Cerrado Gold Announces Q1 2026 Production Results at Its Minera Don Nicolas Mine in Argentina

Production Performance and Guidance Confirmation

• Cerrado Gold reported Q1 2026 production of 12,842 gold-equivalent ounces (GEO), a 15% increase year-over-year compared to 11,163 GEO in Q1 2025.
• The company maintained its full-year 2026 production guidance range of 50,000 to 60,000 GEO.
• Heap Leach operations produced 8,787 GEO with a head grade of 0.85 g/t and recovery rate of 33%.
• CIL plant operations contributed 4,055 GEO from 102 ktonnes milled at a higher head grade of 1.34 g/t with an 89% recovery rate.
• Average realized price per gold ounce sold was reported at $4,418/oz for the quarter.

Operational and Exploration Updates

• Four drill rigs are currently active targeting the Sulfuro and Baritina veins to support resource growth.
• Underground development is ramping up to feed high-grade ore to the CIL plant in Q2/Q3 2026.
• Internal laboratory certification is expected for completion in Q3 2026 to improve assay turnaround times.
• CEO Mark Brennan noted water issues existed at the heap leach during the quarter but production remained stable.

Project Milestones

• Mont Sorcier Feasibility Study remains on track for late Q2 2026 completion.
• Lagoa Salgada permitting activities are ongoing with relevant authorities and agencies following previous regulatory disputes.

Confirmation of Operational Trajectory

• The production increase validates the company's transition from open-pit to underground mining, confirming the narrative established in FY 2025 results where AISC dropped significantly to $1,391/oz in Q4 2025.
• Maintaining guidance despite operational challenges (water issues) suggests management confidence in the mine plan and cost structure.
• The realized gold price of $4,418/oz is exceptionally high compared to FY 2025 averages ($3,401/oz); if sustained, this significantly boosts free cash flow potential beyond previous models.

Regulatory Risk Persistence

• Despite the positive production news, the Lagoa Salgada project remains a material risk factor. Previous releases indicated an "unfavourable opinion" from the Portuguese Environmental Agency despite claims of tacit approval.
• The April 20 release notes permitting is ongoing but does not resolve the legal uncertainty regarding the EIA status. This creates a binary outcome risk for the Portugal asset valuation.

Capital Allocation and Shareholder Returns

• The company previously announced a Normal Course Issuer Bid (NCIB) to repurchase up to 5% of shares, signaling management believes the stock is undervalued relative to assets.
• Completion of the gold hedging program allows full exposure to spot prices, which aligns with the high realized price noted in this quarter's results.

Minera Don Nicolas (MDN) - Argentina

• Status: Producing mine with active underground development.
• Operations: Dual production front utilizing Heap Leach for bulk low-grade ore and CIL plant for high-grade underground ore.
• Reserves/Resources: M&I 490 koz Au Eq; Inferred 121 koz Au Eq (per presentation).
• Production Profile: Targeting steady-state ~55 koz Au Eq per year through 2028.

Lagoa Salgada - Portugal

• Status: Development stage VMS project (Zinc, Copper, Lead, Silver, Gold, Tin).
• Permitting Status: Contested EIA status; claims tacit approval but facing regulatory opposition from Portuguese Environmental Agency.
• Feasibility: Optimized Feasibility Study expected Q1 2026 (per earlier guidance), now pending final permitting decisions.

Mont Sorcier - Quebec, Canada

• Status: Iron Concentrate project targeting Direct Reduced Iron (DRI) market.
• Feasibility: Targeted completion late Q2 2026 for an 8 Mtpa operation producing >67% Fe concentrate.
• Strategic Value: Classified as a Critical Mineral under Canadian policy; aligns with green steel supply chains.