Mark Brennan, Founder, CEO, and Director of Cerrado Gold Inc (TSX.V: CERT) (OTCQX: CRDOF), joins me to review their Q4 2025 financial and operational metrics at the producing Minera Don Nicolas (MDN) gold mine in Argentina. We discuss the aggressive 70,000 meter exploration program on tap for MDN into 2026, review the permitting process at the Lagoa Salgada VMS Project in Portugal and the key development catalysts on tap at the Mont Sorcier Iron-Vanadium project in Quebec.
Q4 2025 Financial Highlights
- Gold Equivalent Ounce (“GEO”) Production of 13,806 GEO for the 4th Quarter 2025
- Full year production of 50,238 GEO; in line with guidance
- Initial Underground production at Paloma achieved and now delivering ore to the plant, supporting higher grade throughput and growing production
- CIL plant received additional ore from underground development, mainly in December, resulting in total production of 5,968 GEO in Q4 through CIL plant
- Heap leach production of 7,838 GEO impacted by low water availability, reducing irrigation capacity
- 2026 Production Guidance of 50,000 to 60,000 GEO weighted to H2/26
- Exploration Program positioned to support resource growth at MDN with four new drill rigs now on site
- Development activities continue to progress at both the Lagoa Salgada and Mont Sorcier projects
Mark and I review their Minera Don Nicolas producing gold project in Argentina, and the combination of heap leach and underground gold equivalent ounce production for the quarter. With improved crushing for the quantity of ore being put on the leach pads and the contribution of new higher-grade areas from the underground mining running through the CIL plant, this will help reduce down unit costs moving into 2026. There is an ongoing 70,000 meter drill program that will be looking to extend mine life in a substantial way and find new high-grade areas.
Next we unpacked the discuss the purported unfavourable opinion of the environmental impact assessment (EIA) for the Lago Salgada VMS Project in Portugal. This ‘unfavourable opinion’ was issued after expiry of statutory deadline under Portuguese EIA legislation. The Company maintains its position that the project has been tacitly approved. Mark reiterated that the purported unfavorable opinion was issued despite the project being the first mining project in Portuguese history to receive unanimous favourable opinion for the Project by all 14 entities that make up the Technical Evaluation Committee. The Company is working on a resolution and will update the market when it has more information.
Moving on to the Mont Sorcier Iron Project in Quebec, there are workstreams feeding into a Bankable Feasibility Study slated for Q2 of 2026. Recent metallurgical test work has reaffirmed the potential to produce high-grade and high-purity iron concentrate grading in excess of 67% iron with silica and alumina content below 2.3%, which gets a premium in the iron marketplace. The NPV(8%) of the is project in the prior PEA was US$1.6Billion, so even at a very low multiple being applied to this Project, it more than underpins the current market cap that the company is currently receiving, and yet the market cap doesn’t even fully reflect the gold production asset.
We wrap up discussing the underappreciated valuation that the company is receiving for the producing MDN mine in Argentina when compared to peer gold producers with even lower production numbers. Then, when that undervaluation is viewed in combination with the value proposition from the ongoing derisking work at the Mont Sorcier, then it is clear the market hasn’t been ascribed any value to that project at present; presenting a compelling rerating potential as the Feasibility Study clarifies the project economics.
If you have questions for Mark regarding Cerrado Gold, then please email those to me at Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Cerrado Gold at the time of this recording, and may choose to buy or sell shares at any time.
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