High-grade hits at Coringa and Palito underline Serabi's push past 1.5 million ounces, with the stock still nursing a dip from its finance chief's exit.
Serabi Gold (AIM: SRB) has unveiled a fresh batch of high-grade drilling results from its Brazilian gold operations, with intercepts including 1.38 metres at 11.85 grams per tonne at the Serra South zone of its Coringa mine and 1.0 metre at 10.1 g/t from a nearby satellite target, as the company works to extend mineralisation beyond its current pit boundaries at both Coringa and its flagship Palito mine.
The shares have been under pressure following the recent resignation of the company's finance chief, a move that has weighed on sentiment even as the underlying operational and exploration story continues to strengthen, leaving the stock trading on what brokers view as an undemanding rating relative to its cash generation.
The drilling forms part of a 32,000-metre programme across six rigs at Palito and Coringa, aimed at growing Serabi's total mineral inventory beyond 1.5 million ounces, building on last year's campaign which lifted measured and indicated resources to roughly 731,000 ounces. Some of the latest intercepts are based on internal assays that are yet to be confirmed by external laboratories.
With a market capitalisation of around £209 million, Serabi generated pre-tax profit of $53.9 million in 2025, underlining the scale of cash flow now being produced from its two operating mines, a backdrop that has made the recent share price weakness look, to some, like a buying opportunity rather than a red flag.
This year's drilling is expected to wrap up in October, with an updated resource estimate due in the first quarter of 2027. Gold price volatility remains a swing factor for near-term earnings, though management expects production to pick up through the first half of the year, offering some offset.
This report is based on Serabi Gold’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Hector Brasil on Unsplash.
Small Cap News covers London’s junior market – AIM, small-cap and growth companies – with concise, sourced reporting on the results, deals and regulatory news that move share prices. We track the stories private investors actually need, from contract wins and drilling updates to fundraises and half-year figures, straight from the market’s own announcements.