Serabi maintains guidance after solid second quarter

17th Jul 2024 14:42

(Sharecast News) - Serabi Gold released its second quarter production results and operating highlights for the second quarter of the year on Wednesday, reporting significant improvements in gold production and financial stability.

The AIM-traded firm said that in the second quarter, it achieved a gold production of 9,003 ounces, marking a 6% increase compared to the same period in 2023.

That growth was bolstered by Coringa, which contributed 4,752 ounces of gold at plant grades of 6.25 grams per tonne.

Additionally, the Palito plant processed a record quarterly total of over 55,000 tonnes of ore.

Financially, Serabi Gold maintained a strong position, reporting that as of 30 June, it held $12m in cash, up from $11.6m at the end of December.

The net cash balance, after accounting for interest-bearing loans and lease liabilities, stood at $6.6m - an improvement from the $5m reported at the end of December.

Significant progress was also made in the construction of the classification plant at Coringa.

The crusher was expected to be operational by August, with the ore sorter on track for operation by the start of the fourth quarter.

Additionally, NCL Ingeniería y Construcción of Santiago de Chile was advancing the updated preliminary economic study (PEA) at Coringa.

That study would incorporate a revised geological resource and an economic study detailing the planned use of the classification plant and processing at the Palito Complex.

Serabi Gold said it remained confident in its production outlook, reiterating its 2024 consolidated gold production guidance of 38,000 to 40,000 ounces.

"The mid-year position looks very positive after a second consecutive quarter exceeding 9,000 ounces which is both very satisfactory and maintains us in line with guidance," said chief executive officer Mike Hodgson.

"The process plant continued to perform admirably with a quarterly record of over 55,000 milled tonnes.

"Mine output exceeded 59,000 tonnes, which was also the highest ROM total in 3 years."

Hodgson said the company was tracking well towards guidance, and with the classification plant progressing according to plan at Coringa, he was "optimistic" for the second half of 2024.

"We look forward to the forthcoming PEA for Coringa during the third quarter, and seeing the ore sorter operational in the fourth quarter."

At 1412 BST, shares in Serabi Gold were up 6.06% at 70p.