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Cerrado Gold: Digging In and Pushing Forward

Second Quarter Surge

Mark Brennan, the CEO and Chairman, isn’t holding back. He’s thrilled about how the company’s second quarter shapes up. According to him, the expanded heap leach capacity is driving production, and soon we’ll see some high-grade ore coming from underground operations. With all of this, costs should dip, boosting financial results.

Chipping Away the Debt

Paying down $10 million in debt was a big win for them, thanks to solid cash flow and their cash reserves. Brennan is equally upbeat about the Lagoa Salgada Polymetallic Project and Mont Sorcier DRI Iron Project, too. He’s convinced they hold significant value, and once feasibility studies wrap up, those projects might bring some serious returns.

Operational Highlights

Production climbed a bit in Q2, primarily due to better heap leach operations. Yet, primary ore in the mix meant recovery rates took a hit. They’re betting on better results in the second half when they switch back to more oxide ore. Plus, upgrades to the crushing circuit, including adding an agglomerator, are on the way.

Underground and Expansion Efforts

Underground mining kicked off in June, aiming for a spike in production as the year progresses. It opens doors, literally, for exploration activities, saving costs compared to surface drilling.

Exploration Efforts

A 20,000-meter drill program just got underway, targeting fresh resources to feed the CIL plant. They struck veins north of the Paloma pit, and while results are still coming in, they’re optimistic.

Future Goals

The objective? Ramp up heap leach production to 4,000-4,500 GEO monthly, and boost underground output. They’re also intensifying exploration efforts to extend resource levels.

Financial Breakdown

Here’s a look at Q1 2025 financials with some notable points:

Cash costs shot up, mainly due to selling fewer ounces. Revenue also dipped, reflecting fewer gold sales year-on-year.

Strategic Moves and Projects

Aggressive Hedging

In April, they extended a hedging program with Ocean Partners UK Ltd. This aims to secure strong cash flows and support growth plans.

Looking Ahead

In the second half of 2025, operations at MDN Heap Leach are set to soar. Meanwhile, the CIL plant will keep humming, processing lower-grade stockpiles. They’re eyeing major profits with the arrival of higher-grade underground ore.

Wider Horizons

Cerrado’s eyes are scanning broader landscapes. They locked down an 80% interest in Lagoa Salgada, Portugal, placing it under their financial umbrella. They’re hustling to hit a construction decision by Q1 2026. Over in Quebec, the Mont Sorcier project is forging ahead with permitting and feasibility studies. Their high-grade concentrate fits perfectly into the green steel narrative, making it a hot commodity.

Conference Call Details

Curious about the buzz? Join the discussion on August 25, 2025, at 11:00 AM EDT. Register here for dial-in numbers. Alternatively, call toll-free at 1-833-752-3576 or internationally at 1-647-846-8340.

About Cerrado

Cerrado Gold is all about gold production, exploration, and development, with stakes across Argentina, Portugal, and Quebec. They’re constantly pushing boundaries, exploring high-potential areas, and tapping into the green steel transition.

Stay tuned. Things are heating up, and Cerrado Gold is definitely worth watching.

Contact
Mark Brennan
CEO and Chairman
Mike McAllister
VP, Investor Relations
Tel: +1-647-805-5662
mmcallister@cerradogold.com

Disclaimer
The information in this article reflects the company’s forward-looking statements and should not be interpreted as a guarantee of future performance. For more details, view the full press release on ACCESS Newswire.

Source: Cerrado Gold Inc.