Cerrado Gold Announces Third Quarter 2025 Financial Results

Core Viewpoint - Cerrado Gold Inc. reported operational and financial results for Q3 2025, highlighting increased gold production and ongoing development across its projects, including Minera Don Nicolas, Lagoa Salgada, and Mont Sorcier [1][7][20]. Financial Performance - Total revenue for Q3 2025 was $41.0 million, an increase from $36.7 million in Q3 2024, driven by higher average realized prices [21]. - The company produced 13,832 gold equivalent ounces (GEO) in Q3 2025, compared to 16,604 GEO in the same period last year, with heap leach production significantly higher due to improved recoveries [20][21]. - Adjusted EBITDA for Q3 2025 was $11.8 million, up from $7.4 million in Q3 2024 [19]. - Cash and cash equivalents at the end of Q3 2025 stood at $16.5 million, compared to $7.9 million at the same time last year [19]. Operational Highlights - The heap leach operation achieved a production record of 10,429 GEO for Q3 2025, reflecting a 33% increase from Q2 2025 [4][8]. - The company maintained its full-year production guidance of 50,000-55,000 GEO, with expectations for increased underground mining production in Q4 2025 [7][28]. - The CIL plant processed lower-grade stockpiles during Q3 2025, with plans to continue this into Q4 [4][27]. Exploration and Development - An initial 20,000-meter drill program at Minera Don Nicolas is being expanded to 50,000 meters for 2026, with three new drill rigs acquired to accelerate drilling [5][29]. - The Optimized Feasibility Study for the Lagoa Salgada project is nearing completion, expected in early 2026, while the Bankable Feasibility Study for Mont Sorcier is targeted for Q2 2026 [6][32]. - The company is working on certifying its own testing lab to reduce assay turnaround times [5]. Market Position and Strategy - The company is focused on maximizing asset value through operational optimization and exploration to unlock potential resources [39][40]. - The Mont Sorcier project is positioned to meet growing demand for high-grade iron concentrate, supporting the transition to greener steel production [32][42]. - A hedging program has been extended to secure cash flows and support funding for growth initiatives [26].