Highlights
- Gold equivalent production of 15,415 Gold Equivalent Ounces (“GEO”) at AISC of $1,933/oz Au during Q2 2026
- Adjusted EBITDA of $28.2 million for Q2 2026 and Strong Cash Position of $25.3 million at quarter end
- Annual Production Guidance of 50,000 to 60,000 GEO reiterated for 2026
- Preliminary Economic Assessment targeted for Q1/27 supported by ongoing exploration program and recent property acquisitions expected to support resource growth leading to increased mine life and a structural increase in production levels
- Continued progress at both the Lagoa Salgada and Mont Sorcier projects
- Management to host conference call on August 19th, 11:00 AM EDT
Cerrado Gold Inc. (TSX.V:CERT) (OTCQX:CRDOF) announces its operational and financial results for the second quarter ended June 30, 2026 (“Q2/26”), including its Minera Don Nicolas (“MDN“) gold mine in Santa Cruz Province, Argentina, its Lagoa Salgada Polymetallic Project in Portugal, and its Mont Sorcier High Purity DRI Iron Project in Quebec.
Production results for MDN were previously released on July 13, 2026. The Company’s financial results are reported and available on SEDAR+ (www.sedarplus.com) and the Company’s website (www.cerradogold.com).
Q2/26 MDN Operating Highlights:
- Q2 Production of 15,415 vs 11,437 GEO in Q2 2025 and 12,842 in Q1 2026
- Heap leach production of 9,981 GEO in Q2 2026; continues to increase
- Underground development work continues at an accelerated pace supporting higher production expected in H2/26
- CIL plant continues to process a blend of stockpile material and additional ore from underground development, resulting in total production of 5,434 GEO in Q2
Operational results for Q2 2026 continued the trend of increasing production relative to the previous quarters. Production rates increased at the heap leach operations versus the previous quarter as irrigation issues subsided and more crushed material was placed on the heap leach pads, benefiting from recent improvements in the crushing circuit. As more water for irrigation becomes available, all the gold inventory placed on the pad earlier should be recovered over time. Average gold recovery rates remained lower than expected due to the mix of primary ore placed on the leach pads due to mine sequencing, while silver recoveries improved significantly versus the prior quarter. CIL production remained steady, supporting overall production levels. Unit costs per ounce of gold sold were $1,933/oz Au, an increase compared to the prior year primarily as a result of the initial effect of cost-cutting measures and increased labor costs in Argentina.
The focus on underground development continued during the quarter, which reduced the ore available for immediate processing, but increased development will allow access to greater amounts of ore in future quarters and is expected to lift production and improve head grades to the plant over the balance of the year. During 2026, underground ore operations are expected to follow a cycle of development and then ore extraction, as the underground workings follow the ore zone deeper under the current pit.
The Company continues to advance its exploration program at MDN, focused on near-mine targets with the potential to materially extend resources and mine life. This includes supporting medium-term operational sustainability through high-grade underground feed to the CIL plant, as well as increasing resources available for heap leach processing. A new underground drill rig arrived on site in July and should accelerate underground exploration.
At MDN, the company is planning to complete a new Preliminary Economic Assessment and Mineral Resource Estimate in Q1/27 to incorporate results from the ongoing exploration program and recent property acquisitions adjacent to MDN. This is expected to demonstrate an enhanced mine life and growing production profile.
At Lagoa Salgada, the Company continued to work on the Optimized Feasibility Study (OFS) while progressing permitting and project financing activities. Due to permitting uncertainty, workflows have slowed during the period but are positioned to accelerate when appropriate. In June 2026, the court ruled in favour of the Company’s Portuguese subsidiary and granted it an injunction which has the effect of suspending the effects of the unfavorable opinion relating to environmental permitting. Legal proceedings relating to the principal case pertaining to environmental permitting remain ongoing. As a result, the timing of completion of the OFS is expected to be delayed somewhat pending more clarity on permitting issues.
In Canada, at the Company’s Mont Sorcier High-Grade 67% Iron project, work continued on the delivery of a Bankable Feasibility Study (BFS). As the BFS progressed, the Company identified several opportunities to further optimize project economics and reduce both capital and operating costs, despite ongoing industry-wide inflation. A number of trade-off studies are expected to be completed to evaluate and capture these improvements. As such, the BFS is now targeted for completion in H1/27 (see Press Release dated July 15, 2026).
The most significant opportunity to enhance the project is to convert a modest amount of currently Inferred Resources to Measured Resources within a defined area to the east of the current planned pit. The material in this region is expected to be shallower and should reduce stripping and tailings management costs over the life of mine. As a result, the Company will undertake a small, targeted definition drill program in Q3/26 so that any resources which may be converted from inferred to measured may be incorporated into the optimized mine plan. Additional trade-off studies will also be undertaken on product quality and an overall review of OPEX and CAPEX estimates in light of ongoing inflation. Work on the Environmental and Social Impact Assessment (“ESIA”), which is still expected to be filed in Q2/ 2027, remains ongoing, albeit there is some risk to this timing. We note that recent comments by policymakers indicate a desire to accelerate the permitting process; however, no clear timeline for how this will impact Mont Sorcier is available at this time.
The Mont Sorcier project is being designed as an 8 Mtpa concentrate operation, compared with 5 Mtpa in the PEA, to reflect strong demand for high-grade iron concentrates with low silica and alumina suitable for the direct reduction iron (DRI) or pellet feed markets, the fastest-growing segments of the iron ore market for which premium prices are expected. Development is expected to occur in two phases, with Phase 1 producing 4 Mtpa and a second 4 Mtpa expansion targeted approximately three years after start-up.
Mark Brennan, CEO and Chairman, commented, “Positive results for the second quarter continued to benefit from recent operational improvements at MDN, highlighting growing production and strong cash flows for the quarter. We expect this to be sustained going forward, given the previously discussed operational upgrades, sustained high gold prices, and our unhedged gold position. The strong cash flow generated from operations continues to support our growing cash balance, while we continue to see benefits from recent cost-cutting measures despite significant wage inflation pressure in Argentina. Our full year production looks increasingly likely to come in at the higher end of guidance as we see continued strong production month over month.”
Q2 Financial Performance
Table 1. Q2 2026 Operational and Financial Performance
The Company produced 15,415 gold equivalent ounces (“GEO”) during the three months ended June 30, 2026, as compared to 11,437 GEO for the three months ended June 30, 2025. In the period ended June 30, 2026, heap leach production was 27% higher compared to the prior year due to significantly higher silver production and 85,940 additional tonnes placed on the pad.
The Company generated revenue of $64.6 million for the three months ended June 30, 2026, from the sale of 13,628 ounces of gold and 121,460 ounces of silver at an average realized price per gold ounce sold of $4,184 and average realized price per silver ounce sold of $62. For the three months ended June 30, 2025, the Company generated revenue of $29.6 million from the sale of 10,301 ounces of gold and 56,839 ounces of silver. Revenue is higher for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, due primarily to higher average realized gold and silver prices, as well as 43% higher GEO ounces sold.
Cost of sales for the three months ended June 30, 2026, were $41.6 million as compared to $23.4 million for the three months ended June 30, 2025. The Company incurred $10.0 million higher production costs for the three months ended June 30, 2026, primarily as a result of an increase in labour and fuel costs. Additionally, the Company incurred a $1.6 million increase in sales expenses and a $6.6 million increase in depreciation expenses compared to 2025, primarily due to an increase in production.
Total cash costs (including royalties) per ounce sold was $1,783 per ounce in the three months ended June 30, 2026, as compared to $1,770 per ounce for the three months ended June 30, 2025 (refer to reconciliation of Non-IFRS performance metrics).
Net income from operations for the three months ended June 30, 2026, was $9.2 million as compared to a net income of $1.2 million for the three months ended June 30, 2025. The increase in net income is primarily a result of a $35.0 million increase in revenue and an increase in other income of $7.9 million, offset by higher cost of sales of $18.3 million and higher taxes of $13.1 million.
The Company incurred general and administrative expenses of $6.3 million for the three months ended June 30, 2026, compared with the $2.8 million of general and administrative expenses incurred during the three months ended June 30, 2025. The increase is primarily as a result of an increase in share-based compensation of $2.2 million compared to 2025.
Other income of $6.5 million during the three months ended June 30, 2026, includes a gain on the remeasurement of MDN stream obligation of $5.8 million and a foreign exchange gain of $2.5 million, offset by finance expense of $0.7 million and loss on fair value remeasurement of Ascendant secured note and stream obligation of $1.1 million.
Outlook
Looking towards the remainder of 2026 and beyond, Cerrado anticipates Heap Leach operations to continue to benefit from the recent improvements in crushing infrastructure to grow and improve production rates. At the CIL plant, the focus remains on increasing the volume of underground high-grade ore, supporting increased production rates from the plant, and supplementing the lower-grade stockpiles. Combined, these are expected to support higher production rates in the second half of the year and generate strong cash flows, given the current gold price environment and our now unhedged gold position.
The Company maintains its 2026 annual production guidance of 50,000 – 60,000 GEO. Management continues to expect overall costs to decline as production continues to ramp up in the coming quarters.
Exploration and resource growth remain a key focus at MDN to extend the mine life. During Q2/26, all four new drill rigs remained in operation. The underground drilling has recently commenced and should accelerate underground resource growth. Furthermore, the Company continues to work to certify the lab on site, which will help shorten assay times. The focus at MDN remains on growing the known resources at MDN beyond those outlined in the current Mineral Resource Estimate (“MRE”). The Company expects to be in a position to provide a summary of results in the near term once complete assays have been received and, as indicated, plans to complete a new Preliminary Economic Assessment and Mineral Resource Estimate in Q1/27 to incorporate the results from the ongoing exploration program and to incorporate the recent property acquisitions around MDN. This is expected to demonstrate an enhanced mine life and growing production profile.
Subsequent to quarter end, on July 20, 2026, the Company announced that it had repurchased for aggregate consideration of approximately $31.34 million the following streaming assets on its properties: (i) the amended and restated metals purchase and sale agreement with Sprott Streaming dated March 2, 2023 in respect of MDN; and (ii) the metals purchase and sale agreement dated November 25, 2022, as amended on December 1, 2023 with Sprott Streaming in respect of Lagoa Salgada, including the secured note in the aggregate principal amount of US$19 million. The transaction closed effective July 17, 2026. (see Press Release dated July 29, 2026, for full details)
Conference Call Registration and Webcast Details
Cerrado Management will host a conference call and Webcast on August 19, 2026, at 11:00 AM EDT to discuss the Q2 2026 Financial and Operational results. The presentation for the call can be found on the investor page on Cerrado Gold’s website at www.cerradogold.com on the morning of August 19, 2026.
Webcast Details
For those who wish to participate via webcast, please navigate to the link below to join:
https://edge.media-server.com/mmc/p/i3275ju2
Conference Call Pre-Registration Details
Pre-Registration for the conference call is required. Participants can preregister for the conference by navigating to:
https://register-conf.media-server.com/register/BIbc25f3d9275044838a3bf2412e7958e0
Participants will receive dial-in numbers and a PIN number to connect directly upon registration completion or can select the “Call Me” feature to receive a call to connect.
IR Service Agreement
The Company also announces that, subject to approval of the TSX Venture Exchange, it will enter into an engagement with ENGAGE360 (the “Consultant”) for strategic marketing and investor relations services to raise Cerrado’s investor profile.
The Consultant will assist in marketing the Company to investors and potential investors. The Agreement will be set for an initial term of 2 years with the option to extend based on a successful outcome for a fee of C$7,500 per month. No bonus fees or stock options will be paid to the Consultant. The Consultant is at arm’s length to the Company.
The agreement is subject to approval by the TSX.V Exchange.
Review of Technical Information
The scientific and technical information in this press release has been reviewed and approved by Andrew Croal P.Eng, Chief Technical Officer for Cerrado Gold, who is a Qualified Person as defined in National Instrument 43-101.
Cerrado Gold is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer.