Serabi Gold produced 11,007 oz in Q2, taking H1 output to over 23,000 oz. With $65.7M cash and no debt, the company expects record 2026 output above 53,000 oz, pending the Coringa installation licence.
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Serabi Gold produced 11,007 ounces of gold in the second quarter, bringing first-half total output to over 23,000 ounces, the company reported Thursday. The performance was broadly in line with budget, and management expects quarterly production to increase through the second half of the year.
The company ended June with $65.7 million in cash, up from a record cash generation quarter in Q1, and carries no debt after fully repaying a $5.3 million Santander loan in the first quarter. The stronger balance sheet comes despite a $4 million hit from one-time G&A and tax charges and lower realised gold prices in the period.
Coringa Grades Hold at 7.41 g/t as Mechanization Advances
Coringa, the newer mine, continued to perform strongly. Milled grades averaged 7.41 grams per tonne of gold. The transition to mechanized sublevel open stoping is still underway, and the company expects to complete the shift by year-end, which should bring benefits to cost, output and safety. Development has started on two new zones at Coringa: Galena and Serra South. Serra South was a significant discovery from the 2025 brownfield exploration programme.
At the Palito Complex, production was softer. Milled grades averaged 5.26 g/t gold year-to-date, down from over 6 g/t in full-year 2025. The company attributed the dip to the mine plan sequencing. Development is focused on the G3 zone, and stoping is expected to resume there in the second half, which should lift grades.
Total ore mined across both operations was 59,094 tonnes at 6.19 g/t for the quarter, compared with 54,965 tonnes at 7.06 g/t in Q1. The Palito plant treated 57,122 tonnes at 6.21 g/t, versus 54,587 tonnes at 7.05 g/t in the prior quarter.
The LI Is the Big Catalyst
The most important catalyst for Serabi this year is the installation licence (LI) for Coringa. The licence is issued by SEMAS, the state environmental agency, which is waiting on two approvals. The first is a change-of-land-use approval from the federal land registry body INCRA, which has been technically approved at both state and federal levels and now awaits final legal sign-off. The second is from FUNAI, the Indigenous agency, which needs to protocol the Indigenous Impact Study. The company said the study was positively received by local communities in March, and a second site visit took place on 17 July. Serabi assumes the LI will be awarded by Q4-2026 and maintains full-year guidance above 53,000 ounces on that basis.
Award of the LI would allow Coringa to operate at its full permitted capacity of 100,000 tonnes of ore per year under the existing GUIA licence. The company is currently operating under a temporary licence that permits transport of ore at that rate.
Resource Growth and Plant Expansion
Serabi also updated its mineral resource estimates during the quarter, based on roughly 38,000 metres of drilling in 2025. Consolidated measured and indicated resources rose to 731,000 ounces of gold, and inferred resources reached 653,000 ounces. The company said these figures are more than halfway toward its growth target after just one year of Phase 2 drilling.
At Palito, a plant expansion remains on track for completion by Q4-2026, on budget. The company said the expansion should support higher throughput and improved grades in the coming years.
What the Numbers Mean for the Rest of the Year
Full-year guidance of over 53,000 ounces implies second-half production of roughly 30,000 ounces, a significant ramp from the 23,000 ounces produced in the first half. The company expects the production profile to increase sequentially through the remainder of the year, driven by the Palito plant expansion, the resumption of stoping at G3, and the completion of mechanization at Coringa. The strong cash position and debt-free balance sheet give Serabi financial flexibility as it moves toward what it expects to be a record production year.
The company is listed in London (AIM: SRB), on the TSX (SBI), and on the OTCQX (SRBIF). Its operations are centred on the Tapajós region in Para State, northern Brazil, where it has consistently produced 30,000 to 40,000 ounces annually from the Palito Complex and is now planning to double production with the Coringa ramp-up.
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Management said the next key milestone is the LI decision, which the company still expects before year-end. Until then, the focus remains on the operational ramp at both mines and the plant expansion at Palito.
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