LONDON (ShareCast) - (Sharecast News) - Serabi Gold announced its highest quarterly gold production in five years on Wednesday, producing 10,022 ounces in the fourth quarter of 2024.
The Brazil-focussed, AIM-traded gold miner said that performance contributed to a full-year total of 37,520 ounces, marking a 13.2% increase compared to 2023.

It attributed the strong results to operational improvements, including the successful commissioning of the Coringa classification plant with a new crusher and ore sorter.

The company said it ended the year with a cash balance of $22.2m, up from $20m at the end of the third quarter, and a net cash position of $16.2m, which was a significant improvement from $5m a year earlier.

Looking ahead, Serabi Gold issued consolidated production guidance for 2025, targeting between 44,000 and 47,000 ounces of gold.

"2024 was a highly successful year for Serabi with many milestones achieved," said chief executive officer Mike Hodgson.

"These include a 13% increase in annual gold production, permitting progress at Coringa with the renewal for three years of the trial mining permit, the successful build and commissioning of the Coringa classification plant out of cash flow, whilst ending the year with a healthy cash position.

"The fourth quarter in particular was excellent for Serabi, as gold production of 10,022 ounces was a five-year high and resulted in a year-end total of 37,520 ounces."

Hodgson said that throughout 2024, gold production improved, with the company expecting that to continue into 2025.

"Whilst our growth is clearly Coringa focused, it has been very welcome news to see Palito grades improve significantly during the fourth quarter, with mined and milled grades exceeding 6.10 grams of gold per tonne.

"It is not a coincidence that this grade improvement has occurred as we have been able to cease the more dilutive mechanised mining in the Chico da Santa zone, and return to a selective mining method.

"Grade improvements are also due to some exceptional grades coming out of the Barrichello zone which is expected to be contributing significantly to 2025 gold production."

The Coringa mine continued to perform "exceptionally well", Mike Hodgson explained, with ore being mined in the Serra zone at levels 260 metres and 225 metres, with development on levels 225 metres, 195 metres and 165m metres, and the Serra ramp now approaching level 130 metres.

"The fourth quarter also saw the Meio portal and ramp development commence with the mineralisation at Meio intersected in December.

"Meio is expected to contribute significantly to Coringa production in 2025.

"Lastly, the Coringa classification plant was commissioned in December and so far has been yielding formidable results."

Hodgson noted that as it had previously reported, Serabi was now pre-concentrating mined ore at Coringa and trucking that pre concentrated product to the Palito Complex for further processing, about 200 kilometres to the north by road.

"The economic benefits of this option were formally documented in the NI 43-101 compliant preliminary economic assessment technical report filed in November."

At 1344 GMT, shares in Serabi Gold were up 1.03% at 127.8p.

Reporting by Josh White for Sharecast.com.

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