Serabi Gold rises as profits soar

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Serabi Gold rises as profits soar

The price of shares in AIM-listed miner Serabi Gold (LON:SRB) climbed by 0.47% to 85.70p (as of 13:35 GMT) after profits before tax rose by 175% for the nine months to 30th September. Revenues for the period were 3.3% higher than in 2019 as average received gold prices shot upwards and outweighed lower volumes.

CFO Clive Line commented: “By the end of September 2020, operations were returning to something resembling normality and an aggressive surface and underground drilling programme is underway, along with an accelerated underground development programme targeted to replenish the reserve and resource base and allow the Company to regain the optionality and flexibility that it has benefitted from in the past. This will not be achieved overnight, and it will take some time to recover the six months that have been lost. With exploration and mine development activity being stepped up together with the usual higher labour expense of settlement of the standard “13th salary” payments that are due in November and December this will impact on the level of cash generation for the rest of the year. Nonetheless I expect that if our production estimates are attained the Company can end in the year in a comfortable financial position.

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