- Cerrado (CERT) has achieved record gold production, head grades and operating margins in Q3 2021
- Production was 10,168 ounces of gold and 28,595 ounces of silver for the quarter, a 125-per-cent increase from Q3 2020
- The average gold head grade was 3.57 g/t, a 59-per-cent increase compared to the average in Q3 2020
- Revenue was US$17.9 million for the quarter, which is 43-per-cent higher than Q3 2020
- This represents the final quarter of operational restructuring at Minera Don Nicolás in Argentina, setting the stage for substantially improved results in Q4
- Cerrado Gold is a public gold producer and exploration company with projects in Brazil and Argentina
- Cerrado (CERT) is unchanged trading at $1.65 per share
Cerrado (CERT) has achieved record gold production, head grades and operating margins in Q3 2021.
Production was 10,168 ounces of gold and 28,595 ounces of silver for the quarter, compared to 4,512 ounces of gold and 11,799 ounces of silver in Q3 2020. The 125-per-cent increase is due to more tonnes mined, higher throughput, higher grades and higher recoveries. Gold production was also up 6 per cent from Q2 2021.
The average gold head grade was 3.57 g/t, the highest quarterly grade since the Cerrado acquisition, and a 59-per-cent increase compared to the average in Q3 2020. The quarterly number also represents a 20-per-cent improvement over Q2 2021.
Mill throughput was 102,431 tonnes of ore, a 20-per-cent increase from Q3 2020.
Revenue was US$17.9 million for the quarter from the sale of 9,648 ounces of gold and 25,836 ounces of silver, which was 43-per-cent higher than Q3 2020.
Cash operating costs per ounce sold were $1,075 per ounce, which is the lowest in the last five quarters, the fourth consecutive quarterly improvement, a 12-per-cent reduction from Q2 2021 and a 22-per-cent reduction from Q3 2020.
Net loss was $1.4 million, compared to $1.9 million for Q3 2020 and $1.8 million in Q2 2021, which resulted from an improvement in mine operating margins.
General and administrative expenses were $2.5 million, a $0.8 million increase from Q3 2020, owing to corporate activities required after the acquisition of Minera Don Nicolás. An additional $1 million cost resulted from a working capital settlement agreement with the sellers.
Adjusted EBITDA was $2.6 million, a $2.5 million improvement from Q3 2020 and a $0.9 million improvement from Q2 2021.
Basic and diluted loss per share was $0.02, compared to $0.04 for Q3 2020, resulting from the mine’s improved operating performance.
This represents the final quarter of operational restructuring at Minera Don Nicolás in Argentina, setting the stage for substantially improved results in Q4.
Mark Brennan, Cerrado’s CEO and Co-Chairman stated,
“It has been extremely gratifying to see the strong performance delivered by Cerrado’s Argentinian team in the third quarter. Our restructuring program implemented post acquisition of MDN continues to bear fruit as demonstrated by our successful Q3 results. The company is now positioned well to deliver consistent and strong results going into Q4 and we fully expect to see continued improvement in all key operating and financial metrics.”
Cerrado Gold is a public gold producer and exploration company with projects in Brazil and Argentina.
Cerrado (CERT) is unchanged trading at $1.65 per share as of 10:18 am EST.
