AGM Statement

Serabi Gold plc reported a 17% production increase in 2024 to 38,000 ounces, with 2025 guidance tracking over 44,000 ounces and a 2026 target of 55,000 ounces, primarily driven by effective ore sorting at Coringa and Palito and improved grades. The company is self-funding a $9 million brownfield exploration program aimed at increasing its resource inventory from 1 Moz to 1.5 Moz over 18 months. While Palito is fully permitted, the Coringa project's permanent Installation License (LI) remains pending, awaiting key agency approvals, though management expressed optimism regarding its resolution and the company's robust cashflow and growth potential.

Analysis

Serabi Gold plc's latest operational update presents a strongly positive outlook, underpinned by significant production growth and clear strategic initiatives. Production rose 17% to 38,000 ounces in 2024, with guidance tracking towards over 44,000 ounces in 2025 and a target of 55,000 ounces for 2026. This growth is being achieved not through major capital expenditure on plant expansion, but through grade improvements driven by the successful commissioning of ore sorters, particularly at the Coringa project. Mined grades at the mature Palito mine have notably improved from 5 g/t gold in 2024 to approximately 7 g/t in 2025. The company is also self-funding a substantial US$9 million brownfield exploration program, aiming to expand its resource inventory from 1 million ounces to 1.5 million ounces over the next 18 months, signaling confidence in near-mine potential. However, a key risk remains in the permitting process for Coringa, which operates under a temporary license until 2027. The permanent Installation License (LI) is contingent on approvals from two separate government agencies, FUNAI and INCRA, where the company has experienced frustrating delays but expresses optimism for a resolution.

Key Decisions for Investors

• Investors should recognize the strong operational momentum, evidenced by rising production and grade improvements, which is being achieved without significant capital outlay and is funded from internal cash flow.
• The primary risk factor to monitor is the permitting timeline for the Coringa mine; any news regarding approvals from Brazil's FUNAI and INCRA agencies represents a critical de-risking catalyst for the asset.
• The self-funded US$9M exploration program offers significant resource growth potential, and investors should track drilling results over the next 18 months as a key measure of the company's ability to deliver on its target of a 50% resource increase.