Serabi Gold reports rise in Q1 production
By Josh White
Date: Monday 14 Apr 2025
(Sharecast News) - Serabi Gold produced 10,013 ounces of gold in the first quarter of 2025, it said in an update on Monday, marking an 11% increase compared with the same period last year.
The AIM-traded Brazil-focused gold miner said it remained on track to meet its full-year production guidance of 44,000 to 47,000 ounces.
It said it ended the quarter with cash of $26.5m, up from $22.2m as at 31 December.
Net cash, after accounting for interest-bearing loans and lease liabilities, rose to $21.1m from $16.2m at the end of the prior quarter.
During the period, Serabi reported initial exploration results from brownfield targets across the Palito Complex, Coringa Mine and São Domingos.
The findings formed part of the second phase of its growth strategy, and pointed to the potential for a satellite orebody near the Palito Complex.
Serabi also said it was assessing mechanisms to return capital to shareholders, reflecting its improved financial position and ongoing confidence in operational performance.
"An excellent start to 2025 with over 10,000 ounces produced, an 11% increase on the first quarter of 2024, and what was most pleasing within these numbers was the substantial grade improvements at both Palito and Coringa," said chief executive officer Mike Hodgson.
"Palito plant feed grades were 32% improved on the first quarter of 2024, whilst Coringa plant feed grades showed a 10% improvement.
"The first quarter of 2025 has also been the first full operational quarter for the Coringa classification plant, and that 10% grade improvement is partly driven by this."
Hodgson said the company spent the quarter commissioning and optimising the classification plant at Coringa, explaining that high-grade Coringa run of mine (ROM) ore was transported directly to the Palito Complex plant.
"Additionally, we used low grade stocks at Coringa during the optimising of the sorter, which was extremely effective, with the ore sorted from these low-grade stocks supplementing the high-grade ROM sent from Coringa to the Palito Complex plant.
"The Coringa Mine continued to perform exceptionally well with ore being mined in the Serra zone at levels 260, 225, 190 and 158 metres; the main ramp is deepening to level 125 metres.
"The first quarter also saw the progression and development of Meio, the second sector at Coringa."
The first two levels, 356 and 336 metres, were now in development, with development ore already contributing to the Coringa gold production, Mike Hodgson said, adding that Meio was expected to contribute significantly to Coringa production in 2025.
"At Palito, the grades improved as mining has increased in the high grade Barrichello zone.
"This zone along with the G3 and Ipe zones are contributing the bulk of Palito Complex ROM and will continue to do so this year.
"The development of the G3 vein on levels -20 and -80 metres are particularly exciting, where we expect some excellent results this year."
Hodgson said that finally, during the quarter, the company saw its brownfield exploration programme get underway, noting that Serabi now had two rigs at Palito and two at Coringa.
"The first results were published in early April with very encouraging results at Palito Complex with step out drilling on the Senna vein.
"At Coringa we are drilling the Coringa trend between the Galena and Mae de Leite zones with early success as well as intersecting the new zone called Jatobá."
He said the company was planning to spend approximately $9m in 2025 equally across both sites in its quest to double the current consolidated mineral resource inventory of 1Moz.
"I look forward to regularly updating investors on progress on our exploration success.
"In light of the excellent operational performance, strong prevailing gold price, cash position and anticipated cash growth ahead, the company is currently assessing appropriate mechanisms to return capital to shareholders."
At 1128 BST, shares in Serabi Gold were down 2.05% at 159.67p.
Reporting by Josh White for Sharecast.com.
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