Image source: Pexels.com

Highlights

  • Serabi Gold PLC is involved in the production and exploration of gold in the Brazilian region.
  • The Group’s revenue increased to US$13.43 million in Q1 FY23 against US$12.88 million in Q1 FY22.

Serabi Gold PLC (LSE: SRB) is an FTSE AIM All-Share index listed mining company based out of London, and is engaged in the production and exploration of gold in the Brazilian region. The company holds 100% interest in Palito Mining Complex and has interests in the Coringa Gold Project located in the northern Brazil-based Tapajos region.
Fiscal metrics for Q1 FY23

The revenue of the group increased to US$13.43 million in Q1 FY23 as compared to the total revenue of US$12.88 million in the first quarter of FY22. For the reported period, the company’s cash reserve rose to US$13.9 million, marking a massive increase from US$7.2 million at the end of Q1 FY22. Furthermore, the EBITDA of the group reported a growth at US$2.3 million in Q1 FY23 against US$2.1 million in Q1 FY22.

During the quarter, the group reduced the total cash cost of production to US$1,281/oz against US$1,438/oz in the previous corresponding period. The group’s All-in Sustaining Costs (AISC) also dropped to US$1,516/oz during the quarter. The reduction in AISC may serve as a catalyst for securing better margins of the company.

Recent developments

In June 2023, Serabi Gold released results from a recent underground drilling campaign conducted at its Palito Mine in the Tapajos region of Para State of Northern Brazil. The results highlighted strong mineralisation with intercepts:

  • 30 metres @ 44.75g/t Au from 337.85 metres (PDD0557)
  • 55 metres @ 45.20g/t Au from 190.60 metres (PDD0590)
  • 90 metres @ 23.33g/t Au from 286.30 metres (PUD0786)
  • 75 metres @ 24.92g/t Au from 230.00 metres (PUD0825)
  • 50 metres @ 32.11g/t Au from 238.10 metres (PUD0827)

Top Shareholders
The top 10 shareholders collectively form around 65.21% of the total shareholdings. Fratelli Investments, Ltd. holds the maximum number of shares with 25.51% shareholding, followed by Greenstone Capital LLP with 25.20% shareholding, as depicted in the chart below.

Stock Price Performance
The stock has witnessed a fall of ~20.12% in the last three months and over the last six months, it has slipped by ~22.58%. The stock has a 52-week low and 52-week high of GBX 21.364 & 44.90, respectively and is currently trading below the average of 52-week high-low.

 
Data Source: EODHD/Others, Analysis done by Kalkine Group 

Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 10 July 2023. The reference data in this report has been partly sourced from EODHD/Others.