Record Adjusted EBITDA of $28.7 million for Q1 2026, benefiting from unhedged gold position
Strong Cash Position of $31.4 million at quarter end
Full year production guidance of 50,000-60,000 GEO maintained
Exploration programs progressing as planned
Continued progress at both the Lagoa Salgada and Mont Sorcier projects
Recent Acquisition of Falcon properties positions MDN for the longer term
Management to host conference call on May 28th, 11:00 AM EDT
TORONTO, May 27, 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 first quarter 2026 ("Q1/26"), 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 April 20, 2026. The Company's financial results are reported and available on SEDAR+ (www.sedarplus.com) and the Company's website (www.cerradogold.com).
Q1/26 MDN Operating Highlights:
Q1 Production of 12,842 vs 11,163 GEO in Q1 2025
Heap leach production of 8,787 GEO continues to increase as water availability improves
Underground development work continued at an accelerated pace, with record development meters during the period
Access to new underground ore zones expected in Q2 2026, delivering higher-grade ore to the CIL plant, improving head feed grade, and increasing production
CIL plant continues to process a blend of stockpile material and additional ore from underground development, resulting in total production of 4,055 GEO in Q1 through the CIL plant
Operational results for Q1 2026 showed production remained consistent relative to the previous quarter. Production rates increased at the heap leach versus the previous quarter; however, irrigation issues continued to have an impact on production. Water availability continues to improve as we move into the wetter months and remains supported by ongoing purchases and additional water from expanded borehole water production. As more water for irrigation becomes available, the gold inventory on the pad that has not been fully irrigated will be recovered over time. Average recovery rates remained lower than planned due to the mix of primary ore placed on the leach pads as per the mine sequence, as well as reduced irrigation. This was offset by steady production from the CIL plant, maintaining overall production rates. Unit costs per ounce of gold produced declined to $1,348/oz Au, a significant reduction relative to the prior quarters due to the increase in silver credits, which more than offset water and other related costs due to ongoing inflationary pressures in Argentina.
The focus on underground development continued during the quarter, which reduced the ore available for immediate processing, but the increased development will allow access to more material amounts of ore during the coming quarters and is expected to lift production and improve head grades to the plant during Q2 and Q3. 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 extend 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.
At Lagoa Salgada, the Company continued work on progressing an Optimized Feasibility Study, while pursuing permitting and project financing. As described further in the MD&A, the Company continues to work through permitting issues related to its Environmental Impact Assessment ("EIA") submissions through various government officials and through the courts in Portugal. The Company has secured an interim injunction, which temporarily suspends the effects of the unfavourable opinion pertaining to the EIA. While these processes continue, during 2026, the Company plans to continue to advance the Optimized Feasibility study and the RECAPE engineering phase to bring the project to a construction ready decision once the permitting issue is resolved. As such, the Company currently believes commencement of construction could occur in H2/2027, subject to permits being issued and financing secured.
In Canada, at the Company's Mont Sorcier High grade, 67%, Iron project, work continued on delivering a Bankable Feasibility study. The Company expects to release the results of a Bankable Feasibility study by the end of Q2 2026, and it now anticipates submitting the Environmental and Social Impact Assessment in early Q1 2027. As a result, permits are now expected no earlier than around year end 2028, suggesting construction could commence around the end of Q1/2029 due to the winter season. 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 67% 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, "Results for the first quarter highlighted steady production and record strong cash flows for the quarter. We expect this to be sustained going forward, given the previous operational upgrades, sustained high gold prices, and our unhedged position. The strong cash flow generated from operations continues to build our cash balance, while we continue to strategically deploy capital for exploration and development of our project pipeline. Advances at the Lagoa Salgada Polymetallic Project and at the High-grade Mont Sorcier DRI Iron Project continue to strengthen our belief that there is significant value to be unlocked in these projects as the respective Feasibility Studies are completed in the near term.
Q1 Financial Performance
Table 1. Q1 2026 Operational and Financial Performance
Three months ended March
Key Operating Information
Unit
2026
2025
Operating Data
Heap Leach Operations
Ore Mined
ktonnes
785.15
658.67
Waste Mined
ktonnes
983.93
1,024.25
Total Mined
ktonnes
1,769.08
1,682.93
Strip Ratio
waste/ore
1.25
1.56
Mining rate
ktpd
19.66
18.70
Ore placed on pad
ktonnes
801.37
693.00
Head Grade Au
g/t
0.85
0.80
Head Grade Ag
g/t
12.22
15.95
Recovery Au
%
33%
39%
Recovery Ag
%
26%
8%
Gold Ounces Produced
oz
7,257
6,897
Silver Ounces Produced
oz
82,513
29,666
Gold Equivalent Ounces Produced
oz
8,787
7,228
High Grade CIL Operations
Ore Mined
ktonnes
16.42
11.39
Waste Mined
ktonnes
22.28
59.54
Total Mined
ktonnes
38.70
70.93
Strip Ratio
