Cerrado Gold Announces Second Quarter 2026 Financial Results
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
TORONTO, Aug. 18, 2026 (GLOBE NEWSWIRE) -- Cerrado Gold Inc. [TSX.V:CERT][OTCQX:CRDOF; FRA:BAI0] (“Cerrado” or the “Company”) 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.
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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
Three Months Ended June 30
Six months ended June 30
Key Operating Information
Unit
2026
2025
2026
2025
Operating Data
Heap Leach Operations
Ore Mined
ktonnes
832.24
550.39
1,617.39
1,209.07
Waste Mined
ktonnes
1,081.93
998.26
2,065.86
2,022.51
Total Mined
ktonnes
1,914.17
1,548.65
3,683.25
3,231.57
Strip Ratio
waste/ore
1.30
1.81
1.28
1.67
Mining rate
ktpd
21.03
17.21
20.35
17.95
Ore placed on pad
ktonnes
809.64
723.71
1,611.01
1,416.71
Head Grade Au
g/t
0.84
0.86
0.84
0.83
Head Grade Ag
g/t
4.96
12.13
8.57
14.00
Recovery Au
%
39%
37%
36%
38%
Recovery Ag
%
76%
15%
41%
11%
Gold Ounces Produced
oz
8,437
7,442
15,693
14,339
Silver Ounces Produced
oz
98,207
28,283
180,720
57,949
Gold Equivalent Ounces Produced
oz
9,981
7,864
18,768
15,092
High Grade CIL Operations
Ore Mined
ktonnes
23.47
-
39.89
11.39
Waste Mined
ktonnes
20.63
-
42.91
59.54
Total Mined
ktonnes
44.10
-
82.80
70.93
Strip Ratio
waste/ore
0.88
-
1.08
5.23
Mining rate
ktpd
0.48
-
0.46
0.39
Ore Milled
ktonnes
99.76
96.83
201.53
188.35
Head Grade Au
g/t
1.53
1.18
1.43
1.34
Head Grade Ag
g/t
11.15
9.71
9.75
8.12
Recovery Au
%
90%
84%
89%
88%
Recovery Ag
%
64%
62%
59%
59%
Mill Throughput
tpd
1,096
1,076
1,113
1,046
Gold Ounces Produced
oz
5,079
3,378
8,820
7,199
Silver Ounces Produced
oz
22,524
18,673
39,557
28,971
Gold Equivalent Ounces Produced
oz
5,434
3,573
9,489
7,509
Consolidated Gold Production
Gold Ounces Produced
oz
13,516
10,820
24,513
21,538
Silver Ounces Produced
oz
120,731
46,956
220,277
86,920
Gold Equivalent Ounces Produced
oz
15,415
11,437
28,257
22,601
Gold Ounces Sold
oz
13,628
10,301
24,314
21,293
Silver Ounces Sold
oz
121,460
56,839
215,408
99,462
Gold Equivalent Ounces Sold
oz
15,537
10,886
27,952
22,354
Average realized price and Average realized margin
Metal Sales
$ 000's
64,558
29,585
117,577
58,401
Cost of Sales
$ 000's
41,646
23,352
70,692
49,904
Gross Margin from Mining Operations
$ 000's
22,912
6,233
46,885
8,497
Average realized price per gold ounce sold
(1
)
$/oz
4,184
2,684
4,206
2,599
Total cash costs per gold ounce sold
(1
)
$/oz
1,783
1,770
1,560
1,838
Average realized margin per gold ounce sold
(1
)
$/oz
2,401
914
2,646
761
Total Direct Operating Costs
(1
)
$ 000's
22,188
17,713
34,393
37,422
Royalties and production taxes
(1
)
$ 000's
2,106
521
3,544
1,717
Total Cash Costs
(1
)
$ 000's
24,294
$18,234
$37,937
$39,139
Total direct operating costs per gold ounce sold
(1
)
$/oz
1,628
1,720
1,415
1,757
Royalties and production taxes per gold ounce sold
(1
)
$/oz
155
51
146
81
Total cash costs per gold ounce sold
(1
)
$/oz
1,783
$1,770
$1,560
$1,838
AISC - Minera Don Nicolas
(1
)
$/oz
1,933
$1,779
$1,680
$1,858
(1)
This is a non-IFRS performance measure, see non-IFRS Performance Measures
Three Months Ended June 30
Six months ended June 30
Corporate Financial Highlights
Unit
2026
2025
2026
2025
Financial Data
Total revenue
$ 000's
64,558
29,585
117,577
58,401
Mine operating expenses
$ 000's
41,646
23,352
70,692
49,904
Income from mining operations
$ 000's
22,912
6,233
46,885
8,497
Net income (loss) from operations
$ 000's
9,156
1,226
22,037
(2,926
)
Adjusted EBITDA
(1
)
$ 000's
28,195
7,353
56,934
12,171
Operating cash flow before movements in working capital
(1
)
$ 000's
20,022
5,573
40,395
10,999
Operating cash flow
$ 000's
11,593
1,413
28,808
8,852
Cash and cash equivalents
$ 000's
25,290
5,705
25,290
5,705
Working capital (deficiency)
$ 000's
(1,572
)
(11,497
)
(39,142
)
(24,516
)
Capital Expenditures
$ 000's
23,196
2,881
40,105
6,173
(1)
This is a non-IFRS performance measure, see non-IFRS Performance Measures
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:
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.
About Cerrado
Cerrado Gold is a Toronto-based gold production, development, and exploration company. The Company is the 100% owner of the producing Minera Don Nicolás and Las Calandrias mine in Santa Cruz province, Argentina. In Portugal, the Company holds an 80% interest in the highly prospective Lagoa Salgada VMS project through its position in Redcorp - Empreendimentos Mineiros, Lda. In Canada, Cerrado Gold is developing its 100% owned Mont Sorcier Iron project located outside of Chibougamau, Quebec.
In Argentina, Cerrado is maximizing asset value at its Minera Don Nicolas operation through continued operational optimization and is growing production through its operations at the Las Calandrias heap leach project. An extensive campaign of exploration is ongoing to further unlock potential resources in our highly prospective land package in the heart of the Deseado Massif.
In Portugal, Cerrado focused on the exploration and development of the highly prospective Lagoa Salgada VMS project located on the prolific Iberian Pyrite Belt in Portugal. The Lagoa Salgada project is a high-grade polymetallic project, demonstrating a typical mineralization endowment of zinc, copper, lead, tin, silver, and gold. Extensive exploration upside potential lies both near the deposit and at prospective step-out targets across the large 7,209-hectare property concession. Located just 80km from Lisbon and surrounded by existing infrastructure, Lagoa Salgada offers a low-cost entry to a significant exploration and development opportunity, already showing its mineable scale and cash flow generation potential.
In Canada, Cerrado is developing its 100% owned Mont Sorcier high-purity, high-grade, Direct Reduced Iron project, located on the traditional Cree territory of Eeyou Istchee James Bay in the municipality of Chibougamau. The Mont Sorcier high purity, high grade DRI Iron project, which has the potential to produce a premium iron concentrate over a long mine life at low operating costs and low capital intensity. Furthermore, its high grade and high purity product facilitates the migration of steel producers from blast furnaces to electric arc furnaces, contributing to the decarbonization of the industry and the achievement of sustainable development goals.
For more information about Cerrado, please visit our website at: www.cerradogold.com.
Mark Brennan CEO and Chairman
Mike McAllister Vice President, Investor Relations Tel: +1-647-805-5662 mmcallister@cerradogold.com
Disclaimer
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains statements that constitute “forward-looking information” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements contained in this press release include, without limitation, statements regarding the business and operations of Cerrado, future production guidance, expectations that full year production will trend toward the higher end of guidance, expectations regarding exploration success and resource expansion, anticipated continued improvements in operating results, expectations regarding a decline in overall costs as production ramps up, working capital position, future production and grade estimates, the future price of gold, future cash flows, expectations regarding the CIL plant processing lower grade stockpiles and higher grade underground material, the potential for improvement at MDN’s heap leach operation, expectations regarding improvements in operating costs at MDN including reduction in AISC, the expectation of additional capacity being added at the heap leach operation, the potential of underground operation at MDN and the potential for the underground operation to provide a platform for major exploration activities at lower cost, the anticipated timing of completing the feasibility study at the Mont Sorcier project and Lagoa Salgada project, the anticipated timing of completion of a PEA at MDN, anticipated timing to file the ESIA and the political climate relating to permitting in Canada, the anticipated phased development of Mont Sorcier and the timing of an expansion, the potential for a construction decision at Lagoa Salgada, the expected timing and likelihood of receiving approval of the environmental impact assessment at Lagoa Salgada, and the anticipated outcome and impact of ongoing legal proceedings relating to environmental permitting at Lagoa Salgada. In making the forward-looking statements contained in this press release, Cerrado has made certain assumptions, including assumptions regarding the future price of gold and silver, exchange rates, anticipated costs, mine production rates, recovery rates, and the receipt of required regulatory approvals on acceptable terms. Although Cerrado believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Known and unknown risks, uncertainties, and other factors may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, general business, economic, competitive, political and social uncertainties, fluctuations in gold and silver prices, currency exchange rate volatility, risks related to permitting and environmental regulation (including the outcome of ongoing legal proceedings at Lagoa Salgada), labour cost inflation in Argentina, the uncertainty of resource estimates and the conversion of mineral resources, risks inherent in mining operations, and delays in the completion of feasibility studies and environmental assessments. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, Cerrado disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.
