Cerrado Gold reports record production at MDN in Q2 2021, cuts losses
(Kitco News) - Cerrado Gold (TSXV: CERT) announced Monday that in Q2 2021, the company produced 9,607 ounces of gold and 22,388 ounces of silver at its Minera Don Nicolás (MDN) mine in Argentina, an increase for both metals compared to 6,865 ounces of gold and 10,938 ounces of silver in Q2 2020.
The company said that its Q2 2021 production is 40% higher due to more tonnes mined, higher throughput and higher grade, offset slightly by lower recovery. Production of 9,607 ounces of gold in Q2 2021 also represented a 28% improvement over the 7,485 ounces of gold produced in Q1 2021.
The company generated revenue of $17.9 million for Q2 2021, compared to revenue of $9.4 million in Q2 2020. Revenue and sales of gold and silver for the current period were 91% higher due the higher realized gold and silver prices, higher mining rate, higher grades and higher throughput. Revenue in the second quarter 2021 also represents a 60% increase as compared to Q1 2021.
Cerrado also reported that its net loss in Q2 2021 was $1.8 million as compared to $2.7 million in Q2 2020, an improvement of $0.9 million. The decrease in net loss is primarily a result of a mine operating margin of $2.0 million and a decrease in general and administrative expenses. Net loss in the second quarter of 2021 also represented a $3.9 million improvement as compared to Q1 2021.
CEO Mark Brennan stated, "We are very pleased to report much improved second quarter results of operations at Minera Don Nicolás, which continue to exceed management expectations. The results demonstrate the tremendous effort of the team at MDN. The second quarter saw the company achieve record quarterly production since the acquisition by Cerrado, as well as record throughput rates and head grade."
Cerrado Gold is a public gold producer and exploration company with gold production derived from its 100% owned Minera Don Nicolás mine in Santa Cruz province, Argentina. It also owns 100% of the assets of Minera Mariana in Santa Cruz province, Argentina. The company is also undertaking exploration at its 100% owned Monte Do Carmo project located in Tocantins, Brazil.