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Highlights
- Serabi Gold achieves highest quarterly gold production in five years with 10,022 ounces in Q4-2024.
- 2024 gold production rises by 13.2%, and cash position increases to $22.2 million by year-end.
- 2025 production guidance of 44,000 – 47,000 ounces gold, with Coringa project contributing significantly.
Serabi Gold plc (TSX:SBI), a leading Brazilian gold mining and development company, has announced its fourth quarter production results for FY2024, marking a year of strong operational performance. The company reported a significant achievement in Q4-2024, with gold production reaching 10,022 ounces, the highest in the past five years. This helped Serabi achieve a total gold production of 37,520 ounces for FY2024, representing a 13.2% increase over FY2023’s output.
The fourth-quarter success capped off a productive year, which included key operational milestones such as the commissioning of the Coringa classification plant. The plant, which includes a crusher and ore sorter, was built and commissioned using cash flow, underscoring the company's ability to reinvest in its operations. Additionally, Serabi saw continued progress in permitting for the Coringa project, with the renewal of the trial mining permit for an additional three years.
Serabi’s financial position at the end of 2024 remained strong, with cash increasing to $22.2 million as of December 31, 2024, compared to $20.0 million at the end of September 2024. Furthermore, the company’s net cash at quarter-end (after interest-bearing loans and lease liabilities) stood at $16.2 million, a significant improvement from $5.0 million at the end of December 2023.
Looking ahead, Serabi has provided consolidated production guidance for 2025 of 44,000 to 47,000 ounces of gold, driven by continued operational improvements and the expected ramp-up of production at its Coringa mine. CEO Mike Hodgson highlighted the company's solid progress, stating, "2024 was a highly successful year for Serabi with many milestones achieved, including the 13% increase in annual gold production, permitting progress at Coringa, and the successful commissioning of the Coringa classification plant."
One of the key contributors to the strong performance in Q4 was the notable improvement in the mined and milled grades at the Palito mine. The company reported grades exceeding 6.10 g/t gold during the fourth quarter, a significant increase from prior periods. This grade improvement was attributed to the cessation of more dilutive mechanized mining in the Chico da Santa zone and a return to a selective mining method. Additionally, exceptional grades were found in the Barrichello zone, which is expected to play a pivotal role in the company’s gold production in 2025.
At Coringa, the company reported continued strong performance, with mining operations advancing in the Serra zone at levels 260m and 225m. Development work on additional levels continues, and the Serra ramp is now approaching level 130m. The fourth quarter also saw the commencement of development at the Meio portal and ramp, with mineralization at Meio intersected in December. The Meio zone is expected to contribute significantly to Coringa's production in 2025, further bolstering Serabi’s growth prospects.
