Northwire Canada EditionWednesday, August 5, 2026
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Other

Cerrado Gold ends gold hedge, plans share buyback

By The Northwire Desk — AI Analysis Jan 19, 2026 · 12:59 CERT · 1.85 Cerrado Gold Inc.
CERT · Price

Executive Summary

  • Cerrado Gold Inc. has officially concluded its gold hedging program at its Minera Don Nicolas mine in Argentina, with the final ounces shipped on January 15, 2026. The company will now sell gold at near-spot prices, less adjustments for streaming agreements, aiming to improve profitability and free cash flow.
  • The company announced a proposed Normal Course Issuer Bid (NCIB) to purchase up to 6,794,790 common shares (approximately 5% of outstanding shares) for cancellation. This action is intended to return capital to shareholders and increase net asset value per share, leveraging excess liquidity from strong gold prices.
  • Management stated that the NCIB will be funded using excess cash from gold sales above budgeted prices, ensuring that current growth plans and the company's cash balance remain unaffected.

Key Details

  • Hedging Program Conclusion:
    • The gold hedging program, which had a ceiling of $3,250/ounce, has ended.
    • Final ounces under the contract were delivered in a shipment on January 15, 2026, from Minera Don Nicolas operations in Santa Cruz, Argentina.
    • Going forward, gold sales will be at near-spot prices, less adjustments for applicable gold streaming agreements.
    • The program was originally implemented to support key investments, including the ramp-up of the underground mine at MDN and advancing the Lagoa Salgada and Mont Sorcier projects.
  • Normal Course Issuer Bid (NCIB):
    • Target: Up to 6,794,790 common shares.
    • Percentage of Outstanding: Approximately 5% of the 135,895,819 issued and outstanding common shares as of January 16, 2026.
    • Method: Open market purchases through the TSX Venture Exchange (TSX-V) and alternative trading systems.
    • Purpose: To purchase shares for cancellation, benefiting shareholders by increasing their proportionate ownership and accreting net asset value per share.
    • Funding Source: Excess cash from gold sold above the budgeted gold price, without impacting current growth plans.
    • Decision Factors: Purchases will be based on market conditions, share price, best use of available cash, and other factors determined by the board and management.
    • Status: Notice of intention submitted to the TSX Venture Exchange.

Notable Quotes

  • Mark Brennan, Chairman and CEO: "Using Cerrado's excess liquidity in light of strong gold prices, to buy back common shares at their current trading prices, would be highly accretive to our net asset value per share... Accordingly, the proposed purchase for cancellation of shares by Cerrado will benefit shareholders by increasing their proportionate ownership in the company."
  • Mark Brennan, Chairman and CEO: "I am pleased to say that we have concluded the gold hedging program... We can now sell our gold production at unhedged near-spot gold prices, improving profitability and free cash flow."
  • Mark Brennan, Chairman and CEO: "We are also pleased that current gold production rates and current gold prices position the company to recommence the proposed NCIB using excess cash from gold sold above our budgeted gold price without impacting current growth plans and leaving a strong cash balance at 2026 year-end."
Read the original news release →

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