Serabi Gold (LSE:SRB) delivered a strong start to 2026, reporting significant growth in production, revenue and profitability during the first quarter as higher ore grades and record gold prices boosted financial performance.
Gold production increased by 20% year-on-year to 12,043 ounces, supported by improved feed grades at both the Palito and Coringa operations. Output also benefited from the commencement of mining activities in the Meio zone at Coringa, which contributed to the overall increase in production volumes. During the quarter, the company sold 10,323 ounces of gold and achieved an average realised gold price of $4,926 per ounce, substantially higher than the $2,908 per ounce recorded in the corresponding period of 2025.
The stronger operational performance translated into a sharp improvement in financial results. Revenue rose to $50.6 million from $27.6 million a year earlier, while EBITDA increased to $29.2 million. Post-tax profit reached $21.0 million, more than double the level achieved in the first quarter of 2025.
Robust cash generation further strengthened the balance sheet, with cash holdings rising to $64.4 million as of 31 March 2026. During the period, Serabi repaid its outstanding $5.3 million loan with Banco Santander, leaving the company debt-free. This was achieved despite increases in cash costs and all-in sustaining costs associated with the continued ramp-up of the Coringa operation.
Management also pointed to encouraging exploration results generated throughout 2025 and into early 2026. The findings indicate continuity of mineralisation across key target areas and highlight the potential for additional resource growth within the company’s extensive Brazilian licence portfolio. The combination of rising production, stronger margins driven by elevated gold prices and a debt-free balance sheet is expected to provide greater financial flexibility as Serabi continues to expand its operations.
The company’s outlook is supported by strong revenue and earnings growth, low financial leverage and improving cash generation. Valuation metrics also remain attractive, with the shares trading on a relatively low earnings multiple. Positive technical indicators suggest continued market momentum, although fluctuations in earnings and cash flow remain potential risks for investors.
More about Serabi Gold
Serabi Gold is a gold mining and development company focused exclusively on Brazil. Its principal producing assets are the Palito and Coringa mines, where it operates high-grade underground mining operations supplying gold to international markets.
The company is pursuing a strategy of increasing production and expanding resources through ongoing exploration and development across its licence areas. With a growing asset base and continued investment in exploration, Serabi aims to strengthen its position as a leading mid-tier gold producer in Brazil.
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