Serabi Gold Plc

Serabi Gold Plc is a junior gold producer headquartered in Surrey, United Kingdom, operating primarily in Brazil. The company's portfolio consists of 2 operating mines, in addition to several early-stage exploration prospects. Key assets include Coringa and Palito Complex. The business model centers on developing and operating narrow-vein underground deposits using selective open stoping mining methods. A key operational characteristic is the use of advanced optical ore sorting technology, which constitutes a classification plant that includes a crusher and sorter. This process pre-concentrates run-of-mine material by removing a significant percentage of waste rock before transportation, thereby increasing the grade of the processed feed, accelerating underground development rates, and reducing overall production costs. The enterprise employs a centralized processing strategy, where pre-concentrated material from satellite operations is transported to a main complex for final processing. This "hub and spoke" approach is designed to minimize upfront capital requirements for new developments and mitigate project build and performance risks associated with constructing stand-alone plants. This integrated system allows for modular expansion and can accommodate additional ore feed from new satellite discoveries, enhancing operational flexibility and scalability.

A multi-phased growth strategy is in place, with the initial phase focused on ramping up consolidated production. The second phase involves a significant brownfield exploration program designed to materially increase the resource inventory. This exploration initiative is supported by a budgeted annual spend of up to $9.0 million for 2 consecutive years, commencing in January 2025. The program includes 30,000 meters of diamond drilling, a 100-kilometer induced polarisation geophysical survey, and extensive soil sampling. The long-term vision is to transition from a junior to a mid-tier producer. Capital allocation in the near term prioritizes reinvesting surplus cash to fund this organic growth. However, a future dividend policy has been established to return 20% to 30% of free cash flow to shareholders once strategic growth objectives are met. The organization also maintains a disciplined approach to evaluating and engaging in strategic M&A opportunities to supplement its organic growth pipeline and accelerate its development into a larger-scale producer.

The board of directors consists of 5 members, including a chief executive, a finance director, and 3 independent non-executive directors. Board oversight is structured through 5 dedicated committees: Audit and Risk; Remuneration and People; Sustainability; Mergers and Acquisitions; and Disclosure. The company adheres to the QCA Corporate Governance Code and conducted an external board effectiveness evaluation between November 2023 and February 2024, facilitated by the independent consultancy Ceradas Limited. This review resulted in specific recommendations for enhancing strategic oversight and governance, with progress being actively tracked. Executive leadership includes a chief executive with over 40 years of industry experience. In 2025, the management team was strengthened with the appointment of a new chief operating officer with extensive operational expertise and a new chief financial officer, who has been with the organization for over 11 years and possesses fluency in the local operational language.

The organization's sustainability framework includes TCFD-aligned climate disclosures and a detailed climate scenario analysis assessing physical risks under SSP2-4.5 and SSP5-8.5 pathways. A key environmental commitment is a policy of zero operational activity within primary rainforests. Environmental stewardship is demonstrated through continuous monitoring at 67 stations, a biodiversity program that includes an on-site nursery for cultivating indigenous plants, and a 2024 reforestation initiative that planted 331 native trees. Water management is a priority, with 46% of process water being recycled in 2024. The company has a target to maintain its greenhouse gas emissions intensity at least 30% below the industry average. Engagement with Indigenous populations is managed through a formal consultation process, including the completion of an indigenous impact study (ECI) reviewed by the relevant government agency. Social initiatives in 2024 included a $420,000 investment in community programs and providing infrastructure support such as clean water and electricity to local communities.

The corporate structure includes several operational subsidiaries, notably Serabi Mineração SA, Chapleau Exploração Mineral Ltda, and Gold Aura do Brasil Mineração Ltda, which conduct the group's primary mining and exploration activities. A significant structural development in 2024 was the conclusion of the Exploration Alliance with Vale Base Metals at the start of the second quarter. As of year-end 2024, the company had 2 substantial shareholders, Fratelli Investments Limited (25.5%) and Greenstone Resources II LP (25.2%), with whom it maintained formal Relationship Agreements. In April 2025, a major shift in ownership occurred when Greenstone Resources II LP sold its entire holding and Fratelli Investments Limited sold a significant portion of its shares, reducing its stake to approximately 10%. Consequently, the Relationship Agreements with both entities are expected to terminate in 2025, altering the company's shareholder landscape.