Cerrado Gold Announces Third Quarter 2025 Financial Results

On November 28, 2025, Cerrado Gold announced its third-quarter 2025 financial results. Key highlights include: - Production: 13,832 gold equivalent ounces (GEO) produced. - Revenue: $41.0 million. - All-In Sustaining Costs (AISC): $1,915 per ounce, significantly higher than the company's guided range. - Adjusted EBITDA: $11.8 million. - Net Loss: A net loss from continuing operations of $12.2 million. - Cash Position: Cash and cash equivalents increased to $16.5 million. - Guidance: The company reiterated its full-year 2025 production guidance of 50,000-55,000 GEO and AISC guidance of $1,600-$1,800 per ounce. - Operations: The release notes record production from the heap leach and states that higher-grade ore from underground operations is expected in Q4. The exploration program at Minera Don Nicolas (MDN) was expanded from 20,000 to 70,000 metres.

This news is materially negative. While the production number of 13,832 GEO is strong and represents an increase over prior quarters, it is completely overshadowed by the alarmingly high AISC of $1,915 per ounce. This cost figure is not only well above the top end of the company's most recently revised guidance ($1,600-$1,800/oz) but also demonstrates a severe lack of cost control at the MDN operation.

This follows a troubling pattern throughout 2025. The company began the year with AISC guidance of $1,300-$1,500/oz, raised it to $1,500-$1,700/oz in April, and then to $1,600-$1,800/oz in October. To report Q3 AISC of over $1,900/oz after multiple upward revisions calls management's operational control and forecasting ability into question.

The significant net loss of $12.2 million from continuing operations underscores that at these cost levels, the company is not profitable, despite strong gold prices. The increase in the cash balance is positive but appears to be driven by operating cash flow before corporate expenses and debt service, alongside the previously announced US$8.75 million prepayment received from Hochschild in September. It does not reflect underlying profitability.

Furthermore, the company reiterated production guidance that was already lowered in October from 55,000-60,000 GEO to 50,000-55,000 GEO. This prior guidance cut, combined with the current cost blowout, signals persistent operational challenges. The market is forward-looking, and this report provides little confidence that costs can be contained in the near term, severely impacting margins and future cash flow generation.

Cerrado Gold Inc. is a mining company with a portfolio of production and development assets. - Minera Don Nicolas (MDN) Mine: The company's flagship producing asset is a 100%-owned gold and silver mine located in the Deseado Massif region of Santa Cruz, Argentina. Production comes from both open-pit/heap leach and, more recently, underground operations. - Lagoa Salgada Project: An 80%-owned, advanced-stage polymetallic (zinc, copper, lead, tin, silver, gold) VMS project located in Portugal. It is currently at the feasibility study stage. - Mont Sorcier Project: A 100%-owned, development-stage high-purity iron ore project in Quebec, Canada, also at the feasibility study stage.