Serabi Gold Lifts Q1 Production, Advances Expansion and Coringa Approvals

Serabi Gold (LSE:SRB) delivered first-quarter 2026 gold production of 12,042 ounces, marking a 20% increase compared to the same period last year. The company also reported a cash position of $64.4 million and is now debt-free following the repayment of a $5.3 million facility. Management reiterated its full-year production target of 53,000 to 57,000 ounces, supported by solid operational performance at both Palito and Coringa, where ongoing mechanisation and ore-sorting initiatives are improving efficiency and boosting grades.

In response to capacity constraints and a favourable gold price environment, Serabi has initiated the installation of a fourth ball mill at the Palito Complex. This upgrade is expected to lift processing capacity to around 330,000 tonnes per year by 2027, allowing the company to treat lower-grade stockpiles and potentially restart operations at the São Chico satellite mine.

At Coringa, progress continues toward securing a full mining licence, with key approvals related to land use and indigenous stakeholders moving forward. Meanwhile, the company is addressing safety concerns after two recent underground fatalities by increasing on-site safety personnel and commissioning an independent external review, highlighting a renewed focus on ESG standards and operational risk controls.

From a financial standpoint, Serabi’s outlook is underpinned by strong margins, growing earnings potential, and minimal leverage, alongside an attractive valuation reflected in a relatively low P/E ratio. However, these strengths are somewhat offset by softer technical indicators, with the shares trading below short-term moving averages and showing limited momentum.

More about Serabi Gold

Serabi Gold is a Brazil-focused gold producer engaged in exploration, development, and mining activities. Its core assets include the Palito Complex and the Coringa underground project in the Tapajós region. The company’s strategy emphasizes expanding existing operations, optimizing plant capacity, and growing its resource base, with a goal of reaching at least 1.5 million ounces of gold resources by the end of 2026.