Serabi Gold Shares Hit 52 Wk High As H1 Production Ramps

Serabi Gold shares (LON:SRB) are 2.5% higher today, having set a new 52 week high of 210p on the back of solid unaudited interim results for the first half of 2025. The report highlighted a significant increase in gold production and profitability. The Brazilian-focused gold miner's performance has exceeded expectations, driven by higher gold prices and efficient operations.

Gold production for the first six months of 2025 reached 20,545 ounces, a notable increase from the 18,010 ounces produced during the same period in 2024.

Serabi's financial health is further underscored by a substantial cash balance of $30.4 million as of June 30, 2025, compared to $22.2 million at the end of 2024. This healthy cash position provides the company with increased financial flexibility to pursue growth opportunities and manage operational expenses.

EBITDA for the first half of 2025 soared to $26.3 million, doubling the $13.0 million recorded in the corresponding period of 2024. This impressive growth in EBITDA reflects Serabi's operational efficiency and its ability to capitalize on the favorable gold price environment.

Post-tax profit for the six-month period reached $18.9 million, a significant jump from the $9.2 million reported in the first half of 2024. This translates to a profit per share of 24.99 cents, compared to 12.18 cents in the previous year, demonstrating a substantial increase in shareholder value.

Net cash inflow from operations for the period, after accounting for mine development expenditure of $2.7 million, amounted to $19.2 million. This compares favorably to the $6.6 million inflow in the first half of 2024, which included mine development expenditure of $3.0 million.

The average gold price received on sales during the period was $3,093 per ounce, a significant increase from the $2,209 per ounce received in the corresponding period of 2024. This higher gold price environment has been a major catalyst for Serabi's improved financial performance.

Cash costs for the first half of 2025 were $1,379 per ounce, slightly lower than the $1,401 per ounce recorded in the same period of 2024. All-In Sustaining Costs (AISC) remained relatively stable at $1,792 per ounce, compared to $1,782 per ounce in the first half of 2024.

Colm Howlin, CFO, commented that while mine development expenditure has increased year-on-year, the investment continues to underpin the company's growth and expansion plans. He also noted that the company continues to deliver strong margins, underpinned by the high gold price environment and improved production profile.