Mining News
Cerrado Gold reports net loss of $7.4M in Q1, expects feasibility study results for Monte Do Carmo in June
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(Kitco News) - Cerrado Gold (TSX.V: CERT) reported today that its Minera Don Nicolas gold mine in Argentina produced 13,951 gold equivalent ounces (GEO) in Q1 2023, a 3% improvement year-on-year due to higher recoveries.
The company said it generated revenue of $27.5 million in Q1 2023, compared to revenue of $27.4 million in Q1 2022, adding that revenue was slightly higher in Q1 2023 y-o-y due to the higher ounces sold, offset by the lower realized price in the current period.
Cash costs per ounce sold were $1,139 per ounce in Q1 2023, as compared to cash costs per ounce sold of $1,049 per ounce in Q1 2022, which is a 9% increase y-o-y due to higher consumables and material costs compared to the first quarter of 2022.
Adjusted EBITDA was $8.2 million in Q1 2023 as compared to $9.7 million in Q1 2022. The company explained that Q1 2023 adjusted EBITDA was slightly lower due to higher production and general and administrative costs, offset by higher cash sales in Q1 2023.
Cerrado also reported net loss of $7.4 million in Q1 2023, as compared to a $3.4 million net income for the three months ended March 31, 2022, a difference of $10 million.
“The decrease in net income is primarily a result of an increase in tax expense of $2 million, a non-cash remeasurement loss on the secured notes and stream of $2.6 million, an increase in finance expense of $2.2 million and an increase in general and administrative expenses of $1.6 million recorded in the first quarter of 2023 as compared to the first quarter of 2022,” the company said in a news release.
Importantly, Cerrado noted that the work to complete the feasibility study at the Monte Do Carmo project in Brazil is progressing well with completion expected in June, adding it expects the feasibility study to demonstrate the “significant value” of the project.
Cerrado is a Toronto based gold production, development and exploration company focused on gold projects in the Americas. The company is the 100% owner of both the producing Minera Don Nicolás mine in Santa Cruz province, Argentina, and the prospective development project, Monte do Carmo located in Tocantins State, Brazil.
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