Cerrado Gold Announces Q4 and Year-End 2025 Production Results at Its Minera Don Nicolas Mine in Argentina

On January 21, 2026, Cerrado Gold announced its Q4 and full-year 2025 production results for the Minera Don Nicolas (MDN) Mine in Argentina. Key highlights include: - Production: Q4 production was 13,806 Gold Equivalent Ounces (GEO), bringing the full year to 50,238 GEO. This meets the lower end of the revised guidance (50,000–55,000 GEO). - Sales: Q4 gold sales were 13,752 oz at an average realized price of $3,464/oz. - Operational Constraints: Heap leach production was impacted by low water availability, though underground production at the Paloma pit achieved targets. - 2026 Guidance: Forecasted production of 50,000–60,000 GEO, heavily weighted toward H2 2026. - Capex: A significant capital growth budget of ~$45 million is set for 2026, with $35 million allocated to MDN for exploration and expansion. - Project Milestones: Feasibility studies for Lagoa Salgada and Mont Sorcier are targeted for Q1 and Q2 2026, respectively.

This news follows a January 19, 2026 release announcing the conclusion of the company's gold hedging program (which capped sales at $3,250/oz) and the proposal of a Normal Course Issuer Bid (NCIB) to buy back shares.

The combined impact of the January 21 production results and the January 19 hedge removal is Material - Positive. - Revenue Implications: The realized gold price of $3,464/oz in Q4 is exceptional. With the hedge (capped at $3,250/oz) officially concluded as of January 15, 2026, Cerrado creates full exposure to spot prices. - Operational Stability: Hitting the 50,000 oz threshold validates the transition to underground mining, despite the water issues. However, scraping the bottom of the revised guidance suggests operations are tight and lack room for error. - Capital Allocation: The decision to launch an NCIB while planning a substantial $45M Capex program indicates management confidence in free cash flow generation at these gold prices. - Valuation: The stock has re-rated significantly (from ~$0.40 to ~$2.28 in one year). This news confirms the fundamentals supporting that move.

Cerrado Gold Inc. is a Toronto-based gold production, development, and exploration company. - Flagship Asset: Minera Don Nicolas (MDN) in Santa Cruz, Argentina. It is a producing gold mine utilizing both heap leach (Las Calandrias) and CIL plants, fed by open pit and increasingly underground operations (Paloma). - Development Pipeline: - Lagoa Salgada (Portugal): High-grade VMS project (Zinc/Lead/Copper/Gold). Acquired via Ascendant Resources transaction. - Mont Sorcier (Quebec): Iron/Vanadium project. Large resource, targeting high-purity iron concentrate.