Serabi swings to third-quarter profit as production grows

30th Nov 2023 13:53

(Sharecast News) - Brazil-focussed gold miner Serabi Gold reported total third-quarter gold production of 8,738 ounces on Thursday - a slight increase from 8,541 ounces in the same period in 2022.

The AIM-traded company said its cumulative gold production for the year-to-date stood at 25,262 ounces, compared to 24,021 ounces at the same time in 2022.

Its financial position also showed improvement, with cash reserves reaching $15.4m as of 30 September, compared to $7.2m at the end of 2022.

The firm reported an EBITDA of $8.79m for the nine months through September, up from $5.9m a year earlier.

Furthermore, Serabi Gold achieved a post-tax profit of $4.62m for the same period, swinging from a $0.9m loss year-on-year.

That translated to a profit per share of 6.10 cents, compared to a loss per share of 1.15 cents in the prior year's corresponding period.

In addition to improved financial performance, Serabi reported a strong operational cash flow, with its net cash inflow from operations coming in at $10.7m for the nine months, after accounting for mine development expenditure of $2.6m.

The company also benefited from favourable market conditions, with an average gold price of $1,940 per ounce received on gold sales during the nine months, compared to $1,810 in 2022.

That contributed to a reduction in cash costs, which decreased to $1,253 per ounce for the nine months, representing a 7% improvement over 2022.

Similarly, the all-in sustaining cost for the same period declined to $1,553 per ounce, marking a 7% reduction compared to 2022.

"This has been another excellent quarter for Serabi as we seek to deliver consistent production and drive growth in the business," said chief financial officer Clive Line.

"Strong quarter-on-quarter production is supporting improving financials with EBITDA growing to $8.79m and continued growth of pre tax profits."

"With the very recent news of a threefold increase in mineral reserves at the Palito Complex confirming the continued longevity of the mine, and ongoing development of Coringa being funded from cash flow, the first nine months have been very rewarding and we look forward with optimism."

At 1325 GMT, shares in Serabi Gold were up 5.23% at 35.78p.

Reporting by Josh White for Sharecast.com.