Cerrado Gold (OTCPK:CRDO.F) 2025 Conference Transcript

Summary of Cerrado Gold Conference Call Company Overview - Company Name: Cerrado Gold - Stock Symbols: CRDOF (OTCQX), CERT (TSXV) - Main Operations: Minera Don Nicolás in Santa Cruz, Argentina Key Points and Arguments Financial Performance - Investment of approximately $40 million in assets and a $40 million reduction in debt during the year [2][8] - Current cash balance of $15 million, expected to increase to between $20 million and $25 million by year-end [8] - Projected free cash flow of about $50 million at current prices [9][31] Production and Operations - Minera Don Nicolás produces an average of 55,000 ounces of gold per year at an All-In Sustaining Cost (AISC) of about $1,700 [2][4] - Ongoing surface exploration program of 20,000 meters for the current year, with plans to increase to 50,000 meters next year [4][5] - Underground development initiated to access higher-grade material, with expectations of profitable ounces starting in November-December [5][6] Project Development - Lagoa Salgada project in Portugal transitioning to a focus on precious metals, with expectations of 40% precious metals based on feasibility pricing [6][23] - Anticipated completion of feasibility study for Lagoa Salgada by the end of the year, with construction expected to begin in the third quarter of 2026 [24][38] - Mont Sorcier project in Quebec, a high-purity iron ore project, with feasibility expected by 2Q2026 [3][8] Market Position and Growth Potential - The company aims to maintain a five-year production profile at Minera Don Nicolás, with ongoing initiatives to demonstrate this by year-end [4][13] - Potential to grow production significantly, with a focus on underground resources that could enhance cash flow [17][18] - The market for high-purity iron ore is growing at 9-10% annually, with a premium of about $35 over conventional iron ore [7][8] Strategic Outlook - The company is positioned to drive cash flow and net asset value (NAV) without diluting shareholders [9][11] - Expected NAV growth from $111 million to $258 million with the construction of Lagoa Salgada, and up to $2 billion with Mont Sorcier [11][12] - Anticipated cash flows of $75 million from Lagoa Salgada by late 2027, and up to $500 million by 2030 with Mont Sorcier [11][12] Risks and Considerations - Political risk in Argentina acknowledged, but the company has managed to operate effectively despite challenges [38][39] - The company is well-funded for project development, with minimal expected dilution for shareholders [36][37] Community and Environmental Considerations - Commitment to responsible tailings management and water use, with adherence to global standards [33] Additional Insights - The company has a significant land position of about 330,000 hectares in Argentina, with much of it still unexplored [15][19] - The potential for substantial resource growth exists, particularly in areas adjacent to successful mining operations [20][21] This summary encapsulates the key points discussed during the conference call, highlighting Cerrado Gold's operational performance, strategic initiatives, and market outlook.