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

Deal with Barclays    Trade now with Barclays Stockbrokers

Serabi Gold makes solid progress in first quarter

By Josh White

Date: Thursday 15 Apr 2021

LONDON (ShareCast) - (Sharecast News) - Brazil-focussed gold mining and development company Serabi Gold reported first quarter gold production of 8,087 ounces for the Tapajos region of the country's Para state on Thursday.
The AIM-traded firm said that was a 19% and 11% improvement on gold production for the third and fourth quarters of 2020, respectively, and was 16% ahead of budget driven by improving grades.

It said 40,371 tonnes of total ore was mined in the period at 6.27 grams of gold per tonne, which was a 20% improvement in grade compared with the prior quarter.

A total of 41,462 tonnes of run-of-mine ore was processed through the plant from the combined Palito and São Chico orebodies, with an average grade of 6.27 grams of gold per tonne.

Horizontal development of 3,573 metres was completed during the three months, which was the highest development rate since the company's current operations began.

Exploration drilling on the Toucano trend at São Domingos, five kilometres from the São Chico operation, intersected three mineralised structures, all hosted within a mineralised alteration zone with a true width of 50 metres.

It also completed a terrestrial geophysical survey at its Calico prospect, with results showing a "highly encouraging" geophysical anomaly coincidental with a previously-identified geochemical anomaly.

A soil sample geochemical survey, undertaken in the eastern area of the São Domingos tenement that runs into the western part of the São Chico mining licence, defined multiple areas of anomalous gold in soils.

Those gold-in-soil anomalies were coincidental with, and supported by, other multi-element anomalies, the board said.

On the financial front, Serabi completed a placing of new shares in March, raising gross proceeds of £12.5m.

The funds would be used to redeem $2m of convertible loan notes, together with accrued fees and interest, and settle the balance of the acquisition payment for the Coringa Gold Project, which as of the placing was $3.5m, including accrued interest.

It would also be used to part-fund the construction of the Coringa Gold Project which, when in full production, was expected to increase current group annual production by about 100% to approximately 80,000 ounces per annum.

The company would also undertake further regional exploration, including up to 32,000 metres of drilling on priority targets during 2021 as part of its longer-term exploration objective of targeting a mineral resource above three million ounces of contained gold in total across all of its projects.

Cash holdings at the end of March totalled $20.5m, following the redemption of the outstanding convertible loan notes held by Greenstone Resources II, but before settlement of the rest of the Equinox debt in respect of the acquisition of Coringa, which as of 31 March was about $3.6m.

"It has been a very encouraging start to 2021 from an operational perspective, with over 8,000 ounces of gold produced, comfortably exceeding our internal forecast," said chief executive officer Mike Hodgson.

"After the challenges of 2020, this first quarter was expected to deliver the lowest level of gold production for 2021, so achieving a 16% improvement on our internal budget represents an excellent result."

Hodgson noted that last year, the company experienced a reduction in average mined grades as a result of being restricted in mining areas available following labour reductions, so achieving a 20% improvement in the mined and milled grades compared to the fourth quarter of 2020 was "very pleasing".

"With a total of 3,573 horizontal metres achieved in the quarter, the company also improved on the previous best level of quarterly development metres which had been set in the preceding quarter.

"This bodes well for the rest of the year as we continue to accelerate development and recover the metres that were unavoidably delayed in 2020 due to the Covid-19 pandemic."

At 1012 BST, shares in Serabi Gold were up 7% at 74.9p.

Email this article to a friend

or share it with one of these popular networks:


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

Top of Page