Serabi Gold (AIM:SRB, TSX:SBI) saw its shares recover their poise after falling sharply in the immediate aftermath of the group’s third-quarter results released earlier today.
The AIM-listed group reported third-quarter production of 8,541 ounces, bringing total gold production for the first nine months of 2022 to 24,021 ounces.
EBITDA for the first nine months of 2022 totalled $5.9mln, down from $15mln year-on-year, as it recorded a post-tax loss of $0.87mln, after making a provision of $1mln against the recovery of historic tax debts owed to the company in Brazil.
Serabi said it achieved an average gold price of $1,810 per ounce, up from $1,772 year-on-year, while its cash cost for the three months ended 30 September was down to $1,242 per ounce, down from $1,395 per ounce in the second quarter, representing an 11% improvement on the quarter.
“Following good progress in the second quarter in realising improvements in cost efficiency it is very pleasing to report a continued reduction in quarterly all-in sustaining and cash costs,” said Serabi chief financial officer Clive Line in the results statement.
“The revenue and operating costs reported for the third quarter also include revenues generated from the first sales of gold from the Coringa project together with the associated operating costs incurred.
“Whilst we anticipate gold production continuing to improve as we progress into 2023, with further mining levels developed, and new areas prepared for stoping, we expect Coringa to continue to require funding from the Palito cash flow in the immediate term,” Line said.
Serabi shares, which were trading 9% lower in early trading, were up 2% in the afternoon.