Armchair Trader tip Serabi Gold LON:SRB has hit a rich vein. The Brazil-focused miner’s third-quarter figures glitter, showing the company is finally shaking off its small-cap anonymity and positioning itself among the most efficient junior producers in Latin America.
Record quarterly output of 12,090 ounces of gold — up 27 per cent on the previous year — marks the best production in Serabi’s history. Cash rose to $38.8mn at the end of September, from $30.4mn three months earlier. Net cash climbed to $33mn, helped by operational improvements and firmer gold prices.
For a business that once looked like a perpetual exploration play, Serabi now resembles a disciplined producer with proper cash flow.
Here’s why we originally tipped Serabi Gold back in April.
Serabi Gold’s Phase II expansion bears fruit
The company remains comfortably on track to meet its full-year guidance of 44,000 to 47,000 ounces. That would represent a substantial step up from the 38,000 ounces achieved last year, a pace of growth that suggests management’s long-touted “Phase II” expansion strategy is bearing fruit.
Much of the improvement comes down to geology and technology working hand in hand. Ore grades at both the Palito Complex and Coringa mines have risen sharply — from an average of 5.4 grams per tonne last year to nearly 7 grams so far in 2025.
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At Coringa, an ore sorter that started operating nine months ago has proved transformative. The technology separates waste rock from mineralised material before processing, cutting costs and raising productivity.
The ore sorter has also allowed Serabi to process low-grade stockpiles profitably, while sending high-grade ore directly to the Palito processing plant. This nimble approach helped lift Coringa’s contribution beyond expectations — and with the low-grade stockpile now largely depleted, production should increasingly reflect run-of-mine quality.
Coringa continues to expand
Operationally, Coringa continues to expand. Mining at the Serra zone remains the backbone of output, while the Meio zone is coming into production, albeit with some technical challenges due to weaker ground near surface. The company says new ground support techniques and improved blasting are paying off, and deeper levels are already showing better rock conditions. Meanwhile, the Galena zone — a third portal — is being prepared and should begin contributing ore next year.
At the Palito Complex, mined grades have jumped from 4.6 grams per tonne last year to 6.2 grams in 2025. Stronger grades from the Barrichello zone and the G3 vein have driven the improvement. The brownfield drilling campaign is also delivering, with promising hits from the Senna, Serra and Meio zones — including one spectacular intercept at Serra of 0.87 metres grading 137.5 grams per tonne. The discovery of the Serra South zone, roughly 500 metres from the current mine, could meaningfully extend the resource base.
Chief executive Mike Hodgson’s ambitions are not small. With a 30,000-metre drilling campaign under way, the company is targeting a resource base of 1.5 to 2 million ounces. If grades hold and expansion stays on track, that goal looks increasingly plausible.
For now, Serabi finds itself in an enviable position: production up, grades higher, cash rising — and gold prices near record highs. Investors in the AIM-listed miner have often needed patience. The latest quarter suggests that patience may finally be turning into something tangible: ounces in the vault and money in the bank.
