Unaudited interim results for the three and nine month periods ended 30 September 2023

Unaudited interim results for the three and nine month periods ended 30 September 2023

Serabi (AIM:SRB, TSX:SBI), the Brazilian focused gold mining and development company, today releases its unaudited results for the three and nine month periods ended 30 September 2023.

A copy of the full interim statements together with commentary can be accessed on the Company’s website using the following link: https://bit.ly/47wRleY

“This has been another excellent quarter for Serabi as we seek to deliver consistent production and drive growth in the business” said Clive Line, Serabi’s CFO. "Strong quarter on quarter production is supporting improving financials with EBITDA growing to US$8.79 million and continued growth of pre tax profits. Cash balances have grown to US$15.4 million (US$14.7 million net of cash held under the Vale Exploration Alliance) compared to US$7.2 million as at 31 December 2022, with net cash attributable to the Group increasing by US$2.4 million in the third quarter.

“With the very recent news of a threefold increase in mineral reserves at the Palito Complex confirming the continued longevity of the mine, and on-going development of Coringa being funded from cash flow, the first nine months have been very rewarding and we look forward with optimism.”

Financial Highlights

• Gold production for the third quarter of 8,738 ounces (2022: 8,541 ounces) for total production for the year to date of 25,262 ounces (2022: 24,021 ounces).
• Cash held at 30 September 2023 of US$15.4 million (31 December 2022: US$7.2 million).
• EBITDA for the nine-month period of US$8.79 million (2022: US$5.9 million).
• Post tax profit for the nine month period of US$4.62 million (2022: loss US$0.9 million),                                          
• Profit per share of 6.10 cents compared with a loss per share of 1.15 cents for the same nine month period of 2022.
• Net cash inflow from operations for the nine-month period (after mine development expenditure of US$2.6 million) of US$10.7 million (2022: US$0.01 million inflow).
• Average gold price of US$1,940 per ounce received on gold sales during the nine month period (2022: US$1,810).
• Cash Cost for the nine-month period to 30 September 2023 of US$1,253 per ounce (nine months 2022 : US$1,353 per ounce) representing an seven percent improvement compared to the same period of 2022.
• All-In Sustaining Cost for the nine-month period to 30 September 2023 of US$1,553 per ounce (nine months 2022 : US$1,662 per ounce) represents a seven percent improvement compared to the same period of 2022.
  
  

Key Financial Information

SUMMARY FINANCIAL STATISTICS
		9 months to 30 September 2023 US$	9 months to 30 September 2022 US$	3 months to 30 September 2023 US$	3 months to 30 September 2022 US$
Revenue		47,897,264	44,388,304	17,373,682	13,187,441
Cost of sales		(34,405,882)	(34,078,338)	(13,341,448)	(10,809,753)
Gross operating profit		13,491,382	10,309,966	4,032,234	2,377,688
Administration and share based payments		(4,702,467)	(4,443,642)	(1,864,200)	(1,676,866)
EBITDA		8,788,915	5,866,324	2,168,034	700,822
Depreciation and amortisation charges		(3,409,994)	(4,596,838)	(1,384,957)	(1,673,593)
Operating profit before finance and tax		5,378,921	1,269,486	783,077	(972,771)
Profit after tax		4,620,779	(870,520)	(359,112)	(2,943,459)
Earnings per ordinary share (basic)		6.10c	(1.15c)	(0.47c)	(3.89c)
Average gold price received (US$/oz)		US$1,940	US$1,810	US$1,930	US$1,720

			As at 30 September 2023 US$ (unaudited)	As at 31 December 2022 US$ (audited)
Cash and cash equivalents			15,352,099	7,196,313
Net assets			88,032,963	81,523,603

Cash Cost and All-In Sustaining Cost (“AISC”)
		9 months to 30 September 2023	9 months to 30 September 2022	12 months to 31 December 2022
Gold production for cash cost and AISC purposes		25,262 ozs	24,021 ozs	31,819 ozs
Total Cash Cost of production (per ounce)		US$1,253	US$1,353	US$1,322
Total AISC of production (per ounce)		US$1,553	US$1,662	US$1,615

Overview of the financial results

An improved level of gold production in the third quarter of the year of 8,738 ounces, a 9% increase on the first quarter and a 3% increase on the second quarter, has resulted in total production for the year to date of 25,262 ounces representing a 5% increase over the same period in 2022 (2022: 24,021 ounces). As a result, Serabi remains on track to meet its full year guidance of 33,500 to 35,000 ounces.

The cash balance at the end of September 2023 had increased to US$15.35 million (Dec 2022: US$7.2 million). This does include approximately US$0.60 million of funds held for the Vale Exploration Alliance but nonetheless the net cash attributable to the Group has increased by US$7.5 million during the first nine months of the year.

Cash cost for the year to date is US$1,253 per ounce which represents a small decrease compared to the half year when reported cash costs were US$1,258 per ounce and a significant reduction compared to the same nine month period of 2022 when a cash cost of US$1,353 was reported. AISC for the year to date is US$1,553 per ounce, which compares very favourably with the same nine month period of 2022 when an AISC of US$1,662 was reported, particularly given the levels of mine development incurred in the period, particularly at Coringa, creating the opportunity for longer term production growth. Capitalised mine development costs were US$2.6 million for the first nine months of 2023.

Gold sales for the first nine months of 2023 were 23,733 ounces, with inventory levels remaining steady following the increase in gold inventory experienced in the first quarter following the commissioning of new tanks in the leaching circuit. Consistent with the results for the first two quarters of 2023, amortisation costs are lower in this quarter than previously, a consequence of the reduced activity at Sao Chico and therefore minimal amortisation costs associated with this project. In addition, because Coringa is only in a trial mining phase and has not attained commercial production, the project costs are not currently subject to amortisation charges. In accordance with accounting regulations the gold sales and related operating costs of Coringa are being reflected in the Group’s income statement.

On 10 May 2023, the Company announced that it had entered into an exploration alliance with Vale SA focused on the Matilda prospect and other large regional targets in the Tapajos region of Para, Brazil. The current exploration activity under this alliance is being funded in its entirety by Vale up to an initial US$5 million for the Phase 1 activities. However, Serabi is the operator and undertaking the activity either directly or using contractors where appropriate. Vale provides funding in advance to Serabi and at the end of the quarter, Serabi held US$0.60 million of cash that will be used to meet the accrued and future costs of the alliance exploration activity. The exploration costs being incurred under the alliance are not being capitalised but are being expensed through the Income Statement as they are incurred. Similarly, the funds being received from Vale are also being reported through the Income Statement as other income.

During May 2023, the Group settled a US$5.0 million export linked loan facility that had been advanced by Itau Bank BBA. The Group still has a further US$5.0 million export linked facility advanced by Santander Bank in Brazil which is due to be repaid in February 2024 and carries a fixed interest rate of 7.97%.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged for the release of this announcement on behalf of the Company was Clive Line, Director.

Enquiries

SERABI GOLD plc
Michael Hodgson        t [phone]
Chief Executive        m [phone]

Clive Line        t [phone]
Finance Director        m [phone]

        e [e-mail]

        www.serabigold.com

BEAUMONT CORNISH Limited
Nominated Adviser & Financial Adviser
Roland Cornish / Michael Cornish        t [phone]

PEEL HUNT LLP
Joint UK Broker
Ross Allister                t [phone]

TAMESIS PARTNERS LLP
Joint UK Broker
Charlie Bendon/ Richard Greenfield        t [phone]

CAMARCO
Financial PR
Gordon Poole / Emily Hall                t [phone]

Copies of this announcement are available from the Company's website at www.serabigold.com.

Forward-looking statements
Certain statements in this announcement are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ‘‘believe’’, ‘‘could’’, “should” ‘‘envisage’’, ‘‘estimate’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘will’’ or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

Qualified Persons Statement
The scientific and technical information contained within this announcement has been reviewed and approved by Michael Hodgson, a Director of the Company. Mr Hodgson is an Economic Geologist by training with over 35 years' experience in the mining industry. He holds a BSc (Hons) Geology, University of London, a MSc Mining Geology, University of Leicester and is a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer of the Engineering Council of UK, recognizing him as both a Qualified Person for the purposes of Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this news release.

See www.serabigold.com for more information and follow us on twitter @Serabi_Gold

The following information, comprising, the Income Statement, the Group Balance Sheet, Group Statement of Changes in Shareholders’ Equity, and Group Cash Flow, is extracted from the unaudited interim financial statements for the nine months to 30 September 2023.

		For the three months ended 30 September		For the nine months ended 30 September
		2023	2022	2023	2022
(expressed in US$)	Notes	(unaudited)	(unaudited)	(unaudited)	(unaudited)
CONTINUING OPERATIONS
Revenue		17,373,682	13,187,441	47,897,264	44,388,304
Cost of sales		(11,769,256)	(9,808,516)	(32,463,690)	(33,077,101)
Provision for state sales taxes receivable		—	(1,001,237)	—	(1,001,237)
Stock impairment provision		—	—	(370,000)	—
Depreciation and amortisation charges		(2,957,149)	(1,673,593)	(4,982,186)	(4,596,838)
Total cost of sales		(14,726,405)	(12,483,346)	(37,815,876)	(38,675,176)
Gross profit		2,647,277	704,095	10,081,388	5,713,128
Administration expenses		(1,934,235)	(1,654,689)	(4,834,129)	(4,250,706)
Share-based payments		(52,151)	(65,195)	(138,017)	(279,117)
Gain on disposal of assets		122,186	43,018	269,679	86,181
Operating profit/(loss)		783,077	(972,771)	5,378,921	1,269,486
Other income – exploration receipts	2	1,992,344	—	3,042,879	—
Other expenses – exploration expenses	2	(1,856,520)	—	(2,876,431)	—
Foreign exchange (loss)/gain		(43,421)	(91,446)	56,645	47,659
Finance expense	3	(381,478)	(1,710,056)	(500,588)	(1,776,581)
Finance income	3	199,792	115,966	703,823	268,590
Profit/(loss) before taxation		693,794	(2,658,307)	5,805,249	(190,846)
Income tax expense	3	(1,052,906)	(285,152)	(1,184,470)	(679,674)
(Loss)/profit after taxation		(359,112)	(2,943,459)	4,620,779	(870,520)
Other comprehensive income (net of tax)
Exchange differences on translating foreign operations		(2,952,047)	(1,827,939)	1,751,104	158,834
Total comprehensive (loss)/profit for the period(1)		(3,311,159)	(4,771,398)	6,371,883	(711,686)
(Loss)/profit per ordinary share (basic)	5	(0.47c)	(3.89c)	6.10c	(1.15c)
(Loss)/profit per ordinary share (diluted)	5	(0.47c)	(3.89c)	6.10c	(1.15c)

(1)         The Group has no non-controlling interest and all profits are attributable to the equity holders of the Parent Company

Balance Sheet as at 30 September 2023

(expressed in US$)	Notes		As at 30 September 2023 (unaudited)	As at 30 September 2022 (unaudited)	As at 31 December 2022 (audited)
Non-current assets
Deferred exploration costs			19,775,603	12,236,052	18,621,180
Property, plant and equipment			49,107,705	54,088,968	48,482,519
Right of use assets			5,214,315	5,134,677	5,374,042
Deferred taxes			1,520,710	914,859	3,446,032
Taxes receivable			3,891,201	3,173,123	1,545,684
Total non-current assets			79,509,534	75,547,679	77,469,457
Current assets
Inventories			9,819,171	8,316,685	8,706,351
Trade and other receivables			1,579,886	2,133,787	5,291,924
Derivative financial assets			197,864	—	—
Prepayments and accrued income			1,750,470	1,871,869	1,572,149
Cash and cash equivalents			15,352,099	10,177,647	7,196,313
Total current assets			28,699,490	22,499,988	22,766,737
Current liabilities
Trade and other payables			7,798,873	5,576,575	5,830,872
Interest bearing liabilities			6,211,791	5,855,425	6,111,126
Accruals			593,435	431,126	461,857
Total current liabilities			14,604,099	11,863,126	12,403,855
Net current assets			14,095,391	10,636,862	10,362,882
Total assets less current liabilities			93,604,925	86,184,541	87,832,339
Non-current liabilities
Trade and other payables			3,884,102	463,323	3,800,886
Interest bearing liabilities			304,262	1,200,297	837,293
Deferred tax liability			130,967	628,231	480,922
Long term state tax			—	1,762,766	—
Provisions			1,252,631	2,676,992	1,190,175
Total non-current liabilities			5,571,962	6,731,609	6,309,276
Net assets			88,032,963	79,452,932	81,523,063
Equity
Share capital			11,213,618	11,213,618	11,213,618
Share premium reserve			36,158,068	36,158,068	36,158,068
Option reserve			116,246	1,354,465	1,324,558
Other reserves			16,167,780	14,463,647	14,459,255
Translation reserve			(64,525,667)	(68,489,336)	(66,276,771)
Retained surplus			88,902,918	84,752,470	84,644,335
Equity shareholders’ funds			88,032,963	79,452,932	81,523,063

Statements of Changes in Shareholders’ Equity
For the nine month period ended 30 September 2023

(expressed in US$)
(unaudited)	Share capital	Share premium	Share option reserve	Other reserves (1)	Translation reserve	Retained Earnings	Total equity
Equity shareholders’ funds at 31 December 2021	11,213,618	36,158,068	1,075,348	13,694,731	(68,648,170)	86,391,906	79,885,501
Foreign currency adjustments	—	—	—	—	158,834	—	158,834
Profit for the period	—	—	—	—	—	(870,520)	(870,520)
Total comprehensive income for the period	—	—	—	—	158,834	(870,520)	(711,686)
Transfer to taxation reserve	—	—	—	768,916	—	(768,916)	—
Share incentives expense	—	—	279,117	—	—	—	279,117
Equity shareholders’ funds at 30 September 2022	11,213,618	36,158,068	1,354,465	14,463,647	(68,489,336)	84,752,470	79,452,932
Foreign currency adjustments	—	—	—	—	2,212,565	—	2,212,565
Profit for the period	—	—	—	—	—	(112,527)	(112,527)
Total comprehensive income for the period	—	—	—	—	2,212,565	(112,527)	2,100,038
Transfer to taxation reserve	—	—	—	(4,392)	—	4,392	—
Share incentives expense	—	—	(29,907)	—	—	—	(29,907)
Equity shareholders’ funds at 31 December 2022	11,213,618	36,158,068	1,324,558	14,459,255	(66,276,771)	84,644,335	81,523,063
Foreign currency adjustments	—	—	—	—	1,751,104	—	1,751,104
Profit for the period	—	—	—	—	—	4,620,779	4,620,779
Total comprehensive income for the period	—	—	—	—	1,751,104	4,620,779	6,371,883
Transfer to taxation reserve	—	—	—	1,708,525	—	(1,708,525)	—
Share incentives lapsed	—	—	(1,346,329)	—	—	1,346,329	—
Share incentives expense	—	—	138,017	—	—	—	138,017
Equity shareholders’ funds at 30 September 2023	11,213,618	36,158,068	116,246	16,167,780	(64,525,667)	88,902,918	88,032,963

(1)     Other reserves comprise a merger reserve of US$361,461 and a taxation reserve of US$15,806,319 (31 December 2022: merger reserve of US$361,461 and a taxation reserve of US$14,097,794).

SERABI GOLD PLC
Condensed Consolidated Cash Flow Statements

		For the three months ended 30 September		For the nine months ended 30 September
		2023	2022	2023	2022
(expressed in US$)		(unaudited)	(unaudited)	(unaudited)	(unaudited)
Post tax (loss)/profit for period		(359,112)	(2,943,459)	4,620,779	(870,520)
Depreciation – plant, equipment and mining properties		2,957,149	1,673,593	4,982,186	4,596,838
Provision for inventory impairment		—	—	370,000	—
Increase in provision for long term taxes receivable		—	1,001,237	—	1,001,237
Gain on asset disposals		(122,186)	(43,018)	(269,679)	(86,181)
Net financial expense		225,107	1,685,536	(259,880)	1,460,332
Provision for taxation		1,052,906	285,152	1,184,470	679,674
Share-based payments		52,151	65,195	138,017	279,117
Taxation paid		(415,722)	1,479	(811,612)	(129,983)
Interest paid		(22,900)	(34,659)	(408,714)	(86,497)
Foreign exchange (loss) / gain		(45,098)	93,501	(117,170)	(62,406)
Changes in working capital
	(Increase)/decrease in inventories	(696,001)	(731,322)	(696,782)	(1,126,128)
	(Increase)/decrease in receivables, prepayments and accrued income	(1,477)	1,018,749	2,763,565	(2,893,573)
	Increase/(decrease) in payables, accruals and provisions	1,550,835	562,581	1,798,796	222,587
Net cash inflow from operations		4,175,652	2,634,565	13,293,976	2,984,497
Investing activities
Purchase of property, plant and equipment and assets in construction		(706,419)	(917,558)	(1,686,505)	(3,408,060)
Mine development expenditure		(1,274,305)	(1,029,512)	(2,613,395)	(2,878,974)
Geological exploration expenditure		(101,611)	(68,519)	(459,035)	(761,499)
Pre-operational project costs		—	—	—	(2,266,252)
Proceeds from sale of assets		123,408	38,198	314,923	102,960
Interest received		101,574	103,095	181,373	103,095
Net cash outflow on investing activities		(1,857,353)	(1,874,296)	(4,262,639)	(9,108,730)
Financing activities
Receipt of short-term loan		—	—	5,000,000	4,868,170
Repayment of short-term loan		—	—	(5,096,397)	—
Payment of finance lease liabilities		(295,583)	(244,201)	(906,565)	(746,426)
Net cash (outflow) / inflow from financing activities		(295,583)	(244,201)	(1,002,962)	4,121,744
Net increase / (decrease) in cash and cash equivalents		2,022,716	516,068	8,028,375	(2,002,489)
Cash and cash equivalents at beginning of period		13,285,447	9,819,882	7,196,313	12,217,751
Exchange difference on cash		43,936	(158,303)	127,411	(37,615)
Cash and cash equivalents at end of period		15,352,099	10,177,647	15,352,099	10,177,647

Notes

1. Basis of preparation
These interim condensed consolidated financial statements are for the three and nine-month periods ended 30 September 2023. Comparative information has been provided for the unaudited three and nine-month periods ended 30 September 2022 and, where applicable, the audited twelve month period from 1 January 2022 to 31 December 2022. These condensed consolidated financial statements do not include all the disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2022 annual report.

The Directors have reviewed the principal risks and uncertainties facing the Group and have concluded that those facing the Group for the remaining three months of the current financial year are unchanged from the risks set out in the 2022 Annual Report and Accounts. In reaching this conclusion, the Directors considered changes in the internal and external environment during the intervening period which could threaten the Group's business model, future performance, liquidity, solvency or reputation. Details of these principal risks and how they are being managed are set out on pages 25 to 32 of the 2022 Annual Report and Accounts.

The condensed consolidated financial statements for the periods have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” and the accounting policies are consistent with those of the annual financial statements for the year ended 31 December 2022 and those envisaged for the financial statements for the year ending 31 December 2023.

Accounting standards, amendments and interpretations effective in 2023

The Group has not adopted any standards or interpretations in advance of the required implementation dates.

The following Accounting standards came into effect as of 1 January 2023

IFRS 17 Insurance Contracts, including Amendments to IFRS 17	1 January 2023
Classification of Liabilities as Current or Non-current (Amendments to IAS 1) and Classification of Liabilities as Current or Non-current – Deferral of Effective Date	1 January 2023

There is no material impact on the financial statements from the adoption of these new accounting standards or amendments to accounting standards,

Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted. These standards are not expected to have a material impact on the Company’s current or future reporting periods.

These financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

(i)      Going concern


At 30 September 2023 the Group held cash of US$15.35 million which represents an increase of US$8.16 million compared to 31 December 2022. This increase includes the receipt of a US$5.0 million loan, from Santander Bank in Brazil, on 22 February 2023. The proceeds raised from the loan are being used for working capital and also provided the Group with adequate liquidity to repay an existing US$5 million facility on 12 May 2023.   The net debt position (cash less interest bearing liabilities including leases) has improved from a negative net debt position of US$0.25 million at 31 December 2022 to a negative net debt position of US$8.84 million at 30 September 2023.

Management prepares, for Board review, regular updates of its operational plans and cash flow forecasts based on their best judgement of the expected operational performance of the Group and using economic assumptions that the Directors consider are reasonable in the current global economic climate. The most recent plans assume that during 2023 the Group will continue gold production from its Palito Complex operation as well as increase production from the Coringa mine and will be able to increase gold production to exceed the levels of 2022.

The Directors will, however, continue to limit the Group’s discretionary expenditures including the continued development of Coringa which, on a longer term basis, may require additional external sources of finance to be secured.

The Directors have concluded that, based on the current operational projections, it remains appropriate to adopt the going concern basis of accounting in the preparation of these interim unaudited financial statements. The Directors acknowledge that the Group remains subject to operational and economic risks and any unplanned interruption or reduction in gold production or unforeseen changes in economic assumptions may adversely affect the level of free cash flow that the Group can generate on a monthly basis and its ability to secure further finance as and when required The Directors consider that the Group will be able to secure the necessary external finance for the development of its Coringa project but that the timing of this may be dependent on the receipt of further permits and licences. The Directors believe that all the necessary permits and licenses will be awarded when all current information requests of the relevant authorities have been met.

2. Other Income and Expenses

Under its copper exploration alliance with Vale announced on 10 May 2023, the related exploration activities being undertaken by the Group under the management of a working committee (comprising representatives from Vale and Serabi), are being funded in their entirety by Vale up to a value of US$5 million during Phase 1 of the programme. The Group at this time has no certainty that the exploration for copper deposits will result in a project that is commercially viable recognising that exploration and development of copper deposits is not the core activity of the Group, there is a significant cost involved in developing new copper deposits and it is unlikely that without the financial support of Vale that the Group would independently seek to develop a copper project in preference to any of its existing gold projects and discoveries.

As a result, it is recognising both the funding received from Vale and the related exploration expenditures through its income statement. As this is not the principal business activity of the Group these receipts and expenditures are classified as other income and other expenses.

3. Finance Costs

	3 months ended 30 September 2023 (unaudited)	3 months ended 30 September 2022 (unaudited2	9 months ended 30 September 2023 (unaudited3	9 months ended 30 September 2022 (unaudited
	US$	US$	US$	US$
Loss on revaluations of hedging derivatives	(226,883)	—	—	—
Interest expense on short term loan	(106,197)	(79,272)	(349,515)	(133,131)
Interest expense on short term trade loan	(24,267)	(22,838)	(66,158)	(35,504)
Interest and fines on state sales tax	—	(1,503,742)	—	(1,503,742)
Interest on finance leases	(24,131)	(104,204)	(84,915)	(104,204)
Total finance expense	(381,478)	(1,710,056)	(500,588)	(1,776,581)
Gain on revaluation of warrants	—	12,871	—	165,495
Gain on revaluation of hedging derivatives	—	—	385,512	—
Realised gain on hedging derivatives	98,217	—	136,938	—
Interest income	101,575	103,095	181,373	103,095
Total finance income	199,792	115,966	703,823	268,590
Net finance (expense)/income	(181,686)	(1,594,090)	203,235	(1,507,991)

4. Taxation

The Group has recognised a deferred tax asset to the extent that the Group has reasonable certainty as to the level and timing of future profits that might be generated and against which the asset may be recovered. The Group has recognised the amount of deferred tax income of US$23,113 (nine months to 30 September 2022 deferred tax charge of – US$92,612).

The Group has also incurred a tax charge on profits in Brazil for the nine month period of US$1,207,583 (nine months to 30 September 2022 - US$587,062)

5. Earnings per share

	3 months ended 30 September 2023 (unaudited)	3 months ended 30 September 2022 (unaudited)	9 months ended 30 September 2023 (unaudited)	9 months ended 30 September 2022 (unaudited)
(Loss) / profit attributable to ordinary shareholders (US$)	(359,112)	(2,943,459)	4,620,779	(870,520)
Weighted average ordinary shares in issue	75,734,551	75,734,551	75,734,551	75,734,551
Basic (loss)/profit per share (US cents)	(0.47c)	(3.89c)	6.10c	(1.15c)
Diluted ordinary shares in issue (1)	75,734,551	81,488,078	75,734,551	81,488,078
Diluted (loss)/profit per share (US cents)	(0.47c)(2)	(3.89c)(2)	6.10c	(1.15c)(2)

      (1)   There were no share options outstanding at 30 September 2023 (30 September 2022: 1,750,000 options vested and exercisable as at 30 September 2022). At 30 September 2023 there were 2,075,400 Conditional Share Awards in issue under the Serabi 2020 Restricted Share Plan (the “2020 Plan”) (with 459,800 Conditional Share Awards issued in 2020 and a further 1,615,600 Conditional Share Awards issued during the third quarter of 2023. The underlying shares to be issued pursuant to these Conditional Share Awards can only be issued at the end of the stipulated vesting period and also only if certain performance conditions have been met. During the period the Company announced that 404,700 Conditional Share Awards which had been issued in 2020 had lapsed as the performance conditions had not been achieved. The vesting period for the remaining 2,075,400 Conditional Share Awards has not yet been completed. Accordingly, none of the Conditional Share Awards that may be issued in the future have been included in the calculation of diluted earnings per share.

      (2)   As a loss was recorded for the period the effect of dilution would be to reduce the loss per share. Accordingly the diluted loss per share is considered to be the same as the undiluted loss per share.

6.        Post balance sheet events

Subsequent to the end of the period, there has been no item, transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company to affect significantly the continuing operation of the entity, the results of these operations, or the state of affairs of the entity in future financial periods.