Serabi Gold Announces Robust Mid-Year Financial Performance
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Serabi Gold Delivers Impressive Interim Results for 2024
Serabi Gold plc (LSE: SRB, TSX: SBI) has released its unaudited financial results for the first half of 2024, showcasing a period of strong growth and strategic investment.
Robust Financial Performance
Serabi Gold's Chief Financial Officer, Clive Line, highlighted the company's financial achievements during the second quarter. The company posted an EBITDA of $8.3 million, a significant 76% increase from the previous quarter. For the first six months of 2024, EBITDA reached $13.0 million, reflecting a remarkable 96% growth compared to the same period in 2023. The company also maintained a healthy cash balance of $12 million, thanks to continued investments in the Coringa project, ongoing development at the Palito mine, and substantial upgrades to the crushing and ore sorting facilities at Coringa.
Strategic Investments Fuel Growth
Serabi Gold has made significant strides in advancing the Coringa project, where mining operations have expanded to multiple levels within the mine. The main ramp is nearing completion of the planned 155-meter level, which is expected to open soon. This strategic development ensures that multiple levels will be ready ahead of increased production, setting the stage for enhanced output in the near future.
The company’s investment in mine development totaled $3 million, an increase of $1.6 million from the previous year. Although this investment added approximately $163 per ounce to the All-In Sustaining Costs (AISC) for the period, it positions the company for sustainable growth. Additionally, Serabi invested $4 million in capital equipment during the first half of 2024, focusing on improvements to the crushing plant and ore sorting capabilities at Coringa. These enhancements are expected to boost mining efficiency and productivity.
Production and Financial Metrics
Serabi Gold achieved a notable increase in gold production during the first half of 2024, producing 18,010 ounces compared to 16,524 ounces in the same period of 2023. The company’s cash holdings stood at $12 million as of 30 June 2024, slightly up from $11.6 million at the end of 2023.
Key financial metrics for the period include:
- Post-tax profit: $9.2 million, up from $5.0 million in 2023.
- Earnings per share: 12.18 cents, compared to 6.58 cents for the same period last year.
- Average gold price received: $2,209 per ounce, a substantial increase from $1,940 in 2023.
- Cash Cost: $1,401 per ounce, compared to $1,258 in 2023.
- All-In Sustaining Cost: $1,782 per ounce, up from $1,519 the previous year.
Operational Developments and Future Prospects
In addition to its financial success, Serabi Gold has reported significant operational advancements. The company secured a new $5 million loan from Itaú Bank, strengthening its liquidity for ongoing and future operations. This financing will support working capital as Serabi continues to optimize the Coringa project and stabilize production at the Palito mine.
The recent investment in an ore sorter and ongoing infrastructure enhancements are expected to increase production capacity in the second half of 2024. By processing lower-grade stockpiled materials, Serabi anticipates higher gold output in the final quarter of the year, contributing to further revenue growth.
Looking Ahead
Serabi Gold's leadership remains optimistic about the company's future, emphasizing a strategy centered on sustainable growth, increased productivity, and financial stability. This cautious yet forward-looking approach ensures that the company is well-prepared to navigate any operational challenges while capitalizing on growth opportunities in the coming months.
Frequently Asked Questions
What were the key financial highlights for Serabi Gold in the first half of 2024?
Serabi Gold reported an EBITDA of $8.3 million for the second quarter, a 76% increase from the previous quarter. The cumulative year-to-date EBITDA was $13 million, marking a 96% improvement from the first half of 2023.
How much gold did Serabi Gold produce during this period?
The company produced 18,010 ounces of gold in the first half of 2024, up from 16,524 ounces during the same period in 2023.
What is Serabi Gold’s cash position as of 30 June 2024?
The company reported a cash balance of $12 million, an increase from the $11.6 million reported at the end of 2023.
What investments has Serabi made for future growth?
Serabi invested $4 million in capital equipment during the first half of 2024, including upgrades to its crushing plant and ore sorting capabilities, along with $3 million in mine development.
What are the future production plans for the Coringa mine?
The Coringa mine is poised for increased production, with the main ramp nearing the completion of additional levels, expected to support higher output levels by the end of the year.
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