Cerrado Gold Announces Second Quarter 2026 Financial Results
Cerrado Gold Inc. (TSXV: CERT) reported its financial and operational results for the second quarter of 2026, highlighting a 35% increase in Gold Equivalent (GEO) production to 15,415 oz compared to 11,437 oz in Q2 2025. The increase was driven by higher silver output and improved heap leach operations. The company generated $28.2 million in Adjusted EBITDA and ended the quarter with a cash position of $25.3 million, while reiterating its 2026 annual production guidance of 50,000 to 60,000 GEO.
Production metrics for the quarter showed total GEO produced at 15,415 oz. Heap leach production reached 9,981 GEO, up from 7,864 GEO in the prior year period, while the CIL Plant produced 5,434 GEO, compared to 3,573 GEO in Q2 2025. The company sold 13,628 oz of gold and 121,460 oz of silver.
Financial performance for Q2 2026 included revenue of $64.6 million, a significant rise from $29.6 million in Q2 2025. Adjusted EBITDA rose to $28.2 million from $7.4 million, and net income from operations was $9.2 million, up from $1.2 million in the same period last year. At quarter-end, cash and cash equivalents stood at $25.3 million. The company reported an All-In Sustaining Cost (AISC) of $1,933/oz Au, with total cash costs per oz sold at $1,783/oz. The average realized price was $4,184/oz Au.
Operationally, heap leach production increased 27% year-over-year due to higher silver production and 85,940 additional tonnes placed on the pad. Underground development work accelerated to support higher production in the second half of 2026. Average gold recovery rates remained lower than expected due to ore mix, although silver recoveries improved significantly. Unit costs increased primarily due to the initial effects of cost-cutting measures and increased labor costs in Argentina.
Strategic developments included the repurchase of streaming assets from Sprott Streaming for approximately $31.34 million, which included Minera Don Nicolas (MDN) and Lagoa Salgada agreements and a $19M secured note. The transaction closed on July 17, 2026.
Regarding project updates, a new Preliminary Economic Assessment (PEA) and Mineral Resource Estimate for Minera Don Nicolas are targeted for Q1 2027 to incorporate ongoing exploration and recent property acquisitions. A new underground drill rig arrived at the site in July 2026. For the Lagoa Salgada project, an Optimized Feasibility Study (OFS) has been delayed due to permitting uncertainty; however, a court injunction suspended an unfavorable environmental opinion in June 2026. The Bankable Feasibility Study (BFS) for the Mont Sorcier project is targeted for completion in H1 2027. The project design has been updated to an 8 Mtpa concentrate operation, up from a 5 Mtpa PEA, to target high-grade DRI markets. A definition drill program is planned for Q3 2026 to convert Inferred to Measured resources.
In administrative news, Cerrado Gold entered into an engagement with ENGAGE360 for investor relations services for a term of two years at a cost of C$7,500 per month, subject to TSX.V approval. A conference call is scheduled for August 19, 2026, at 11:00 AM EDT.
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."