Unaudited interim results for the three-and six-month periods ended 30 June 2026

Serabi Gold plc (SBI) released unaudited interim results for the three- and six-month periods ended 30 June 2026. Headline figures for H1-2026 showed revenue of $100.07m, up from $62.53m in H1-2025, while EBITDA rose 69% to $44.42m from $26.34m. Profit after tax increased 59% to $30.13m from $18.93m, with basic EPS rising to 39.71c from 24.99c.

Gold production for the first half reached 23,049 oz, a 12.2% increase from 20,545 oz in H1-2025. Gold sales totaled 21,348 oz, up 5.6% from 20,215 oz. Approximately 1,701 oz of production remained unsold, resulting in an inventory build. The primary driver of the revenue and earnings growth was a 51.5% uplift in the realised price to $4,687/oz, compared to $3,093/oz in the prior year period.

Costs rose significantly, with cash costs increasing 45.8% to $2,010/oz from $1,379/oz, and AISC rising 49.7% to $2,682/oz from $1,792/oz. Management attributed these increases to the Coringa ramp-up, the first inclusion of Meio-zone mining costs in cash cost and AISC calculations, and approximately $4m of one-time general and administrative expenses.

The balance sheet remained strong, with cash holdings of $65.69m, up from $49.22m at 31 December 2025. Net funds stood at $62.97m, and net assets grew to $206.5m from $169.7m. The company became debt-free in Q1-2026 following the repayment of its Banco Santander facility. Cash flow from operations generated a net inflow of $40.1m, while investing activities saw an outflow of $18.8m and financing activities an outflow of $5.5m.

A key development in the disclosure was the formal approval by SUDAM for the renewal of the IRPJ corporate income tax reduction for the Palito Gold Complex. This measure holds the nominal Brazilian tax rate at approximately 15.25%, down from the standard 34%, for a further 10 years through 2035.

Regarding future guidance, Serabi set production targets at 53,000 plus ounces of gold. This target is based on one of two assumptions: an increase in GUIA tonnage from 100,000t to 200,000t, or the receipt of the full mining concession by Q4-2026. The Coringa GUIA licence expires on 29 January 2027, or earlier if the annual tonnage limit is exceeded. Management stated it is "currently confident" regarding the timeline but acknowledged there is "no certainty yet on timing," explicitly warning of a potential "temporary production interruption at Coringa in Q4-2026." The full mining concession still requires approval from the FUNAI Board and INCRA Board, both now targeted for Q4-2026.

The release contained several disclosure inconsistencies. The H1-2025 sales comparative was listed as both 20,215 oz and 20,515 oz in different sections. Additionally, the enquiry block identified Nick Box as Interim Chief Financial Officer, whereas Colm Howlin served as CFO/Finance Director in all prior releases in the provided history, with no RNS explaining the transition.

Serabi Gold plc (SBI) has renewed its SUDAM 10-year tax incentive, a positive and previously undisclosed development. The company also released its first hard H1 financials, which revealed a materially weaker Q2 compared to Q1. Management formally narrowed its guidance language to "53,000 plus" and explicitly outlined a two-track conditionality with a stated risk of a Q4-2026 Coringa interruption.

The cost escalation and Coringa ramp-up dilution were previously flagged in the 23 July 2026 operational update and the 29 May 2026 Q1 results. Additionally, the GUIA/licence risk was disclosed in April and July.

The Q2 standalone numbers represent a negative surprise within the headline results. Q2-2026 EBITDA was $15.18m against Q1-2026's $29.24m, a decline of 48%. Q2 profit after tax was $9.14m against Q1's $20.99m, a drop of 57%. Q2 EPS was 12.02c versus 13.42c in Q2-2025, marking a year-on-year earnings decline in a quarter where the realised gold price rose 36% ($4,490 versus $3,303).

Derived Q2 AISC calculations indicate a significant cost increase. Taking the disclosed H1 AISC of $2,682/oz on 23,049 oz and the disclosed Q1 AISC of $2,293/oz on 12,043 oz, the implied Q2-2026 AISC is approximately $3,100/oz — roughly 35% above Q1. This is a derivation from disclosed figures and not a company-disclosed number.

Derived Q2 free cash flow also shows a sharp contraction. H1 operating inflow of $40.11m less H1 investing outflow of $18.80m gives approximately $21.3m for H1. However, Q1 alone (per as-reported data: $27.23m operating less $7.56m investing) was $19.7m. That implies Q2 free cash flow of roughly $1.6m. At a $4,490/oz realised gold price, a near-zero free cash flow quarter is a significant factor in this release relative to the headline framing.

Market calibration shows the stock closed at C$6.74 on 29 May 2026, the date of the prior earnings release (Q1-2026 results), and at C$5.02 on 21 September 2026 — a 25.5% de-rating through the interims. The market has already discounted a meaningful portion of the cost and permitting disappointment.

The ANM/permitting decision remains the key variable, which management has explicitly deferred to the Q3 update in mid-October 2026.

Serabi Gold plc is a UK-headquartered, Brazil-focused gold producer listed on AIM (SRB), TSX (SBI) and OTCQX (SRBIF), with a stated three-phase strategy to become a 100kozpa-plus producer: Phase 1 ramp to roughly 55koz, Phase 2 build a 1.5–2.0 moz resource (2025–2026), Phase 3 expand capacity (2027).

The company’s Palito Complex in Pará State’s Tapajós region is 100% owned and features an underground mine with 650tpd processing infrastructure, currently being expanded to roughly 900tpd / 330ktpa via a fourth ball mill costing approximately $5m, with commissioning scheduled for Q4-2026. Palito hosts 2P reserves of 228,400 oz at 6.2 g/t and M&I resources of 388,600 oz at 9.5 g/t. The site carries the SUDAM tax incentive, which has been renewed through 2035.

Approximately 200km by road from Palito, the 100% owned Coringa Mine was acquired for US$22m. It operates without a standalone process plant; instead, ore is crushed, ore-sorted and trucked to Palito for processing. Coringa holds M&I resources of 303,800 oz at 8.9 g/t and Inferred resources of 495,000 oz at 8.8 g/t. It is currently operating under a three-year GUIA licence with a 100,000t annual transport cap.

Ore sorting serves as a technical differentiator at both sites. Palito’s sorter upgrades sub-2 g/t feed to over 10 g/t product at greater than 85% recovery, while Coringa’s sorter achieves greater than 90% recovery, with targets above 98% in 2026 and beyond.

Greenfield exploration targets on the Palito licences include São Domingos, where hole 21-SD-010 returned 7.15m at 258 g/t Au, and the Matilda copper-gold porphyry target, estimated at 81Mt at 0.28% Cu including 21Mt at 0.40% Cu, with 12 of 21 holes hitting porphyry mineralisation. Other targets include Cinderella, Ganso, Calico, Forquilha and Juca.

The company’s environmental profile notes no conventional tailings dams, utilizing filtration and dry stacking, and reports zero activity within primary forest. GHG intensity is disclosed at 37% below the senior gold peer group average, with a diesel-to-grid power transition in 2026 expected to reduce emissions further.