Cerrado Gold Unshackled: Full Exposure to Bullion Prices Fuels Growth Strategy

Cerrado Gold closes 2025 with strong EBITDA, ends gold price cap to fully leverage spot market. Advancing key projects in Argentina, Canada, and Portugal with $22M cash.

Cerrado Gold has successfully closed its 2025 fiscal year, positioning the company for a new chapter of expansion. A pivotal strategic shift now sees the miner fully exposed to spot gold prices, significantly increasing its leverage to the commodity market. This move coincides with advancing key development projects in Argentina and Canada, drawing increased investor attention.

Financial Health and Operational Efficiency

The past year was characterized by operational consistency. Cerrado Gold reported an adjusted EBITDA of $46.1 million, with a robust final quarter playing a decisive role in the annual result. The market has responded favorably to a notable improvement in cost efficiency. While all-in sustaining costs (AISC) averaged $1,746 per ounce for the full year, they decreased to $1,391 per ounce in the fourth quarter.

Bolstered by a cash position of approximately $22 million, management believes the company is well-equipped to fund upcoming development initiatives internally. Investors greeted the news positively in today's trading session, with the equity advancing roughly 7.4 percent to 1.06 euros.

Key Catalysts and Project Milestones

The completion of the company's gold hedging program in mid-January 2026 marks a fundamental change. Previously, portions of production were subject to a price cap of $3,250 per ounce. Cerrado Gold will now sell 100% of its gold at prevailing market prices. This transition is expected to substantially amplify cash flow, which will be directed toward optimizing the Minera Don Nicolas operation in Argentina.

Several near-term catalysts are scheduled for the current second quarter of 2026:
* Mont Sorcier (Canada): Finalization of the bankable feasibility study for the iron ore project in Quebec.
* Lagoa Salgada (Portugal): Resolution of the legal dispute concerning environmental permits for the copper-zinc project.
* Minera Don Nicolas (Argentina): Continuation of the extensive 50,000-meter drill program aimed at resource expansion.

Further demonstrating confidence in its valuation, the company has signaled a planned share buyback program. Up to five percent of outstanding shares could be repurchased, contingent on stable gold prices. For the full 2026 year, Cerrado Gold is targeting production of up to 60,000 gold equivalent ounces. The focus of output is anticipated to be weighted toward the second half of the year due to ongoing underground development work.