Serabi Gold: Sorting Its Way to 100K Ounces—and Your Portfolio!

In the world of gold mining, Serabi Gold (LON:SGB) isn't just digging for gold—it's using cutting-edge technology to sort out the winners and create a cash flow machine. With its ore sorting innovations driving jaw-dropping grade improvements, cost efficiencies, and a clear path to 100,000 ounces of annual production by 2028, this Brazilian-focused miner is turning operational grit into shareholder gold. Here's why this stock is a must-watch for growth-oriented investors.

The Tech Edge: How Ore Sorting is Transforming Serabi's Mines

Imagine finding a way to double your gold grades without spending a fortune. That's exactly what Serabi's ore sorting technology has achieved. By deploying advanced systems to separate low-grade waste from high-grade ore, the company has unlocked a 32% jump in plant feed grades at its Palito Complex and a 10% boost at Coringa in just one year. This isn't magic—it's math.

The results? Higher grades mean less waste, lower processing costs, and more ounces flowing to the bottom line. At Coringa, the new classification plant now processes ore with grades as high as 10 grams per tonne (g/t)—up from 5.4 g/t pre-sorting. Meanwhile, the All-In Sustaining Costs (AISC) have plunged to $1,240 per ounce, a full $600 below the industry average.

The Cash Flow Machine: Free Cash Flow Growth and Shareholder Returns

Lower costs + higher grades = a cash flow explosion. In Q1 2025 alone, Serabi produced 10,013 ounces, an 11% surge over last year. With production ramping up to 44,000–47,000 ounces in 2025 and a target of 60,000 ounces by 2026, the company is on track to generate over $15 million in free cash flow this year.

But here's the kicker: Serabi isn't just sitting on cash. With a $26.5 million war chest and minimal debt, management is aggressively funding growth and rewarding shareholders. The CEO has explicitly flagged plans to explore dividends or buybacks once production scales further—a rarity in a sector often obsessed with reinvesting every penny.

Catalysts to Watch: Exploration Upside and Macro Tailwinds

1. Exploration Bonanza: A $10 million brownfield exploration program aims to double Serabi's resource base from 1 million to 2 million ounces by 2026. The Jatobá zone at Coringa alone could add 15–20% more production by year-end, while deeper drilling at Palito's Barrichello vein hints at even bigger discoveries.
2. Gold's Golden Age: With global gold prices hovering near $2,000/oz and the Brazilian real strengthening against the dollar, every ounce Serabi produces gets a double whammy boost.
3. Debt-Free Growth: No need for equity dilution! Serabi's $5 million credit facility with Banco Santander (at a 6.16% interest rate) is cheap and flexible, ensuring capital stays in investors' pockets.

Risks to Consider

• Operational Hiccups: Mining is a tough business. Delays in deeper-level development at Coringa or Palito could slow production growth.
• Commodity Volatility: A sudden gold price crash would hit margins.
• Regulatory Headwinds: Brazil's permitting process can be unpredictable.

Why This is a Buy Now

Serabi Gold isn't just another gold miner—it's a story of operational mastery and capital discipline. With a clear path to 100,000 ounces by 2028, a fortress balance sheet, and a management team willing to return cash to shareholders, this stock is primed to outperform.

Action Alert: This is a buy now for investors who want growth, cash flow, and the potential for dividends in the gold sector. If you're tired of “story stocks” and want results, Serabi's sorting tech is separating it from the pack. Don't miss the train—get in before the grades (and the stock price) go higher!