Serabi Gold Reports Record Quarterly Profit & Debt-Free Balance Sheet in First Quarter 2026

• Gold production in the first quarter of 2026 reached 12,043 oz, a 20% increase over 10,013 oz in the first quarter of 2025, driven by a 39% grade improvement at the Coringa mine, supported by the classification plant.
• Revenue rose to $50,571,000 from $27,593,000 in the first quarter of 2025, reflecting both higher production and a 69% increase in the average gold price received to $4,926 per oz.
• Earnings before interest, taxes, depreciation, and amortization (EBITDA) expanded to $29,240,000 from $12,449,000 in the first quarter of 2025, with post-tax profit reaching $20,993,000 against $8,769,000 in the prior-year period.
• Cash rose to $64,472,000 at March 2026 from $49,223,000 at December 2025, with net assets of $198,241,000 up from $120,009,000 at March 2025.
• The group became debt-free during the quarter following the full repayment of a $5.3M unsecured loan from Banco Santander Brazil in January 2026, with no new debt entered into during 2026.

Company Overview

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.

Production & Revenue

Gold production reached 12,043 oz in the first quarter of 2026, a 20% increase over 10,013 oz in the same period of 2025. The grade improvement at the Coringa mine was 39% year-on-year, supported by the classification plant at Coringa, which contributed to the uplift. Development at the Meio and Galena veins continued during the quarter.

Gold sold in the first quarter of 2026 totalled 10,323 oz, up from 9,699 oz in the first quarter of 2025. Revenue rose to $50,571,000 from $27,593,000 in the prior-year period, an increase of 83%. The average gold price received was $4,926 per oz in the first quarter of 2026, compared with $2,908 per oz in the first quarter of 2025, a 69% increase. The gold price reached $5,095 per oz in March 2026. The spot price at the time of the release stood at approximately $4,571 per oz.

The average gold price in Brazilian Real was BRL25,881 per oz for the quarter. The Brazilian Real strengthened over the period, with the USD: BRL rate moving from 5.5 in December 2025 to 5.25 in March 2026, limiting the translation of the stronger US dollar gold price into local-currency margins.

Profitability & EBITDA

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first quarter of 2026 were $29,240,000, compared with $12,449,000 in the first quarter of 2025. Gross operating profit rose to $32,240,000 from $14,455,000, and gross profit was $30,097,000 against $12,620,000 a year earlier. Cost of sales was $18,331,000, administration and share-based payments totalled $3,000,000, and depreciation and amortisation were $2,143,000.

Operating profit before finance and tax reached $27,097,000 against $10,614,000 in the first quarter of 2025. Finance income of $325,000 and a foreign exchange gain of $74,000 were partially offset by finance expense of $58,000, producing profit before taxation of $27,438,000 compared with $10,779,000 a year earlier. Income and other taxes for the quarter were $6,445,000, with the Brazilian tax charge amounting to $6,476,140.

Post-tax profit for the first quarter of 2026 was $20,993,000, up from $8,769,000 in the first quarter of 2025. Basic and diluted profit per ordinary share was 27.72 cents, against 11.58 cents in the prior-year period. Total comprehensive profit, which includes exchange differences of $7,408,000 on translating foreign operations, was $28,401,000.

Cost Performance

Cash Cost per oz produced in the first quarter of 2026 was $1,863, compared with $1,799 in the fourth quarter of 2025 and $1,269 in the first quarter of 2025. All-in Sustaining Cost (AISC) was $2,293 per oz in the first quarter of 2026, against $1,818 per oz in the fourth quarter of 2025 and $1,636 per oz in the first quarter of 2025. Full-year 2025 Cash Cost was $1,437 per oz, and full-year 2025 AISC was $1,816 per oz.

Cash cost and AISC are incrementally higher, largely driven by the ramp-up at Coringa. With the Meio zone now in commercial production, mining costs associated with it are included in cash cost and AISC.

Balance Sheet & Cash Position

Cash and cash equivalents at March 2026 were $64,438,000, up from $49,223,000 at December 2025. Net funds at March 2026 were $61,753,000, compared with $42,083,000 at December 2025. Net assets at March 2026 were $198,241,000 against $169,721,000 at December 2025 and $120,009,000 at March 2025.

During the quarter, the group repaid in full a $5.3M unsecured loan from Banco Santander Brazil, which carried an interest coupon of 6.16% and was settled in January 2026. No new loans were entered into during 2026. The group held no debt as of March 2026.

Total non-current assets stood at $131,968,000 at March 2026, against $95,249,000 at March 2025. Total current assets were $95,851,000, up from $48,549,000 a year earlier. Net current assets reached $73,140,000 at March 2026, compared with $29,978,000 at March 2025, while total non-current liabilities increased to $6,901,000 from $5,218,000 in the prior-year period.

Cash Flow

Net cash inflow from operations in the first quarter of 2026 was $27,234,000, compared with $10,221,000 in the first quarter of 2025. Net cash inflow from operations after mine development expenditure of $2.2M and pre-operating costs of $0.9M was $24.2M for the quarter, against $7.1M after mine development expenditure of $1.6M and pre-operating costs of $1.5M in the first quarter of 2025.

Net cash outflow on investing activities was $7,560,000 in the first quarter of 2026 against $6,033,000 in the prior-year period. Net cash outflow from financing activities, which included the Santander repayment, was $5,054,000, compared with $296,000 in the first quarter of 2025.

The net increase in cash and cash equivalents for the quarter was $14,620,000, against $3,892,000 in the first quarter of 2025. Cash and cash equivalents at the end of the period were $64,472,000, compared with $26,505,000 at the end of the first quarter of 2025.

Next Steps

The group's plan for 2026 is to continue gold production from the Palito Complex, increase output from the Coringa mine, and deliver full-year gold production above 2025 levels. No new debt facilities have been entered into to date.

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