Serabi Gold has achieved a major milestone by becoming debt-free while increasing its gold production. The company reported strong results for the first quarter, supported by solid performance at its operations in Brazil.
With higher production and strong gold prices, Serabi now expects record output in 2026.
Topic Snapshot
- Gold production rose 20% year-on-year in Q1
- Company is now fully debt-free
- Cash balance stands at $64.4 million
- Expansion underway at Palito Mining Complex
- Operational upgrades at Coringa project
- Annual production guidance set at 53,000–57,000 ounces
Strong Production Growth in First Quarter
Serabi produced 12,042 ounces of gold in the first quarter.
This marks a 20% increase compared to the same period last year. Both main operations contributed to this growth:
- Palito Mining Complex
- Coringa project
The results reflect improved efficiency and stable operations.
Company Reaches Debt-Free Status
During the quarter, Serabi repaid $5.3 million in debt.
With this payment completed:
- The company is now debt-free
- Holds $64.4 million in cash
This strong financial position gives flexibility for future investment and expansion.
Expansion Plans at Palito Complex
Serabi is investing in upgrades at the Palito Mining Complex.
Key development:
- Installation of a fourth ball mill
This upgrade will:
- Increase processing capacity
- Allow treatment of lower-grade ore
- Raise throughput to about 330,000 tonnes per year by 2027
Potential Restart of São Chico Mine
The company is reviewing plans to restart the São Chico satellite mine.
Previously, ore from this site was not processed due to limited capacity. Now, higher gold prices and expanded capacity make the project more viable.
Both surface and underground ore could be developed.
Operational Improvements at Coringa
At the Coringa project, Serabi is shifting to a more advanced mining method.
The company is moving from:
- Selective mining
To:
- Mechanised sublevel stoping
This change is expected to:
- Improve production rates
- Lower costs
- Enhance safety
Full mechanisation is expected by the third quarter.
Licence and Regulatory Progress
Coringa currently operates under a three-year mining licence, which expires in early 2027.
The company is working to:
- Extend the current licence
- Secure a full mining licence
Approvals are being sought from:
- National mining authorities
- Land and environmental regulators
Progress is reported as positive so far.
Outlook for Record Production in 2026
Serabi expects production to increase throughout the year.
Key targets include:
- Annual output of 53,000 to 57,000 ounces
- Sequential growth across each quarter
Strong gold prices and operational improvements support this outlook.
Closing
Serabi’s move to a debt-free position marks a major step forward. Combined with rising production and ongoing upgrades, the company is well placed for a strong year. If current trends continue, 2026 could deliver record gold output and improved financial performance.
