Serabi Gold (LSE:SRB) has reported record gold production of 44,169 ounces for 2025, representing an 18% increase year on year and landing in line with guidance. The performance was underpinned by the continued ramp-up of the Coringa Mine, alongside the successful deployment of ore-sorting technology that enabled the processing of previously stockpiled lower-grade material.
Fourth-quarter output increased 15% to 11,534 ounces, while horizontal development advanced by 45% to 4,535 metres. Higher realised gold prices supported a rise in net cash to $42.1m, strengthening the balance sheet despite the refinancing of existing loans. Management said progress continues across its multi-stage growth strategy, including the introduction of mechanised mining at Coringa, the development of additional ore zones, and an ongoing 30,000-metre brownfield drilling programme. Early results from drilling have already extended known mineralised trends at both Coringa and the Palito Complex.
Looking ahead, the company has guided to consolidated production of between 53,000 and 57,000 ounces in 2026. A further 30,000 metres of brownfield exploration is planned, supporting potential resource growth, sustained production increases and stronger cash generation. These initiatives are also expected to underpin the recently introduced shareholder return policy.
From an investment perspective, the outlook is largely supported by strong financial metrics, including robust margins, a rebound in earnings and very low leverage. Technical indicators also point to a positive trend, while valuation is aided by a comparatively low price-to-earnings ratio. The principal risk remains the historically uneven nature of free cash flow and exposure to commodity price cycles.
More about Serabi Gold
Serabi Gold plc is a UK-headquartered gold exploration, development and production company focused on the Tapajós region in Pará State, northern Brazil. Its core operations comprise the Palito Complex, which has historically produced between 30,000 and 40,000 ounces of gold annually, and the Coringa Mine, which is being ramped up with the objective of roughly doubling group output. The company is also advancing brownfield exploration across its licence portfolio and has reported a copper-gold porphyry discovery, supporting a longer-term resource expansion strategy in the region.
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