Record Production Highlights from Serabi Gold plc
Serabi Gold plc (“Serabi” or the “Company”) (AIM:SRB, TSX:SBI), a noteworthy Brazilian gold mining and development company, is thrilled to share its impressive production results for the third quarter of 2024. This update emphasizes the Company’s continuing commitment and resilience within a challenging mining environment.
Exceptional Performance in Q3-2024
In the third quarter, Serabi achieved a staggering production milestone, producing 9,489 ounces of gold—the highest output recorded for any quarter this year. This achievement reflects the commitment and hard work of the entire Serabi team.
Production Statistics Overview
The key production statistics underscore a robust operational performance: total ore mined during Q3 reached 58,862 tonnes with an average gold grade of 5.48 g/t. In comparison, the previous quarter showed slightly lower metrics with 59,564 tonnes at 5.06 g/t. This upward trend in productivity has been fueled by enhancements in the processes at the Palito Complex, leading to excellent operational outcomes.
Updated Pre-Economic Assessment
Alongside exceptional production figures, Serabi has unveiled an updated pre-economic assessment (PEA) for its Coringa Gold operation. This detailed assessment includes:
- Expected annual production of approximately 28,000 ounces in 2025, increasing to an average of 36,000 ounces per year from 2026 to 2031.
- A robust mine life extending until 2034 with an average all-in sustaining cost (AISC) estimated at $1,241 per ounce.
- An after-tax net present value (NPV) of $145 million utilizing a long-term gold price of $2,100 per ounce.
Upcoming Operational Developments
The construction of the new classification plant, which will enhance gold recovery, is currently on schedule and within budget. The commissioning of the crusher is already in progress, and the ore sorting capabilities will be operational by the end of the year, further contributing to the Company’s gold production efficiency.
Financial Position and Guidance
As of September 30, 2024, Serabi reported cash reserves of $20.0 million, a significant increase from $11.6 million at the end of December 2023. The net cash balance at the end of the quarter also saw a favorable rise, standing at $14.0 million after accounting for loans and leasing obligations.
The Company is confident in achieving its FY2024 consolidated gold production guidance of between 38,000 and 40,000 ounces, supported by ongoing production at both the Palito and Coringa operations.
CEO Mike Hodgson's Vision for the Future
CEO Michael Hodgson expressed optimism about the Company’s trajectory, stating:
“This quarter represents a landmark achievement for Serabi Gold. With a clear pathway ahead, we are well-positioned to meet our production guidance while steadily implementing our expansion plans at Coringa.”
Focus on Sustainable Growth
Looking ahead, Serabi Gold is focusing on sustainable growth through continuous improvement in operational efficiency and the potential for expansion in the prolific Tapajós region of Brazil. The ongoing exploration of the Coringa Gold project is expected to enhance resource estimates significantly.
Frequently Asked Questions
What were the main highlights of Serabi Gold's Q3-2024 report?
Serabi Gold reported production of 9,489 ounces of gold, the highest quarterly output this year, along with a solid increase in cash reserves.
How does the updated PEA affect Coringa Gold operation?
The updated PEA indicates an increase in production outlook, with expected annual production rising to 28,000 ounces in 2025, ramping up to 36,000 ounces per year in the following years.
What is the current financial position of Serabi Gold?
As of September 30, 2024, Serabi’s reported cash balance is $20.0 million, indicating a robust financial health compared to previous quarters.
When is the full Technical Report expected?
The full NI 43-101 compliant Technical Report is anticipated to be released no later than November 21, 2024, detailing the updated mineral resource estimates and other operational insights.
What does the future hold for Serabi Gold?
Serabi aims to sustain its production growth while optimizing existing resources, increasing efficiency, and exploring new opportunities within Brazil’s mineral-rich regions.
