Serabi Gold's Brazilian Bet Pays Off with Record Q3 Performance

LONDON, UK – November 28, 2025 – Serabi Gold plc (AIM:SRB, TSX:SBI) has announced a landmark third quarter, posting record gold production and soaring profits that underscore the success of its operational strategy in Brazil. The company's interim results for the nine months ended September 30, 2025, reveal a business firing on all cylinders, capitalizing on a bullish gold market through increased output, technological innovation, and a fortified balance sheet, positioning it firmly on track to exceed its full-year guidance.

The Brazilian-focused gold miner saw its year-to-date production climb 19% to 32,634 ounces, propelled by a record-breaking third-quarter output of 12,090 ounces. This operational success, combined with a significantly higher average gold price received, has sent key financial metrics skyrocketing. EBITDA for the nine-month period surged 95% year-over-year to $48.2 million, while post-tax profit nearly doubled to $34.9 million, translating to earnings per share of 46.10 cents—a 96% increase from the prior year.

Golden Quarter: Record Production Meets Bullish Market

Serabi’s impressive performance is a story of perfect timing and flawless execution. The company has skillfully ramped up production just as the global gold market entered a period of historic strength. Throughout 2025, gold prices have consistently hit new highs, driven by geopolitical uncertainty and strong central bank buying. The average quarterly price hit a record of $3,280 per ounce in the second quarter, and by early December, spot gold was trading above $4,200 per ounce.

Serabi captured this upside effectively, realizing an average gold price of $3,244 per ounce on its sales in the first nine months of 2025, a dramatic increase from the $2,338 per ounce received in the same period of 2024. This favorable pricing environment acted as a powerful multiplier for the company's increased output, generating a net cash inflow from operations of $34.3 million for the nine-month period, an 88% jump from the previous year.

The financial windfall has dramatically strengthened Serabi’s balance sheet. Cash holdings swelled to $38.8 million by the end of September, up from $22.2 million at the close of 2024. The company’s net cash position, after accounting for all debt, stood at a robust $33.0 million, providing substantial financial flexibility for its ambitious growth and exploration plans.

Innovation at the Core: Coringa's Ore Sorter Transforms Operations

Beyond favorable market dynamics, a key driver of Serabi's success is its strategic investment in technology. The implementation of an ore sorter at its Coringa mine, operational since the start of the year, has been a game-changer. This technology allows the company to process low-grade ore that was previously stockpiled, upgrading it into a higher-quality feed. This frees up capacity for higher-grade run-of-mine ore to be transported directly to the main processing plant at the Palito Complex.

The impact has been significant. The company reports that the sorter is performing exceptionally, allowing production from Coringa to exceed original plans for the year. This innovation has directly contributed to improved feed grades, with Coringa's year-to-date grades up 12% compared to the 2024 average. This efficiency gain is crucial for maximizing resource value and expanding margins.

This operational excellence has also helped the company manage costs in an inflationary environment. While the All-In Sustaining Cost (AISC) for the nine-month period saw a marginal 1% increase to $1,816 per ounce, this figure reflects ongoing development investments and industry-wide cost pressures. Keeping AISC relatively stable while aggressively expanding operations and investing in the future highlights a disciplined approach to cost control, further solidifying the company's profitability.

Charting the Future: Ambitious Exploration and Strategic Growth

Serabi is not content to simply ride the current gold price wave. The company is aggressively executing Phase 2 of its growth strategy, which involves a major exploration push to significantly expand its resource base. With a consolidated exploration budget of $9 million for 2025 and 2026, Serabi is funding an extensive 30,000-meter annual drilling program across its Palito Complex and Coringa mine properties in the highly prospective Tapajós region.

The primary objective is to grow its mineral inventory from approximately 1 million ounces to a target range of 1.5 to 2.0 million ounces by the end of 2026. Early results from this program are highly encouraging. At the Coringa mine, drilling has identified a new, high-grade orebody at the Serra South zone, with one notable intercept returning 0.53 meters grading an exceptional 151.00 grams per tonne (g/t) of gold. At the Palito Complex, drilling has confirmed significant extensions of the existing Senna orebody, with intercepts including 1.36 meters grading 18.10 g/t gold.

These discoveries are vital for Serabi's long-term vision. By systematically proving out and expanding its resources, the company is building a sustainable production pipeline that extends well beyond the current market cycle, laying the groundwork to potentially double its annual production in the coming years.

A Fortified Balance Sheet for Sustainable Growth

The company’s financial prudence is as notable as its operational prowess. In January 2025, Serabi demonstrated astute capital management by repaying a $5.0 million loan and securing a new unsecured loan for the same amount with Santander at a more favorable fixed interest rate of 6.16%, repayable in early 2026. This move, coupled with its burgeoning cash reserves, underscores a healthy and well-managed financial position.

In the company's official release, CFO Colm Howlin commented on the strong performance. “The continued strong operational performance combined with higher average gold prices has driven a 95% year-on-year increase in EBITDA to $48.2 million,” he stated. “With strong cash generation, a solid balance sheet, and a clear focus on operational excellence, the Company remains well positioned to close 2025 with continued momentum and to deliver further growth into 2026.”

With market analysts forecasting continued strength in gold prices into 2026, Serabi Gold appears to be in an enviable position. Its combination of rising production, innovative operational efficiencies, a promising exploration pipeline, and a robust balance sheet provides a powerful formula for sustained growth and value creation for its shareholders.