Cerrado Gold (CERT) Q4 2024 earnings summary

Executive summary

• Annual gold equivalent production reached 54,494 ounces, a 4% increase year-over-year, meeting guidance, with Q4 production at 10,431 ounces.

• Achieved stable operations and strong cash flow, significantly improving the balance sheet and reducing net debt by 52% over the last 12 months.

• Transitioned Minera Don Nicolás (MDN) to a heap leach operation, targeting 4,000–5,000 ounces per month at all-in sustaining costs of $1,500–$1,700 per ounce.

• Received $49 million in asset sale and option payments in 2024, with up to $25 million more due in coming years.

• Acquired Lagoa Salgada project in Portugal, with feasibility study completion expected in Q3 and construction decision in Q4.

Financial highlights

• Adjusted EBITDA for 2024 was $24.4 million, a 38% increase from 2023; Q4 adjusted EBITDA was $4.5 million, up 88%.

• Revenue increased to $116.2 million in 2024, up from $100.1 million in 2023, driven by higher gold prices and production.

• All-in sustaining cost for 2024 was $1,651/oz, up from $1,427/oz in 2023, mainly due to inflationary labor costs in Argentina.

• Working capital improved by $54.5 million, with cash rising to $26 million at year-end.

• Net income from continuing operations was $0.5 million for 2024, compared to a loss of $2.9 million in 2023.

Outlook and guidance

• 2025 production guidance raised to 55,000–60,000 GEO, including initial underground output, with heap leach production targeted at 4,000–4,500 GEO per month.

• MDN expected to maintain 55,000 ounces/year production for 3–4 years, with potential upside from exploration.

• Lagoa Salgada feasibility study update expected by late Q2/early Q3, with NPV anticipated at $175–200 million.

• Construction at Lagoa Salgada targeted for Q1 2026, production start in Q2 2027.

• Mont Sorcier iron project feasibility study targeted for completion in Q1 2026.