LONDON (ShareCast) - (Sharecast News) - Serabi Gold reported second-quarter gold production of 10,532 ounces on Monday - the highest quarterly output since operations restarted in 2013, and a 17% increase on the same period last year.
The AIM-traded firm said the result brought year-to-date production to 20,545 ounces, keeping the company ahead of its full-year production guidance of 44,000 to 47,000 ounces.

Cash at the end of June stood at $30.4m, up from $26.5m at the end of March.

Net cash, after debt and lease liabilities, rose to $24.6m from $21.1m.

The company repaid a $5m loan to Itau Bank in January and replaced it with a new $5m loan from Banco Santander, carrying a lower interest rate of 6.16% and due in January 2026.

"We have followed a strong first quarter with an even better second quarter, which at 10,532 ounces, has been the highest quarterly output recorded since operations recommenced in 2013," said chief executive Mike Hodgson.

"Year-to-date, that gives total gold production of 20,545 ounces, slightly above budget and leaving us tracking guidance."

Hodgson highlighted improved feed grades at both of Serabi's operations.

At Palito, mined grades for the year have averaged 6.19 grams per tonne, up from 4.86 grams per tonne in 2024.

Coringa meanwhile saw plant feed grades improve 12%.

The company said it had continued using its ore sorter at Coringa to process low-grade stockpiled ore, while high-grade material was sent directly to the Palito plant.

At Coringa, production now drew from both the Serra and Meio zones.

Serra continued to develop deeper levels, while initial stoping had started at Meio, despite slower progress due to weaker rock conditions near the surface.

At Palito, recent production had benefited from high-grade material in the Barrichello zone and the G3 vein, which had re-emerged as a key source of ore.

Serabi also advanced 3,850 metres of horizontal development during the quarter, up 10% from the first quarter and the highest level since operations restarted.

Exploration efforts had accelerated across the Palito Complex, Coringa, and São Domingos.

The company said it had four rigs operating and was targeting 30,000 metres of drilling in 2025.

Early results returned high-grade intercepts, including 80.5 grams per tonne over 1.65 metres at São Domingos and 52.07 grams per tonne over 0.5 metres at Coringa's Galena ore body.

"We are enjoying excellent operational performance, strong prevailing gold prices, cash growth and anticipate further success," Hodgson added.

"Our production profile will see greater quarterly production in the third and fourth quarter to reach guidance.

"With this as a foundation to what we anticipate will be a successful period of organic growth to look forward to in the second half of 2025."

At 1154 BST, shares in Serabi Gold were up 4.21% at 198p.

Reporting by Josh White for Sharecast.com.

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