Serabi Gold's earnings double on rising output

Brazilian gold miner Serabi saw its earnings almost double on increased production for the first half of 2024.

The miner reported an EBITDA of US$13 million for the first half of the year, compared to $6.6 million in the same period last year.

Revenue was at $42.6 million, up from $30.5 million, and post-tax profit reached $9.2 million, up from $5 million.

Serabi produced 18,010oz of gold, an almost 9% increase from 16,524oz in the first half of 2023, at an all-in sustaining cost of US$1,782/oz.

The miner sold 18,535oz of gold at an average gold price of US$2,209/oz.

"This has been another period of good financial performance," Serabi's chief financial officer Clive Line said. "EBITDA of $8.3 million for the latest quarter is up 76% on the first quarter of 2024 and has resulted in a year-to-date EBITDA of $13.0 million, which in turn is a 96% improvement compared with the first six months of 2023." 

"The cash position of $12 million remained steady, reflecting the continued investment in the development and ramp-up of Coringa, the ongoing mine development at Palito and the investment we have made in the crushing and ore sorting plant at the Coringa mine," he added.

In January of this year, Serabi received a three-year renewal of Coringa's trial mining license following an agreement that relaxed restrictions on license renewals from the Brazilian authorities. Mining at the Coringa operations in Brazil is now on levels 320m, 290m, and 260m, while development continues on levels 260m, 225m, and 190m, according to Line.

"The main ramp has almost reached the next planned 155m level, which will be opened in September," Line said. "The ramp will continue to be deepened, but with three and soon to be four development levels ahead of production, the mine is in a very healthy position for the planned future production expansion."

Serabi's share price was up around 3% in London's morning trade to 70p. Shares have increased around 50% since the beginning of the year.