Serabi Gold (SRB) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended 30 September 2024 was $70.29 million, up from $47.90 million year-over-year, driven by higher gold sales volumes and prices.

• Gross profit rose to $27.15 million from $10.08 million year-over-year, reflecting improved operational performance and higher gold prices.

• Net profit for the nine months was $17.84 million, up from $4.62 million in the prior year period.

• Gold production increased to 27,499 ounces (up 9%), with sales of 28,912 ounces (up 22%) compared to the same period last year.

• Coringa mine contributed 14,464 ounces of gold bullion, more than doubling its output year-over-year.

Financial highlights

• Average gold sales price achieved was $2,338/oz, up 20% from $1,940/oz year-over-year.

• Operating costs increased 26% to $38.06 million, mainly due to higher sales volumes and general price increases.

• Earnings per share for the nine months were 23.55c (basic and diluted), up from 6.10c year-over-year.

• Cash and cash equivalents at 30 September 2024 were $20.03 million, up from $11.55 million at year-end 2023.

Outlook and guidance

• Management expects to continue gold production growth at Palito Complex and further ramp up at Coringa, targeting higher output than 2023.

• Directors will manage discretionary expenditures to maintain liquidity and mitigate operational risks.