Meet the Team: Mike Hodgson, CEO of Serabi Gold

In mining, the difference between success and failure often comes down to one factor: the people. Management can make or break any project, regardless of the underlying geology. For investors, evaluating management isn't just part of due diligence - it's the foundation of it. This profile examines Mike Hodgson's background and role at Serabi Gold through the lens of why leadership capabilities determine mining investment outcomes.

Professional Foundation & Technical Expertise

Mike Hodgson's path to mining leadership began with geology and mining engineering qualifications from Celeste University, but his real education came through hands-on experience across multiple continents. His six-year stint in Zambia's copper mines provided foundational knowledge of underground operations, followed by work with RTZ (now Rio Tinto) in the UK and Portugal.

A pivotal experience came at South Crofty Tin Mine, where Hodgson transitioned from one of the world's largest mining companies to one of its smallest operations. "That was a great place to work," he recalls.

"A small underground company with a great workforce, very dedicated and I really learnt underground selective mining there with probably some of the industry's best people."

This grounding in selective underground mining would prove essential for his later work. The mentors from South Crofty, now in their 70s, remain industry experts whom Hodgson still consults - a testament to the enduring value of specialized underground mining knowledge.

International experience in the Philippines, Russia, and Greece broadened his operational perspective. At TVX's Greek operations, Hodgson achieved what he describes as one of his greatest accomplishments: transforming an underperforming underground zinc mine from 250 tons per day at 3% zinc to 1,500 tons per day at 10% zinc within two years through mechanization and workforce transformation.

Building Operations in Challenging Environments

Hodgson's South American journey began in Bolivia, working as COO for Familia de Minerales at what he describes as "a superb underground gold mine with a great workforce." This experience introduced him to Serabi Gold when his company considered acquiring it as a target. Though that transaction didn't materialize, the introduction led to his current role.

When Hodgson joined Serabi in 2006, the company faced the fundamental challenge of building underground mining capabilities in a country with limited underground mining culture.

"Brazil has only 31 underground mines in the entire country, which is an astonishing statistic considering the size of the country," he notes, attributing this to onerous labor laws and a predominance of easier surface mining operations.

The talent shortage required innovative solutions. Serabi imported Peruvian mining contractors initially, leveraging Hodgson's South American network. The company then developed internal training programs, literally recruiting from agricultural workers and Amazon timber operations. "We've actually had to take people from the fields, literally, or timber guys in the Amazon and train them with schools, mining schools, our mining schools," Hodgson explains.

This training-from-within approach created exceptional loyalty. Serabi maintains approximately 4% annual turnover, remarkable for remote mining operations. The company's 20-days-on, 10-days-off roster system contributes to retention by providing extended family time between work rotations.

Stakeholder Relations & Environmental Stewardship

Serabi's 23-year presence at its Palito operation created deep community relationships that proved invaluable for expansion. When the company acquired the neighboring Coringa deposit, local stakeholders viewed it as commitment to the region rather than corporate opportunism.

"We've become very well respected," Hodgson explains. "The government authorities, the local people, all the stakeholders -we're here to stay. We're not a here today, gone tomorrow junior that's just trying to make a fast buck."

This long-term presence creates obligations beyond mining operations. In remote regions, mining companies often supplement municipal services, supporting education, schools, and public services. Hodgson learned from earlier experiences in Greece, where community opposition doomed projects:

"If you get the local people with you, you're two thirds of the way there."

Environmental responsibility has evolved significantly in the Amazon context. "Gold mining in the Amazon is down very much an ethical brand," Hodgson observes, emphasizing the importance of audit trails and responsible sourcing. Serabi's underground operations minimize surface disturbance, and the company actively remediates historical artisanal mining damage.

At Palito, Serabi uses its detoxified tailings to cap historical liability areas left by artisanal miners, then covers them with soil and re-vegetation. This approach delights environmental agencies and demonstrates positive environmental contribution rather than mere compliance.

Operational Philosophy & Strategic Focus

Hodgson's geological background shapes his fundamental operational philosophy:

"Quality counts, tons cost, grade pays."

This focus on high-grade ore and margins over scale distinguishes Serabi's approach from many mining operations.

"So many companies have make this mistake of chasing scale. We chase margin, we chase quality," he emphasizes.

This philosophy becomes particularly valuable in high gold price environments, where many operations compromise margins by processing lower-grade material simply because it becomes economic.

His geological training ensures geological thinking drives operational decisions. "These types of mines have to have a lot of geological thinking in it. You can't just put straight lines around the complexity of underground and narrow vein underground mining."

This geological emphasis provides competitive advantage in complex ore bodies where engineering-only approaches often fail. Hodgson notes that Brazil has a history of engineers ignoring geology, leading to project failures.

"Building process plants and building mines is easy. Understanding the geology is the hard part."

Growth Strategy & Financial Transformation

Under Hodgson's leadership, Serabi has transformed from a single-asset producer to an expanding operation with significant cash generation capability. The Coringa acquisition enables growth from the previous 40,000-ounce plateau to 60,000-70,000 ounces annually.

The financial impact extends beyond production increases. Margins have expanded from $200-300 per ounce two years ago to $1,100+ per ounce currently. This combination of higher production and dramatically improved margins generates substantial cash flow.

Starting 2024 with $22 million in cash, Serabi expects to end the year approaching $50 million while funding all growth initiatives from internal cash generation. The company maintains zero debt while funding Coringa development, $10 million annual brownfield exploration programs, and considering shareholder returns.

The Coringa operation exemplifies Hodgson's technical approach. Rather than building a separate processing plant, Serabi installed ore sorting technology that physically concentrates ore and removes waste on-site. The pre-concentrated product then travels to Palito's plant for processing, minimizing environmental footprint while maximizing operational efficiency.

Current Results & Market Position

Serabi's operational performance validates Hodgson's high-grade strategy. The company targets 45,000 ounces in 2024, 55,000 ounces in 2025, then plateauing at 60,000 ounces based on plant capacity. Future growth depends on exploration success, which the company actively pursues through its aggressive brownfield program.

The transformation has repositioned Serabi's investment profile. Strong cash generation, debt-free operations, and growth visibility create appeal across multiple investor categories. The company's environmental approach and community relations provide additional comfort for ESG-focused investors.

Hodgson's operational consistency over 18 years demonstrates the value of specialized knowledge and long-term commitment in challenging jurisdictions. His geological background, combined with international underground mining experience, created capabilities that few companies possess in Brazil's limited underground mining sector.

Looking Forward

As gold markets remain strong and Serabi's cash position strengthens, Hodgson's focus remains on operational excellence and quality maintenance. The company's exploration programs target resource expansion that could justify plant capacity increases or additional satellite operations.

His emphasis on grade over scale positions Serabi well for various gold price environments. The operational leverage from fixed costs means that maintaining high-grade production generates exceptional returns in strong gold markets while providing resilience if prices moderate.

For investors evaluating Serabi Gold, Hodgson's track record demonstrates how specialized technical knowledge, cultural sensitivity, and operational focus create sustainable competitive advantages. His geological training, underground mining expertise, and deep understanding of Brazilian operations provide capabilities that few management teams can match.

As he emphasizes throughout his approach: maintaining quality and geological control drives superior returns. With 18 years of consistent execution and a strengthened balance sheet, Hodgson appears well-positioned to deliver continued operational excellence while expanding Serabi's presence in Brazil's limited but potentially rewarding underground mining sector.