Emerging Mid-Tier Low Cost Gold Producer
Stock Code:
TSX-V: CERT
Company Exposure:
Gold
Project Locations:
Argentina, Brazil
In Brazil, the company is focused on bringing its keystone Serra Alta deposit into production at its Monte do Carmo project (MDC) in Tocantins, Brazil. The Monte do Carmo project is expected to be one of the lowest cost +100Koz producers in the world. The company also owns the Minera Don Nicolas mine (MDN), located in Santa Cruz, Argentina; a producing high-grade gold mine with significant expansion and exploration potential. Both MDN and MDC remain discovery assets anchored by strong production growth. Cerrado remains committed to expanding the resource base at its two high- grade and prolific world class gold districts.
Cerrado’s executive team has a long history of success developing numerous mining projects from early stage exploration through development and production in South America.
Investment Highlights
Two Discovery Stage Assets Poised for Growth
Monte Do Carmo (MDC):
- Feasibility study on Serra Alta Deposit: Post tax NPV5 US$369M & IRR 32%
- Potential export credit agency support from UKEF for up to 70% of pre-construction cost
- Exploring over 30km of known mineralized trends
- Only Serra Alta deposit has had significant drilling
Minera Don Nicholas (MDN):
- Largest land package in the prolific Deseado Masiff
- Rapidly expanding production from 50Koz to 90Koz by mid 2024
- Exploration to date has only focused on near mine targets
- Underground potential remains untapped
A Management Team that Delivers
- Delivered production and operational improvements after the acquisition of MDN – despite COVID-19 challenges
- A proven track record of development in Brazil and Latin America
Strong Production Profile
- Best production growth profile among junior producers
- +150% organic gold production growth over the next four years from 50Kozs to +160kozs range
- Near term growth through dual stream production strategy at Minera Don Nicolas (MDN)
- Transforming to an intermediate producer when Monte do Carmo (MDC) comes into production in 2025
Near Term Value Creation
- MDN: growing production and falling costs; lowest cost producer in Argentina Q1/23
- MDC: construction license by year end 23 with construction commencing Q2/24
- Aggressive exploration programs in two highly prospective and under-explored regions
- Trading at a significant discount to its peers
