Cerrado Gold Posts Strong Third Quarter Financial Results
In a significant achievement, Cerrado Gold Inc. reported production of 13,832 Gold Equivalent Ounces (GEO) at an All-In Sustaining Cost (AISC) of $1,915 per ounce during the third quarter of 2025. This performance reflects a strong upward trend and an increase of 21% compared to the previous quarter.
Financial Highlights
The company announced an adjusted EBITDA of $11.8 million, alongside a cash balance of $16.5 million. Importantly, management maintains the full year guidance of 50,000-55,000 GEO as underground mining production is set to ramp up significantly in the fourth quarter.
Operational Success at Minera Don Nicolás
The Minera Don Nicolás (MDN) mine has shown impressive operational results, with a notable increase in heap leach production. This quarter achieved a record of 10,429 GEO, driven by expanded crushing capacity that has improved ore recovery.
Underground Development Progress
The underground development at MDN is on track, with three access portals expected to yield production stopes during the fourth quarter. The CIL plant is beginning to process ore from these underground developments, expected to contribute to higher-grade material, thus supplementing ongoing operations.
Exploration Initiatives Expanding
Cerrado has also expanded its exploration program significantly. Initially set at 20,000 metres, the total exploration drilling project has now been increased to 70,000 metres to be completed by the end of 2026. Additionally, new drill rigs are scheduled to arrive, allowing for accelerated drilling activities.
Strategic Developments at Lagoa Salgada and Mont Sorcier
At the Lagoa Salgada project in Portugal, the Optimized Feasibility Study is nearing completion, with positive outcomes expected to reinforce project viability. Meanwhile, at the Mont Sorcier iron project in Canada, the infill drill program has been finalized, and updates on the geological model are progressing well.
Management Outlook
Mark Brennan, CEO and Chairman of Cerrado, expressed satisfaction with the operational transition and the expected benefits from ramping up production and exploration efforts. He emphasized a confident outlook for 2026, highlighting that higher-grade material from underground operations and strong gold prices are set to enhance future profitability.
Cerrado’s Commitment to Sustainable Growth
The company continues to invest in exploration and development, aimed at maximizing shareholder value. By focusing on operational enhancements and logistical efficiencies, Cerrado Gold is positioning itself as a resilient player in the resource sector.
Frequently Asked Questions
What were Cerrado Gold's production numbers in Q3 2025?
Cerrado Gold produced 13,832 Gold Equivalent Ounces (GEO) during the third quarter.
What is the projected AISC for Cerrado Gold in 2025?
The projected All-In Sustaining Cost for Cerrado Gold in 2025 is estimated to be between $1,600 and $1,800 per GEO.
What is the significance of the underground development at MDN?
This development is expected to yield higher-grade ore, enhancing production rates and overall profitability.
What are the company's plans for exploration?
The exploration program has been expanded to 70,000 metres, with new drill rigs arriving to expedite the drilling process.
Who is the management of Cerrado Gold?
Mark Brennan serves as the CEO and Chairman, overseeing strategic initiatives and operational management.