Serabi Gold ( AIM:SRB , TSX:SBI ), the Brazilian gold miner, fell 16% to 190p on Wednesday morning, down 35p from Tuesday's close of 225p, after it cut its 2026 gold production guidance because of permitting delays.
The company now expects 2026 gold production to be similar to 2025, when it produced 44,169 ounces, compared with previous guidance of more than 53,000 ounces.
Serabi said it could not deliver the planned increase in fourth-quarter output because approvals at its Coringa mine were still outstanding, preventing additional ore from being transported to the expanded Palito plant for processing.
Coringa operates under a three-year trial mining licence, known as a GUIA, which expires on 29 January 2027 and permits up to 100,000 tonnes of ore a year to be transported to the Palito complex.
By 30 September, 85,602 tonnes had been transported against the annual allowance, and additional stockpiled ore could not be transported to Palito until the limit was increased or a full operating licence was granted.
The full licence still needs a change of land use approval from INCRA, the land reform agency, and sign-off on an Indigenous component study from FUNAI, the Indigenous protection agency.
Third-quarter production was 11,008 ounces, 9% lower than a year earlier, as mined ore grades at Palito averaged 4.01 grams per tonne, against 6.29 grams a year earlier.
Coringa performed better, with milled grades close to 8 grams per tonne.
Cash stood at $63.2 million at 30 September after a maiden dividend of $5.1 million, and the company has no debt.
Serabi expects the fourth ball mill at Palito to increase annual processing capacity to 330,000 tonnes in 2027 and says capital expenditure should be significantly lower next year.
The company will update production guidance with its third-quarter financial results in late November.
