09:22 AM EDT, 10/20/2025 (MT Newswires) -- Cerrado Gold ( CRDOF ) on Monday reduced its 2025 gold equivalent production guidance at the Minera Don Nicolas mine in Argentina, while its output dropped year over year in the third quarter.

The company cut its guidance to a range of 50,000-55,000 ounces from the previous target of 55,000-60,000 ounces, citing a 60-day delay in underground development due to additional portal support and shotcrete requirements.

Cerrado reported gold equivalent output of 13,868 ounces, up versus 11,437 GEO in Q2 2025, but falling from 16,604 ounces produced in the same quarter a year ago.

The company plans to drill an additional 50,000 meters in 2026 in addition to a 20,000 m drill program planned in 2025, aiming to expand resources and extend the mine life.

"After a brief delay with our new underground operations, the very positive transition year at MDN remains firmly on track," Chief Executive Officer Mark Brennan said. "With all infrastructure and the mobile fleet now fully developed, MDN is well positioned to rapidly exploit any additional resources being uncovered by our ongoing exploration program."

Cerrado's share price fell 6.5% on Friday to $1.44 on the TSX Venture Exchange.