(Kitco News) - Cerrado Gold (TSX.V: CERT) announced today it produced 13,007 ounces of gold and 27,107 ounces of silver in Q1 2022 at its Minera Don Nicolas mine in Argentina, which is an increase compared to 7,485 ounces of gold and 15,531 ounces of silver in Q1 2021.
The company said that its Q1 2022 production of 13,499 gold equivalent ounces was 74% higher compared to Q1 2021 due to higher mining rates, throughput and higher grade.
The company generated revenue of $27.4 million for the three months ended March 31, 2022, from the sale of 14,622 ounces of gold and 32,866 ounces of silver at an average realized price per gold ounce sold of $1,819 and price per silver ounce sold of $24.01.
Cash operating costs per ounce sold was $850 per ounce in the three months ended March 31, 2022, which represents a 38% reduction compared to the first quarter of 2021, Cerrado added.
Importantly, the company said that net income for the three months ended March 31, 2022, was $3.4 million as compared to a $5.7 million net loss for the three months ended March 31, 2021, an improvement of $9.1 million.
The company explained that increase in net income is primarily a result of a mine operating margin of $9.2 million (an increase of $9.1 million) a decrease in listing expenses of $1.5 million, a decrease in general and administrative expenses of $0.4 million.
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CEO and Co-Chairman Mark Brennan stated, "We are very pleased with the consistent production the team are delivering at MDN. The strong cashflows we are now generating in Argentina will support our planned expansion to a 90,000 ounce per annum production rate within the next two years. Combined with the development of the Monte do Carmo project in Brazil, Cerrado continues its quest of becoming an intermediate gold producer in the near term."
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 and development activities at its 100% owned Monte Do Carmo project located in Tocantins, Brazil.
