(Kitco News) - On Friday, Cerrado Gold (TSX.V: CERT) announced that the company produced 11,296 ounces of gold and 28,721 ounces of silver in Q2 2022 from its Minera Don Nicolas mine in Argentina.
The company said that gold production was 18% higher than the corresponding period in 2021, due to improvements in both head grade and recovery, as the company produced 9,607 ounces of gold and 22,388 ounces of silver in Q2 2021.
Cerrado added that cash operating cost per ounce sold was $1,376 per ounce in Q2 2022, which represents a 31% increase on the $1,049 per ounce achieved in Q1 2022.
The company explained that primary drivers of the increase in costs were a higher strip ratio, reduction in head grade, increase in labour rates in Argentina and an increase in fuel costs as government subsidies were reduced over the period.
However, Cerrado noted that despite these challenges, with the achieved operational improvements and increasing production rates over the last twelve months cash operating costs declined by 4% compared to the second quarter of 2021.
The company generated Q2 2022 revenue of $20.3 million from the sale of 10,981 ounces of gold and 27,775 ounces of silver at an average realized price per gold ounce sold of $1,795 and price per silver ounce sold of $22.43.
Revenue from sales of gold and silver for the current period was 14% higher than the three months ended June 30, 2021, due the higher gold sales and higher realized price in the current period.
Net loss for the three months ended June 30, 2022, was $1.5 million as compared to a net income of $3.4 million in the first quarter on 2022 and a $1.8 million net loss for the three months ended June 30, 2021.
CEO and Co-Chairman Mark Brennan stated, "Despite some challenges associated with the new pits being mined and the consequences of a difficult inflationary environment in Argentina, we are pleased that production rates are consistently within our range of guidance for 2022. As we look to the remainder of the year, we expect to see grades gradually improving as we fully incorporate new mining pits into the production plan. In Brazil work continues to upgrade the resources at Monte Do Carmo and feasibility works are progressing as planned."
Cerrado is a Toronto based gold production, development and exploration company focused on gold projectsin 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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