CERRADO GOLD ANNOUNCES SECOND QUARTER 2025 FINANCIAL RESULTS Transition extending life of mine production underway
August 21, 2025 www.cerradogold.com
CERRADO GOLD ANNOUNCES SECOND QUARTER 2025 FINANCIAL RESULTS
Transition extending life of mine production underway
• Gold equivalent production of 11,437 Gold Equivalent Ounces (“GEO”) at AISC of
$1,779/oz during Q2 2025
• Adjusted EBITDA of $7.4 million for Q2 2025
• Full year guidance of 55,000-60,000 GEO maintained: Production weighted to H2 as
higher-grade underground mining and heap leach volumes increase
• Repayment of ~US$18m debt and payables at the MDN operations year to date-
~US$10m in Q2 2025
• 20,000 meter resource expansion exploration program at MDN underway
• Significant investment and progress at both the Lagoa Salgada and Mont Sorcier projects
• Positive Metallurgical results at Lagoa Salgada to be incorporated into Optimized
Feasibility Study to be delivered by year end
• Management to host conference call on Monday, 25th of August, 11AM 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 second quarter (“ Q2/25”)
including its Minera Don Nicolas (“ MDN”) gold mine in Santa Cruz Province, Argentina , its Lagoa
Salgada Polymetallic Project in Portugal and its Mont Sorcier High Purity DRI Iron Project in Quebec.
Financial results now include the consolidated financial position of Ascendant Resource s Inc.
(“Ascendant”) following the close of the acquisition effective May 16, 2025.
Production results for MDN were previously released on July 17, 2025. The Company’s financial
results are reported and available on SEDAR + (www.sedarplus.com) and the Company’s website
(www.cerradogold.com).
Q2/25 MDN Operating Highlights:
• Q2/25 production of 11,437 GEO and AISC of $1,779/oz
o Unit costs expected to continue to decline as production increases in H2/2025
• Q2/25 Adjusted EBITDA of $7.4 million
• Record heap leach production of 7,864 GEO during the Quarter
• Underground development at Paloma started with three access portals
• CIL plant receiving initial contribution from underground development; production
expected to ramp up over H2/2025
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Operational results for the second quarter saw gold production increase compared to Q1 2025, but
were lower than Q2/24 during which period the high grade Calandrias Norte pit was being mined .
This was anticipated given the depletion of high-grade material from Calandrias Norte , following
which, MDN became primarily a heap leach only operation pending the ramp up of new high-grade
material from underground. The heap leach operation reached another production record of 7,864
GEO for the quarter. The recently expanded crushing circuit is enabling higher volumes of ore to be
placed on the pad, with further increases expected following the planned addition of an
agglomerator and additional conveyors in Q3 2025. With higher gold prices, the CIL plant continued
to process lower -grade stockpiles through Q2/25. Going forward , lower grade material will be
blended with new high-grade material from underground mining feed beginning in Q3/25 which will
increase mill grades, boost production and lower unit operating costs further.
Mark Brennan, CEO and Chairman commented, "The results from the second quarter demonstrate
a robust operation transitioning to deliver increased production in the second half of the year and
beyond. The expanded and improved crushing capacity at the heap leach is delivering greater
production and when combined with new, higher-grade ore expected from underground operations,
unit costs are expected to decline significantly in the second half of the year, enhancing our financial
performance.”
He continued, “The strong cash flow generated from operations combined with our cash balance,
has enabled us to pay down $10m in debt at MDN during the second quarter, while continuing to
deploy capital for surface exploration and development of new resources underground. We are also
seeing very positive advances at our Lagoa Salgada Polymetallic Project and at the High-grade Mont
Sorcier DRI Iron Project in which we expect to unlock significant value that we see in these projects
as the respective Feasibility Studies are completed.”
Operating Results for the Quarter
Operational results for Q2 2025 showed a modest increase in production over the previous quarter,
driven by modestly higher production from the heap leach operations. The heap leach performance
remained steady over the quarter. However, recovery rates were impacted by a larger amount of
primary ore placed on pad during the quarter due to mine sequencing. This primary material has
lower recovery rates and longer retention times as compared to oxide material. Heap leach
production i s expected to improve in H2/25 as more oxide ore is mined, the addition of an
agglomerator to reduce fines is implemented, and the ongoing upgrades to the crushing circuit are
completed. In addition, early in the quarter the crushing circuit was offline for approximately 15
days as upgrades were put in place to support higher throughput rates moving forward. Production
from stockpiled material via the CIL plant declined somewhat due to lower grades, however,
underground operations at Paloma are expected to begin to contribute meaningfully to production
in H2 2025 and beyond as development rates increase and more ore becomes available.
The second phase of the expansion of the heap leach crushing circuit is now complete, which will
increase feed stability in order to deliver steady ore volumes to the pad. While supporting higher
production rates, additional crushing facilities are also expected to reduce the feed size to the pad
and result in increased recoveries. The final updates to the crusher circuit, including final installation
of the agglomerator and additional conveyors, are set to be completed in Q3/25.
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As previously announced, MDN commenced underground mining in June, opening up three portals
for underground mining beneath the Paloma pit. Ore production is expected to ramp up over H2
and is set to make a material contribution to production rates a s the year progresses. While initial
production expectations are relatively modest given the current known underground resource,
underground access is expected to provide a platform for major exploration activities at a lower cost
than drilling from surface. Unde rground exploration aims to materially expand resources at MDN,
leveraging the underground development for a potential expansion in production and/or mine life.
On the exploration front, the Company commenced an approximate 20,000 metre drill program at
MDN late in the quarter and is set to drill numerous targets in the coming months with the aim to
potentially define new resources to provide mill feed to the CIL plant. Drilling commenced with a
single DDH rig north of the Paloma pit, where several new veins have been intersected. Results are
pending and further drilling will be required to confirm new resources.
In the near term, the focus at MDN remains to ramp up production rates at its heap leach operation
to approximately 4,000-4,500 GEO per month, grow underground production from the Paloma area
in H2, and ramp up a new targeted exploration program across our 3 30k Ha property to increase
resources and mine life.
The Company has reduced its debt position by approximately $10M over the quarter at MDN and is
well positioned to have a robust financial position by year end . Strong cashflow and reduced
liabilities at MDN will support continued development and exploration at MDN , while pushing
forward its strategic development programs at its projects in Quebec and Portugal.
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Q1 Financial Performance
Table 1. Q1 2025 Operational and Financial Performance
Key Operating Information Unit 2025 2024 2025 2024
Operating Data
Heap Leach Operations
Ore Mined ktonnes 550.39 207.17 1,209.07 351.40
Waste Mined ktonnes 998.26 708.11 2,022.51 1,227.13
Total Mined ktonnes 1,548.65 915.28 3,231.57 1,578.52
Strip Ratio waste/ore 1.81 3.42 1.67 3.49
Mining rate ktpd 17.21 10.06 17.95 8.72
Ore placed on pad ktonnes 723.71 285.18 1,416.71 516.06
Head Grade Au g/t 0.86 0.85 0.83 0.73
Head Grade Ag g/t 12.13 12.39 14.00 11.24
Recovery Au % 37% 29% 38% 28%
Recovery Ag % 15% 9% 11% 7%
Gold Ounces Produced oz 7,442 2,290 14,339 3,393
Silver Ounces Produced oz 28,283 10,383 57,949 12,926
Gold Equivalent Ounces Produced oz 7,864 2,420 15,092 3,552
High Grade CIL Operations
Ore Mined ktonnes - 58.36 11.39 2,375.18
Waste Mined ktonnes - 1,083.34 59.54 3,181.84
Total Mined ktonnes - 1,141.70 70.93 5,557.02
Strip Ratio waste/ore - 18.56 5.23 1.34
Mining rate ktpd - 12.55 0.39 30.70
Ore Milled ktonnes 96.83 65.96 188.35 156.04
Head Grade Au g/t 1.18 7.08 1.34 10.74
Head Grade Ag g/t 9.71 12.86 8.12 23.08
Recovery Au % 84% 91% 88% 89%
Recovery Ag % 62% 54% 59% 55%
Mill Throughput tpd 1,076 725 1,046 1,726
Gold Ounces Produced oz 3,378 13,648 7,199 23,527
Silver Ounces Produced oz 18,673 15,250 28,971 32,393
Gold Equivalent Ounces Produced oz 3,573 13,835 7,509 23,907
Consolidated Gold Production
Gold Ounces Produced oz 10,820 15,938 21,538 26,920
Silver Ounces Produced oz 46,956 25,633 86,920 45,319
Gold Equivalent Ounces Produced oz 11,437 16,255 22,601 27,459
Gold Ounces Sold oz 10,301 15,484 21,293 25,603
Silver Ounces Sold oz 56,839 23,509 99,462 42,258
Gold Equivalent Ounces Sold oz 10,886 15,775 22,354 26,106
Average realized price and Average realized margin
Metal Sales $ 000's 29,585 34,741 58,401 55,117
Cost of Sales $ 000's 23,352 23,148 49,904 46,715
Gross Margin from Mining Operations $ 000's 6,233 11,593 8,497 8,402
Average realized price per gold ounce sold (1) $/oz 2,684 2,199 2,599 2,109
Total cash costs per gold ounce sold (1) $/oz 1,770 1,178 1,838 1,520
Average realized margin per gold ounce sold (1) $/oz 914 1,021 761 589
Total Direct Operating Costs (1) $ 000's 17,713 18,367 37,422 38,145
Royalties and production taxes (1) $ 000's 521 (129) 1,717 762
Total Cash Costs (1) $ 000's $18,234 $18,238 $39,139 $38,907
Total direct operating costs per gold ounce sold (1) $/oz 1,720 1,186 1,757 1,490
Royalties and production taxes per gold ounce sold (1) $/oz 51 (8) 81 30
Total cash costs per gold ounce sold (1) $/oz $1,770 $1,178 $1,838 $1,520
AISC - Minera Don Nicolas (1) $/oz $1,779 $1,233 $1,858 $1,554
(1) This is a non-IFRS performance measure, see non-IFRS Performance Measures
Three Months Ended June 30 Six months ended June 30
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The Company produced 11,437 gold equivalent ounces (“GEO”) during the three months ended June
30, 2025, as compared to 16,255 GEO for the three months ended June 30, 2024. In the period
ended June 30, 2025, heap leach production was significantly higher compared to the prior year due
to 27% higher recover ies and 438,530 additional tonnes placed on the pad. This was offset by a
10,262 ounce decrease in production from the CIL operation as the Company’s focus moved towards
heap leach operations in 2025 and only processed low grade ore in Q2 2025.
The Company generated revenue of $29.6 million for the three months ended June 30, 2025, from
the sale of 10,301 ounces of gold and 56,839 ounces of silver at an average realized price per gold
ounce sold of $2,684. For the three months ended June 30, 2024, the Company generated revenue
of $34.7 million from the sale of 15,484 ounces of gold 23,509 ounces of silver. Revenue is lower for
the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, due
primarily to lower gold ounces sold.
Cost of sales for the three months ended June 30, 2025, were $23.4 million as compared to $23.1
million for the three months ended June 30, 2024. The Company incurred $0.6 million higher
production costs for the three months ended June 30, 2025 due to slig htly higher costs of
operational contractors and labour costs in 2025 as compared to 2024. Sales expenses were also
slightly higher in the first quarter of 2025 by $0.6 million, offset by a $1.0 million decrease in
depreciation expense.
Total cash costs (including royalties) sold was $1,770 per ounce in the three months ended June 30,
2025, as compared to $1,178 per ounce for the three months ended June 30, 2024, a $592 per ounce
or 50% increase (refer to reconciliation of Non -IFRS performance metrics). The increase is a result
of lower ounces sold in 2025 as compared to 2024.
Net income from continued and discontinued operations for the three months ended June 30, 2025,
was $1.2 million as compared to a net income of $1.0 million for the three months ended June 30,
2024. The increase in net income is primarily a result of decre ase in foreign exchange loss of $5. 9
million and lower depreciation expense of $1.0 million offset by $5.2 million decrease in metal sales,
an increase in loss on remeasurement of MDN stream obligation of $0.8 million and an increase in
loss on remeasurement of Ascendant secured note and stream obligation of $1.1 million.
Corporate Financial Highlights Unit 2025 2024 2025 2024
Financial Data
Total revenue $ 000's 29,585 29,876 58,401 55,117
Mine operating expenses $ 000's 23,352 28,570 49,904 46,715
Income (loss) from mining operations $ 000's 6,233 1,306 8,497 8,402
Net income (loss) from continuing operations $ 000's 1,226 1,387 (2,926) (4,009)
Net income (loss) from discontinued operations $ 000's - (357) - (2,239)
Adjusted EBITDA (1) $ 000's 7,353 14,977 12,171 12,414
Operating cash flow before movements in working capital (1) $ 000's 5,573 8,781 10,999 9,805
Operating cash flow $ 000's 1,413 3,855 8,852 7,875
Cash and cash equivalents $ 000's 5,705 412 5,705 3,360
Working capital (deficiency) $ 000's (24,516) (67,394) (24,516) (59,119)
Capital Expenditures $ 000's 2,881 10,167 6,173 6,527
(1) This is a non-IFRS performance measure, see non-IFRS Performance Measures
Three Months Ended June 30 Six months ended June 30
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The Company incurred general and administrative expenses of $2.8 million for the three months
ended June 30, 2025, as compared to $2.5 million of general and administrative expenses incurred
during the three months ended June 30, 2024. The increase was primarily a result of an increase in
salaries of $0.1 million, consulting fees of $0.1 million and marketing and promotion of $0.1 million
offset by a decrease in stock-based compensation of $0.1 million, and office and other of $0.1 million
for the three months ended June 30, 2025.
Other loss of $ 1.4 million during the three months ended June 30, 2025, includes finance expense
of $1.4 million, loss on fair value remeasurement of MDN stream obligation of $1.0 million and loss
on fair value remeasurement of Ascendant secured note and stream obligation of $1.1 million offset
by finance income of $1.0 million and foreign exchange gain of $0.9 million.
Hedging Program
On April 26, 2025, the Company extended its limited hedging program with Ocean Partners UK Ltd.
The hedge is constructed as a zero -cost collar with lower and upper boundaries of US$3,100 and
US$3,250 per ounce respectively. The hedging volume is for 2,000 ounces per month for a period of
7 months beginning May 2025 and terminating on or about December 2025, subject to production
volume. With the expanded hedging program , the Company is focused on ensuring more than
sufficient cash flows to further enhance its balance sheet a nd support funding requirements for its
various growth programs.
Outlook
Entering H2 2025 and beyond, Cerrado’s MDN Heap Leach operations are benefiting from the recent
improvements to its crushing infrastructure to grow and improve production rates. Higher gold
prices have enabled the CIL plant to remain operational by processing lower grade stockpiles, and it
is now set to benefit from the introduction of higher-grade ore from underground operations, which
is expected to improve overall profitability and free cash flows.
The Company has maintained its 2025 annual production guidance to 55,000 – 60,000 GEO. AISC
costs are expected decline in the second half of 2025 as production ramps up to deliver AISC of
between $1,500 – $1,700 per GEO.
The 20,000-meter exploration program has begun and is focused on growing the known resources
at MDN beyond those outlined in the most recent Mineral Resource Estimate (“MRE”). The focus
remains on defining high grade-near surface targets that can readily be brought into the mine plan.
The Company has developed an underground and a regional program to better understand the
potential of known anomalies on the significant land package Cerrado holds at MDN. Drilling is now
underway.
During Q2 2025 t he Company closed the acquisition of all of the outstanding common shares of
Ascendant Resources Inc. not already owned by the Company and thereby obtaining an effective
80% interest in the Lagoa Salgada VMS project on the Iberian Pyrite Belt in Portugal . Accordingly,
financial statements reflect the consolidation of Ascendant financial information for the first time,
which includes liabilities assumed by the Company in connection with the acquisition.
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At the Lagoa Salgada project, work continued across key workstreams with the goal of reaching a
construction decision by Q1 2026. Ongoing metallurgical testing has already delivered positive
improvements and is expected to be completed imminently. Management considers the previously
reported improvements to Capex and Opex at Lagoa to be very encouraging, and they will be
integrated into the optimization program for the OFS. Significant positive results using Dense Media
Separation on the Stockworks zone has warranted further analysis on mine and plant design. The
expected result is a reduction in processing costs from this domain , but requires further detailed
work to be undertaken before it can be incorporated into the OFS. Parallel workstreams to complete
the OFS are currently ongoing and it is expected that the completion of the OFS will occur by year
end.
The Company is also advancing the approval in the Environment Impact Assessment (EIA), after
successfully receiving Article 16 approval from the Portuguese regulators. The Company expects to
submit its revised EIA in October.
At the Mont Sorcier high grade and high 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 qualit y of the concentrate , grading over 67% iron, from the
Mont Sorcier project is well positioned to support growing demand from the global Green Steel
transition due to the reduced emissions generated by steel producers using high grade
concentrates.
Conference Call Details
Cerrado Management will host a conference call on August 25, 2025, at 11:00 AM EDT to discuss
the Q2 Financial and Operational 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/10202340/ffc98dcb64
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): 1-833-752-3576
PARTICIPANT INTERNATIONAL DIAL IN: 1-647-846-8340
PARTICIPANT INTERNATIONAL DIAL IN: 1-647-846-8340
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. The
Company is the 100% owner of the producing Minera Don Nicolás and Las Calandrias mine in Santa
Cruz province, Argentina. In Portugal, the Company holds an 80% intere st in the highly prospective
Lagoa Salgada VMS project through its position in Redcorp - Empreendimentos Mineiros, Lda. 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 Portugal, Cerrado focused on the exploration and development of the highly prospective Lagoa
Salgada VMS project located on the prolific Iberian Pyrite Belt in Portugal. The Lagoa Salgada project
is a high -grade polymetallic project, demonstrating a typical mineralization endowment of zinc,
copper, lead, tin, silver, and gold. Extensive exploration upside potential lies both near deposit and
at prospective step -out targets across the large 7,209 -hectare property concession. Located just
80km from Lisbon and surrounded by exceptional infrastructure, Lagoa Salgada offers a low -cost
entry to a significant exploration and development opportunity, already showing its mineable scale
and cashflow generation potential.
In Canada, Cerrado holds a 100% interest in the Mont Sorcier Iron project, which has the potential
to produce a premium iron 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 fur naces, 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
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