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Serabi on the rise after strong Q3 showing

Brazil-focused miner Serabi Gold has delivered its strongest quarterly operational performance of the year, producing 10,187oz of gold in Q3, an increase of 25% year on year.
Serabi on the rise after strong Q3 showing Serabi on the rise after strong Q3 showing Serabi on the rise after strong Q3 showing Serabi on the rise after strong Q3 showing Serabi on the rise after strong Q3 showing

Seriba's Palito mine in Brazil

Staff reporter

Serabi generated the figure by processing 45,378 tonnes of ore at overall average grades of 6.84g/t - up slightly from the Q3 2018 result of 6.11g/t and also on the Q2 2019 grade of 6.72g/t.

Serabi did not provide any clue on costs, but given gold has risen in price by around 17% since late May, it has likely been a healthy quarter for the company in terms of profit.

Mike Hodgson, CEO of Serabi, said the company remained on course to exceed 40,000oz for the year, in line with previous annual guidance of between 40,000oz-41,000oz.

"With mine production in good order and the additional ounces the tailings treatment is now bringing, I fully expect a good final quarter.  Gold prices remain strong, and even stronger in Brazilian Reals," said Hodgson.

S&P sees gold averaging $1,450 an ounce for the rest of the year, slightly below today's price of $1,495/oz.

Serabi has enjoyed a good autumn thus far, with shares in the company rising nearly 10% early September after completing a preliminary economic assessment on its Coringa project.

"Following the issuing of a positive PEA and the resubmission of the EIA, we now hope we can progress Coringa permitting rapidly and see real progress on the ground at site next year.  I look forward to reporting further positive news in the coming months," added Hodgson.

Shares in Serabi rose 5.2% on Monday morning to 91p. The company's market capitalisation stands at £53.6m.