Cerrado Gold Announces Second Quarter 2026 Financial Results
Cerrado Gold Announces Second Quarter 2026 Financial Results
• Gold equivalent production of 15,415 Gold Equivalent Ounces (“GEO”) at AISC of $1,933/oz Au during Q2 2026
• Adjusted EBITDA of $28.2 million for Q2 2026 and Strong Cash Position of $25.3 million at quarter end
• Annual Production Guidance of 50,000 to 60,000 GEO reiterated for 2026
• Preliminary Economic Assessment targeted for Q1/27 supported by ongoing exploration program and recent
property acquisitions expected to support resource growth leading to increased mine life and a structural
increase in production levels
• Continued progress at both the Lagoa Salgada and Mont Sorcier projects
• Management to host conference call on August 19th, 11:00 AM EDT
TORONTO, Aug. 18, 2026 -- Cerrado Gold Inc. [TSX.V:CERT][OTCQX:CRDOF; FRA:BAI0] (“Cerrado” or the “Company”)
announces its operational and financial results for the second quarter ended June 30, 2026 (“Q2/26”), 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.
Production results for MDN were previously released on July 13, 2026. The Company’s financial results are reported and
available on SEDAR+ (www.sedarplus.com) and the Company’s website (www.cerradogold.com).
Q2/26 MDN Operating Highlights:
• Q2 Production of 15,415 vs 11,437 GEO in Q2 2025 and 12,842 in Q1 2026
• Heap leach production of 9,981 GEO in Q2 2026; continues to increase
• Underground development work continues at an accelerated pace supporting higher production expected in
H2/26
• CIL plant continues to process a blend of stockpile material and additional ore from underground development,
resulting in total production of 5,434 GEO in Q2
Operational results for Q2 2026 continued the trend of increasing production relative to the previous quarters. Production rates
increased at the heap leach operations versus the previous quarter as irrigation issues subsided and more crushed material
was placed on the heap leach pads, benefiting from recent improvements in the crushing circuit. As more water for irrigation
becomes available, all the gold inventory placed on the pad earlier should be recovered over time. Average gold recovery rates
remained lower than expected due to the mix of primary ore placed on the leach pads due to mine sequencing, while silver
recoveries improved significantly versus the prior quarter. CIL production remained steady, supporting overall production levels.
Unit costs per ounce of gold sold were $1,933/oz Au, an increase compared to the prior year primarily as a result of the initial
effect of cost-cutting measures and increased labor costs in Argentina.
The focus on underground development continued during the quarter, which reduced the ore available for immediate
processing, but increased development will allow access to greater amounts of ore in future quarters and is expected to lift
production and improve head grades to the plant over the balance of the year. During 2026, underground ore operations are
expected to follow a cycle of development and then ore extraction, as the underground workings follow the ore zone deeper
under the current pit.
The Company continues to advance its exploration program at MDN, focused on near-mine targets with the potential to
materially extend resources and mine life. This includes supporting medium-term operational sustainability through high-grade
underground feed to the CIL plant, as well as increasing resources available for heap leach processing. A new underground drill
rig arrived on site in July and should accelerate underground exploration.
At MDN, the company is planning to complete a new Preliminary Economic Assessment and Mineral Resource Estimate in
Q1/27 to incorporate results from the ongoing exploration program and recent property acquisitions adjacent to MDN. This is
expected to demonstrate an enhanced mine life and growing production profile.
At Lagoa Salgada, the Company continued to work on the Optimized Feasibility Study (OFS) while progressing permitting and
project financing activities. Due to permitting uncertainty, workflows have slowed during the period but are positioned to
accelerate when appropriate. In June 2026, the court ruled in favour of the Company’s Portuguese subsidiary and granted it an
injunction which has the effect of suspending the effects of the unfavorable opinion relating to environmental permitting. Legal
proceedings relating to the principal case pertaining to environmental permitting remain ongoing. As a result, the timing of
completion of the OFS is expected to be delayed somewhat pending more clarity on permitting issues.
In Canada, at the Company’s Mont Sorcier High-Grade 67% Iron project, work continued on the delivery of a Bankable
Feasibility Study (BFS). As the BFS progressed, the Company identified several opportunities to further optimize project
economics and reduce both capital and operating costs, despite ongoing industry-wide inflation. A number of trade-off studies
are expected to be completed to evaluate and capture these improvements. As such, the BFS is now targeted for completion
in H1/27 (see Press Release dated July 15, 2026).
The most significant opportunity to enhance the project is to convert a modest amount of currently Inferred Resources to
Measured Resources within a defined area to the east of the current planned pit. The material in this region is expected to be
shallower and should reduce stripping and tailings management costs over the life of mine. As a result, the Company will
undertake a small, targeted definition drill program in Q3/26 so that any resources which may be converted from inferred to
measured may be incorporated into the optimized mine plan. Additional trade-off studies will also be undertaken on product
quality and an overall review of OPEX and CAPEX estimates in light of ongoing inflation. Work on the Environmental and Social
Impact Assessment ("ESIA"), which is still expected to be filed in Q2/ 2027, remains ongoing, albeit there is some risk to this
timing. We note that recent comments by policymakers indicate a desire to accelerate the permitting process; however, no
clear timeline for how this will impact Mont Sorcier is available at this time.
The Mont Sorcier project is being designed as an 8 Mtpa concentrate operation, compared with 5 Mtpa in the PEA, to reflect
strong demand for high-grade iron concentrates with low silica and alumina suitable for the direct reduction iron (DRI) or pellet
feed markets, the fastest-growing segments of the iron ore market for which premium prices are expected. Development is
expected to occur in two phases, with Phase 1 producing 4 Mtpa and a second 4 Mtpa expansion targeted approximately
three years after start-up.
Mark Brennan, CEO and Chairman, commented, "Positive results for the second quarter continued to benefit from recent
operational improvements at MDN, highlighting growing production and strong cash flows for the quarter. We expect this to be
sustained going forward, given the previously discussed operational upgrades, sustained high gold prices, and our unhedged
gold position. The strong cash flow generated from operations continues to support our growing cash balance, while we
continue to see benefits from recent cost-cutting measures despite significant wage inflation pressure in Argentina. Our full
year production looks increasingly likely to come in at the higher end of guidance as we see continued strong production
month over month.”
Q2 Financial Performance
Table 1. Q2 2026 Operational and Financial Performance
Three Months Ended
June 30
Six months ended June
30
Key Operating Information Unit 2026 2025 2026 2025
Operating Data
Heap Leach Operations
Ore Mined ktonnes 832.24 550.39 1,617.39 1,209.07
Waste Mined ktonnes 1,081.93 998.26 2,065.86 2,022.51
Total Mined ktonnes 1,914.17 1,548.65 3,683.25 3,231.57
Strip Ratio waste/ore 1.30 1.81 1.28 1.67
Mining rate ktpd 21.03 17.21 20.35 17.95
Ore placed on pad ktonnes 809.64 723.71 1,611.01 1,416.71
Head Grade Au g/t 0.84 0.86 0.84 0.83
Head Grade Ag g/t 4.96 12.13 8.57 14.00
Recovery Au % 39% 37% 36% 38%
Recovery Ag % 76% 15% 41% 11%
Gold Ounces Produced oz 8,437 7,442 15,693 14,339
Silver Ounces Produced oz 98,207 28,283 180,720 57,949
Gold Equivalent Ounces Produced oz 9,981 7,864 18,768 15,092
High Grade CIL Operations
Ore Mined ktonnes 23.47 - 39.89 11.39
Waste Mined ktonnes 20.63 - 42.91 59.54
Total Mined ktonnes 44.10 - 82.80 70.93
Strip Ratio waste/ore 0.88 - 1.08 5.23
Mining rate ktpd 0.48 - 0.46 0.39
Ore Milled ktonnes 99.76 96.83 201.53 188.35
Head Grade Au g/t 1.53 1.18 1.43 1.34
Head Grade Ag g/t 11.15 9.71 9.75 8.12
Recovery Au % 90% 84% 89% 88%
Recovery Ag % 64% 62% 59% 59%
Mill Throughput tpd 1,096 1,076 1,113 1,046
Gold Ounces Produced oz 5,079 3,378 8,820 7,199
Silver Ounces Produced oz 22,524 18,673 39,557 28,971
Gold Equivalent Ounces Produced oz 5,434 3,573 9,489 7,509
Consolidated Gold Production
Gold Ounces Produced oz 13,516 10,820 24,513 21,538
Silver Ounces Produced oz 120,731 46,956 220,277 86,920
Gold Equivalent Ounces Produced oz 15,415 11,437 28,257 22,601
Gold Ounces Sold oz 13,628 10,301 24,314 21,293
Silver Ounces Sold oz 121,460 56,839 215,408 99,462
Gold Equivalent Ounces Sold oz 15,537 10,886 27,952 22,354
Average realized price and Average
realized margin
Metal Sales $ 000's 64,558 29,585 117,577 58,401
Cost of Sales $ 000's 41,646 23,352 70,692 49,904
Gross Margin from Mining Operations $ 000's 22,912 6,233 46,885 8,497
Average realized price per gold ounce sold (1) $/oz 4,184 2,684 4,206 2,599
Total cash costs per gold ounce sold (1) $/oz 1,783 1,770 1,560 1,838
Average realized margin per gold ounce sold (1) $/oz 2,401 914 2,646 761
Total Direct Operating Costs (1) $ 000's 22,188 17,713 34,393 37,422
Royalties and production taxes (1) $ 000's 2,106 521 3,544 1,717
Total Cash Costs (1) $ 000's 24,294 $18,234 $37,937 $39,139
Total direct operating costs per gold ounce
sold (1) $/oz 1,628 1,720 1,415 1,757
Royalties and production taxes per gold
ounce sold (1) $/oz 155 51 146 81
Total cash costs per gold ounce sold (1) $/oz 1,783 $1,770 $1,560 $1,838
AISC - Minera Don Nicolas (1) $/oz 1,933 $1,779 $1,680 $1,858
(1) This is a non-IFRS performance measure, see non-IFRS Performance Measures
Three Months Ended
June 30
Six months ended June
30
Corporate Financial Highlights Unit 2026 2025 2026 2025
Financial Data
Total revenue $ 000's 64,558 29,585 117,577 58,401
Mine operating expenses $ 000's 41,646 23,352 70,692 49,904
Income from mining operations $ 000's 22,912 6,233 46,885 8,497
Net income (loss) from operations $ 000's 9,156 1,226 22,037 (2,926)
Adjusted EBITDA (1) $ 000's 28,195 7,353 56,934 12,171
Operating cash flow before movements in
working capital (1) $ 000's 20,022 5,573 40,395 10,999
Operating cash flow $ 000's 11,593 1,413 28,808 8,852
Cash and cash equivalents $ 000's 25,290 5,705 25,290 5,705
Working capital (deficiency) $ 000's (1,572) (11,497) (39,142) (24,516)
Capital Expenditures $ 000's 23,196 2,881 40,105 6,173
(1) This is a non-IFRS performance measure, see non-IFRS Performance Measures
The Company produced 15,415 gold equivalent ounces (“GEO”) during the three months ended June 30, 2026, as compared to
11,437 GEO for the three months ended June 30, 2025. In the period ended June 30, 2026, heap leach production was 27%
higher compared to the prior year due to significantly higher silver production and 85,940 additional tonnes placed on the pad.
The Company generated revenue of $64.6 million for the three months ended June 30, 2026, from the sale of 13,628 ounces of
gold and 121,460 ounces of silver at an average realized price per gold ounce sold of $4,184 and average realized price per
silver ounce sold of $62. For the three months ended June 30, 2025, the Company generated revenue of $29.6 million from the
sale of 10,301 ounces of gold and 56,839 ounces of silver. Revenue is higher for the three months ended June 30, 2026, as
compared to the three months ended June 30, 2025, due primarily to higher average realized gold and silver prices, as well as
43% higher GEO ounces sold.
Cost of sales for the three months ended June 30, 2026, were $41.6 million as compared to $23.4 million for the three months
ended June 30, 2025. The Company incurred $10.0 million higher production costs for the three months ended June 30, 2026,
primarily as a result of an increase in labour and fuel costs. Additionally, the Company incurred a $1.6 million increase in
sales expenses and a $6.6 million increase in depreciation expenses compared to 2025, primarily due to an increase in
production.
Total cash costs (including royalties) per ounce sold was $1,783 per ounce in the three months ended June 30, 2026, as
compared to $1,770 per ounce for the three months ended June 30, 2025 (refer to reconciliation of Non-IFRS performance
metrics).
Net income from operations for the three months ended June 30, 2026, was $9.2 million as compared to a net income of $1.2
million for the three months ended June 30, 2025. The increase in net income is primarily a result of a $35.0 million increase in
revenue and an increase in other income of $7.9 million, offset by higher cost of sales of $18.3 million and higher taxes of
$13.1 million.
The Company incurred general and administrative expenses of $6.3 million for the three months ended June 30, 2026,
compared with the $2.8 million of general and administrative expenses incurred during the three months ended June 30, 2025.
The increase is primarily as a result of an increase in share-based compensation of $2.2 million compared to 2025.
Other income of $6.5 million during the three months ended June 30, 2026, includes a gain on the remeasurement of MDN
stream obligation of $5.8 million and a foreign exchange gain of $2.5 million, offset by finance expense of $0.7 million and loss
on fair value remeasurement of Ascendant secured note and stream obligation of $1.1 million.
Outlook
Looking towards the remainder of 2026 and beyond, Cerrado anticipates Heap Leach operations to continue to benefit from the
recent improvements in crushing infrastructure to grow and improve production rates. At the CIL plant, the focus remains on
increasing the volume of underground high-grade ore, supporting increased production rates from the plant, and supplementing
the lower-grade stockpiles. Combined, these are expected to support higher production rates in the second half of the year
and generate strong cash flows, given the current gold price environment and our now unhedged gold position.
The Company maintains its 2026 annual production guidance of 50,000 – 60,000 GEO. Management continues to expect
overall costs to decline as production continues to ramp up in the coming quarters.
Exploration and resource growth remain a key focus at MDN to extend the mine life. During Q2/26, all four new drill rigs
remained in operation. The underground drilling has recently commenced and should accelerate underground resource growth.
Furthermore, the Company continues to work to certify the lab on site, which will help shorten assay times. The focus at MDN
remains on growing the known resources at MDN beyond those outlined in the current Mineral Resource Estimate (“MRE”).
The Company expects to be in a position to provide a summary of results in the near term once complete assays have been
received and, as indicated, plans to complete a new Preliminary Economic Assessment and Mineral Resource Estimate in
Q1/27 to incorporate the results from the ongoing exploration program and to incorporate the recent property acquisitions
around MDN. This is expected to demonstrate an enhanced mine life and growing production profile.
Subsequent to quarter end, on July 20, 2026, the Company announced that it had repurchased for aggregate consideration of
approximately $31.34 million the following streaming assets on its properties: (i) the amended and restated metals purchase
and sale agreement with Sprott Streaming dated March 2, 2023 in respect of MDN; and (ii) the metals purchase and sale
agreement dated November 25, 2022, as amended on December 1, 2023 with Sprott Streaming in respect of Lagoa Salgada,
including the secured note in the aggregate principal amount of US$19 million. The transaction closed effective July 17, 2026.
(see Press Release dated July 29, 2026, for full details)
Conference Call Registration and Webcast Details
Cerrado Management will host a conference call and Webcast on August 19, 2026, at 11:00 AM EDT to discuss the Q2 2026
Financial and Operational results. The presentation for the call can be found on the investor page on Cerrado Gold’s website at
www.cerradogold.com on the morning of August 19, 2026.
Webcast Details
For those who wish to participate via webcast, please navigate to the link below to join:
https://edge.media-server.com/mmc/p/i3275ju2
Conference Call Pre-Registration Details
Pre-Registration for the conference call is required. Participants can preregister for the conference by navigating to:
https://register-conf.media-server.com/register/BIbc25f3d9275044838a3bf2412e7958e0
Participants will receive dial-in numbers and a PIN number to connect directly upon registration completion or can select the
“Call Me” feature to receive a call to connect.
IR Service Agreement
The Company also announces that, subject to approval of the TSX Venture Exchange, it will enter into an engagement with
ENGAGE360 (the “Consultant”) for strategic marketing and investor relations services to raise Cerrado's investor profile.
The Consultant will assist in marketing the Company to investors and potential investors. The Agreement will be set for an
initial term of 2 years with the option to extend based on a successful outcome for a fee of C$7,500 per month. No bonus fees
or stock options will be paid to the Consultant. The Consultant is at arm's length to the Company.
The agreement is subject to approval by the TSX.V Exchange.
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.
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% interest 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
Chibougamau, 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 Massif.
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 the deposit and at prospective step-out targets across the large 7,209-hectare property concession. Located just 80km
from Lisbon and surrounded by existing infrastructure, Lagoa Salgada offers a low-cost entry to a significant exploration and
development opportunity, already showing its mineable scale and cash flow generation potential.
In Canada, Cerrado is developing its 100% owned Mont Sorcier high-purity, high-grade, Direct Reduced Iron project, located on
the traditional Cree territory of Eeyou Istchee James Bay in the municipality of Chibougamau. The Mont Sorcier high purity,
high grade DRI 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 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.
Minera Don Nicolas Mill
Minera Don Nicolas Mill
Ball Mill at MDN Plant
Ball Mill at MDN Plant
Forward-looking statements contained in this press release include, without limitation, statements regarding the business and
operations of Cerrado, future production guidance, expectations that full year production will trend toward the higher end of
guidance, expectations regarding exploration success and resource expansion, anticipated continued improvements in
operating results, expectations regarding a decline in overall costs as production ramps up, working capital position, future
production and grade estimates, the future price of gold, future cash flows, expectations regarding the CIL plant processing
lower grade stockpiles and higher grade underground material, the potential for improvement at MDN’s heap leach operation,
expectations regarding improvements in operating costs at MDN including reduction in AISC, the expectation of additional
capacity being added at the heap leach operation, the potential of underground operation at MDN and the potential for the
underground operation to provide a platform for major exploration activities at lower cost, the anticipated timing of completing
the feasibility study at the Mont Sorcier project and Lagoa Salgada project, the anticipated timing of completion of a PEA at
MDN, anticipated timing to file the ESIA and the political climate relating to permitting in Canada, the anticipated phased
development of Mont Sorcier and the timing of an expansion, the potential for a construction decision at Lagoa Salgada, the
expected timing and likelihood of receiving approval of the environmental impact assessment at Lagoa Salgada, and the
anticipated outcome and impact of ongoing legal proceedings relating to environmental permitting at Lagoa Salgada. In
making the forward-looking statements contained in this press release, Cerrado has made certain assumptions, including
assumptions regarding the future price of gold and silver, exchange rates, anticipated costs, mine production rates, recovery
rates, and the receipt of required regulatory approvals on acceptable terms. Although Cerrado 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 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, fluctuations in gold
and silver prices, currency exchange rate volatility, risks related to permitting and environmental regulation (including the
outcome of ongoing legal proceedings at Lagoa Salgada), labour cost inflation in Argentina, the uncertainty of resource
estimates and the conversion of mineral resources, risks inherent in mining operations, and delays in the completion of
feasibility studies and environmental assessments. 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.
Photos accompanying this announcement are available at
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