Cerrado Gold Inc · TSXV:CERT
Cerrado Gold — Investor Presentation (March 2024)
27 slides from Cerrado Gold's investor presentation, March 2024
Slide 1: Junior Producer Developing a Large Scale World Class Asset
Junior Producer Developing a Large Scale World Class Asset Corporate Presentation – March 2024 TSX.V:CERT OCTQX:CRDOF
Slide 2: Disclaimer
Disclaimer This presentation contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. All information contained in this news release, other than statements of current and hi
Slide 3: Investment Highlights
Cerrado Investment Highlights Junior UpdatedProducer Developing Metallurgy a Large Confirms Ability Scale World to Produce 67% FeClass Asset with Sub 2.5% Silica & Alumina Concentrate ➢ Minera Don Nicolas producing 50-60koz per annum @ approx. US$1,200 AISC Steady State Gold ➢ Capital program for ne
Slide 4: Option and Loan Agreements with Amarillo Mineração (Hochschild Mining)
Cerrado OPTION AND LOAN AGREEMENTS WITH AMARILLO MINERAÇÃO (Hochschild Mining) OPTION AND LOAN AGREEMENTS SIGNED WITH AMARILLO MINERAÇÃO DO BRASIL LTDA FOR SALE OF THE MONTE DO CARMO GOLD PROJECT IN TOCANTINS, BRAZIL FOR TOTAL CONSIDERATION OF US$60 MILLION (C$80 MILLION) • Proposed Transaction expe
Slide 5: North & South America
Cerrado North & South America Minera Don Nicolas (100%) Santa Cruz, Argentina ➢ 55koz annual gold producer @approx. US$1,200 AISC ➢ Underexplored and extensive land package ➢ Macro economic shift underway in Argentina to the benefit of local producers Mont Sorcier (100%) Chibougamau Quebec 67% ➢ Hig
Slide 6: Capital Markets
Cerrado Capital Markets Market Statistics Share Holder Register Share Price – Mar 1, 2024 C$0.27 52 Week (Low – High) C$0.15 – C$1.09 Outstanding Shares 99.5m Management Options (avg strike C$1.00) 9.3m Warrants (avg strike C$2.39) 1.8m Franklin Advisors RSUs & DSUs 5.8m 25% Fully Diluted (m) 116.3m
Slide 7: History of Leadership: Multiple mines built, expanded, restructured
Cerrado History of Leadership: Multiple mines built, expanded, restructured : +25x return to founders and still growing : 2.4x for shareholders in under 2 years 4.0 Volume ('000s) SMT Share Price (C$) 270,000 2006 5.0x Production Growth Mar 2017 • Desert Sun acquired by Yamana for • Mark resigns as
Slide 8: Minera Don Nicolas: Stable Production and Cashflow in the Deseado Masiff
Minera Don Nicolas Stable Production and Cashflow in the Deseado Masiff TSX.V:CERT OCTQX:CRDOF
Slide 9: Extensive and Underexplored Land Package
Minera Don Nicolas Extensive and Underexplored Land Package ➢ Largest land package in the prolific Deseado Masiff (330K hectares) ➢ Steady state production of ~50koz per year through to 2027 ➢ Exploration to date has only focused on near mine targets ➢ Underground potential remains untapped San Jose
Slide 10: Track Record of Operational Improvement and Competitive Cost Base
Minera Don Nicolas Track Record of Operational Improvement and Competitive Cost Base Operating History Post Acquisition Lowest Cost Producer in Argentina Amongst Peers Increased Production & Falling Cost 9 month Argentinian Gold Producer AISC 60,000 $2,000 $1,967 52,504 51,688 $1,800 $1,734 50,000 $
Slide 11: Well-Trodden Path to Production Growth and Resource Expansion
Minera Don Nicolas Well-Trodden Path to Production Growth and Resource Expansion 23% 9% 6Moz 13% 64% Underground continued to grow UG & HL contributed post acquisition majority of increase in 5.9Moz Resources 6.0Moz 14% 91% 13% 5Moz 5.2Moz 73% 14% ▪ MDN remains in the early stages of discovery Au eq
Slide 12: CIL and Heap Leach Production
Minera Don Nicolas CIL and Heap Leach Production Las Calandrias HL Project ▪ Additional 165koz of lower grade resources Hub and Spoke Production Model added to the mine plan ▪ Additional 5 years of Paloma Calandrias (High-grade OP&UG) (HL) low-cost production at ~20-25koz per annum Calandrias Norte
Slide 13: Numerous Open Pit & Underground Opportunities
Minera Don Nicolas Numerous Open Pit & Underground Opportunities Goleta Paula Andrea Paloma Central ➢ 7 km from the plant ➢ High exploration ➢ 50 km form the plant ➢ Similar approach to potential, for deeper ➢ Shoots that remain Cerro Negro’s Marian- seated large high grade open under the Open San M
Slide 14: Underground Growth Opportunity
Minera Don Nicolas Underground Growth Opportunity Preliminary Testing of UG potential at Paloma pit NTD: Slide on the underground projects ➢ Drilling to date only to a vertical depth of 200 metres directly under the high-grade Paloma Pit ➢ Existing Pit provides direct access to the Underground for r
Slide 15: Mont Sorcier Iron: High Purity Iron in Top Tier Jurisdiction
Mont Sorcier Iron High Purity Iron in Top Tier Jurisdiction Supporting the Transition for the Green Steel Industry TSX.V:CERT OCTQX:CRDOF 15
Slide 16: Green Steel and Direct Reduction Iron
Mont Sorcier Project Green Steel and Direct Reduction Iron High Purity DRI Grade Iron For the High PurityPAYBACK Iron UNDER 2 YEARS 67 Will benefit the steel producers and Green Steel Revolution environment through lower EGE and coal use due to magnetite ore Magnetic Separation The deposit is magnet
Slide 17: World Class Project, First World Location
Mont Sorcier Project World Class Project, First World Location ➢ Located in Chibougamau, in Cree traditional territory, Quebec ➢ Site located only 25km from public rail head Mont Sorcier ➢ >300km of underutilized existing common carry rail line Chibougamau connected directly to ports ➢ Existing low-
Slide 18: Significant Resource in Place
Mont Sorcier Project Significant Resource in Place Updated Metallurgy Confirms Ability to Produce 67% Fe Concentrate with Sub 2.5% Silica & Alumina ➢ Significant Indicated Resource in place to Backstop Feasibility Study ➢ 5 year mine plan only utilizes Indicated North Zone and 25% of current known r
Slide 19: Preliminary Economic Assessment
Mont Sorcier Project Preliminary Economic Assessment PEA Summary (July 2022) $US Million Production Summary Unit LOM Total / Avg. LOM Magnetite Payable kt 104,303 PAYBACK UNDER 2 YEARS Annual Production Rate mtpa 5.0 Operating Costs ✓ Annual average EBITDA of US$348MM Total On-site Operating Costs U
Slide 20: Premium Product
Mont Sorcier Project Premium Product 67% Concentrate Grade + Low Deleterious Metals = High Purity Product Resource and Grade(1) Concentrate Grade Gangue Silica Alumina 35% 4.90% 68.00% Black Iron *Not including Vanadium Credit 0.40% Champion Iron Shymanivske 30% Bloom Lake 67.00% 67.00% Macarthur 3.
Slide 21: Appendix
Appendix TSX.V:CERT OCTQX:CRDOF
Slide 22: Leadership
Cerrado Leadership Mark Brennan, Chief Executive Officer, Chairman & Founder Mark Brennan is Cerrado Gold’s CEO and Co-Chairman. He is a Founding Partner and Executive Chairman of Ascendant Resources Inc. and Executive Chairman of Vanadium One Iron Corp., and has more than 30 years of financial and
Slide 23: Leadership
Cerrado Leadership Kurt Menchen, President and Country Manager, Brazil & Director Mr. Menchen is the past-President of Operations, Brazil, of Largo Resources Ltd, and has over 42 years of experience operating and managing mining projects, including over 20 years as General Manager at the Jacobina Go
Slide 24: Leadership
Cerrado Leadership Carl Calandra, LL.B., MBA, Vice President, General Counsel & Corporate Secretary Mr. Calandra is a legal executive with more than 15 years of advisory, deal-making and public company experience. Prior to joining Cerrado, Mr. Calandra was Vice President and General Counsel of Dunde
Slide 25: Leadership
Cerrado Leadership Elmer Prata Salomão, Director Elmer Prata Salomão served as General Director of Brazil’s National Department of Mineral Production (DNPM), the federal agency in charge of administration of mineral concessions and the implementation of Brazilian mining policy, from 1990 to 1995. Mr
Slide 26: Leadership
Cerrado Leadership Robert Sellars, Director Mr. Sellars has 40 years experience in capital markets and financial services and has significant experience on investment industry committees within the IIROC. Mr. Sellars previously sat on the board of directors of Android Industries, United Hydrocarbons
Slide 27: Streaming Agreement
Streaming Agreement Argentina: Stream for Project Financing at Minera Don Nicolas ▪ Principal: US$25M ▪ Delivery of 6.5% Gold Equivalent ounces up to 29,500 ozs ▪ Step-Down after delivering 29,500 GEO to 2.5% ▪ Buy-Down option to reduce payments to 1.25% of GEO production ▪ Within 12 months followin