Reports Q3-2026 Production & Operational Highlights

Serabi Gold plc (SBI) released its Q3-2026 quarterly production and operational update, a report that excludes full financial details beyond cash holdings and dividend information. Group gold production for the quarter totaled 11,008 oz, a 9.0% decline from the 12,090 oz produced in Q3-2025. Year-to-date production reached 34,057 oz, up 4.4% from the 32,635 oz recorded for the first nine months of 2025.

At the Palito Complex, Q3 production fell to 2,907 oz from 5,246 oz in the same period last year, a decrease of 44.6%. The company mined 26,465 tonnes at 4.01 g/t Au, compared to 26,352 tonnes at 6.29 g/t in Q3-2025. Milling operations processed 23,580 tonnes at 4.12 g/t, versus 27,081 tonnes at 6.25 g/t previously. Year-to-date milled grade at Palito stands at 4.90 g/t, down from 6.03 g/t for FY2025.

Conversely, Coringa increased Q3 production to 8,101 oz from 6,843 oz in Q3-2025, an 18.4% rise. Mining output at Coringa was 34,040 tonnes at 7.63 g/t, compared to 25,273 tonnes at 8.23 g/t in the prior year quarter. Milling volume reached 33,535 tonnes at 7.81 g/t, against 26,909 tonnes at 8.13 g/t. Year-to-date milled grade at Coringa is 7.74 g/t.

Overall group mining for Q3-2026 involved 60,316 tonnes at 6.04 g/t, while milling totaled 57,115 tonnes at 6.28 g/t, down from 7.18 g/t in Q3-2025. Horizontal development advanced by 3,973 metres during the quarter, including 2,031 metres of ore development.

Financially, cash reserves stood at $63.2M at 30 September 2026, down from $65.7M at 30 June 2026, following the payment of a maiden dividend of $5.1M in July 2026. An additional $3.4M from a bullion sale was received on 1 October 2026. The company stated it remains debt-free.

Operational updates include the completion of the fourth ball mill at Palito on time and on budget, which is currently in final commissioning. This addition is expected to raise annual throughput to 330 ktpa in 2027. At Coringa, the transition from selective open stoping to mechanised sublevel stoping remains on track for Q4-2026, with mining now active across four zones: Serra, Serra South, Meio, and Galena. Capital expenditure is expected to be "materially lower" in 2027.

Regarding permitting, Coringa operates under a three-year GUIA trial licence expiring on 29 January 2027. As of 30 September, 85,602 tonnes had been transported against a 100,000-tonne annual allowance. SEMAS has agreed that the company may bypass the Installation Licence (LI) and apply directly for the Operating Licence (LO). Environmental Impact Certification (ECI) has been approved by both Indigenous groups and awaits final FUNAI approval, while the INCRA change-of-land-use application is in its final stage.

Serabi Gold has cut its FY2026 gold production guidance, now expecting output "at similar levels to FY2025" (actual FY2025: 44,169 oz), down from previous guidance of "over 53,000 ounces." A further update is promised with the Q3 financials in late November. The restart of São Chico, which has been on care and maintenance since 2023, is under assessment and subject to the renewal of its GUIA licence. No unit cost, AISC, revenue, EBITDA, or margin data was provided in this release.

Serabi Gold plc has issued a formal guide-cut, marking the third downward revision of its 2026 outlook in six months. The company now projects production of approximately 44,000 oz, down from 53,000-57,000 oz in April, "above 53,000" in July, and "53,000+" in September. This reduction implies that the H2 ramp is no longer viable, with the Q4-2026 requirement falling from 18,943 oz, based on the prior 53,000 oz target, to 10,112 oz.

The lost ounces amount to roughly 8,800-10,800 oz against the prior guide. At the H1-2026 realised price of $4,687/oz, this represents approximately $41-51M of deferred revenue. Using the H1-2026 AISC of $2,682/oz, the contribution margin foregone is roughly $18-22M. While this constitutes a meaningful slice of the ~$326M market capitalisation, management indicates that part of the reduction is a matter of timing, with ounces pushed into 2027 rather than being permanently lost.

The release attributes the cut solely to "permitting delays affecting planned production ramp up." However, operational performance at Palito also played a role. Palito produced 2,907 oz in Q3 versus 5,246 oz a year ago; had Palito merely held last year's output, Q3 group production would have been ~13,300 oz rather than 11,008 oz. The Palito grade collapse, with 4.01 g/t mined versus 6.29 g/t, represents an operational miss independent of permitting and was not quantified as a driver of the guidance cut.

The market had already partially priced in these developments. The stock fell from a June 2026 high of $6.74 to a 52-week low of $4.18 on 14 October 2026, a decline of 38%. This includes a one-day drop of 7.8% on 22 September 2026 when interim results revealed a cash cost of $2,010/oz and an AISC of $2,682/oz.

Despite the guidance cut, growth assets remain intact. The fourth ball mill is installed with capacity ahead of permitted feed, Coringa grades are strong at ~7.8 g/t milled, and ECI and land-use approvals are close. Capex is guided to be materially lower in 2027, and the balance sheet remains strong with $63.2M cash plus a $3.4M post-period receipt.

Serabi Gold plc (AIM: SRB, TSX: SBI, OTCQX: SRBIF) is a Brazil-focused gold producer in the Tapajós region of Pará State, with corporate headquarters in the UK and a secondary office in Toronto.

The company’s operations center on the Palito Complex, an underground mine and processing hub that produces from the Barrichello, G3, Ipe, and Piquet zones. Development is underway on Barrichello, Senna, and G3 down to the -210m level, with plant throughput expected to rise to over 900 tpd / 330 ktpa in 2027 with the addition of a fourth ball mill.

In July 2022, Serabi acquired 100% of the Coringa Mine for $22M. The mine features zones including Serra, Serra South, Meio, and Galena. Ore is ore-sorted and pre-concentrated before being trucked roughly 200 km to Palito. The site is operated under a 3-year GUIA trial mining licence.

The São Chico mine has been on care and maintenance since 2023. A restart is currently being assessed now that plant capacity has increased, subject to GUIA renewal. Ore at São Chico is not amenable to ore sorting, which was part of the reason for its suspension.

The company also holds greenfield optionality at São Domingos (gold) and Matilda (copper-molybdenum-gold porphyry). Its operating model features no conventional tailings dam, utilizing filtration and dry stacking instead. The Palito Complex benefits from a reduced SUDAM corporate income tax rate of approximately 15.25% through 2035, with exposure limited to a single processing plant and a single jurisdiction.

Serabi’s stated strategy outlines a three-phased pathway to more than 100 koz per annum. While the investor presentation targeted 60 koz for 2026, this release indicates that target is now firmly out of reach.