Cerrado Gold Inc. (TSXV: CERT) used the 96th Emerging Growth Conference to outline a portfolio centered on an active mine in Argentina and two development-stage assets in Iberia and Canada, emphasizing that its balance sheet positions it to advance projects without further market dilution.
Shares closed around CAD 2.40 at the time of the conference, within a 52-week range of CAD 1.20 to CAD 2.83. The stock has posted roughly a 38% gain over the past six months. Cerrado reported cash of CAD 25 million at the end of its June quarter, supplemented by approximately CAD 15 million in expected proceeds from a land-package option and a Brazilian asset sale. The company also completed a CAD 10 million private placement with investor Eric Sprott, priced at market value with half-warrant coverage.
At Minera Don Nicolás, Cerrado said 2024 production guidance is 50,000 to 60,000 ounces, with first-half output already at 28,000 ounces and a second-quarter run rate near 60,000 ounces. The Calandrias heap leach operation contributes approximately 45,000 ounces annually. Management expects first-half free cash flow of CAD 57 million and full-year EBITDA above CAD 100 million at current metal prices. The company plans 75,000 meters of drilling — including 50,000 meters of surface work across the Sulfuro, Baritina and Falcón targets and 20,000 meters of underground exploration below Paloma — with an updated preliminary economic assessment expected in the first quarter of 2025. Current mine life sits below three years; Cerrado is targeting five to six years or more.
In Portugal, Cerrado advanced its Lagoa Salgada project, located on the Iberian Pyrite Belt. The company has completed 40,000 meters of drilling on a deposit exceeding 20 million tons hosting zinc, copper, tin and precious metals. Environmental and RECAPE permit submissions are planned for early December 2024, with approval anticipated by late Q2 2025. Construction is targeted for mid-2025 over an 18-month period, with production expected to yield roughly 50,000 ounces of gold-equivalent and more than CAD 100 million in annual free cash flow.
Cerrado also provided further detail on Mont Sorcier in Quebec. The project sits about 500 miles north of Montreal near James Bay and requires a 25-kilometer rail spur connecting to the Chibougamau rail head, with the Port of Saguenay 370 kilometers away. A previous PEA assumed 5 million tons per year at a 65% concentrate grade, returning a CAD 1.6 billion NPV and 43% IRR. An updated feasibility study targeting 8 million tons per year is expected in the first half of 2025. Permitting will take roughly two years, with construction expected to begin in early 2029 and production starting in the first quarter of 2031.
