Serabi Gold interim profit jumps on higher production and prices

Serabi Gold PLC on Tuesday reported higher gold sales in the first half of 2026 and said it plans to increase production at its Coringa mine in Brazil following regulatory approvals.

Gold sales totalled 21,348 ounces in the six months that ended June 30, up 5.6% from 20,215 ounces a year earlier. Gold production rose 12% to 23,049 ounces, from 20,545 ounces. More importantly, the average realised gold price was USD4,687 per ounce, up 52% from USD3,093 a year before.

This resulted in 60% revenue growth to USD100.1 million in the recent half-year from USD62.5 million a year earlier, lifting pretax profit increased 76% to USD40.6 million from USD22.9 million. Earnings before interest, tax, depreciation and amortisation rose 69% to USD44.4 million from USD26.3 million.

All-in sustaining costs rose by 50% to USD2,682 per gold ounce from USD1,792. Serabi said the increase in costs was due to the ramp-up at the Coringa mine, as well as one-time charges.

The company said that brownfield exploration activity continued across its Palito complex and Coringa mine, where Serabi sees possibilities for "future resource growth and long-term value creation".

Serabi said it expects Brazil's national mining agency to issue a temporary permit for Coringa in 2026 allowing the company to increase the amount of ore permitted to be transported to Palito to 200,000 tonnes from 100,000 tonnes annually.

Alternatively, it expects to receive full mining concession by the last quarter of the year, which would lift all constraints. Serabi said the two fundamental approvals required for full mining concession are in their final stages.

"Even if neither of these scenarios eventuate, and production is suspended at Coringa, cash flow forecasts show adequate resources to continue in operational existence for the foreseeable future," Serabi added.

Serabi highlighted that it remained debt free after repaying USD5.3 million to Banco Santander SA in Brazil in the first quarter.

Serabi shares were down 0.2% to 267.50 pence on Tuesday morning in London.

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