Brazilian underground gold specialist Serabi Gold has emerged as a standout performer in the precious metals sector, with its share price soaring nearly 300% over the past year from approximately £0.60 to £2.40. This remarkable growth comes as the company capitalizes on operational improvements, favorable gold market conditions, and advantageous Brazilian currency movements.
The London-listed miner is executing an ambitious expansion strategy aimed at increasing annual production to 60,000 oun
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Brazilian underground gold specialist Serabi Gold has emerged as a standout performer in the precious metals sector, with its share price soaring nearly 300% over the past year from approximately £0.60 to £2.40. This remarkable growth comes as the company capitalizes on operational improvements, favorable gold market conditions, and advantageous Brazilian currency movements.
The London-listed miner is executing an ambitious expansion strategy aimed at increasing annual production to 60,000 ounces by 2026 and 100,000 ounces by 2028. This growth trajectory is supported by aggressive brownfield exploration programs that will see 30,000-40,000 meters of drilling annually across its Brazilian assets.
CEO Mike Hodgson, speaking at the recent Beaver Creek Precious Metals Summit in Colorado, outlined how the company has transformed from survival mode to growth execution. “We’re actually getting more out of the plant by high-grading it. We don’t high-grade the mine. We take the ore out the mine. We put it through two sorters. So, we’re just upping that feed grade going in that plant and that gets us to 60,000 ounces,” Hodgson explained.
Serabi operates in a unique niche as Brazil’s premier underground gold mining specialist. Despite Brazil’s vast mineral wealth, the country hosts only 31 underground mines, with most operations focused on large-scale open-pit mining. This positioning gives Serabi significant competitive advantages in an underserved segment of the Brazilian mining industry.
The company’s current operations center around a processing plant with capacity constraints of approximately 600-650 tons per day, translating to 230,000 tons annually. However, management has implemented innovative ore sorting technology to enhance feed grades entering the plant, enabling higher production without major infrastructure investment.
Resource development forms the cornerstone of Serabi’s expansion strategy. The company aims to increase its resource base from the current 1 million ounces to at least 1.5 million ounces by the end of 2026. Recent drilling results have validated management’s optimistic outlook, with positive exploration findings at the Coringa deposit driving a 7% single-day share price increase. Hodgson described Coringa as an underexplored deposit with extensive strike length and significant untapped potential.
Perhaps most impressive is Serabi’s financial transformation. The company has moved from capital constraints to strong cash flow generation, enabling self-funded growth without dilutive equity raises. This financial strength provides strategic flexibility for both expansion and potential shareholder returns.
The favorable gold price environment, combined with beneficial Brazilian real exchange rate movements, has created powerful economic tailwinds. This dual currency advantage enhances cash flow generation from Brazilian operations when translated to reporting currency.
Management has adopted a disciplined approach to capital allocation, balancing growth investments with potential shareholder returns. “We set out about a year ago that come after our 2025 financials comes out, which will be first quarter 2026, that’s exactly where we’ll look at where our cash position is,” Hodgson confirmed. “I see no reason to actually change what we said on that at all. We are looking at capital returns for shareholders.”
Serabi has also successfully diversified its shareholder base, attracting institutional investors through a secondary offering in April at £1.35 per share. Daily trading volumes have increased dramatically from 500-1,000 shares to 1 million shares, facilitating better price discovery and institutional access.
The broader gold market continues to benefit from macroeconomic uncertainty, currency debasement concerns, and central bank accumulation worldwide. Within this favorable environment, underground gold producers like Serabi occupy a specialized niche that offers distinct advantages, particularly in jurisdictions where high-grade deposits remain underexplored.
As Hodgson noted regarding the company’s recent success: “That’s the power of being a producer in a really quite exciting gold market at the moment. Right now that doesn’t happen overnight and you don’t snap your fingers and it magically appears. That’s the kind of core focus of the moment.”
With its specialized underground mining capabilities, clear growth strategy, and strong financial position, Serabi Gold represents a compelling opportunity in the gold sector as it works toward its production expansion goals and evaluates shareholder returns in early 2026.
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