Cerrado Gold (CERT) Q3 Investor Summit Group Virtual Conference 2025 earnings summary

Operational highlights

• Producing 55,000 oz of gold annually at Minera Don Nicolás in Argentina, with steady-state production expected for several years.

• Exploration program underway to extend mine life, with first underground development contributing to production in Q4 2025.

• Asset sale in Brazil for $60 million strengthened the balance sheet and funds ongoing development.

• Cash on hand of $15 million as of June, with further asset sales and option payments expected over the next two years.

• All-in sustaining costs targeted at $1,500–$1,700/oz, with cost reductions expected as production ramps up.

Growth and development plans

• Lagoa Salgada VMS project in Portugal nearing updated feasibility study completion in Q4, with construction decision targeted for early 2026.

• Environmental permit for Lagoa Salgada expected by year-end or Q1, with project financing discussions ongoing.

• Initial production at Lagoa Salgada anticipated in Q1 2028, generating $75 million annual free cash flow at conservative metal prices.

• Mont Sorcier iron ore project in Quebec advancing feasibility study, with production targeted for 2030.

• Mont Sorcier positioned for green steel transition, with high-grade product and significant expansion potential.

Financial outlook and value creation

• 2024 PEA projects $50 million annual cash flow at $2,100 gold, with higher potential at current prices.

• NPV estimates: $100 million for Argentina, $150–$250 million for Portugal, and $1.6–$1.8 billion for Mont Sorcier by 2030.

• EBITDA could reach $500 million annually within five years, supporting self-funded growth and minimizing dilution.

• Export Credit Agency and Santander Bank expected to fund 70% of Lagoa Salgada’s upfront capital.

• Capital controls in Argentina have eased, allowing profits to be moved abroad for reinvestment.