Serabi Gold reports higher first-quarter production

14th Apr 2026 15:19

(Sharecast News) - Serabi Gold reported higher first-quarter production on Tuesday, and said it had moved into a net cash position after repaying its remaining debt, as it continued to expand capacity and advance permitting at its Coringa project.

The AIM-traded firm said gold production rose 20% year-on-year to 12,042 ounces in the first quarter, up from 10,013 ounces in the same period of 2025, supported by stronger performance at both the Palito Complex and Coringa operations.

Total ore mined increased to 54,965 tonnes at a grade of 7.06 grams per tonne, compared with 44,924 tonnes at 7.09 grams per tonne a year earlier, while 54,587 tonnes were processed at an average grade of 7.05 grams per tonne.

"We delivered an excellent first quarter, with over 12,000 ounces of gold produced and a positive cash balance of over $64m increasing the cash position by $15m," said chief executive Mike Hodgson.

"We are now debt free having repaid the $5.3m debt facility to Itaú Bank in Brazil during the quarter."

Coringa remained the main contributor, producing 7,450 ounces during the quarter compared with 5,347 ounces a year earlier, while Palito delivered 4,592 ounces, broadly stable year-on-year.

The company said ore sorting and favourable geological continuity at Coringa had supported a transition from selective open stoping to mechanised sublevel stoping, with full mechanisation expected by the third quarter.

Serabi also highlighted ongoing investment to address processing constraints at its Palito Complex, where it had started installing a fourth ball mill, expected to be operational in the fourth quarter of 2026.

The upgrade was projected to lift annual throughput to 330,000 tonnes from 2027 and would be funded from existing cash resources, with costs estimated at $5m.

"With gold prices at record highs and viable stockpiles on hand, plant capacity constraints have become more pressing than ever," Hodgson said.

"The company is installing one of the dormant ball mills previously destined for Coringa at Palito to increase plant throughput."

The firm added that the expansion would allow it to process lower-grade stockpiles, including material from the São Chico satellite operation, where a potential restart was under evaluation following improved economics.

On the balance sheet, Serabi reported cash of $64.4m as at 31 March, up from $49.2m at the end of December, after repaying $5.3m of debt during the quarter to become debt free.

Permitting progress at Coringa also continued, with the company advancing approvals required for a full mining licence.

Discussions were reportedly ongoing with Brazilian authorities regarding an extension of the current three-year trial mining licence, while approvals linked to land use and indigenous studies were said to be progressing, with a decision on land use expected in the first half of 2026.

The company reiterated full-year production guidance of 53,000 to 57,000 ounces and said output was expected to increase sequentially through the year.

"We continue to take advantage of the economic tailwinds that prevail at this moment in time and the production profile for the year will see each quarter sequentially increasing production, as we anticipate another record year of production in 2026," Hodgson added.

Serabi reported two fatalities during January and said it had strengthened its health and safety processes, including hiring additional personnel and commissioning an external audit.

At 1459 BST, shares in Serabi Gold were up 6.25% at 340p.

Reporting by Josh White for Sharecast.com.

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