Unaudited interim results for the three-month period ended 31 March 2025
Q1 2025 gold production 10,013 ounces, up 11% year-on-year; post-tax profit $8.8m vs $3.6m prior year.
| 3 months to 31 Mar 2025 | Now | Year before | Change |
|---|---|---|---|
| Revenue | £21.9m | £16.0m | +37.3% |
| Operating profit | £8.4m | £2.9m | +192.3% |
| Profit before tax | £8.6m | £2.9m | +200.2% |
| Net income | £7.0m | £2.9m | +142.9% |
| Cash from operations | £8.1m | £1.5m | +441.8% |
| Cash | £20.5m | £8.8m | +133.9% |
Figures as reported, converted to £ where needed – see all financials.
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Serabi Gold plc (“Serabi” or the “Company”) (AIM:SRB, TSX:SBI, OTCQX:SRBIF), the Brazilian focused gold mining and development company, is pleased to release its unaudited results for the three-month period ended 31 March 2025 (all financial amounts are expressed in U.S. dollars unless otherwise indicated).
HIGHLIGHTS
Gold production for Q1-2025 of 10,013 ounces (Q1-2024: 9,007 ounces).
Cash held at 31 March 2025 of $26.5 million (31 December 2024: $22.2 million).
EBITDA for the three-month period of $12.4 million (Q1-2024: $4.7 million).
Post-tax profit for the three-month period of $8.8 million (Q1-2024: $3.6 million).
Profit per share of 11.58 cents (Q1-2024: 4.80 cents).
Net cash inflow from operations for the three-month period (after mine development expenditure of $1.6 million and pre operating costs of $1.5 million) of $7.1 million (Q1-2024: $0.3 million inflow after mine development expenditure and pre operating costs of $1.6 million).
Average gold price of $2,908 per ounce received on gold sales during the three-month period (Q1-2024: $2,081).
Cash Cost for the quarter of $1,269 per ounce (Q1-2024: $1,461 per ounce).
All-In Sustaining Cost for the three-month period to March 2025 of $1,636 per ounce (Q1-2024: $1,859 per ounce).
Colm Howlin, CFO, Commented
“Q1 2025 marked a strong start to the year, continuing the positive momentum from H2-2024. Gold production for the quarter totalled 10,013 ounces, representing an 11% increase on Q1-2024. This was driven by higher feed grades at both Palito and Coringa, supported by the first full quarter of operations at the Coringa classification plant.
The strong operational performance contributed to cash generation of $4.2 million in the quarter, increasing the Group’s cash position to $26.5 million at 31 March 2025, up from $22.2 million at 31 December 2024. The average realised gold price for the quarter was $2,908 per ounce, compared to $2,407 per ounce for the fiscal 2024 year.
We also commenced our 2025 exploration programme, with $9 million allocated for the year and a similar commitment anticipated for 2026. Drilling activity is now underway at both Palito and Coringa. Early drill results from the programme have been encouraging. We look forward to providing an exploration update in the oncoming weeks.”
Overview of the financial results
Reported revenues and costs reflect the ounces sold in each period and as a result total revenues and costs for the three-month period are higher than the corresponding period in 2024. In Q1-2025, the Group reported revenue and operating costs related to the sale of 9,699 ounces in the period (10,013 ounces produced). This compares to sales reported of 9,007 ounces in Q1-2024.
Whilst the Company benefited from an improving gold price throughout the first quarter of 2025, the most material uplift occurred only in March, with the USD gold price rising to $2,996 and averaging $2,908 for the quarter, compared to a current spot price of approximately $3,300 per ounce. This contributed to a Q1 average gold price in Brazilian Real of BRL17,018. In Q1-2025, the average USD gold price increased by 18% in comparison to Q1-2024 ($2,908 in Q1-2025 vs $2,469 in Q1-2024).
BRL strengthened during Q1-2025, with the USD:BRL rate moving from 6.19 at 31 December 2024 to 5.74 at 31 March 2025. This strengthening limited the extent to which the stronger USD gold price translated into local currency margins.
The Group delivered a strong start to 2025 with an 11% increase in production year-on-year, driven by significant grade improvements at both Palito (+32%) and Coringa (+8%). Coringa’s first full quarter of classification plant operations contributed meaningfully to the grade uplift, while development at new zones across both sites and a ramped-up $9 million brownfield exploration programme with a focus on doubling our resource at Palito Complex and Coringa, position the Group well for continued growth.
Cash balances at the end of March 2025 were $26.5 million, in comparison to the cash balances at the end of December 2024 of $22.2 million. On 6 January 2025 the Company fully repaid its $5.0 million unsecured loan arrangement with Itau Bank in Brazil which carried an interest coupon of 8.47 per cent. On 22 January 2025, the Group secured a new $5.0 million loan from Banco Santander. The Banco Santander loan is repayable as a bullet payment on 21 January 2026 and carries an interest coupon of 6.16%. The Company had a net cash balance at the end of Q1-2025 (after interest bearing loans and lease liabilities) of $20.9 million (31 December 2024: net cash $16.2 million).
Key Financial Information
SUMMARY FINANCIAL STATISTICS FOR THE THREE-MONTHS ENDING 31 MARCH 2025
| 3 months to 31 March 2025 $ (unaudited) | 3 months to 31 March 2024 $ (unaudited) | ||
|---|---|---|---|
| Revenue | 27,593,363 | 20,246,400 | |
| Cost of sales | (13,138,165) | (13,556,599) | |
| Gross operating profit | 14,455,198 | 6,689,801 | |
| Administration and share based payments | (2,006,445) | (1,984,990) | |
| EBITDA | 12,448,753 | 4,704,811 | |
| Depreciation and amortisation charges | (1,834,773) | (1,046,561) | |
| Operating profit before finance and tax | 10,613,980 | 3,658,250 | |
| Profit after tax | 8,769,759 | 3,637,563 | |
| Earnings per ordinary share (basic) | 11.58c | 4.80c | |
| Average gold price received ($/oz) | $2,908 | $2,081 | |
| As at 31 March 2025 $ (unaudited) | As at 31 December 2024 $ (audited) | ||
| Cash and cash equivalents | 26,504,939 | 22,183,049 | |
| Net funds (after finance debt obligations) | 21,168,759 | 16,341,245 | |
| Net assets | 120,008,729 | 104,181,654 | |
| Cash Cost and All-In Sustaining Cost (“AISC”) | |||
| 3 months to 31 March 2025 | 3 months to 31 March 2024 | 12 months to 31 December 2024 | |
| Gold production for cash cost and AISC purposes (ounces) | 10,013 | 9,007 | 37,520 |
| Total Cash Cost of production (per ounce) | $1,269 | $1,461 | $1,326 |
| Total AISC of production (per ounce) | $1,636 | $1,859 | $1,700 |
Notice
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The following information, comprising, the Income Statement, the Group Balance Sheet, Group Statement of Changes in Shareholders’ Equity, and Group Cash Flow, is extracted from the unaudited interim financial statements for the three months to 31 March 2025.
Statement of Comprehensive Income
For the three-month period ended 31 March 2025.
For the three months ended 31 March
| 2025 | 2024 | ||
|---|---|---|---|
| (expressed in US$) | Notes | (unaudited) | (unaudited) |
| CONTINUING OPERATIONS | |||
| Revenue (from continuing operations) | 27,593,363 | 20,246,400 | |
| Cost of sales | (13,138,165) | (13,556,599) | |
| Depreciation and amortisation charges | (1,834,773) | (1,046,561) | |
| Total cost of sales | (14,972,938) | (14,603,160) | |
| Gross profit | 12,620,425 | 5,643,240 | |
| Administration expenses | (1,978,239) | (1,942,740) | |
| Share-based payments | (67,714) | (53,883) | |
| Gain on disposal of fixed assets | 39,508 | 11,633 | |
| Operating profit | 10,613,980 | 3,658,250 | |
| Other income – exploration receipts | 2 | — | 339,854 |
| Other expenses – exploration expenses | 2 | — | (312,518) |
| Foreign exchange (loss)/gain | 70,426 | (34,566) | |
| Finance expense | 3 | (110,974) | (174,605) |
| Finance income | 3 | 206,078 | 141,555 |
| Profit before taxation | 10,779,510 | 3,617,970 | |
| Income and other taxes | 4 | (2,009,751) | 19,593 |
| Profit after taxation (1) | 8,769,759 | 3,637,563 | |
| Other comprehensive income (net of tax) | |||
| Exchange differences on translating foreign operations | 6,989,602 | (1,780,928) | |
| Total comprehensive profit for the period (1) | 15,759,361 | 1,856,635 | |
| Profit per ordinary share (basic) | 5 | 11.58c | 4.80c |
| Profit per ordinary share (diluted) | 5 | 11.58c | 4.80c |
| Balance Sheet as at 31 March 2025 | |||
| (expressed in US$) | As at 31 March 2025 (unaudited) | As at 31 March 2024 (unaudited) | As at 31 December 2024 (audited) |
| Non-current assets | |||
| Deferred exploration costs | 21,710,728 | 20,075,458 | 18,839,836 |
| Property, plant and equipment | 60,650,590 | 52,662,606 | 53,593,723 |
| Right of use assets | 4,957,791 | 5,006,117 | 4,287,020 |
| Taxes receivable | 5,396,180 | 3,734,309 | 6,246,352 |
| Deferred taxation | 2,532,594 | 1,736,077 | 1,878,081 |
| Total non-current assets | 95,247,883 | 83,214,567 | 84,845,012 |
| Current assets | |||
| Inventories | 15,649,258 | 13,999,674 | 13,115,648 |
| Trade and other receivables | 2,841,707 | 4,024,896 | 2,533,450 |
| Prepayments and accrued income | 3,553,485 | 3,181,024 | 2,220,463 |
| Cash and cash equivalents | 26,504,939 | 11,056,317 | 22,183,049 |
| Total current assets | 48,549,389 | 32,261,911 | 40,052,610 |
| Current liabilities | |||
| Trade and other payables | 12,772,721 | 7,808,639 | 9,695,560 |
| Interest bearing liabilities | 5,336,180 | 5,689,805 | 5,841,804 |
| Accruals | 462,371 | 401,939 | 419,493 |
| Total current liabilities | 18,571,272 | 13,900,383 | 15,956,857 |
| Net current assets | 29,978,117 | 18,361,528 | 24,095,753 |
| Total assets less current liabilities | 125,226,000 | 101,576,095 | 108,940,765 |
| Non-current liabilities | |||
| Trade and other payables | 1,928,799 | 4,249,115 | 2,809,243 |
| Provisions | 3,037,979 | 2,568,287 | 1,839,916 |
| Interest bearing liabilities | 250,493 | 56,126 | 109,952 |
| Total non-current liabilities | 5,217,271 | 6,873,528 | 4,759,111 |
| Net assets | 120,008,729 | 94,702,567 | 104,181,654 |
| Equity | |||
| Share capital | 11,213,618 | 11,213,618 | 11,213,618 |
| Share premium reserve | 36,158,068 | 36,158,068 | 36,158,068 |
| Option reserve | 289,327 | 229,456 | 221,613 |
| Other reserves | 20,110,100 | 16,708,285 | 19,486,684 |
| Translation reserve | (71,470,163) | (63,561,669) | (78,459,765) |
| Retained surplus | 123,707,779 | 92,954,809 | 115,561,436 |
| Equity shareholders’ funds | 120,008,729 | 94,702,567 | 104,181,654 |
The interim financial information has not been audited and does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. Whilst the financial information included in this announcement has been compiled in accordance with International Financial Reporting Standards (“IFRS”) this announcement itself does not contain sufficient financial information to comply with IFRS. The Group statutory accounts for the year ended 31 December 2024 prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 will be filed with the Registrar of Companies before 30 June 2025. The auditor’s report on these accounts was unqualified and did not contain a statement under Section 498 (2) or 498 (3) of the Companies Act 2006.
Statements of Changes in Shareholders’ Equity
For the three-month period ended 31 March 2025
(expressed in US$)
| (unaudited) | Share capital | Share premium | Share option reserve | Other reserves (1) | Translation reserve | Retained Earnings | Total equity |
|---|---|---|---|---|---|---|---|
| Equity shareholders’ funds at 31 December 2023 | 11,213,618 | 36,158,068 | 175,573 | 15,960,006 | (61,780,741) | 91,065,525 | 92,792,049 |
| Foreign currency adjustments | — | — | — | — | (1,780,928) | — | (1,780,928) |
| Profit for the period | — | — | — | — | — | 3,637,563 | 3,637,563 |
| Total comprehensive income for the period | — | — | — | — | (1,780,928) | 3,637,563 | 1,856,635 |
| Transfer to taxation reserve | — | — | — | 748,279 | — | (748,279) | — |
| Share option expense | — | — | 53,883 | — | — | — | 53,883 |
| Equity shareholders’ funds at 31 March 2024 | 11,213,618 | 36,158,068 | 229,456 | 16,708,285 | (63,561,669) | 93,954,809 | 94,702,567 |
| Foreign currency adjustments | — | — | — | — | (14,898,096) | — | (14,898,096) |
| Profit for the period | — | — | — | — | — | 24,182,155 | 24,182,155 |
| Total comprehensive income for the period | — | — | — | — | (14,898,096) | 24,182,155 | 9,284,059 |
| Transfer to taxation reserve | — | — | — | 2,778,399 | — | (2,778,399) | — |
| Share based incentives lapsed in period | — | — | (202,871) | — | — | 202,871 | — |
| Share based incentive expense | — | — | 195,028 | — | — | — | 195,028 |
| Equity shareholders’ funds at 31 December 2024 | 11,213,618 | 36,158,068 | 221,613 | 19,486,684 | (78,459,765) | 115,561,436 | 104,181,654 |
| Foreign currency adjustments | — | — | — | — | 6,989,602 | — | 6,989,602 |
| Profit for the period | — | — | — | — | — | 8,769,759 | 8,769,759 |
| Total comprehensive income for the period | — | — | — | — | 6,989,602 | 8,769,759 | 15,759,361 |
| Transfer to taxation reserve | — | — | — | 623,416 | — | (623,416) | — |
| Share option expense | — | — | 67,714 | — | — | — | 67,714 |
| Equity shareholders’ funds at 31 March 2025 | 11,213,618 | 36,158,068 | 289,327 | 20,110,100 | (71,470,163) | 123,707,779 | 120,008,729 |
- (1) Other reserves comprise a merger reserve of US$361,461 and a taxation reserve of US$19,748,639 (31 December 2024: merger reserve of US$361,461 and a taxation reserve of US$19,125,223).
Condensed Consolidated Cash Flow Statement
For the three-month period ended 31 March 2025
For the three months ended 31 March
| 2025 | 2024 | |
|---|---|---|
| (expressed in US$) | (unaudited) | (unaudited) |
| Operating activities | ||
| Post tax profit for period | 8,769,759 | 3,637,563 |
| Depreciation – plant, equipment and mining properties | 1,834,773 | 1,046,561 |
| Net financial (income)/expense | (165,530) | 67,616 |
| (Gain)/loss on asset disposals | (39,508) | (11,633) |
| Provision for taxation | 2,009,751 | (19,593) |
| Share-based payments | 67,714 | 53,883 |
| Taxation paid | (1,931,751) | (15,354) |
| Interest paid | (380,770) | (392,268) |
| Foreign exchange loss | 182,387 | 67,747 |
| Changes in working capital | ||
| Increase in inventories | (1,907,662) | (349,744) |
| (Increase)/decrease in receivables, prepayments and accrued income | (1,071,364) | 1,881,445 |
| Decrease in payables, accruals and provisions | 2,852,038 | (686,484) |
| Net cash inflow from operations | 10,219,837 | 1,900,441 |
| Investing activities | ||
| Purchase of property, plant and equipment and assets in construction | (1,601,149) | (438,985) |
| Mine development expenditure | (1,626,214) | (1,589,627) |
| Pre-operational project expenditure | (1,535,853) | |
| Geological exploration expenditure | (1,525,508) | (149,584) |
| Proceeds from sale of assets | 49,508 | 11,908 |
| Interest received | 206,078 | 134,723 |
| Net cash outflow on investing activities | (6,033,138) | (2,031,565) |
| Financing activities | ||
| Receipt of short-term loan | 5,000,000 | 5,000,000 |
| Repayment of short-term loan | (5,153,577) | (5,000,000) |
| Payment of finance lease liabilities | (141,654) | (255,245) |
| Net cash outflow from financing activities | (295,231) | (255,245) |
| Net increase / (decrease) in cash and cash equivalents | 3,891,468 | (386,369) |
| Cash and cash equivalents at beginning of period | 22,183,049 | 11,552,031 |
| Exchange difference on cash | 430,422 | (109,345) |
| Cash and cash equivalents at end of period | 26,504,939 | 11,056,317 |
Notes
Basis of preparation
These interim condensed consolidated financial statements are for the three-month period ended 31 March 2025. Comparative information has been provided for the unaudited three-month period ended 31 March 2024 and, where applicable, the audited twelve-month period from 1 January 2024 to 31 December 2024. These condensed consolidated financial statements do not include all the disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2024 annual report.
Accounting standards, amendments and interpretations effective in 2024
Amendments to IAS 21 – The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability
The amendments provide guidance for determining the spot exchange rate when exchangeability between two currencies is lacking. They clarify when a currency is considered exchangeable and introduce a methodology for estimating an appropriate exchange rate when necessary. The Group does not expect a material impact on its financial statements from these amendments.
No other standards or amendments are expected to be effective in 2025.
Going concern
At 31 March 2025 the Group held cash of US$26.5 million which represents an increase of US$4.3 million compared to 31 December 2024.
On 7 January 2024, the Group completed a US$5.0 million unsecured loan arrangement with Brazilian bank Itau which carried a fixed interest coupon of 8.47 per cent. The loan was repaid as a bullet payment on 6 January 2025. On 22 January 2025, the Group completed a further US$5.0 million unsecured loan arrangement with a different Brazilian bank (Santander) which carries a fixed interest coupon of 6.16 per cent. This loan is repayable on 16 January 2026.
- Other Income and Expenses
- Finance expense and income
| 3 months ended 31 March 2025 (unaudited) | 3 months ended 31 March 2024 (unaudited) | |
|---|---|---|
| US$ | US$ | |
| Interest expense on unsecured loan | (79,011) | (141,647) |
| Interest expense on finance leases | (14,287) | (14,036) |
| Interest expense on short term trade loan | (17,676) | (18,922) |
| Total finance expense | (110,974) | (174,605) |
| Interest income | 206,078 | 134,723 |
| Gain on revaluation of hedging derivatives | — | 6,832 |
| Total finance income | 206,078 | 141,555 |
| Net finance (expense) | 95,104 | (33,050) |
Taxation
The Group has recognised a deferred tax asset to the extent that the Group has reasonable certainty as to the level and timing of future profits that might be generated and against which the asset may be recovered. The deferred tax liability arising on unrealised exchange gains has been eliminated in the three-month period to 31 March 2025 reflecting the stronger Brazilian Real exchange rate at the end of the period and resulting in deferred tax income of US$466,264 (three months to 31 March 2024 – income of US$674,185).
The Group has also incurred a tax charge in Brazil for the three-month period of US$2,475,989 (three months to 31 March 2024 tax charge - US$654,592).
Earnings per Share
| 3 months ended 31 March 2025 (unaudited) | 3 months ended 31 March 2024 (unaudited) | |
|---|---|---|
| Profit attributable to ordinary shareholders (US$) | 8,769,759 | 3,637,563 |
| Weighted average ordinary shares in issue | 75,734,551 | 75,734,551 |
| Basic profit per share (US cents) | 11.58c | 4.80c |
| Diluted ordinary shares in issue (1) | 75,734,551 | 75,734,551 |
| Diluted profit per share (US cents) | 11.58c | 4.80c |
- At 31 March 2025 there were 3,357,649 conditional share awards in issue (31 March 2024 - 2,814,541). These are subject to performance conditions which may or not be fulfilled in full or in part. These CSAs have not been included in the calculation of the diluted earnings per share.
- Post balance sheet events
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