Interview with Michael Hodgson, CEO of Serabi Gold PLC

Our previous interview: https://www.cruxinvestor.com/posts/serabi-gold-lse-srb-on-track-to-double-gold-production-with-no-share-dilution-4190

Recording date: 3rd March 2024

Serabi Gold (LSE:SRB, TSX:SBI) presents a compelling investment opportunity for those seeking exposure to the gold sector. The company's recent success in renewing its mining license for the Coringa project, combined with its plans to increase production and focus on high-grade ore, positions Serabi Gold for significant growth in the coming years.

The successful renewal of its mining license for the Coringa project provides the company with the confidence to move forward with its plans to expand production from 30,000 ounces to 60,000 ounces over the next 18-24 months. To achieve this production growth, Serabi Gold is employing a capital-light approach, focusing on high-grade ore and ore sorting to maximize the efficiency of its existing facilities. This approach allows the company to increase production while minimizing capital expenditure and dilution for shareholders.

Central to Serabi Gold's strategy is its focus on high-grade ore. By targeting higher-grade material, the company can improve margins and profitability, even with a relatively small production base.  In addition to its focus on the Palito and Coringa projects, Serabi Gold is exploring growth opportunities through its exploration alliance with Vale. This alliance, which focuses on copper and gold prospects, provides Serabi Gold with exposure to potential new discoveries without the need for significant capital investment. The company is also actively exploring satellite deposits around its existing operations intending to identify new resources to support future production growth.

Serabi Gold's operations are well-positioned from an environmental, social, and governance (ESG) perspective. The company's underground mines have a small footprint, and the planned transition to hydroelectric power will significantly reduce diesel consumption and improve the company's carbon footprint. With a strong ESG profile, Serabi Gold is well-aligned with the growing demand for sustainable and responsible mining practices.

The current macro environment, characterized by economic uncertainty, low interest rates, and potential inflationary pressures, has renewed interest in gold as a safe-haven asset and a hedge against inflation. In this context, junior gold miners like Serabi Gold, which focuses on high-grade, low-cost operations, are well-positioned to benefit from the increased demand for gold and the potential for rising prices.
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View Serabi Gold's company profile: https://www.cruxinvestor.com/companies/serabi-gold

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