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 strong operational performance.

• Revenue for Q1 2025 was $28.8 million, up from $20.4 million year-over-year, driven by higher metal sales.

• Adjusted EBITDA improved to $4.8 million from a $1.1 million loss in Q1 2024, reflecting an $8 million revenue increase and higher gold prices.

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

• Acquisition of Ascendant Resources closed in May 2025, expanding the asset base to include Lagoa Salgada.

Financial highlights

• Gross margin improved as mining income rose to $2.3 million from a $3.2 million loss year-over-year.

• All-in sustaining costs decreased 6% to $1,932/oz, aided by higher sales volumes.

• Cash and cash equivalents at March 31, 2025, were $20.1 million, with ongoing reductions in debt and payables.

• Operating cash flow for Q1 2025 was $7.4 million, up from $4.0 million in Q1 2024.

• Net loss from continuing operations was $4.2 million, an improvement from a $5.4 million loss in Q1 2024.

Outlook and guidance

• Annual production guidance increased to 55,000–60,000 ounces, with heap leach ramp-up to 4,000–4,500 GEO/month and underground production starting Q3.

• Cost reduction initiatives target all-in sustaining costs of $1,500–$1,700/oz.

• Feasibility study for Lagoa Salgada expected in Q3 2025, with construction decision in Q4 2025 and start in Q1 2026.

• Feasibility study for Mont Sorcier iron ore project expected Q1 2026.

• The company must generate sufficient income and cash flows to meet obligations and fund operations; material uncertainties exist regarding going concern due to liquidity constraints.