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Serabi Gold (GB:SRB)
LSE:SRB

Serabi Gold (SRB) AI Stock Analysis

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Serabi Gold

(LSE:SRB)

Rating:82Outperform
Price Target:
197.00p
▲(14.53%Upside)
Serabi Gold's strong financial performance and technical indicators drive a positive overall score. The company's low valuation presents an attractive investment opportunity, while recent corporate events enhance stakeholder confidence. Monitoring liabilities and the high RSI are areas to watch.

Serabi Gold (SRB) vs. iShares MSCI United Kingdom ETF (EWC)

Serabi Gold Business Overview & Revenue Model

Company DescriptionSerabi Gold (SRB) is a UK-based, AIM-listed gold mining and exploration company. The company's primary operations are located in the Tapajos region of northern Brazil, where it focuses on the exploration, development, and production of gold. Serabi Gold operates the Palito and Sao Chico high-grade underground gold mines, which are its core assets, and is dedicated to sustainable mining practices and maximizing shareholder value through efficient operations and strategic developments in the gold mining sector.
How the Company Makes MoneySerabi Gold generates revenue primarily through the extraction and sale of gold from its mining operations. The company processes gold ore extracted from its Palito and Sao Chico mines, producing gold doré bars that are sold to gold refineries. Revenue is generated based on the quantity of gold produced and the prevailing market price of gold at the time of sale. Additionally, the company may engage in exploration activities to expand its resource base, potentially increasing future production capabilities. Key factors contributing to Serabi Gold's earnings include efficient mining operations, cost management, and the global price of gold, which can be influenced by market demand, geopolitical factors, and macroeconomic conditions.

Serabi Gold Financial Statement Overview

Summary
Serabi Gold exhibits strong financial performance with notable revenue growth and profitability improvements. The balance sheet reflects stability with low leverage, although increasing liabilities should be monitored. Cash flow management shows positive trends, enhancing the company's ability to invest in future growth.
Income Statement
85
Very Positive
Serabi Gold has demonstrated strong revenue growth over the years, with a significant increase from 2023 to 2024. The Gross Profit Margin has improved, indicating efficient cost management. The Net Profit Margin also shows a positive trajectory, reflecting enhanced profitability. EBIT and EBITDA margins are robust, highlighting effective operational management and earnings quality. Overall, the income statement reflects solid financial health and growth potential.
Balance Sheet
75
Positive
The company maintains a strong equity base with a healthy Equity Ratio, suggesting financial stability. The Debt-to-Equity Ratio is low, indicating conservative leverage and minimal risk from debt financing. Return on Equity has improved, showing effective utilization of shareholder funds. However, total liabilities have increased, which requires monitoring to maintain balance sheet health.
Cash Flow
78
Positive
Operating Cash Flow has shown consistent improvement, aligning well with net income growth. Free Cash Flow has turned positive, indicating better cash generation capabilities. The Free Cash Flow to Net Income ratio is strong, suggesting efficient conversion of earnings into cash. Although capital expenditures are high, the positive cash flow trends support future growth investments.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
94.54M63.71M58.71M63.14M55.83M
Gross Profit
39.55M14.05M7.87M19.33M16.54M
EBIT
31.59M7.54M2.21M13.08M10.39M
EBITDA
37.22M15.15M9.21M19.48M15.23M
Net Income Common Stockholders
27.82M6.58M-983.05K9.95M7.03M
Balance SheetCash, Cash Equivalents and Short-Term Investments
22.18M11.55M7.20M12.22M6.60M
Total Assets
124.90M115.25M100.24M90.68M76.24M
Total Debt
5.95M6.55M6.95M735.01K9.08M
Net Debt
-16.23M-5.00M-247.89K-11.48M2.47M
Total Liabilities
20.72M22.45M18.71M10.79M18.49M
Stockholders Equity
104.18M92.79M81.52M79.89M57.75M
Cash FlowFree Cash Flow
11.93M4.72M-9.31M-3.30M4.67M
Operating Cash Flow
30.88M12.09M1.96M14.80M14.56M
Investing Cash Flow
-18.39M-6.74M-10.96M-23.21M-15.76M
Financing Cash Flow
-885.34K-1.27M3.89M14.24M-5.38M

Serabi Gold Technical Analysis

Technical Analysis Sentiment
Positive
Last Price172.00
Price Trends
50DMA
153.61
Positive
100DMA
149.48
Positive
200DMA
121.35
Positive
Market Momentum
MACD
5.78
Negative
RSI
67.04
Neutral
STOCH
91.66
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SRB, the sentiment is Positive. The current price of 172 is above the 20-day moving average (MA) of 157.20, above the 50-day MA of 153.61, and above the 200-day MA of 121.35, indicating a bullish trend. The MACD of 5.78 indicates Negative momentum. The RSI at 67.04 is Neutral, neither overbought nor oversold. The STOCH value of 91.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SRB.

Serabi Gold Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBSRB
82
Outperform
£156.33M5.0530.73%42.36%270.33%
81
Outperform
£115.07M5.5534.04%45.63%126.68%
51
Neutral
$2.04B-1.15-21.24%3.95%2.91%-30.44%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SRB
Serabi Gold
172.00
104.50
154.81%
GB:ALTN
AltynGold Plc
418.00
308.50
281.74%

Serabi Gold Corporate Events

Business Operations and StrategyFinancial Disclosures
Serabi Gold Announces Vesting and Cash Settlement of 2022 Share Awards
Positive
Jun 6, 2025

Serabi Gold announced the vesting of 2022 Conditional Share Awards under its Long Term Incentive Plan, with a total of 482,528 new ordinary shares due to vest. The awards were based on performance criteria over a three-year period, including Total Shareholder Return, Return on Capital Employed, and Return on Sales. To minimize the issuance of new shares, the company opted for cash settlement based on the 20-day VWAP price. CEO Mike Hodgson purchased additional shares, demonstrating commitment to the company. This move aligns directors’ and shareholders’ interests and reflects a strong cash position, potentially impacting stakeholder confidence and market perception.

Shareholder MeetingsBusiness Operations and Strategy
Serabi Gold Announces 2025 Annual General Meeting
Positive
May 30, 2025

Serabi Gold has announced its Annual General Meeting (AGM) scheduled for June 26, 2025, in London, where shareholders will vote on various resolutions. The company highlights its achievements in 2024, including the renewal of a mining license and the commissioning of a classification plant at the Coringa mine, which are expected to support future growth. The directors recommend shareholders to vote in favor of the proposed resolutions, emphasizing their importance for the company’s success.

Business Operations and StrategyFinancial Disclosures
Serabi Gold Reports Strong Q1 2025 Results with Increased Production and Profit
Positive
May 29, 2025

Serabi Gold plc reported strong unaudited interim results for Q1 2025, with a notable increase in gold production and financial performance compared to the previous year. The company produced 10,013 ounces of gold, an 11% increase from Q1 2024, and achieved a post-tax profit of $8.8 million, up from $3.6 million. The average gold price received was $2,908 per ounce, contributing to a significant rise in EBITDA to $12.4 million. The company’s cash position improved to $26.5 million, and it commenced a $9 million exploration program aimed at expanding resources at its Palito and Coringa sites, positioning Serabi Gold for continued growth.

Business Operations and StrategyFinancial Disclosures
Serabi Gold Reports Strong Financial Growth and Ambitious Production Plans
Positive
Apr 30, 2025

Serabi Gold plc reported a significant financial performance for the year ending December 2024, with a 48% increase in revenue to $94.5 million and a 321% rise in post-tax profit to $27.8 million, driven by higher gold production and favorable gold prices. The company aims to ramp up production to 60,000 ounces by 2026 and over 100,000 ounces thereafter, supported by ongoing exploration and development projects, positioning itself for growth in the mid-tier mining sector.

Executive/Board ChangesBusiness Operations and Strategy
Serabi Gold Strengthens Leadership with New Executive Director Appointment
Positive
Apr 25, 2025

Serabi Gold plc has appointed Mr. Colm Howlin as an Executive Director, effective immediately. Mr. Howlin, who has been with the company since 2013 and previously served as Chief Financial Officer, brings extensive experience and fluency in Brazilian Portuguese to the board. This appointment is part of Serabi’s strategic efforts to strengthen its leadership as it aims to expand its gold production capabilities in Brazil. The move is expected to enhance the company’s operational efficiency and bolster its market position in the gold mining industry.

Business Operations and Strategy
Serabi Gold Announces Major Shareholder Stake Reduction
Neutral
Apr 24, 2025

Serabi Gold plc announced a significant change in its shareholder structure as Fratelli Investments Limited has reduced its stake in the company from 25.51% to 9.99%. This reduction follows a legally binding agreement to sell 11,752,903 ordinary shares, with completion expected by May 2, 2025. The transaction reflects a strategic shift in the company’s shareholder base, potentially impacting its market dynamics and investor relations.

Other
Serabi Gold Announces Major Shareholder Changes
Neutral
Apr 23, 2025

Serabi Gold plc has announced a significant change in its shareholder structure following the sale of its shares by Greenstone Resources II LP. Greenstone has entered into agreements to sell a total of 19,083,394 ordinary shares in Serabi Gold, which will alter the voting rights and ownership distribution within the company. This move may impact Serabi Gold’s market positioning and stakeholder dynamics as the company adjusts to the new ownership landscape.

Private Placements and FinancingBusiness Operations and Strategy
Serabi Gold Secures New Institutional Investors Through Strategic Share Placement
Positive
Apr 23, 2025

Serabi Gold plc has successfully placed approximately 20.7% of its issued capital with UK and European institutional investors, following the sale of shares by Greenstone Resources II LP and Fratelli Investments Limited. This strategic transaction, facilitated by brokers Peel Hunt LLP and Tamesis Partners LLP, aims to maintain market stability and shareholder value, while welcoming new investors and acknowledging the long-term support of Greenstone and Fratelli.

Executive/Board Changes
Serabi Gold Announces Board Change with Resignation of Carolina Margozzini
Neutral
Apr 22, 2025

Serabi Gold plc announced the resignation of Carolina Margozzini, a non-executive director and representative of Fratelli Investments Limited, from its board. The company expressed gratitude for her contributions and wished her success in future endeavors. This board change may impact the company’s governance and stakeholder relations as it continues its operations and expansion plans in the Brazilian gold mining sector.

M&A TransactionsBusiness Operations and Strategy
Serabi Gold Announces Major Stake Acquisition by Brazilian Fund
Neutral
Apr 15, 2025

Serabi Gold plc has announced a significant acquisition of voting rights by Classe Roca Magma Multiestrategia Responsabilidade Limitada do SSF IV Coinvestmento I Fundo de Investimento em Participações, a Brazilian investment fund. This acquisition, which involves a 19.99% stake in Serabi Gold, highlights a strategic move that could impact the company’s governance and future decision-making processes, potentially influencing its market position and stakeholder interests.

Other
Serabi Gold Announces Major Shareholder Transaction
Neutral
Apr 15, 2025

Serabi Gold plc, a mining company, has announced a significant change in its shareholder structure. Greenstone Resources II LP has entered into an agreement to sell 15,146,902 ordinary shares in Serabi Gold, reducing its voting rights from 25.20% to 5.20%. This transaction is expected to be completed within 20 days, impacting the company’s shareholder dynamics and potentially its market positioning.

M&A TransactionsBusiness Operations and Strategy
Serabi Gold Welcomes Starboard as Major Shareholder
Positive
Apr 15, 2025

Serabi Gold plc has announced that Greenstone Resources II LP, a significant shareholder, has agreed to sell nearly 20% of its shares in Serabi to Starboard Asset Ltda, a private equity firm in Brazil. This transaction is expected to enhance Serabi’s shareholder base with Starboard’s local expertise, potentially reinforcing the company’s strategy and contributing to future value creation for stakeholders. Greenstone will retain a smaller stake in Serabi, while Starboard will become a major shareholder, reflecting a strategic shift in the company’s ownership structure.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Serabi Gold Reports Strong Q1 2025 Production and Operational Progress
Positive
Apr 14, 2025

Serabi Gold plc reported a strong start to 2025 with a gold production of 10,013 ounces in the first quarter, marking an 11% increase from the previous year. The company improved its cash position to $26.5 million and net cash to $21.1 million by the end of March 2025. The Coringa Mine’s first full operational quarter contributed to a 10% improvement in plant feed grades. The company is on track to meet its annual production guidance of 44,000 to 47,000 ounces of gold. Additionally, Serabi Gold is advancing its exploration efforts at the Palito Complex and Coringa Mine, aiming to double its mineral resource inventory. The company is considering mechanisms to return capital to shareholders, reflecting its strong operational performance and favorable gold prices. A board change was announced with the resignation of non-executive director Mark Sawyer.

Business Operations and Strategy
Serabi Gold Advances Exploration in Brazil with Promising Results
Positive
Apr 7, 2025

Serabi Gold has announced an exploration update for its Palito Complex, Coringa Mine, and São Domingos target in Northern Brazil. The company has initiated a $9 million exploration program aimed at increasing resource ounces at both the Coringa Mine and Palito Complex. This includes extensive diamond drilling and geophysical surveys. Initial results from the São Domingos prospect are promising, with high-grade gold intercepts suggesting significant potential for resource expansion. The exploration efforts are part of Serabi’s Phase II growth strategy, which aims to significantly increase gold resources and enhance the company’s market position.

Executive/Board ChangesBusiness Operations and Strategy
Serabi Gold Announces Conditional Share Awards to Employees
Neutral
Mar 26, 2025

Serabi Gold plc has announced the award of 543,017 Conditional Share Awards to its employees, including directors, as part of its annual compensation review under the 2020 Restricted Share Plan. These awards are contingent upon a three-year performance period with criteria based on Total Shareholder Return, Return on Capital Employed, and Return on Sales. This move reflects the company’s commitment to aligning employee incentives with performance outcomes, potentially impacting its operational focus and stakeholder interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.