Serabi Gold Reports Strong Interim Financial Results
Serabi Gold plc (LSE: SRB, TSX: SBI) is pleased to share its unaudited interim results for the three and six-month periods ending 30 June 2024.
Successful Financial Performance
The most recent quarter has demonstrated impressive financial results, as noted by Clive Line, CFO of Serabi. The company achieved an EBITDA of $8.3 million, which marks a remarkable 76% increase compared to the first quarter of 2024. For the year to date, the cumulative EBITDA reached $13.0 million, reflecting an impressive 96% improvement over the same period in 2023. Furthermore, Serabi maintained a solid cash position of $12 million, thanks to ongoing investments in the development of its Coringa project, continued mine development at Palito, and significant investments in the crushing and ore sorting plant at the Coringa site.
Progress at the Coringa project is evident, with mining operations now active at several levels within the mine. The main ramp is nearing completion of the planned 155m level, which is set to open soon. This development strategy ensures multiple levels are established ahead of production, positioning the mine favorably for a potential increase in output.
Investment in Future Growth
The company’s mine development expenditures totaled $3 million, reflecting an increase of $1.6 million compared to the previous year. While this has added approximately $163 per ounce to the All-In Sustaining Costs (AISC) for the period, these investments are aimed at fostering long-term growth and operational sustainability. Additionally, Serabi invested $4 million in capital equipment during the first half of the year, significantly enhancing the crushing plant and ore sorting capabilities at Coringa, which will lead to improved mining efficiency.
Production Metrics and Financial Highlights
In the first half of 2024, Serabi produced 18,010 ounces of gold, an increase from 16,524 ounces in 2023, indicating a notable rise in productivity. Cash holdings remained strong at $12 million as of 30 June 2024, showing slight growth from the $11.6 million reported at the end of 2023.
Key Financial Metrics Include:
- Post-tax profit for the six-month period rose to $9.2 million, up from $5.0 million in 2023.
- Earnings per share increased to 12.18 cents, compared to 6.58 cents for the same period last year.
- The average gold price received for sales was $2,209 per ounce, a significant rise from $1,940 in the previous year.
- The Cash Cost for the six-month period was $1,401 per ounce, compared to $1,258 in 2023.
- The All-In Sustaining Cost was recorded at $1,782 per ounce, up from $1,519 the previous year.
Operational Developments and Future Outlook
Alongside strong financial results, the Group has reported significant operational advancements. The company secured a new $5 million loan with Itaú Bank, which will enhance liquidity for ongoing and future operations. This financing will support working capital needs as Serabi continues to optimize the Coringa project while stabilizing production at the Palito operation.
The recent investment in an ore sorter, along with ongoing infrastructure improvements, positions Serabi for increased production capabilities in the latter half of the year. Processing lower-grade materials that have been stockpiled will enhance gold output in the final three months of the year, contributing to further revenue growth.
Conclusion and Future Strategy
The Directors of Serabi Gold are optimistic about the company’s future, emphasizing a strategy focused on sustainable growth, enhanced productivity, and maintaining financial stability in a changing market landscape. Their cautious yet strategic approach ensures that the company is well-prepared to tackle operational challenges and seize growth opportunities ahead.
Frequently Asked Questions
What are the key highlights from Serabi Gold's interim results?
Serabi Gold reported an EBITDA of $8.3 million for the latest quarter, a 76% increase from the prior quarter, and a cumulative year-to-date EBITDA of $13 million, reflecting a 96% improvement from 2023.
How much gold did Serabi Gold produce in the first half of 2024?
Serabi produced 18,010 ounces of gold in the first half of 2024, an increase compared to 16,524 ounces in the same period of 2023.
What is the company’s cash position as of 30 June 2024?
The company maintained a cash position of $12 million, up from $11.6 million at the end of 2023.
What investments has Serabi made for future growth?
In the first half of the year, Serabi invested $4 million in capital equipment, including enhancements to its crushing plant and ore sorting capabilities, along with $3 million in mine development.
What are the expected future production plans for the Coringa mine?
The Coringa mine is set for increased production, with the ramp nearing the completion of additional levels, which are expected to support higher output levels by the end of the year.
