H.C. Wainwright analyst Heiko Ihle maintained a Buy rating on Cerrado Gold today and set a price target of C$1.60.
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Heiko Ihle has given his Buy rating due to a combination of factors surrounding Cerrado Gold’s recent performance and future prospects. The company’s 2Q25 financial results showed a slight decline in revenue and production, primarily due to a shift in operations from carbon-in-leach to heap leach processing. However, this was partially mitigated by an increase in the average realized gold price. Looking ahead, Ihle expects a significant revenue increase in the second half of 2025 as production ramps up, supported by improved recoveries and throughput rates.
Furthermore, Cerrado Gold’s efforts to strengthen its balance sheet, including a $10 million reduction in debt, are seen as positive steps. The company’s ongoing exploration and development activities, particularly at the Minera Don Nicolás site and the Mont Sorcier and Lagoa Salgada projects, also contribute to the optimistic outlook. Ihle’s valuation of the company is based on discounted cash flows for these projects, with a fair discount rate reflecting the associated risks and potential. The combination of these strategic initiatives and financial metrics underpins the Buy rating and the price target of C$1.60.