Cerrado Gold (CERT) Q2 2025 earnings summary

Executive summary

• Completed acquisition of Ascendant Resources, adding the Lagoa Salgada property in Portugal and expanding the project portfolio.

• Q2 2025 marked by a transition year with significant debt reduction, ramp-up in heap leach and underground production, and operational improvements.

• Sold Monte Do Carmo project in Brazil for $60 million, with $45 million received and $15 million in discounted receivables.

• Focused on optimizing Don Nicolas mine in Argentina and advancing Mont Sorcier project in Canada.

• Ongoing exploration and development at Lagoa Salgada and Mont Sorcier to drive future growth.

Financial highlights

• Q2 2025 production was 11,437 gold equivalent ounces, down from 16,255 in Q2 2024; record heap leach output of 7,864 ounces.

• Adjusted EBITDA for Q2 2025 was $7.4M, compared to $15M in Q2 2024 and $4.8M in Q1 2025.

• Q2 2025 revenue was $29.6 million, down from $34.7 million in Q2 2024; six-month revenue was $58.4 million, up from $55.1 million year-over-year.

• All-in sustaining cost was $1,779/oz, up from $1,233/oz in Q2 2024 but down from $1,932/oz in Q1 2025.

• Cash balance at June 30, 2025 was $5.7M, down from $26.0M at December 31, 2024, due to debt repayment and capital investments.

Outlook and guidance

• Full-year production guidance reiterated at 55,000–60,000 ounces, with increased output expected in H2 2025 from Argentina's underground operations.

• Targeting AISC of $1,500–1,700/oz for the full year as production grows.

• Anticipated strong cash position of $15–20M by year-end 2025, with lower CapEx expected in 2026.

• Feasibility studies for Lagoa Salgada and Mont Sorcier expected by year-end 2025 and early 2026, respectively.

• Material uncertainties exist regarding ability to continue as a going concern due to liquidity constraints and working capital deficiency.