- TSX: SBI / LSE: SRB.
- Shares Outstanding: 59M.
- Share price: CAD$1.50 (30.10.20).
- Market Cap: CAD$96M.
Combined gold production from the Palito Mining Complex is currently approximately 40,000 ounces per annum, whilst the Coringa Project, when in production, is forecast to produce an additional 38,000 ounces per annum.
Serabi Gold is a gold exploration and production company involved in the evaluation and development of gold deposits in Brazil. The company’s primary interests are its 100% owned Palito Mining Complex and the recently acquired Coringa Gold Project both located in the Tapajos region of northern Brazil.
Workforce travel restrictions, extras measures for COVID-19 have been difficult to deal with, but the planning and preparation from 2019 has saved the day at Serabi. Serabi has been processing working through large stockpiles reserves and managed to organise the restricted number workforce so that work could carry on. The usual balancing of processing grades has been affected, so overall grade has dropped. The ore sorter has helped to deliver 7,200oz, down from the 8,000oz hoped for and down from the usual 10,000oz. This year, they will finish somewhere between 32,000oz and 34,000oz, down from the guidance of 40,000oz. Hodgson says if that is the case it that will have been a fantastic result in the circumstances.
The upside to all of this is that Serabi Gold's finances have never been better. They started the quarter with USD$9.6M, paid USD$2.6M to Equinox and still managed to finish the quarter with USD$11M.
The LP came through for their other 40,000oz producer Coringa and work begins in earnest there. Serabi also seems very keen to send one of the 5 drills to some high-grade artisanal workings near to the Palito mine. It's been a tough year for most gold producers in Brazil, but honest reporting as ever from Hodgson, with a plan to play catch up between now and the end of Q1/21.
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