Serabi Gold PLC on Thursday saw its shares tick up by 6% as the firm reported strong third-quarter growth.
For its third-quarter, the Brazil-focused gold mining and development company reported a significant increase in pretax profit to $10.8 million from $639,794 the prior year, boosted by a marked increase in revenue.
Revenue over the period climbed year-on-year by 58% to $27.6 million from $17.4 million, with its sales benefitting from an inventory realisation sum of $3.0 million.
Serabi shares were up 5.6% at 94.00 pence on Thursday afternoon in London.
Chief Financial Officer Clive Line highlighted the firm’s impressive cash generation throughout the period, ending September with $20.0 million and ‘with $8.0 million generated throughout the quarter.’
For the first nine months of the year, Serabi said its gold production increased on-year by 8.9% to 27,499 ounces from 25,262 ounces, with the average gold price received on sales up 20% to $2,338 per ounce compared with $1,940 per ounce the previous year.
Sales increased by 22% with Serabi selling 28,912 ounces in the first nine months of the year versus 23,733 the prior year.
Pretax profit in this period multiplied to $20.7 million from $5.8 million the prior year, with revenue up by 47% to $70.3 million from $47.9 million.
Line said: ‘This has been another excellent quarter for Serabi, in particular for cash generation...I do anticipate cash growth to continue to the end of the year notwithstanding the cyclical effects of tax payments and 13th salary accruals that are due.
‘The ability of the business to produce healthy cash flow is being further supported by the Coringa classification plant which is now operational and in the final stages of commissioning. We are already passing run of mine ore through this plant and will also start to work our way through the lower grade stockpiles that have been accumulated at Coringa.
‘As a result of processing this stockpiled material we hope that this final quarter will continue the pattern of increasing production quarter-on-quarter that we have so far experienced in 2024.’
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