Serabi Gold (LSE:SRB) said that incidents reported last week at its Palito Complex and Coringa mine in northern Brazil have not affected mining or milling operations. The company confirmed that both sites continue to operate in line with budget, with production activities proceeding as planned.
The group stated it remains fully compliant with all relevant regulatory and safety protocols and is providing ongoing support to affected employees and families. An internal review of health and safety procedures is at an advanced stage, which management said reflects its commitment to reinforcing workplace standards and maintaining confidence among regulators, employees and other stakeholders following the events.
From an investment perspective, Serabi’s outlook is underpinned by strong financial fundamentals, including high operating margins, a recovery in earnings and very low leverage. Technical indicators remain supportive, pointing to a bullish share price trend, while valuation also contributes positively given the company’s relatively low earnings multiple. The main risk factors continue to be variability in free cash flow and the cyclical nature of the gold mining sector.
More about Serabi Gold
Serabi Gold is a UK-headquartered gold exploration, development and production company with operations in Brazil’s Tapajós region in Pará state. The group operates the Palito Complex and is progressing construction of the Coringa mine, with typical annual gold production of around 30,000 to 40,000 ounces. Serabi also holds extensive exploration licences in Brazil and has reported a recent copper-gold porphyry discovery, alongside a corporate presence in Toronto.
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