Serabi Gold declares maiden dividend as profit doubles in 2025

Serabi Gold PLC on Monday proposed its inaugural dividend, with profit buoyed by higher prices for the yellow metal in 2025.

The Brazil-focused mining company reported an annual operating pretax profit of $68.2 million, more than doubled from $31.6 million in 2024. Basic earnings per share surged to 71.18 US cents from 36.73 cents on-year.

Revenue grew 65% to $155.8 million from $94.5 million, as earnings before interest, tax, depreciation and amortisation more than doubled to $77.9 million from $35.9 million.

The company attributed this to higher production rates, with gold output rising 18% to 44,169 ounces in 2025 from 37,520 ounces the year prior. The average received gold price rose to $3,481 per ounce from $2,407, at an all-in sustaining cost of $1,816 per ounce, up from $1,700 per ounce.

The cost of sales ticked up to $66.9 million from $50.7 million, and Serabi ended December with a cash balance of $49.2 million, versus $22.2 million a year earlier.

The board has recommended a ‘prudent’ inaugural annual dividend of 5 pence per share, which is at the lower end of Serabi’s target range. It is eyeing a similar payout in 2026, with the expected return through either dividends or buybacks seen ranging from 20% to 30% of free cash flow.

The company’s shares traded 1.5% higher at 338.00 pence on Friday morning in London.

Chief Financial Officer Colm Howlin called 2025 ‘ a transformative year’, with cash generated from operations up 81% from 2024 to $55.9 million, allowing Serabi ‘to invest heavily into the future of the company’.

Serabi is targeting at least 30,000 metres of further exploration drilling in 2026, and aims to lift its consolidated resource estimate to a minimum of 1.5 million ounces. In 2026, the company is eyeing gold output of 55,000 ounces, and from 2027 onwards, it will aim for annual production of 60,000 ounces.

‘The company has very strong liquidity to support its growth plans, supported by the continued operational scale-up at Coringa and the ongoing production stability of the Palito mine. Our strong performance has continued into 2026, the company is now debt free,’ Howlin said.

‘With the increase in activity, particularly at the Coringa mine, we now employ over 1,000 people between the Palito Complex and the Coringa mine, so it is paramount to us to continue to remain disciplined with cost control but to also offer our employees and the local communities in which they live as much support as possible.’

Last month, Serabi noted plans for an external group audit of its health and safety process. This follows the deaths of two workers at the Palito and Coringa mines earlier this year, which Chair Michael Lynch-Bell on Friday called ‘a stark reminder of the challenges that remain’.

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