Serabi Gold Delivers 18% Production Growth and 65% Revenue Increase for Full-Year 2025, Declares Inaugural Annual Dividend

• Full-year gold production reached 44,169 oz in 2025, an 18% increase over 37,520 oz in 2024, driven by the Coringa classification plant and access to the Meio zone at Coringa during the year.
• Revenue rose 65% to $155.8 million, and earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 117% to $77.9 million, supported by an average gold price of $3,481/oz achieved in 2025, 45% above the 2024 average of $2,407/oz.
• Post-tax profit rose 94% to $53.9 million, with basic earnings per share of 71.18 US cents against 36.73 cents in 2024; net cash inflow from operations was $50.6 million.
• The board approved an inaugural annual dividend of 5 pence per share (approximately $5.41 million total), representing 20% of 2025 free cash flow, with a 2026 policy targeting a return of up to 20 to 30% of group free cash flow via dividends or share buybacks; net cash at December 2025 was $42.1 million, and the group became debt-free in early 2026.
• A fourth ball mill is targeting commissioning in the fourth quarter of 2026 to lift processing capacity from 650 tonnes per day to approximately 900 tonnes per day, and a two-year brownfield exploration programme is targeting a consolidated resource of more than 1.5 million oz to support production of more than 60,000 oz per annum from 2027 onwards.

Serabi Gold (AIM: SRB | TSX: SBI | OTCQX: SRBIF) is a gold mining and development company operating in the Tapajós mineral province of Pará State, Brazil. The company's principal assets are the Palito Complex and the Coringa mine. Serabi Gold's shares are admitted to trading on the AIM market of the London Stock Exchange, the Toronto Stock Exchange, and the OTCQX marketplace.

Production Results

Full-year gold production at the Palito Complex and Coringa mine reached 44,169 oz in 2025, an 18% increase over the 37,520 oz recorded in 2024. The combined operations produced 11,534 oz in the fourth quarter of 2025.

The production increase was driven by the Coringa classification plant and by access to the Meio zone at Coringa during the year. Progress was also made in 2025 on advancing the ramp to the Galena zone, a third ore zone at Coringa. Current processing capacity is 650 tonnes per day (tpd). The company is targeting a run rate of 55,000 oz per annum using its current 650 tpd capacity. Full-year 2026 production guidance is 53,000 to 57,000 oz.

Chair of Serabi Gold, Michael Lynch-Bell, explains the operational factors behind the production increase:

"The growth in production was not only driven by the classification plant, but by the continued ramp-up of Coringa, as we were able to access a second zone, the Meio zone, during the year, which contributed meaningful growth. In 2025, progress was made on accessing a third zone through the advancement of the ramp to the Galena zone, which will, when finished, complete the ramp-up at Coringa and enable the Company's goal of achieving a run-rate of 55,000 ounces of gold per annum with the current 650 tpd processing capacity."

Financial Results

Full-year revenue in 2025 was $155.8 million, a 65% increase over $94.5 million in 2024. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 117% to $77.9 million from $35.9 million in 2024. Gross operating profit was $79.3 million, and operating profit was $68.2 million. Profit before taxation was $68.7 million. Post-tax profit increased 94% to $53.9 million, compared with $27.8 million in 2024.

The average gold price achieved in 2025 was $3,481/oz, a 45% increase over the 2024 average of $2,407/oz. In the fourth quarter of 2025, the average gold price achieved was $4,121/oz. Fourth quarter EBITDA was $29.7 million, and fourth quarter post-tax profit was $19.0 million.

Basic earnings per share for the full year were 71.18 US cents, compared with 36.73 cents in 2024. Fourth quarter basic earnings per share were 25.08 cents. The weighted average number of ordinary shares in issue was 75,735,000. Net cash inflow from operations was $50.6 million in 2025 (after mine development expenditure of $5.3 million), compared with $24.5 million in 2024 (after mine development expenditure of $6.3 million). Cash generated from operations before mine development expenditure was $55.9 million.

Chief Financial Officer of Serabi Gold, Colm Howlin, sets out the two factors behind the financial result:

"2025 was a transformative year for Serabi, the 18% increase in annual production and the significant increase in gold prices during 2025 allowed us to generate $155.9 million in revenue, a 65% increase over the prior year, leading to a $27.0 million increase in our cash position year on year. Our average gold price achieved in 2025 was $3,481 per ounce, a 45% increase over our average gold price achieved of $2,407 in 2024."

Cost Performance

Full-year cash costs in 2025 were $1,437/oz, compared with $1,326/oz in 2024. Full-year all-in sustaining costs (AISC) were $1,816/oz, against $1,700/oz in 2024. In the fourth quarter of 2025, cash costs were $1,799/oz, and AISC was $2,158/oz.

Mine development and pre-operating cost expenditure in 2025 totalled $14.5 million. Brownfield exploration expenditure was $8.15 million. The tax charge on profits in Brazil was $13.9 million in 2025, compared with $5.0 million in 2024.

Balance Sheet & Cash

Cash and cash equivalents at December 2025 were $49.2 million, up from $22.2 million at December 2024. Net cash at year-end, after interest-bearing loans and lease liabilities, stood at $42.1 million, compared with $16.2 million at December 2024. The net increase in cash and cash equivalents during 2025 was $26.4 million.

Net assets at December 2025 were $169.7 million. Total non-current assets were $119.4 million, total current assets were $79.9 million, and net current assets were $56.5 million. Inventories were $16.2 million, and trade and other receivables were $11.3 million. Interest-bearing liabilities comprised $6.0 million current and $1.1 million non-current.

The group repaid $5.3 million to Banco Santander in Brazil in early 2026 and became debt-free thereafter. Cash on hand at the end of the first quarter of 2026 was $64.4 million.

Howlin describes the post-period balance sheet position and its implications for mergers and acquisitions (M&A) activity:

"Our strong performance has continued into 2026. The Company is now debt-free, having repaid $5.3 million to Banco Santander in Brazil in January 2026, and finished the first quarter of 2026 with cash on hand of $64.4 million. Our balance sheet has never looked stronger, which gives us the opportunity to self-fund our organic growth as well as offering us strategic flexibility in terms of M&A opportunities should an appropriate opportunity arise."

Shareholder Returns

The board has approved an inaugural annual dividend of 5 pence per share, declared in sterling, with a total value of approximately $5.41 million, equating to 20% of 2025 free cash flow. The payout was set at the lower end of the target range in order to maintain financial flexibility for strategic opportunities.

The 2026 shareholder return policy targets a return of 20 to 30% of group free cash flow through dividends or share buybacks, with the board aiming for a similar payout range in the 2026 financial year.

Exploration & Resource Growth

Serabi Gold drilled 38,400 metres across its properties in 2025. The consolidated measured and indicated (M&I) resource following the 2025 programme stands at 731,000 oz gold, with an inferred resource of 653,000 oz gold. A significant new discovery was made at Coringa during the year, and additional veins were drilled on both properties.

The company is executing a two-year brownfield exploration programme targeting a consolidated resource of more than 1.5 million oz, intended to support production of more than 60,000 oz per annum from 2027 onwards. More than 30,000 metres of exploration drilling are planned in 2026.

Processing Capacity & Growth Strategy

A fourth ball mill was announced in early 2026, with commissioning targeted for the fourth quarter of 2026. The installation is targeted to increase processing capacity from 650 tpd to approximately 900 tpd. The long-term standalone strategy is to grow the Palito Complex and Coringa mine into a combined producer of more than 100,000 oz of gold per annum.

The group has indicated it will consider disciplined inorganic acquisition opportunities alongside organic growth.

Next Steps

Full-year 2026 production guidance is 53,000 to 57,000 oz. More than 30,000 metres of exploration drilling are planned for 2026 as part of the two-year brownfield programme, targeting a consolidated resource of more than 1.5 million oz and intended to support production of more than 60,000 oz per annum from 2027 onwards. A fourth ball mill is targeting commissioning in the fourth quarter of 2026, aiming to increase processing capacity from 650 tpd to approximately 900 tpd.