Serabi Gold (SRB) AI Stock Analysis

• Market Cap: £140.11M
• Dividend Yield: N/A
• Average Volume (3M): 267.31K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.12
• Revenue Growth: 42.36%
• EPS Growth: 270.33%
• Country: UK
• Employees: 859
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 75,734,550
• 10 Day Avg. Volume: 243,109
• 30 Day Avg. Volume: 267,308
• PEG Ratio: 0.28
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.99
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: 1.15
• 1Y Price Target: £197.00
• Price Target Upside: 6.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: 209.00p ▲(12.97%Upside)

Serabi Gold's overall stock score of 78.6 is driven by strong financial performance and positive corporate events, indicating robust growth potential and strategic alignment. The technical analysis shows stable momentum, and the low P/E ratio further enhances its appeal as an undervalued investment.

Serabi Gold Business Overview & Revenue Model

Company Description

Serabi 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 Money

Serabi 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	101.88M	94.54M	63.71M	58.71M	63.14M	55.83M
Gross Profit	46.53M	39.55M	14.05M	7.87M	19.33M	16.54M
EBITDA	45.15M	37.22M	15.15M	9.21M	19.48M	15.23M
Net Income	32.95M	27.82M	6.58M	-983.05K	9.95M	7.03M
Balance Sheet
Total Assets	143.80M	124.90M	115.25M	100.24M	90.68M	76.24M
Cash, Cash Equivalents and Short-Term Investments	26.50M	22.18M	11.55M	7.20M	12.22M	6.60M
Total Debt	0.00	5.95M	6.55M	6.95M	735.01K	9.08M
Total Liabilities	23.79M	20.72M	22.45M	18.71M	10.79M	18.49M
Stockholders Equity	120.01M	104.18M	92.79M	81.52M	79.89M	57.75M
Cash Flow
Free Cash Flow	16.14M	11.93M	4.72M	-9.31M	-3.30M	4.67M
Operating Cash Flow	39.20M	30.88M	12.09M	1.96M	14.80M	14.56M
Investing Cash Flow	-22.39M	-18.39M	-6.74M	-10.96M	-23.21M	-15.76M
Financing Cash Flow	-925.33K	-885.34K	-1.27M	3.89M	14.24M	-5.38M

Serabi Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 185.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 185 is below the 20-day moving average (MA) of 185.30, above the 50-day MA of 175.98, and above the 200-day MA of 140.33, indicating a neutral trend. The MACD of 2.66 indicates Positive momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 26.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SRB.

Serabi Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALTN	81 Outperform	£163.45M	7.93	34.04%	―	45.63%	126.68%
SRB	79 Outperform	£140.11M	5.43	30.73%	―	42.36%	270.33%
MTL	74 Outperform	£383.31M	17.95	19.64%	―	11.45%	-83.99%
Sector *	57 Neutral	£2.54B	5.45	-8.69%	48.72%	5.32%	1.96%

Serabi Gold Corporate Events

Serabi Gold Updates Mineral Reserves and Resources, Extends Reserve Life

Serabi Gold has announced updated Mineral Reserve and Resource estimates for its Palito Mine, showing a slight increase in Measured and Indicated Resources and a notable increase in Inferred Resources. The company maintains a strong reserve life of over six years at current production levels, excluding potential future resource conversions. This update, which does not yet include results from a recent $9 million exploration drill program, demonstrates Serabi’s consistent ability to replenish resources, positioning it well within the narrow vein mining sector.

Serabi Gold Achieves Record Q2 Production and Advances Growth Strategy

Serabi Gold reported a strong second quarter for 2025, with gold production reaching 10,532 ounces, marking a 17% increase from the previous year. The company is on track to meet its annual production guidance of 44,000 to 47,000 ounces. Operational highlights include significant improvements in development rates and ore grades at both the Palito and Coringa mines. The company also reported positive results from its brownfield exploration program, which is part of its growth strategy to increase mineral resource inventory. Financially, Serabi Gold’s cash position improved to $30.4 million, and it secured a new loan from Banco Santander.

Serabi Gold Secures Shareholder Approval at AGM

Serabi Gold plc announced that all resolutions were approved at its Annual General Meeting, reflecting strong shareholder support. This approval allows the company to continue its strategic plans, including potential capital investments and share allotments, which could enhance its operational capabilities and market position.

Serabi Gold Achieves Key Milestones and Plans for Growth

Serabi Gold plc announced significant achievements in 2024, including a 17% increase in production and advancements at its Coringa project, such as ore sorting and a renewed mining license. The company plans to increase production to 55,000 ounces in 2026 by improving ore grades rather than expanding processing capacity. Serabi is also conducting a $9M exploration program to expand its resource inventory and aims to achieve one-million-ounce gold deposits at both Palito and Coringa. The company is navigating licensing processes for Coringa and anticipates further growth supported by strong economic conditions and self-funded exploration.

Serabi Gold Announces Vesting and Cash Settlement of 2022 Share Awards

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.

Serabi Gold Announces 2025 Annual General Meeting

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.

Serabi Gold Reports Strong Q1 2025 Results with Increased Production and Profit

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.