue and the total number of ordinary shares in the Company with voting rights will be 2,307,394,115.

* * *

Landore Resources [LON:LND] posts an after tax loss of GBP1,535,279 for the year to the end of December (2014: GBP5,733,760).

Landore said operating expenses are in line with expectations and significant savings were made in respect of administrative expenses.

In November, the group raised gross proceeds of approximately GBP664,320 (C$1.325 million) through a subscription of 1,110,720,000 new ordinary shares at 0.6p apiece.

In recognition of the outstanding support from shareholders in the challenging environment for mining companies and the need to utilise available funds to increase asset value through operations, the directors agreed, with effect from 1 July 2015 to reduce their overall remuneration from GBP270,000 pa to GBP137,500 pa.

In addition, payment of these fees has been deferred with the exception of GBP40,000pa of operational charges.

The group has no debt and will continue to raise further equity as needed to carry out its development plans. Shareholders have been very supportive of the Group's financing needs and the Directors are confident of raising further funds as required.

* * *

Coal of Africa Limited [LON:CZA] has extended its recommended offer for Universal Coal to 24 June.

CoAL says this is to allow it sufficient time to finalise the two new subscription agreements with Hengshun Zhongsheng Group Co and Summer Trees PTE. They will subscribe for 229,885,058 and 114,942,529 CoAL shares respectively at a price of US$0.0435 for total proceeds of US$15m.

It is intended that these new subscription agreements will replace the YBI subscription agreement which was intended to be replaced by a US$15 million loan to be made available to CoAL by YBI as first noted in the notice of variation dated 8 April.

* * *

The sector's biggest riser was Herencia Resources [LON:HER] - up by more than 36.3% in late trading - while the biggest faller was Thor Mining [LON:THR] - down by over 10.2%.

At 3:57pm:

[LON:BEM] Beowulf Mining PLC share price was 0p at 4.25p

[LON:BKY] Berkeley Energia Ltd share price was -1p at 31.5p

[LON:CEY] Centamin PLC share price was -0.5p at 115.4p

[LON:CHL] Churchill Mining PLC share price was +0.38p at 18.25p

[LON:CZA] Coal of Africa Ltd share price was -0.25p at 3p

[LON:FDI] Firestone Diamonds PLC share price was 0p at 31.25p

[LON:FRES] Fresnillo PLC share price was +33.5p at 1108.5p

[LON:GEMD] Gem Diamonds Ltd share price was -2.87p at 131.88p

[LON:HER] Herencia Resources PLC share price was +0.01p at 0.04p

[LON:HOC] Hochschild Mining PLC share price was +4.5p at 141.5p

[LON:KMR] Kenmare Resources PLC share price was -0.02p at 0.79p

[LON:LND] Landore Resources Ltd share price was -0.03p at 1.78p

[LON:SRB] Serabi Mining PLC share price was +0.38p at 4.75p

[LON:SXX] Sirius Minerals PLC share price was +0.13p at 18.13p

[LON:VED] Vedanta Resources PLC share price was +17.85p at 362.85p

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