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(Sharecast News) - Brazil-focussed gold miner Serabi said in an update on Monday that its production in April totalled 2,919 ounces - the highest monthly level so far in 2022.
The AIM-traded firm said it expected gold production to be similar in May.
An initial 400 tonnes of ore was recovered from the Coringa Project, and was being transported to Palito where ore-sorting test work would begin in the coming days.
The company said the ore would also provide a bulk sample to be processed through the Palito plant.
On the financial front, Serabi said that on 17 May, it completed a $5.1m unsecured loan arrangement with a Brazilian bank.
The loan would be repayable as a bullet payment on 12 May 2023, and carried an interest coupon of 6.6%.
Serabi's board said the additional working capital offset the unexpected reduction in revenue and cash for the first quarter of 2022.
"The group currently has in excess of $10.5m in cash, including the proceeds of this loan," the board said.
Looking at its unaudited finances for the 2021 financial year, Serabi said its revenue increased 13% to $63.1m, reflecting the 8% increase in gold production.
EBITDA totalled $19.13m, which also represented the "best annual performance" for the group, and was up from $15.52m a year earlier.
Revenues and EBITDA were in line with consensus forecasts.
The company said its post tax profit totalled $9.95m, which was also "the best annual result" for the group, and an increase of 42% year-on-year.
Earnings per share totalled 13.85 cents, compared with 11.92 cents for 2020.
The average gold price during the year was $1,776 per ounce, up slightly from the $1,727 it reported for 2020, while the firm's cash cost for the year was $1,090 per ounce, up from $1,075.
Serabi reported an all-in sustaining cost for the year of $1,429 per ounce, rising from $1,374 year-on-year, reflecting the additional $2.45m of mine development expenditure incurred in the year.
At 1329 BST, shares in Serabi Gold were up 9.75% at 43.9p.
Reporting by Josh White at Sharecast.com.
