Cerrado Gold (CERT) Q1 2025 earnings summary

Executive summary

• Q1 2025 gold equivalent production reached 11,163 ounces, nearly flat year-over-year, with record heap leach output and ongoing underground development at MDN.

• Adjusted EBITDA was $4.8 million, a turnaround from a $1.1 million loss in Q1 2024, driven by higher gold prices and increased sales volumes.

• Net loss narrowed to $4.2 million from $7.3 million year-over-year, reflecting higher sales and lower G&A expenses.

• Cash balance exceeded $20 million at quarter-end, with ongoing reductions in debt and payables.

• Final payment of $5 million made to MDN sellers, reducing debt.

Financial highlights

• Metal sales totaled $28.8 million, with 10,992 ounces of gold and 42,623 ounces of silver sold at an average realized gold price of $2,520/oz.

• All-in sustaining costs (AISC) decreased 6% year-over-year to $1,932/oz, with total cash costs per gold ounce sold down 7% to $1,902.

• Gross margin from mining operations improved to $2.3 million from a loss of $3.2 million year-over-year.

• Operating cash flow before working capital movements was $5.4 million.

• Free cash flow projected at ~$25 million/year at $2,100/oz gold price.

Outlook and guidance

• Full-year production guidance raised and reaffirmed at 55,000–60,000 GEO, with monthly targets of 4,000–4,500 GEO.

• AISC targeted at $1,500–$1,700/oz, with cost reduction initiatives ongoing.

• Underground production at MDN set to begin in Q3 2025, with exploration drilling to start in June.

• Feasibility studies for Lagoa Salgada and Mont Sorcier advancing, with key milestones expected by late 2025 and Q1 2026, respectively.

• Expanded hedging program in place for 2,000 oz/month at $3,100–$3,250/oz through December 2025.