Serabi Gold Delivers Strong H1 2025 Results with 14% Production Growth & Doubled EBITDA

• Gold production increased 14% to 20,545 ounces in H1 2025, driven by robust operational performance at Brazilian mining operations
• EBITDA more than doubled to $26.3 million compared to $13.0 million in the corresponding period of 2024, reflecting strong operational leverage
• Cash position strengthened significantly to $30.4 million from $22.2 million at year-end 2024, demonstrating strong cash generation capabilities
• Post-tax profit increased 105% to $18.9 million, translating to earnings per share of 24.99 cents versus 12.18 cents in H1 2024
• Company advancing 30,000-metre drill programme across Palito Complex and Coringa projects to drive future resource growth and value creation

Serabi Gold (AIM:SRB, TSX:SBI, OTCQX:SRBIF) is a Brazilian-focused gold mining and development company operating in the prolific Tapajos region of northern Brazil. The company's primary assets include the Palito Complex and Coringa gold projects, which have delivered consistent production growth and operational improvements. With a focus on sustainable mining practices and strategic expansion, Serabi has established itself as a significant player in Brazil's gold mining sector.

The company's latest interim results for the six-month period ended 30 June 2025 demonstrate exceptional operational and financial performance, with key metrics showing substantial improvement across production, profitability, and cash generation. These results position Serabi favorably within the current high gold price environment while highlighting the company's operational efficiency and strategic execution capabilities.

Production Performance Drives Operational Success

Serabi's production performance in the first half of 2025 represented a cornerstone achievement for the company's operational strategy. The company produced 20,545 ounces of gold during the six-month period, marking a substantial 14% increase compared to the 18,010 ounces produced in the corresponding period of 2024. This production growth reflects continued operational optimization and strategic mine development across the company's Brazilian assets.

CFO Colm Howlin emphasized the significance of this operational achievement, stating:

"Gold production for the first half of 2025 totaled 20,545 ounces, representing a 14 per cent increase on the same period in 2024."

This production increase was achieved while maintaining disciplined cost management and implementing strategic improvements to mining operations.

The company's operational efficiency was further demonstrated through its ore processing capabilities. The ore sorter at Coringa has been operational for six months and has performed exceptionally during this period, utilizing favorable economics to process previously stockpiled low-grade ore while directing higher-grade run-of-mine material to the Palito Complex plant. This strategic approach has resulted in gold production from Coringa exceeding original annual plans.

Sales performance aligned closely with production levels, with the company reporting sales of 20,215 ounces during the period compared to 18,535 ounces in the first half of 2024. This demonstrates effective inventory management and strong demand fulfillment capabilities, supporting revenue generation and cash flow optimization.

Financial Results Showcase Strong Profitability

The financial results for the first half of 2025 demonstrated Serabi's ability to translate operational improvements into substantial financial returns. Revenue reached $62.5 million, representing a significant increase from $42.7 million in the corresponding period of 2024. This revenue growth was driven by both increased production volumes and favorable gold pricing conditions.

EBITDA performance represented a particular highlight, with the company achieving $26.3 million compared to $13.0 million in the first half of 2024. Howlin noted the exceptional nature of this performance:

"This robust operational performance, combined with an average realised gold price of $3,093 per ounce, drove EBITDA to $26.3 million for the period – more than double the $13.0 million reported in the first half of 2024."

Gross operating profit reached $32.0 million, up from $17.0 million in the prior year period, reflecting effective cost management alongside revenue growth. Operating profit before finance and tax totaled $22.7 million, compared to $10.7 million in 2024, demonstrating strong operational leverage and margin expansion capabilities.

Post-tax profit showed remarkable improvement, reaching $18.9 million compared to $9.2 million in the corresponding period of 2024, representing a 105% increase year-over-year. This translated to earnings per share of 24.99 cents, compared to 12.18 cents in the first half of 2024, providing significant value enhancement for shareholders.

Cash Position & Operational Cash Flow Strengthen Balance Sheet

Serabi's cash position demonstrated substantial improvement throughout the first half of 2025, reflecting strong operational cash generation and disciplined capital allocation. The company's cash and cash equivalents reached $30.4 million at 30 June 2025, representing a significant increase from $22.2 million at 31 December 2024.

"The Company ended the period with a cash balance of $30.4 million, up significantly from $22.2 million at the end of 2024."

This cash improvement reflects the company's strong operational performance and disciplined approach to capital deployment.

Net cash inflow from operations reached $19.2 million for the six-month period, after accounting for mine development expenditure of $2.7 million. This represents a substantial improvement from the $6.6 million net cash inflow recorded in the corresponding period of 2024, after mine development expenditure of $3.0 million. This improvement demonstrates the company's enhanced cash generation capabilities and operational efficiency.

The company maintained a conservative approach to debt management, completing a $5.0 million unsecured loan arrangement with Brazilian bank Santander on 22 January 2025, carrying a fixed interest coupon of 6.16% and repayable on 16 January 2026. This replaced a previous $5.0 million facility with Itau bank that was repaid in January 2025, demonstrating active debt management and favorable borrowing terms.

Net funds, after finance debt obligations, reached $25.1 million at 30 June 2025, compared to $16.3 million at 31 December 2024, providing substantial financial flexibility for future growth initiatives and operational requirements.

Cost Management Maintains Competitive Position

Serabi's cost management performance during the first half of 2025 demonstrated the company's ability to maintain competitive cost structures while investing in growth and development activities. Cash costs for the six-month period totaled $1,379 per ounce, representing a slight improvement from $1,401 per ounce in the corresponding period of 2024.

All-In Sustaining Costs (AISC) reached $1,792 per ounce for the period, compared to $1,782 per ounce in the first half of 2024. Howlin provided context for this modest increase:

"All-In Sustaining Costs (AISC) for the period were $1,792 per ounce, reflecting both inflationary pressures and the increased development activity."

Despite this increase, the company maintained strong margins given the favorable gold price environment.

The company's cost structure reflects strategic investments in mine development and operational infrastructure designed to support long-term production growth. Mine development expenditure totaled $2.7 million during the period, compared to $3.0 million in 2024, demonstrating disciplined capital allocation while maintaining necessary development activities.

Cost management remains a strategic priority as the company balances operational efficiency with growth investments. The relatively stable cash cost performance demonstrates operational discipline and effective management of inflationary pressures affecting the mining industry broadly.

Strategic Development & Future Growth Initiatives

Serabi's strategic development initiatives position the company for continued growth and resource expansion across its Brazilian operations. The company is advancing a comprehensive 30,000-metre drill programme across both the Palito Complex and Coringa projects, designed to expand resource bases and identify additional mineralization opportunities.

"With exploration activity accelerating and a 30,000-metre drill programme underway across both Palito Complex and Coringa, the Company is positioning itself for future resource growth and long-term value creation."

The successful implementation of the ore sorter at Coringa represents a key operational advancement, enabling more efficient processing of ore grades and optimization of material flow to processing facilities. This technology has exceeded performance expectations and contributed to production levels exceeding original annual plans for Coringa.

Development activities focus on expanding operational capabilities while maintaining cost discipline and operational efficiency. The company's approach to capital allocation emphasizes projects with strong returns and strategic value, supporting sustainable growth and shareholder value creation.

Investment in exploration and development activities demonstrates management's confidence in the geological potential of the company's asset base and commitment to long-term value creation through resource expansion and operational optimization.

Market Environment & Gold Price Benefits

The first half of 2025 benefited from a favorable gold price environment that enhanced Serabi's operational performance and financial returns. The company achieved an average gold price of $3,093 per ounce on sales during the six-month period, representing a substantial increase from $2,209 per ounce in the corresponding period of 2024.

This 40% improvement in realized gold prices provided significant operational leverage, contributing substantially to revenue growth and profitability improvements. The higher gold price environment enhanced margins and cash generation capabilities, providing additional resources for development activities and balance sheet strengthening.

Market conditions have supported continued investment in exploration and development activities, enabling the company to advance strategic growth initiatives while maintaining strong financial performance. The favorable pricing environment has also enhanced the economic attractiveness of processing lower-grade ores and optimizing operational strategies.

Serabi's operational profile positions the company to benefit from continued strength in gold markets while maintaining competitive cost structures and operational efficiency. The company's Brazilian operations provide exposure to a stable mining jurisdiction with established infrastructure and regulatory frameworks.

Operational Excellence & Management Performance

The first half of 2025 results demonstrate Serabi's operational excellence and effective management execution across multiple performance dimensions. The company achieved production growth while maintaining cost discipline, generated substantial cash flows, and strengthened its balance sheet position significantly.

Management's strategic approach to operational optimization, including the successful implementation of ore sorting technology and disciplined capital allocation, has delivered measurable improvements in operational performance and financial returns. The ability to exceed original production plans while maintaining competitive cost structures reflects strong operational management and strategic execution capabilities.

Howlin summarized the period's achievements:

"These results underscore the strength of Serabi's operations and the positive momentum as we advance through 2025."

This momentum reflects continued operational improvements, strategic development activities, and effective management of market opportunities.

The company's performance demonstrates its ability to execute strategic initiatives while adapting to changing market conditions and operational requirements. This operational flexibility and management effectiveness position Serabi favorably for continued performance improvements and strategic growth.

For Investors

For investors evaluating Serabi Gold, the first half of 2025 results provide compelling evidence of operational improvement, financial strength, and strategic positioning for future growth. The company has demonstrated its ability to deliver production growth, generate substantial cash flows, and strengthen its balance sheet while investing in future development opportunities.

Key investment considerations include the company's exposure to favorable gold market conditions, operational improvements across its Brazilian assets, and strategic development initiatives designed to expand resource bases and production capabilities. The substantial improvement in financial metrics, including doubled EBITDA and significant earnings growth, demonstrates the company's operational leverage and management effectiveness.

The company's strong cash position and conservative debt management provide financial flexibility for pursuing growth opportunities and managing operational requirements. The advancing 30,000-metre drill programme represents a significant catalyst for potential resource expansion and long-term value creation.

The combination of operational excellence, financial strength, and strategic growth initiatives positions Serabi Gold as a compelling investment opportunity within the gold mining sector, with substantial progress demonstrated in the first half of 2025 and clear strategic direction for continued value creation.