- Cerrado Gold (TSXV:CERT) achieved strong gold equivalent production for the third quarter ended September 2024 from its Minera Don Nicolas mine in Santa Cruz Province, Argentina
- The company generated 16,604 gold equivalent ounces during the quarter, up from 16,255 GEO in Q2 and 11,204 GEO in Q1
- Cerrado Gold is a Toronto-based gold production, development and exploration company focused on gold projects in South America
- Cerrado Gold stock has given back 47.06 per cent year-over-year and approximately 70 per cent since inception in 2021
Cerrado Gold (TSXV:CERT) achieved strong gold equivalent production for the third quarter ended September 2024 from its Minera Don Nicolas mine in Santa Cruz Province, Argentina.
Q3 production highlights
- The company generated 16,604 gold equivalent ounces (GEO) during the quarter, up from 16,255 GEO in Q2 and 11,204 GEO in Q1.
- The Choique and Zorro pits supplemented carbon-in-leach (CIL) feed from Calandrias Norte, which was exhausted during the quarter, with the CIL plant scheduled to operate until the end of January 2025.
- Heap leach operations are progressing with their ramp-up thanks to climbing crushing capacity, with quarterly production of 3,404 GEO, record production of 1,644 GEO in August, and a slight decline in September because of adjustments to support facility expansion.
- Cerrado has installed two mobile crushers to maintain production rates until an additional crushing circuit is installed, granting the precious metals producer a current crushing capacity of 300,000 tons per month. Management expects the secondary crusher to reduce fleet and operating costs once it becomes operational by the end of Q4.
- The company is focused on doubling crushing capacity at Calandrias Sur and bringing heap leach production up to 4,500 GEO per month.
Q3 financial highlights
- Bolstered by increased cash flow thanks to high gold prices and stable production, Cerrado reduced current liabilities by US$12 million between Q1 and Q3 and expects further reductions in the coming quarters, putting it on a path to sustainable profitability.
- The company will release full Q3 financial results in November and remains on track for its fourth year in a row of revenue growth, including US$70.05 million in 2021, US$90.36 million in 2022 and US$100.10 million in 2023, in addition to more than US$55 million through 2024, with operations reaching net income profitability in two out of the past five quarters.
Leadership insights
“Production in the third quarter remained strong over the second quarter owing to additional high-grade feed to the CIL, as well as increasing production from the heap leach facility,” Mark Brennan, Cerrado Gold’s chairman and chief executive officer, said in a statement. “As crushing performance continues to improve, we expect to see heap leach production continue its upward trajectory towards the targeted 4,500 GEO per month with a commensurate reduction in operating costs.”
Key operating metrics
(Source: Cerrado Gold)
About Cerrado Gold
Cerrado Gold is a Toronto-based gold production, development and exploration company focused on gold projects in South America.
Cerrado Gold stock (TSXV:CERT) is up by 2.86 per cent, trading at C$0.36 per share as of 9:38 am ET. The stock has given back 47.06 per cent year-over-year and approximately 70 per cent since inception in 2021.
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(Top photo of Cerrado Gold’s Minera Don Nicolas mine in Argentina: Cerrado Gold)