Serabi Gold (SBI) - JV with Vale Changes Outlook

In a recent interview with Crux Investor, CEO Mike Hodgkin of Serabi Gold discussed a variety of exciting developments within the company. These include an upcoming mining conference, a notable joint venture with Vale, and a primary focus on gold, all of which should prove compelling to retail investors with an interest in mineral resource companies.

Overview of the JV Company ownership with Vale

The joint venture with Vale revolves around the Palito project, with Serabi Gold making the announcement. Vale will be drilling for base metals, while Serabi Gold maintains its focus on gold. This strategic partnership is beneficial for both parties and shows promising potential for Serabi Gold's financial future.

One of the most significant outcomes of this JV alliance with Vale is the generation of cash flow for further exploration. This funding will underpin the exploration of other potentially lucrative sites and enhance the company's overall asset value.

Addressing the claims about the company “illegally” operating in the Amazon Forest

Serabi Gold has not been without its controversies. Accusations of illegal mining in the Amazon rainforest have recently surfaced. In response, Serabi Gold has asserted its legal permissions and emphasized its positive relationship with indigenous communities, including the completion of an indigenous study.

Determining the company’s source of the growth component

The company has also been evaluating the Coringa deposit, with all sorting results proving to be fantastic. This development has the potential to significantly enhance what Serabi Gold can achieve at Coringa and is a promising sign for investors looking for growth opportunities in the mineral resource sector.

Managing the expected increase in cash flow

In the near future, Serabi Gold anticipates receiving a license during Q3, which will pave the way for increased mining rates and production. With the company already generating a healthy cash flow and improving ASIC due to better gold prices and increased production, this license could be the catalyst for a significant uptick in profits and investor returns.

Looking ahead, accelerating underground development is a critical part of Serabi Gold's plan to achieve 60k oz in the next 2.5 years. The firm's determination and clear strategy to grow its gold mining operations should inspire confidence in retail investors interested in mineral resource companies.

In conclusion, Serabi Gold's strategic moves, including its joint venture with Vale and a keen focus on gold, present an attractive proposition for retail investors. With the company's robust response to legal challenges and plans for future growth, it is a mineral resource company that merits closer attention. As always, prospective investors should conduct their own thorough research before making investment decisions.

To find out more, go to the Serabi Gold website