Reports Q1-2026 Production & Operational Highlights

• Serabi Gold reported Q1-2026 gold production of 12,042 ounces, a 20% increase year-over-year compared to Q1-2025.
• The company achieved debt-free status by repaying a $5.3 million unsecured loan during the quarter.
• Cash balance increased significantly to $64.4 million as of March 31, 2026, up from $49.2 million on December 31, 2025.
• Management announced the installation of a 4th ball mill at the Palito Complex with an estimated cost of $5.0 million, funded via cash balance, to increase annual processing throughput to 330ktpa by 2027.
• FY2026 production guidance was maintained at 53,000 – 57,000 ounces of gold.
• Two fatalities were reported in January (one mine-related and one traffic-related), prompting an external health and safety audit and recruitment of additional H&S personnel.
• Coringa Mining License (LI) remains pending approvals from INCRA and FUNAI; current GUIA license expires January 29, 2027.

• Balance Sheet Transformation: The transition to a debt-free status with $64.4 million in cash is the most material aspect of this release. Compared to Q3-2025 where the company carried a $5 million Santander facility due January 2026, eliminating this liability removes refinancing risk and interest expense drag ($6.16% coupon).
• Operational Execution: Production growth of 20% YoY validates the operational improvements seen throughout 2025 (ore sorting, grade improvements). However, guidance was maintained rather than raised despite the strong cash position, suggesting management remains conservative or anticipates headwinds in H2.
• Capital Allocation: The $5 million ball mill expansion is self-funded, avoiding dilution. This signals confidence in internal cash flow generation but limits immediate upside compared to a larger capacity increase.
• Safety Risk: The disclosure of two fatalities in January introduces significant operational and reputational risk. While corrective actions are noted, this could impact permitting or community relations if not managed transparently.
• Market Reaction Context: The stock price has recovered from March 2026 lows (~$4.61) to ~$5.97 following the news date (April 14). This suggests the market is pricing in the debt-free status but remains cautious regarding safety and licensing.

• Company: Serabi Gold PLC is a gold producer focused on operations in Brazil (Pará state).
• Flagship Project: Palito Mining Complex (includes Palito mine and São Chico operation) and Coringa Mine.
• Development Status: Both assets are producing. Palito is the primary processing hub; Coringa supplies ore via trucking after pre-concentration sorting.
• Resource Base: Recent NI 43-101 updates indicate a combined mineral inventory of approximately 552,000 ounces at Palito Complex (as of July 2025). Exploration targets aim to grow this to 1.5 – 2.0 million ounces by end of 2026.
• Royalties: Information regarding specific royalty obligations on properties is not disclosed in the provided news data.