Shares in Brazil-focused Serabi Gold (AIM:SRB, TSX:SBI) PLC were up 9% after a better-than-expected first-quarter production report - with the outperformance driven by the success of its Coringa operation.
Output for the period topped 9,000 ounces of the yellow metal, a high not seen since Q3 of 2021.
The stock, up 37% in the year to date, advanced a further 5.5p to 64p. Peel Hunt reckons there is further to go for the share price as it set an 80p target and reiterated its 'buy' advice.
"We are now beginning to see the fruits of Serabi’s development work at Coringa, with the new GUIA trial mining licence providing the comfort of three more years of operation on site," said the broker in a note to clients.
"We believe the market continues to underestimate Serabi’s value proposition, especially the increase in mine life and the efficiency impact of the new ore sorter at Coringa."