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(Sharecast News) - Serabi Gold reported record annual gold production on Thursday, meeting guidance and strengthening its balance sheet, as higher output from the Coringa mine underpinned a strong operational and financial performance.
Group gold production in the fourth quarter of 2025 rose 15% year on year to 11,534 ounces, taking full-year output to a record 44,169 ounces, an 18% increase on 2024 and in line with guidance.
The AIM-traded company said the result reflected continued ramp-up at Coringa alongside stable performance at the Palito Complex.
Horizontal development in the quarter increased 45% year-on-year to 4,535 metres, supporting ongoing production growth.
Serabi generated a net increase in cash during the quarter, with cash held on 31 December of $49.2m, compared with $38.8m at the end of September.
A further $5.1m was received in early January from December sales.
Net cash at the end of the quarter stood at $42.1m, up from $33m three months earlier, supported by strong operating cash flows and favourable gold prices.
For the full year, total ore mined amounted to 204,480 tonnes at an average grade of 6.91 grams per tonne, while total sales volumes and grades reflected higher throughput at Coringa.
The company said the ore sorter at Coringa played a key role in boosting production by enabling processing of lower-grade stockpiled material during the year, while higher-grade run-of-mine ore was transported directly to the Palito processing plant.
Chief executive Mike Hodgson said 2025 had been "another positive year with many milestones achieved", highlighting record production, continued ramp-up at Coringa, progress on brownfield exploration and the launch of the group's inaugural shareholder return policy.
He said the 18% increase in annual production was driven by the addition of new zones at Coringa and the successful use of mechanised mining, which improved safety and efficiency despite higher dilution.
Looking ahead, Serabi guided to consolidated gold production of between 53,000 and 57,000 ounces in 2026, which would represent a further increase on 2025.
Hodgson said the group was well-positioned for another record year, supported by strong operational momentum, an enhanced balance sheet and continued progress on its growth strategy, including further brownfield exploration and development at Coringa.
At 1252 GMT, shares in Serabi Gold were down 0.57% at 343.05p.
Reporting by Josh White for Sharecast.com.