Serabi Gold reports sharp rise in Q1 profit

(Sharecast News) - Serabi Gold reported a sharp rise in first-quarter profit and cash generation on Friday, as production increased and the Brazilian-focused miner benefited from a significantly stronger gold price.

The AIM-traded company said gold production for the three months ended 31 March rose 20% to 12,043 ounces, from 10,013 ounces a year earlier.

Gold sales increased to 10,323 ounces from 9,699 ounces.

Revenue rose to $50.6m from $27.6m, while EBITDA increased to $29.2m from $12.4m.

Post-tax profit rose to $21.0m from $8.8m, and basic earnings per share increased to 27.72 cents from 11.58 cents.

Serabi said the average realised gold price during the quarter was $4,926 per ounce, compared with $2,908 per ounce in the first quarter of 2025.

The company said the gold price strengthened materially in March, although a stronger Brazilian real limited the extent to which higher dollar prices translated into local currency margins.

Cash at the end of March stood at $64.4m, up from $49.2m at the end of December.

Serabi said it was now debt free after repaying $5.3m to Banco Santander in Brazil during the quarter.

Net cash inflow from operations was $24.2m after mine development expenditure of $2.2m and pre-operating costs of $0.9m.

That compared with a $7.1m inflow a year earlier, after mine development spend of $1.6m and pre-operating costs of $1.5m.

Cash costs for the quarter were $1,863 per ounce, compared with $1,269 a year earlier, while all-in sustaining costs rose to $2,293 per ounce from $1,636.

Serabi said costs were also higher than in the fourth quarter of 2025, largely reflecting the ramp-up at Coringa, where costs from the Meio zone are now included following the start of commercial production.

Chief financial officer Colm Howlin said the first quarter marked a strong start to the year, building on momentum from 2025.

"Gold production for the quarter totalled 12,043 ounces, representing a 20% increase on the first quarter of 2025, driven by higher feed grades at both Palito and Coringa, as well as the commencement of production from the Meio zone at the Coringa Mine," he said.

Howlin said the strong operational performance delivered cash generation of $15.2m in the quarter and lifted the group's cash balance to $64.4m.

The company said the classification plant at Coringa contributed meaningfully to the grade uplift, while development at the Meio and Galena veins continued during the quarter.

Howlin added that exploration results from 2025 and the first quarter of 2026 had continued to show strong mineralisation continuity and highlighted significant upside potential across Serabi's licence areas.

The company said it expected to provide further exploration updates in the coming weeks.

At 0822 BST, shares in Serabi Gold were up 2.19% at 350p.

Reporting by Josh White for Sharecast.com.

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