TSX- and Aim-listed Serabi Gold has managed to increase its gold production by 20% year-on-year to 12 042 oz in the first quarter of the year and to settle all of its debt.

After repaying $5.3-million to Itaú Bank in Brazil in the quarter, the company is now debt-free and with $64.4-million of cash on hand.

CEO Mike Hodgson says the company delivered an excellent first quarter with both its mines having performed well. The company owns and operates the Palito Mining Complex and Coringa project in Brazil’s Tapajós region – which is considered to be the world’s third-largest alluvial gold field.

Having installed a fourth ball mill at the Palito Complex that will be operational towards the fourth quarter, the company expects its yearly processing throughput to increase to 330 000 t in 2027.

The ball mill will address plant capacity challenges and enable the processing of lower grade stockpiles.

Additionally, Serabi is assessing the impact of restarting the São Chico satellite mine operation near the Palito Complex. The Palito Complex did not have capacity to receive what was marginal ore from São Chico previously owing to economics, however, both surface and underground ore is viable at current gold prices.

At Coringa, Serabi is transitioning from selective open stoping to mechanised sublevel stoping after 12 months of ore sorting success.

Hodgson explains the ore sorter was instrumental in achieving record yearly production in 2025, which, along with favourable geological continuity of veins at Coringa, allows the company to transition to a more mechanised sublevel open stoping method which provides many benefits to cost, output and safety.

Hodgson expects mechanisation of Coringa to be complete by the third quarter.

He further warns that Coringa currently operates under a three-year mine licence that is due to expire at the end of January 2027. However, he confirms that discussions are ongoing with Brazil’s Agência Nacional de Mineração to extend the mine licence.

For the full mining licence the company requires a change of land use approval from the Instituto Nacional de Colonização e Reforma Agrária, as well as federal approval, which are both progressing well.

Overall, Serabi is working to increase its production while gold prices are high. “We continue to take advantage of the economic tailwinds that prevail at this moment in time and the production profile for the year will see each quarter sequentially increasing production as we anticipate another record year of production in 2026,” Hodgson states.

Serabi has set its yearly guidance at between 53 000 and 57 000 oz.