14th Apr 2026 12:00
(Alliance News) - Serabi Gold PLC on Tuesday reported a rise in gold production during the first quarter, whilst noting an external audit of its safety protocols following a fatality at the Palito mine.
The Brazil-focused mining company estimated that gold production had increased to 12,042 ounces in the three months ended March 31, up 20% from 10,013 ounces on-year.
Quarterly activity was limited by rainy seasonal conditions, the company said. Its total gold production target for 2026 is 53,000 ounces to 57,000 ounces.
Serabi ended March with USD64.4 million in cash, up from USD49.2 million at the end of December. The company also noted that it is now debt-free, having repaid USD5.3m milllion to Brazil's Itau Bank.
At the Palito mining complex, Serabi is installing a fourth ball mill, which it expects to be operational by the fourth quarter. It sees this mill hiking annual processing throughput to 330,000 tonnes in 2027.
"With gold prices at record highs and viable stockpiles on hand, plant capacity constraints have become more pressing than ever," noted Chief Executive Mike Hodgson.
"This decision to increase plant capacity is strategically timely," the CEO added.
"The target of reaching at least 1.5 million ounces of resources by 2026-year end remains on track... An exploration update on our 2026 brownfield drilling programme will be provided in Q2-2026. The focus has been to conclude geological interpretation of all mineralised zones at Palito and Coringa in preparation for updated mineral resource updates, which will be issued imminently."
At the Coringa mine, the company plans to complete mechanisation by the third quarter. Serabi is also looking to extend its Coringa operating licence, which expires on January 29 next year. To obtain a full mining licence at Coringa, Serabi requires regulatory approval for a change of land use, which it says is progressing well.
In parallel, the company noted plans for an external group audit of its health and safety process. This follows the deaths of two workers at the Palito and Coringa mines earlier this year. The Palito fatality resulted from a traffic accident underground, Serabi said, whilst attriibuting the Coringa fatality to mining activity at a production face.
At the time of the incidents, the firm had stressed that its mining operations were unaffected. On Tuesday, Serabi said it has hired seven more health and safety personnel, alongside four more mining supervisors and a mine manager.
CEO Hodgson said the fatalities had "stunned the company", and that Serabi had "doubled down" to avoid a repetition of the incidents.
"We continue to take advantage of the economic tailwinds that prevail at this moment in time and the production profile for the year will see each quarter sequentially increasing production, as we anticipate another record year of production in 2026," Hodgson concluded.
Serabi Gold shares rose 4.4% to 334.00 pence on Tuesday noon in London.
By Holly Munks, Alliance News reporter
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