Strong Financial Performance Overview
Serabi Gold plc, the Brazilian-focused gold mining and development company, has reported encouraging interim results for the three and nine-month periods ending on September 30, 2024. The company has shown a significant improvement in cash generation and overall financial health compared to previous periods.
Impressive Cash Generation
As of the end of September, Serabi recorded a robust cash balance of $20 million, which included $8 million generated during the quarter. The company’s EBITDA rose to $11.7 million for the quarter, bringing the year-to-date total to $24.7 million—a remarkable 42% increase compared to the second quarter.
Impact of Inventory Realization
During this quarter, a significant part of the cash flow stemmed from inventory realization totaling approximately $3 million, positively influencing sales figures. With ongoing operations at Coringa increasing production rate through the processing of lower-grade stockpiles, this trend is anticipated to continue leading into the fourth quarter. Despite cyclical tax payments and salary accruals, the leadership anticipates continued cash growth.
Production and Revenue Growth
In the first nine months of 2024, Serabi produced 27,499 ounces of gold, up from 25,262 ounces in the same period of 2023. Notably, gold sales reached 28,912 ounces this period compared to 23,733 ounces the previous year, illustrating the company's operational efficiency and strong market presence which is supported by an average gold price of $2,338 per ounce.
Financial Highlights
Serabi's reported financial highlights for the nine-month period are impressive and include:
- Cash held of $20 million, a rise from $11.6 million at the end of 2023.
- EBITDA of $24.7 million, compared to $8.8 million a year prior.
- Post-tax profit of $17.8 million, significantly higher than the $4.6 million recorded in 2023.
- Profit per share increased to 23.55 cents from 6.10 cents in the prior year.
- Net cash inflow from operations reached $18.2 million, reflecting a solid recovery after mine development expenditures.
Future Plans and Project Updates
Serabi has been making significant strides forward, particularly at the Coringa project. Recent developments included the announcement of the Preliminary Economic Assessment, forecasting an Average All-In Sustaining Cost (AISC) of $1,241 per ounce from January 1, 2025, onwards. The ore sorter and crushing plant at Coringa are nearing full operational status, which is projected to bolster production rates significantly moving forward.
Financing Activities
In January 2024, the company secured a $5 million loan from Itaú Bank, aimed at enhancing operational capacities while ensuring adequate liquidity. This financing decision arose following the repayment of a similar loan from Santander Bank earlier in the year.
Market and Investor Engagement
As part of its ongoing efforts to engage with investors, the CEO of Serabi Gold will host a live presentation through the Engage Investor platform, allowing shareholders to gain insights into the company's progress and future direction.
Contact and Inquiry Information
Serabi Gold encourages all interested parties to reach out for more information about the company's developments:
Contact Information:
Michael Hodgson, CEO
t: +44 (0)20 7246 6830
m: +44 (0)7799 473621
For further inquiries, please reach out to Clive Line, Finance Director, at the same phone number.
Frequently Asked Questions
What recent financial results did Serabi Gold announce?
Serabi Gold reported that for the nine months ended September 30, 2024, the company achieved a net profit of $17.8 million, significantly higher than the year prior.
How much gold did Serabi produce in 2024?
Serabi produced 27,499 ounces of gold in the first nine months of 2024, which marks an increase from the same period in 2023.
What are Serabi's cash reserves as of September 2024?
As of September 30, 2024, Serabi had cash reserves amounting to $20 million.
What strategic plans does Serabi have moving forward?
The company plans to enhance production through operational efficiencies at its Coringa project while continuing to engage with investors through presentations and updates.
Who can shareholders contact for more information?
Shareholders can contact CEO Michael Hodgson or Finance Director Clive Line for inquiries regarding company performance and future strategies.
