Serabi delivers 'strong start' as Q1 profits jump

(Sharecast News) - Gold miner Serabi delivered a "strong start" to 2025, with output, prices and profits rising strongly compared with last year, with the board encouraged by recent drilling activity. Gold production totalled 10,013 ounces over the first three months of the year, up from 9,007 ounces mined in the same period the year before.

Growth was driven by higher feed grades at both Palito and Coringa, supported by the first full quarter of operations at the Coringa classification plant.

This contributed to cash generation of $4.2m for the quarter, increasing the cash position to $26.5m by 31 March, up from $22.2m three months earlier.

Meanwhile, the average realised gold price jumped to $2,908 per ounce, compared with the average $2,407 price for 2024 as a whole.

EBITDA totalled $12.4m for the quarter, jumping from $4.7m previously.

"Q1 2025 marked a strong start to the year, continuing the positive momentum from H2-2024," said chief financial officer colm Howlin.

"We also commenced our 2025 exploration programme, with $9m allocated for the year and a similar commitment anticipated for 2026. Drilling activity is now underway at both Palito and Coringa. Early drill results from the programme have been encouraging. We look forward to providing an exploration update in the oncoming weeks."

Serabi shares were down 0.8% at 151.32p by 0922 BST, having surged by more than a third so far this year.