Serabi Gold Lifts First-Half EBITDA 69% to $44.4 Million as Coringa Approvals Near

• Gold sales rose 6% to 21,348 ounces in the first half of 2026, and earnings before interest, taxes, depreciation and amortization (EBITDA) rose 69% to $44.4 million.
• Profit after tax reached $30.1 million, and a renewed tax incentive keeps Palito's corporate income tax rate at approximately 15.25% through 2035.
• Cash rose to $65.7 million as of June 30, 2026, and the company is debt-free after repaying Banco Santander in January.
• Cash cost rose to $2,010 per ounce and all-in sustaining cost (AISC) to $2,682 per ounce, reflecting the Coringa ramp-up and one-time administrative charges.
• Serabi is targeting 53,000+ ounces for 2026, which depends on an expanded GUIA license or a full mining concession at Coringa in the fourth quarter.

Company Overview

Serabi Gold (AIM: SRB | TSX: SBI | OTCQX: SRBIF) is a Brazilian-focused gold mining and development company listed on AIM, the TSX and the OTCQX. It produces gold from the Palito Gold Complex in Pará State, Brazil, and is ramping up the Coringa mine, which trucks ore to Palito for processing. The company is debt-free and is running a 30,000-meter brownfield drill program across Palito and Coringa in 2026.

Higher Gold Price Drives First Half Earnings

Serabi Gold reported revenue of $100.1 million for the six months to June 30, 2026, compared with $62.5 million a year earlier. Gold production was 23,049 ounces, up from 20,545 ounces, and gold sales were 21,348 ounces. The average realized gold price was $4,687 per ounce, compared with $3,093 per ounce in the first half of 2025. That price increase did most of the work: management described operational performance as in line with budget.

Gross operating profit reached $54.7 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $44.4 million from $26.3 million. Profit after tax was $30.1 million, compared with $18.9 million, or 39.71 cents per share against 24.99 cents. Income tax expense rose to $10.5 million from $4.0 million as profits increased.

The second quarter was weaker than the first. The realized gold price fell to $4,490 per ounce from $4,926 per ounce in the first quarter, and the quarter included approximately $4 million in one-time general and administrative charges. Second-quarter EBITDA was $15.2 million, compared with $13.9 million a year earlier. Profit after tax for the quarter was $9.1 million, down from $10.2 million.

Cash Builds to $65.7 Million With No Bank Debt

Cash and cash equivalents were $65.7 million at June 30, 2026, up from $49.2 million at December 31, 2025. Net funds after finance debt obligations were $63.0 million, and net assets rose to $206.5 million from $169.7 million. On January 16, 2026, Serabi fully repaid the Banco Santander short-term working capital facility it entered into on January 22, 2025, which leaves the company debt-free.

Operating cash flow of $40.1 million was offset by $18.8 million of investing outflows and $5.5 million of financing outflows. Investing spend included $7.0 million for property, plant and equipment, $5.3 million for mine development, $5.6 million for geological exploration, and $1.7 million for pre-operational project costs. After mine development expenditure, net cash inflow from operations was $34.8 million, compared with $19.1 million in the first half of 2025.

Much of the investment is aimed at resource growth. Serabi is developing the Galena and Serra South zones at Coringa and running another brownfield drill program in 2026. 

Chief Executive Officer of Serabi Gold, Michael Hodgson, set out the purpose of that spending:

 "With brownfield exploration activity continuing in 2026 with another 30,000m drill program underway across both Palito Complex and Coringa, the Company is positioning itself for future resource growth and long-term value creation."

Coringa Ramp-Up Lifts Unit Costs

Cash cost for the first half of 2026 was $2,010 per ounce, compared with $1,379 per ounce a year earlier. All-in sustaining cost (AISC) was $2,682 per ounce, compared with $1,792 per ounce. Both measures were also higher than in the first quarter of 2026.

Management attributes the increase mainly to the continued ramp-up at Coringa and the one-time general and administrative charges. The Meio zone at Coringa has now reached commercial production, so its mining costs are now included in cash cost and AISC. Administration and share-based payments totaled $10.3 million for the half, compared with $5.7 million in the first half of 2025.

Palito Tax Incentive Renewed Through 2035

The Superintendência do Desenvolvimento da Amazônia (SUDAM) has formally approved the renewal of the corporate income tax (IRPJ) reduction incentive for the Palito Gold Complex. The approval keeps Palito's nominal Brazilian corporate income tax rate at approximately 15.25%, rather than 34%, for another 10 years through 2035. The renewal gives Palito tax certainty for another decade.

Coringa Permitting Determines 2026 Guidance

Serabi is targeting production of 53,000+ ounces of gold in 2026. That target rests on one of two assumptions. The first is that the Ministry of Mines (ANM) raises Coringa's GUIA license from 100,000 tonnes to 200,000 tonnes of ore transported to Palito per year. The second is that Serabi receives the full mining concession in the fourth quarter of 2026, which would remove all tonnage limits at Coringa. Either outcome would allow Serabi to move much more ore in the fourth quarter and to use the fourth ball mill at Palito, which is due to be commissioned soon.

The current 3-year GUIA license expires on January 29, 2027, or earlier if Coringa exceeds the annual tonnage limit. The Board says it is confident the ANM will extend the term, raise the tonnage limit, or both, in time to avoid a temporary production stoppage at Coringa in the fourth quarter. The going concern note states that cash flow forecasts show adequate resources even if production at Coringa is suspended.

The full mining concession requires two approvals, both of which are in their final stages.  Hodgson described the position on the indigenous approval:

 "The approval of the Indigenous Component Study (ECI) is now very close, and it only remains for the Federal Agency for Indigenous Lands (FUNAI) Board of Directors to approve the study. The FUNAI Legal and Technical departments are recommending approval. The Land Registry (INCRA) has technically and legally approved the change of land use from agriculture to mineral exploitation, and only approval by the INCRA Board of Directors remains. Once both approvals are in place, SEMAS can issue Serabi an Operating License.”

Next Steps

The first milestone is the third-quarter 2026 operational release, scheduled for mid-October 2026, which will include an update to the GUIA license. In the fourth quarter of 2026, Serabi is targeting Board-level approvals from both FUNAI and INCRA. FUNAI's Board needs to approve the Indigenous Component Study, and INCRA's Board needs to approve the change in land use. Once both are received, SEMAS can issue the Operating License, thereby completing the full mining concession at Coringa.

At the same time, Serabi is due to commission the fourth ball mill at Palito, which is needed to process the higher ore volumes assumed in the guidance. The 30,000-meter brownfield drill program across Palito and Coringa will continue through 2026.

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