23rd Jul 2026 18:13
(Alliance News) - Serabi Gold PLC on Thursday maintained its full-year production guidance after reporting higher second-quarter gold output and saying expansion projects at its Brazilian operations remain on schedule.
The gold producer said gold production rose 4.5% to 11,007 ounces in the second quarter from 10,532 ounces a year earlier, taking first-half output to 23,049 ounces, up 12% from 20,545 ounces.
Cash at June 30 increased to USD65.7 million from USD64.4 million at the end of March. Serabi said it remains debt-free after repaying its USD5.3 million unsecured loan with Banco Santander in the first quarter.
At the Palito complex, second-quarter production fell to 3,469 ounces from 5,607 ounces a year before as milled grades declined to 4.62 grams of gold per tonne from 6.15g/t. At the Coringa mine, production increased to 7,538 ounces from 4,925 ounces, with milled grades broadly stable at 7.41g/t.
The company said installation of a fourth ball mill at Palito remains on time and on budget for completion in the fourth quarter, with annual processing capacity expected to increase to 330,000 tonnes in 2027.
Serabi also said the transition to mechanised sublevel stoping at Coringa remains on track for completion in the fourth quarter, which it expects will improve costs, production and safety.
The company continues to operate Coringa under a three-year GUIA licence that expires in January 2027 and said discussions with Brazil's mining regulator regarding an extension are ongoing.
Serabi added that progress continues towards securing the mine's full mining licence, with approvals from land agency INCRA and Indigenous affairs body FUNAI advancing. A site visit by local Indigenous communities took place on July 17.
Chief Executive Officer Mike Hodgson said production is expected to increase in the second half of the year, supported by improved grades at Palito and continued development at Coringa.
Serabi maintained its forecast for record 2026 gold production of more than 53,000 ounces, assuming the full mining licence for Coringa is granted in the fourth quarter.
Serabi shares ended down 5.8% at 260.00 pence in London on Thursday.
By Eva Castanedo, Alliance News senior economics reporter
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