Impact: Positive
Cerrado Gold filed the NI 43-101 report with updated numbers for its feasibility study at its 100%-owned Monte do Carmo project in Brazil. The numbers include slightly higher average gold recovery with lower cyanide consumption, updated supplier quotes for larger haulage equipment, and optimization of mining fleets. The updates resulted in increased annual gold production and reduced costs, translating into a 5.7% improvement in post-tax NPV5% to US$390M (from US$369M) and after-tax IRR to 34% (from 32%) (Figure 1). In our opinion, this bodes well for overall project economics ahead of the receipt of mining license, anticipated in Q1/24, and financing package, expected in Q3/24.
