Cerrado GOLD Announces Q4 and Annual 2024 Financial Results
April 30, 2025 www.cerradogold.com
CERRADO GOLD ANNOUNCES Q4 AND ANNUAL 2024 FINANCIAL RESULTS
• Annual production of 54,494 Gold Equivalent Ounces (“GEO”); in-line with guidance
• Adjusted EBITDA of $4.5 million for Q4, and $24.4 million for the full year excluding
project sales proceeds from sale of Monte Do Carmo
• Received $34 million in Asset sale and Option payment proceeds in Q4: Received $49
million for the full year with up to $25 million ($15 million guaranteed) due in the coming
years.
• Continued strengthening of the Balance sheet with a US$54.5 million improvement in the
working capital position achieved
• Management to host a Conference Call to discuss the financial and operational results on
May 1st, 2025, at 11:00 AM EDT
TORONTO, ONTARIO – Cerrado Gold Inc. [TSX.V:CERT][OTCQX:CRDOF; FRA:BAI0] (“Cerrado” or the
“Company”) announces its operational and financial results for the fourth quarter (“ Q4/24”)
including its Minera Don Nicolas (“ MDN”) gold project in Santa Cruz Province, Argentina and its
Mont Sorcier High Purity DRI Iron Project in Quebec.
Production results for MDN were previously released on January 15, 2025. The Company’s financial
results are reported and available on SEDAR + (www.sedarplus.com) and the Company’s website
(www.cerradogold.com).
Q4/24 and Annual MDN Operating Highlights
• Production of 10,431 GEO in Q4 and Annual production of 54,494 GEO
• Adjusted EBITDA of $4.5 million in Q4 and US$24.4 million for the year excluding assets
sales and Option payment proceeds.
• Received $34 million in Asset sale and Option payment proceeds in Q4: Received $49
million for the full year with up to $25 million ($15 million guaranteed) due in the coming
years.
• AISC of $1,953 during Q4 vs $1,594 in Q4/23 due to lower production levels and ongoing
inflationary pressures in Argentina
• Received Asset Sale and Option payments totaling $34 MM during the quarter,
significantly strengthening the balance sheet.
• Focus remains on ramping up heap leach production to 4,000 - 4,500 GEO per month
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Operational results for the fourth quarter demonstrated a decrease in production relative to Q4/23
as high-grade ore to the CIL plant declined as mining from the Calandrias Norte pit was completed,
and as the operation transitioned to focus on heap leach production. Ore from the Calandrias Norte
open pit was exhausted late in the quarter and is now being replaced by processing lower grade
stockpiles through the CIL plant . With higher gold prices , the CIL plant is expected to continue
processing low grade stockpiles through Q2/25 when it will be blended with new high-grade
material from initial underground mining feed from Q3/25 onward. The ramp up of heap leach
operations continues to improve as crushing capacity continued to climb with production of 5,956
GEO during the quarter. The performance of the heap leach continues to depend on the output of
the crushing circuit which, as of April 2025 , is supported by the installation of a new secondary
crusher. Recovery rates were in line with expectations, and we expect to see minor improvements
from the heap leach as the new crushing and agglomeration circuit becomes operational in Q2/25.
Due to the relatively fixed cost nature of the MDN operation, unit operating costs were higher in
the quarter relative to the comparable period in 2023 due to lower production levels and
inflationary cost pressure. Go ing forward , as rent al equipment is replaced, a more stable fiscal
environment materializes and production increases, costs are expected to decline.
Mark Brennan, CEO and Chairman commented, "The results from this quarter demonstrate our
continued ability to maintain production while paying down debt through increased cashflows. This
process has continued through the first quarter of 2025. We are well positioned to deploy capital in
a strategic and fiscally prudent manner to ramp up exploration efforts at MDN, initiate our
underground production at Paloma, complete a bankable feasibility study at our high grade/ purity
Mont Sorcier DRI iron project, and fund the development of the Lagoa Salgada Project , assuming
closing of the proposed acquisition of Ascendant Resources Inc. ), while continuing to increase
Cerrado’s financial strength., We anticipate 2025 will be a transformative year for Cerrado.”
Cerrado has made significant improvements to its working capital position and balance sheet over
the 2024 year. As at December 31, 2024, the Company had a working capital deficit of $12.9 million,
a decrease of $54. 5 million from December 31, 2023. The Company’s cash and cash equivalents
balance at December 31, 2024 was $26.0 million. This is an increase from cash and cash equivalents
of $0.4 million at December 31, 2023. The key contributor s to the Company’s improved working
capital position at December 31 , 2024 is lower current debt payable s of $35.0 million and lower
trade and other payables of $29.2 million.
Further improvement in the balance sheet has continued through Q1/25 and into Q2/25, with the
final US$5m payment paid to the sellers of MDN as well as payments of amounts outstanding being
repaid to royalty holders of MDN.
the current focus at MDN will be increasing production rates at its heap leach operation to around
4,000-4,500 GEO per month for the next 4 years , as outlined in the recent NI 43-101 Preliminary
Economic Assessment Technical Report and Mineral Resource Estimate for The Minera Don Nicolas
Mine in Santa Cruz, Argentina (“PEA”). Consistent production along with historically high gold
prices, ensures the Company is well placed to continue its debt and payables reduction program as
well as fund future development, exploration and push forward its development projects in Quebec
and in Portugal, subject to closing the acquisition of Ascendant Resources.
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Q4 Financial Performance
Table 1. Q4 and Annual 2024 Operational and Financial Performance
Key Operating Information Unit 2024 2023 2024 2023
Operating Data
High Grade CIL Operations
Ore Mined ktonnes 30.71 97.57 217.76 303.22
Waste Mined ktonnes 610.21 939.18 5,027.04 4,042.83
Total Mined ktonnes 640.92 1,036.75 5,244.80 4,346.05
Strip Ratio waste/ore 19.87 9.63 23.08 13.33
Mining rate ktpd 6.97 11.27 14.37 11.91
Ore Milled ktonnes 92.93 93.23 347.62 367.16
Head Grade Au g/t 1.48 5.57 3.99 4.59
Head Grade Ag g/t 8.13 6.48 9.49 5.59
Recovery Au % 90% 94% 90% 90%
Recovery Ag % 64% 62% 59% 62%
Mill Throughput tpd 1,010 1,013 952 1,006
Gold Ounces Produced oz 4,312 15,083 40,861 50,658
Silver Ounces Produced oz 13,840 10,253 61,280 40,968
Gold Equivalent Ounces Produced oz 4,475 15,202 41,583 51,150
Heap Leach Operations
Ore Mined ktonnes 563.47 181.70 1,279.71 560.00
Waste Mined ktonnes 1,102.80 334.84 3,214.70 1,115.00
Total Mined ktonnes 1,666.27 516.54 4,494.41 1,675.00
Strip Ratio waste/ore 1.96 1.84 2.51 1.99
Mining rate ktpd 18.11 5.61 12.31 4.59
Ore placed on pad ktonnes 588.22 67.80 1,538.10 446.00
Head Grade Au g/t 0.73 0.53 0.73 0.52
Head Grade Ag g/t 9.96 4.91 10.41 4.54
Recovery Au % 41% 13% 34% 13%
Recovery Ag % 15% 3% 10% 3%
Gold Ounces Produced oz 5,631 531 12,277 1,057
Silver Ounces Produced oz 27,592 829 53,231 1,780
Gold Equivalent Ounces Produced oz 5,956 541 12,911 1,080
Consolidated Gold Production
Gold Ounces Produced oz 9,943 15,614 53,138 51,715
Silver Ounces Produced oz 41,432 11,082 114,511 42,748
Gold Equivalent Ounces Produced oz 10,431 15,744 54,494 52,230
Gold Ounces Sold oz 9,668 15,386 50,777 53,561
Silver Ounces Sold oz 37,431 11,120 108,195 44,781
Gold Equivalent Ounces Sold oz 10,108 15,518 52,058 54,100
Average realized price and Average realized margin
Metal Sales $ 000's 24,383 29,876 116,169 100,101
Cost of Sales $ 000's 30,198 28,570 106,170 86,282
Gross Margin from Mining Operations $ 000's (5,815) 1,306 9,999 13,819
Average realized price per gold ounce sold (1) $/oz 2,371 1,925 2,226 1,849
Total cash costs per gold ounce sold (1) $/oz 1,941 1,590 1,629 1,418
Average realized margin per gold ounce sold (1) $/oz 430 334 597 431
Total Direct Operating Costs (1) $ 000's 18,218 21,275 78,926 65,733
Royalties and production taxes (1) $ 000's 552 3,194 3,828 10,231
Total Cash Costs (1) $ 000's $18,770 $24,469 $82,754 $75,964
Total direct operating costs per gold ounce sold (1) $/oz 1,884 1,383 1,554 1,227
Royalties and production taxes per gold ounce sold (1) $/oz 57 208 75 191
Total cash costs per gold ounce sold (1) $/oz $1,941 $1,590 $1,629 $1,418
AISC - Minera Don Nicolas (1) $/oz $1,953 $1,594 $1,651 $1,427
(1) This is a non-IFRS performance measure, see non-IFRS Performance Measures
Three Months Ended December 31 Year ended December
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The Company produced 10,431 GEO and sold 10,108 GEO during Q4 2024. Production levels
decreased from Q4 2023 as ore grades through the CIL circuit decreased with increased processing
of low-grade stockpiles as mining at Calandrias Norte deposit was completed. As previously stated,
lower production and ongoing inflationary pressures in Argentina, especially for labour, have seen
unit costs increase in Q4/24 relative to Q4/23. Production from Calandrias Sur heap leach operations
continued to ramp up towards full production during the quarter and achieved 5,956 GEO during
Q4 2024. The crushing plant is now operating as expected, and additional capacity is planned to be
installed during H 1 2025, which is expected to provide much more stability over production rates
and more consistent feed to the heap leach pad , improving Cerrado’s overall operational and
financial performance. As of April , production from the heap leach is running at approximately
+3,000 GEO per month and should reach full capacity in Q2/25.
As noted, the Company completed a PEA of the heap leach operations at Calandrias Sur, Calandrias
Norte and the development proposals for defined ore in the Martinetas area. MDN is currently
following the development and production profile outlined in the PEA, however underground
production is being brought forward to H2/25, targeting increased production and profitability for
the near term. Any exploration success, particularly for new high -grade resources at MDN, would
also be additive to the PEA.
Going into the first quarter of 2025 and beyond, Cerrado’s MDN operations are benefitting from the
completion of its recent expansionary capital expenditure program to grow production with its new
heap leach operations, while sustaining CIL production from stockpiles until the end of Q 2 2025.
Higher gold prices have enabled the plant to remain operational by processing stockpiles through
March and April. While the near-term cash generation profile continues to improve, the Company
is actively working to term out the maturity of its current short term debt profile.
As noted in the Press Release dated April 15, 2025, the Company raised its 2025 annual production
guidance to 55,000 – 60,000 GEO, up from 50,000 – 55,000 GEO, to include the addition of modest
underground production. AISC costs are expected to be modestly higher than previously anticipated
with an AISC of between $1,500 – $1,700 per GEO as compared to prior expectations of $1,300 –
$1,500 per GEO. The increased costs are the result of the inclusion of underground mining, ongoing
processing of low-grade ores, continued inflationary pressure in Argentina, and the ongoing use of
rental crushing equipment as the new permanent crushing capacity is being installed.
Corporate Financial Highlights Unit 2024 2023 2024 2023
Financial Data
Total revenue $ 000's 24,383 29,876 116,169 100,101
Mine operating expenses $ 000's 30,198 28,570 106,170 86,282
Income (loss) from mining operations $ 000's (5,815) 1,306 9,999 13,819
Net income (loss) from continuing operations $ 000's (147) 3,116 534 (2,864)
Net income (loss) from discontinued operations $ 000's 30,247 (1,599) 24,865 (3,889)
Adjusted EBITDA (1) $ 000's 4,521 2,381 24,377 17,735
Operating cash flow before movements in working capital (1) $ 000's 14,735 6,789 32,467 13,848
Operating cash flow $ 000's 1,461 9,546 10,722 34,799
Cash and cash equivalents $ 000's 26,032 412 26,032 412
Working capital (deficiency) $ 000's (12,941) (67,394) (12,941) (67,394)
Capital Expenditures $ 000's 1,336 10,167 9,532 44,989
(1) This is a non-IFRS performance measure, see non-IFRS Performance Measures
Three Months Ended December 31 Year ended December
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A new Exploration initiative began in Q1 with the focus on growing the known resources at MDN
beyond those outlined in the recent Mineral Resource Estimate (“MRE”). The focus remains on
defining high grade -near surface targets that can readily be brought into the mine plan ,
underground exploration as well as a regional program to better understand the potential of the
significant land package Cerrado holds at MDN.
At the Mont Sorcier high grade/ purity DRI iron project operated by Cerrado’s wholly owned
subsidiary Voyager Metals Inc., work continued to advance the project with several workstreams
related to permitting, social license and the initiation of the Feasibility Study which is targeted to be
completed during Q1 2026. The high quality of the concentrate , grading over 67% iron, from the
Mont Sorcier project is well positioned to support the growing demand from the global Green Steel
transition due to the redu ced emissions generated by steel producers using high grade
concentrates.
The Company currently anticipates closing the proposed acquisition of all the outstanding common
shares of Ascendant Resources Inc. not already owned by Cerrado in May 2025 (see Press Release
dated February 3, 2025 , for full details) . Closing of the proposed acquisition is subject to the
satisfaction of certain closing conditions and there is no assurance that it will close. Assuming closing
of the transaction, the C ompany plans to continue to advance the Lagoa Salgada VMS project
through several key workstreams to reach a construction decision by Q4 2025/Q1 2026.
Conference Call Details
Cerrado Gold Management will host a conference call on May 1, 2025, at 11:00 AM EDT to discuss
the Q4 and Annual financial and production results. The presentation for the call can be found on
the investor page on Cerrado Gold’s website at cerradogold.com. Call details are as follows:
Pre-Registration for Conference Call
Participants can preregister for the conference by navigating to:
https://dpregister.com/sreg/10199377/ff0bb54608
Participants will receive dial-in numbers to connect directly upon registration completion.
Those without internet access or unable to pre-register may dial in by calling:
PARTICIPANT DIAL IN (TOLL FREE): 1-844-763-8274
PARTICIPANT INTERNATIONAL DIAL IN: 1-647-484-8814
Review of Technical Information
The scientific and technical information in this press release has been reviewed and approved by
Andrew Croal P.Eng, Chief Technical Officer for Cerrado Gold, who is a Qualified Person as defined
in National Instrument 43-101.
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About Cerrado
Cerrado Gold is a Toronto-based gold production, development, and exploration company focused
on gold projects in South America. The Company is the 100% owner of both the producing Minera
Don Nicolás and Las Calandrias mine in Santa Cruz province, Argentina . In Canada, Cerrado Gold is
developing its 100% owned Mont Sorcier Iron project located outside of Chibougamou, Quebec.
In Argentina, Cerrado is maximizing asset value at its Minera Don Nicolas operation through
continued operational optimization and is growing production through its operations at the Las
Calandrias heap leach project. An extensive campaign of exploration is ongoing to further unlock
potential resources in our highly prospective land package in the heart of the Deseado Masiff.
In Canada, Cerrado holds a 100% interest in the Mont Sorcier Iron project, which has the potential
to produce a premium iron ore concentrate over a long mine life at low operating costs and low
capital intensity. Furthermore, its high grade and high purity product facilitates the migration of
steel producers from blast furnaces to electric arc furnaces , contributing to the decarbonization of
the industry and the achievement of sustainable development goals.
For more information about Cerrado please visit our website at: www.cerradogold.com.
Mark Brennan
CEO and Chairman
Mike McAllister
Vice President, Investor Relations
Tel: +1-647-805-5662
Disclaimer
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS
DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains statements that constitute “forward -looking information” (collectively,
“forward-looking statements”) within the meaning of the applicable Canadian securities legislation.
All statements, other than statements of historical fact , are forward -looking statements and are
based on expectations, estimates and projections as at the date of this news release. Any statement
that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future
events or performance (often but not always using phrases such as “expects”, or “does not expect”,
“is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”,
“estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain
actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be
achieved) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements contained in this press release include, without limitation, statements
regarding the business and operations of Cerrado, anticipated continued improvements in operating
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results and working capital position, expectations regarding the CIL plant processing lower grade
stockpiles, the potential for improvement at MDN’s heap leach operation, expectations regarding
improvements in operating costs at MDN including AISC, additional capacity being added at the heap
leach operation, the anticipated timing of completing the feasibility study at the Mont Sorcier project
and the likelihood and anticipated date of closing the acquisition of Ascendant Resources Inc. In
making the forward- looking statements contained in this press release, Cerrado has made certain
assumptions. Although C errado believes that the expectations reflected in forward -looking
statements are reasonable, it can give no assurance that the expectations of any forward -looking
statements will prove to be correct. Known and unknown risks, uncertainties, and other factors which
may cause the actual results and future events to differ materially from those expressed or implied
by such forward -looking statements. Such factors include, but are not limited to general business,
economic, competitive, political and social uncertainties. Accordingly, readers should not place
undue reliance on the forward -looking statements and information contained in this press release.
Except as required by law, Cerrado disclaims any intention and assumes no obligation to update or
revise any forward -looking statements to reflect actual results, whether as a result of new
information, future events, changes in assumptions, changes in factors affecting such forward -
looking statements or otherwise.