Fratelli Investments Reduces Stake in Serabi Gold as Holdings Drop Below 7%

Fratelli Investments Reduces Stake in Serabi Gold to 6.91%

Bermuda-based Fratelli Investments Limited has decreased its shareholding in Serabi Gold plc, a London and Toronto-listed gold mining company with operations in Brazil. According to a recent regulatory filing, Fratelli has reduced its stake from 7.9995% to 6.91%, representing a disposal of approximately 1.09 percentage points of voting rights.

The threshold crossing occurred on August 29, 2025, with Serabi Gold receiving formal notification on September 2, 2025, in compliance with the UK’s Financial Conduct Authority’s Disclosure and Transparency Rules (DTR). These regulations require shareholders to promptly disclose when their holdings cross specific ownership thresholds.

Following the transaction, Fratelli Investments retains 5,235,882 ordinary shares with direct voting rights in Serabi Gold. The investment firm’s filing indicates that it holds no indirect positions or financial instruments such as derivatives or options that could convert to voting shares, suggesting a traditional equity investment approach rather than a complex trading strategy.

The TR-1 notification further clarifies that Fratelli Investments “is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuer,” indicating the entity operates independently.

While the reduction represents a significant change requiring regulatory disclosure, the fact that Fratelli maintained a substantial 6.91% position suggests continued confidence in Serabi’s prospects. The partial divestment could reflect several scenarios, including profit-taking, portfolio rebalancing, or strategic allocation decisions potentially unrelated to Serabi’s specific performance.

The gold mining sector has faced various challenges in recent years, including commodity price volatility, operational hurdles particularly in remote locations, and shifting investor sentiment toward precious metals investments. These industry-wide factors may have influenced Fratelli’s decision to adjust its position while maintaining significant exposure to Serabi Gold.

Serabi Gold, led by Chief Executive Michael Hodgson, focuses on gold exploration and production activities in Brazil, where the company has established operations. The company maintains a comprehensive advisory infrastructure to support its investor relations efforts, including nominated adviser Beaumont Cornish Limited and joint UK brokers Peel Hunt LLP and Tamesis Partners LLP.

The company’s robust investor relations capabilities include direct access to its Chief Executive and dedicated communications through Vice President of Investor Relations & Business Development Andrew Khov. For European financial public relations, Serabi engages Camarco, with Gordon Poole and Emily Hall managing communications.

This shareholding change comes at a time when institutional investors are closely monitoring gold mining companies amid economic uncertainty and inflationary pressures. Gold has traditionally served as a hedge against inflation and currency devaluation, making producers like Serabi potential beneficiaries during periods of economic instability.

For investors following Serabi Gold, this transaction provides valuable transparency into institutional shareholder behavior. The timing of the disposal in late August 2025 may reflect broader market conditions or seasonal trading patterns rather than company-specific concerns, particularly given the absence of any accompanying commentary suggesting fundamental performance issues.

Investors should monitor whether this disposal represents an isolated transaction or part of a broader pattern of institutional investor behavior regarding Serabi’s shares. The company continues to make shareholder disclosures available through its website, ensuring broad accessibility for investors and stakeholders interested in monitoring ownership changes.

The straightforward nature of the transaction—a direct reduction in ordinary shares without complex financial instruments—provides clarity for investors tracking institutional shareholding patterns in the gold mining sector, an industry where major shareholder movements can sometimes signal shifting sentiment about specific assets or regions.