(Sharecast News) – Serabi Gold reported a sharp rise in 2025 revenue and profit on Friday, after higher production and stronger gold prices drove record cash generation, enabling the Brazilian-focused miner to declare its first annual dividend.
The AIM-traded company said revenue rose 65% to $155.8m in the year ended 31 December, from $94.5m in 2024.
Gold production increased 18% to 44,169 ounces from 37,520 ounces, while the average realised gold price rose to $3,481 per ounce from $2,407.
EBITDA increased 117% to $77.9m from $35.9m, while post-tax profit rose 94% to $53.9m from $27.8m.
Earnings per share increased to 71.18 cents from 36.73 cents.
Cash at the year end rose to $49.2m from $22.2m, while net cash increased to $42.1m from $16.2m after interest-bearing loans and lease liabilities.
Net cash inflow from operations was $50.6m after mine development expenditure of $5.3m, compared with $24.5m in 2024 after mine development of $6.3m.
Cash costs increased to $1,437 per ounce from $1,326, while all-in sustaining costs rose to $1,816 per ounce from $1,700.
In the fourth quarter, production for cash cost and AISC purposes was 11,534 ounces, with an average gold price received of $4,121 per ounce.
Chief financial officer Colm Howlin said 2025 had been “a transformative year for Serabi”, supported by higher annual production and gold prices.
“The cash generated from operations during 2025 of $55.9m, an 81% increase over the previous year, allowed us to invest heavily into the future of the company, with a total of $14.5m invested in mine development and pre-operating costs as well as $8.15m in our brownfield exploration programme, which has so far resulted in a significant increase in the Company’s consolidated measured and indicated ounces and Inferred ounces, having drilled 38,400 metres during the year,” he said.
Howlin said Serabi planned to continue investing in mine development and exploration in 2026, with more than 30,000 metres of exploration drilling planned as the company targets a consolidated resource of more than 1.5m ounces and growth beyond its current target of 60,000 ounces per year from 2027.
The firm said its balance sheet had strengthened further after the year end.
Serabi repaid $5.3m to Santander in Brazil on 7 January, becoming debt free, and ended the first quarter of 2026 with cash of $64.4m.
“With cash on hand of $49.2m at the end of 2025, the company has very strong liquidity to support its growth plans, supported by the continued operational scale-up at Coringa and the ongoing production stability of the Palito mine,” Howlin said.
“Our balance sheet has never looked stronger which gives us the opportunity to self-fund our organic growth as well as offering us strategic flexibility in terms of M&A opportunities should an appropriate opportunity arise.”
The board announced an inaugural annual dividend of 5p per share, equivalent to about seven cents per share, representing a total payment of approximately $5.41m, or 20% of 2025 free cash flow.
Serabi said its 2026 shareholder return policy would target returns of up to 20% to 30% of group free cash flow through dividends or buybacks.
Howlin said the dividend was “within our target range” while leaving the company with funds to continue investing in long-term growth.
Chair Michael Lynch-Bell said 2025 had been “yet another remarkable year” for Serabi and that momentum had continued into 2026.
He said commissioning of the classification plant at Coringa in 2024 and its continued operation through 2025 had helped lift production, alongside the ongoing ramp-up at Coringa and access to the Meio zone.
In 2025, Serabi advanced the ramp to the Galena zone at Coringa, which Lynch-Bell said would complete the ramp-up when finished and support a run-rate of 55,000 ounces per year using the current 650 tonnes per day processing capacity.
The company expects production of 53,000 to 57,000 ounces in 2026.
Serabi said its first year of aggressive brownfield exploration had contributed to growth in consolidated measured and indicated resources to 731,000 ounces and inferred resources to 653,000 ounces.
The company said it remained optimistic that the second year of the programme would achieve its targeted resource growth range.
It also announced earlier in 2026 that a fourth ball mill would be installed at the Palito Complex to increase processing capacity from 650 tonnes per day to about 900 tonnes per day.
The ball mill was expected to be operational by the fourth quarter of 2026 and is intended to support a materially higher annual production run-rate.
Lynch-Bell said Serabi’s standalone strategy was to grow Palito and Coringa into a consolidated producer of more than 100,000 ounces per year, while remaining open to disciplined inorganic growth opportunities.
The chair also said two fatalities in early 2026 had prompted a renewed focus on health and safety, including an external audit, additional safety personnel and support for employees and families.
He said the board was supporting management as it worked to strengthen the group’s safety culture, systems and accountability.
Serabi said ESG considerations were increasingly embedded in its financial performance, with the creation of a Sustainability Committee in 2024 and ESG metrics accounting for 15% of 2026 employee long-term incentive plans.
The firm also published its 2025 Sustainability Report as part of the annual report.
Lynch-Bell said the dividend marked “an important milestone” in Serabi’s capital allocation framework, while preserving financial flexibility to support growth and potential acquisitions.
“The board believes this represents an appropriate first step in establishing a sustainable dividend policy, while preserving capital to support strategic opportunities, including potential value-accretive M&A opportunities, as we strive to become [an above-]100,000 ounce producer in the coming years,” he said.
At 1047 BST, shares in Serabi Gold were up 1.27% at 337.22p.
Reporting by Josh White for Sharecast.com.
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