en.Weodoany.com Report on Mar 27th, Serabi Gold (AIM: SRB, TSX: SBI, OTCQX: SRBIF) operates the Palito Complex in Pará, Brazil, achieving group production of 44,200 ounces in 2025 with year-end cash of USD 54.3 million. The company recently announced the installation of a fourth ball mill, aiming to increase annual processing capacity to 330,000 tonnes by Q4 2026 to capitalize on opportunities presented by rising gold prices.
Serabi Gold's cost structure provides an advantage in a rising gold price environment. Both Palito and Coringa are camp-based operations, with labor, electricity, and diesel costs structurally controlled, avoiding risks associated with market fluctuations. For example, labor costs are set through annual collective agreements, diesel benefits from federal subsidies, and electricity is transitioning to the grid to reduce both costs and carbon intensity. This allows almost all incremental revenue to convert into margin. EBITDA for the first three quarters of 2025 reached USD 48.2 million, surpassing the full-year 2024 figure.
At Coringa, ore sorting technology has transformed transportation economics. Using the sorter, over 90% of waste rock is rejected on-site, increasing product grade to approximately 10 grams per tonne and reducing transportation costs and processing load to Palito. CEO Mike Hodgson stated in the March 2026 update: "The biggest advantage of this approach is higher mine production, lower mining costs, and safer operations, as sublevel stoping is a non-entry method." As the mining method transitions, feed grade is expected to rise to below 6 grams per tonne, with product grade above 12 grams per tonne.
The installation of the fourth ball mill aims to dilute the fixed cost base, spreading costs over greater production volume. The equipment, an idle asset acquired in 2018, has low installation costs, avoiding the expense of building a new processing plant. Hodgson noted: "With gold prices at record highs and viable inventory on hand, the plant capacity constraint has become more pressing than ever." Following the capacity expansion, the São Chico satellite mine, previously closed due to processing constraints, will be re-evaluated, potentially adding production at a lower capital cost.
Serabi Gold's next focus areas include releasing an updated Mineral Resource Estimate in Q1 2026 to support capacity expansion; ensuring the ball mill is commissioned on schedule to secure fixed cost dilution benefits; and progressing the full license for Coringa, which impacts long-term production ceilings and cost structure optimization. The company targets obtaining relevant approvals in the first half of 2026 to maintain growth momentum.
