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News & Media

Cerro de Pasco Resources Announces Q3 2022 Financial Results

MONTRÉAL, QUÉBEC, CANADA — (November 29, 2022) Cerro de Pasco Resources Inc. (CSE: CDPR) (OTCPK: GPPRF) (Frankfurt: N8HP) (“CDPR,” or the “Company”) announces third quarter 2022 financial and operating results.  All currency is in Canadian dollars, unless otherwise stated. The Company’s Financial Statements and Management’s Discussion & Analysis (“MD&A”) are available at and




Jorge Alexander Lozano, CDPR’s COO commented, “Our third quarter results at the Santander Mine showed significant improvement over the second quarter, confirming that the Santander unit is turning the corner. In the third quarter, we achieved 58% more tonnes mined per day, which allowed us to process 65% more tonnes per day, all of which resulted in 80% more payable zinc production. Also, overall operating costs have come down by 31% in the third quarter.

For year, despite the market and operational challenges faced, we are pleased with our achievements in this transition- phase of 2022. We are now set to enter the expansion-phase for 2023, with our Pipe project. For the fourth quarter we expect to deliver on our full year production guidance, complete our PEA study on the Pipe, finalize Pipe readiness plans, and close on project financings.”

Summary of Operating Results at Santander

    2022 2022 2022
    Q3 Q2 Q3-Q2
Ore Mined t 150,444 95,277 58%
Ore Milled t 155,270 94,207 65%
Zn Head Grade  % 3.7 3.3 12%
Pb Head Grade  % 0.2 0.3 -33%
Ag Head Grade oz/t 0.44 0.5 -12%
Zn Recovery  % 94 94.8 -1%
Pb Recovery  % 70.7 71.1 -1%
Ag Recovery  % 47.1 47.3 0%
Zn Payable Production Mlbs 9.9 5.5 80%
Pb Payable Production Mlbs 0.5 0.4 25%
Ag Payable Production Moz 0.03 0.02 50%
Zn Head Grade  % 47.7 48.4 -1%
Pb Head Grade  % 50.3 50.5 0%
Zn Payable sold Mlbs 9.7 4.9 98%
Pb Payable sold Mlbs 0.8 0.4 100%
Ag Payable sold Moz 0.05 0.02 150%
C1 Cash Cost (1) US$/lb 1.51 2.2 -31%
AISC (1) US$/lb 1.77 2.4 -26%
Average Zinc Price US$/lb 1.48 1.78 -17%
Revenues, net (000s) US$ 9,221 6,891 34%
Cost of Goods Sold (000s) US$ 11,068 9,016 23%
Gross Profit (000s) US$ -1,209 -1,436 16%
Sales and Admin Expenses (000s) US$ -638 -689 7%
Adjusted EBITDA(1) (000s) US$ -1,847 -2,125 13%
Other income (expense) (000s) US$ -75 -898 -92%
EBITDA (1) (000s) US$ -1,922 -3,023 36%
Depreciation (000s) US$ 542 265 105%
EBIT (1) (000s) US$ -1,380 -2,758 50%
  1. The Company reports the non-IFRS financial performance measures: Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Earnings before interest and taxes (“EBIT”), Adjusted EBITDA, Adjusted EBIT Adjusted net loss and cash flow, Adjusted Earnings per Share, Net Debt, C1 Cash Cost and All-In Sustaining Cost (“AISC”) to manage and evaluate its operating performance.  See “Cautionary Note Regarding Non-IFRS financial reporting Measures” in this press release.

Santander Production

The Santander mine produced 9.9 million pounds of zinc, 0.5 million pounds of lead and 32.6 thousand ounces of silver, a significant improvement as compared to Q2, 2022 by 80% for zinc, 25% for lead and 50% for Silver. Mine production ramp-up plan delivered on production guidance, thus reaching 65% plant capacity as compared to 42% in the Q2, 2022.  100% Plant Capacity is considered at 2,500 tonnes/day and the Company anticipates continued production increases quarter over quarter in 2023.

As Santander was previously planned to shutdown operation in 2021, the previous operator did not perform any underground mine development since mid-2020. The Company is investing in an aggressive campaign of mine preparation and development with the aim to deliver on 100% of plant capacity production by Q4-2023.

The mine reached an average of 650m of development per month in Q3, 2022. This is below target of 750m and is due to below average equipment availability. For the month of October 2022, the mine has reached 750m of development. The mine is on track to reach 850m of development in November and 1000m of development by December 2022 as equipment availability issues are being resolved.

The Mill feed grade was 3.7% as compared to 3.3% in Q2, 2022. The grade was higher because of access to newly prepared mining areas on Magistral South level 4120.  The Company has invested heavily in a short-term infill drilling with positive higher-grade intercepts at the lower levels of the deposit. Until mine development reaches stopes at that level, the Company anticipates continuing to encounter variability in grades through Q4, 2022 as a result of delays in mine preparation.

Metallurgical recovery of Zn, and Pb was 94% and 70.6% respectively. Concentrate quality was also within in commercial terms.

Q3, 2022 production met forecast in terms of mined and milled tons, feed grade, recovery Zn and Pb metal production, and volume of concentrate. The operation remains on track to meet forecasted 2022 Santander Production Guidance. 

Zinc metal price observed during Q3 2022, with respect to Q2 2022, adversely impacted Revenues by US$ 1,446,000 on final settlements corresponding to Sales realized during Q2 2022.  Likewise, Q3 2022 Revenues assumes that Q4, 2022 metal prices will continue with its downward trend; thus, a negative provision of (US$ 1,262,000) was registered as well, for final embedded derivatives.

Santander Operations Milestones & Activities:

Santander Outlook:

Quiulacocha Tailings Outlook:

An environmental permit to execute a 40-hole drilling program within CDPR’s El Metalurgista concession was granted by the Ministry of Energy and Mines in August 2021. accompanied by a strong social license granted by the Quiulacocha Rural Community. The Company is going through multiple avenues at government level to obtain the necessary easement from Activos Mineros SAC, a state-owned entity assigned to administer surface areas surrounding the CDPR El Metalurgista concession. CDPR currently expects to obtain easement in the first quarter of 2023 and to start drilling in May 2023, after the rainy season.

Technical Information

Mr. Jorge Lozano, MMSAQP and Chief Operating Officer for CDPR, has reviewed and approved the scientific and technical information contained in this news release. Mr. Lozano is a Qualified Person for the purposes of reporting in compliance with NI 43-101.

About Cerro de Pasco Resources

Cerro de Pasco Resources Inc. is a mining and resource management company with unparalleled knowledge of the mineral endowment in the city of Cerro de Pasco and its surroundings. Initially, the Company will unlock the useful life of the mine and extend the concession areas in its Santander mining operation, applying the highest safety, environmental, social and governance standards. The key focus of the growth for the Company is on the development of the El Metalurgista mining concession, one of the world's largest surface mineralized resources, applying the latest techniques and innovative solutions to process tailings, extract metals and convert the remaining waste into green hydrogen and derivatives.

Contact Information

Cerro de Pasco Resources Inc.
Guy Goulet, President and CEO
Tel.: 579 476-7000

Forward-Looking Statements and Disclaimer

Certain information contained herein may constitute “forward-looking information” or “forward-looking statements” under Canadian securities legislation. Generally, forward-looking information can be identified by words such as "pro forma", "plans", "expects", "may", "should", "could", "will", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", or variations including negative variations thereof of such words and phrases that refer to certain actions, events or results that may, occur or be taken or achieved. Such forward-looking statements, including but not limited to statements relating to the expected development and operations of the Company and H2-SPHERE, involve risks, uncertainties and other factors which may cause the actual results to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Such factors include, among others, risks related to the exploration, development and mining operations; impacts of macroeconomic developments as well as the impact of the COVID-19 pandemic; and any material adverse effect on the business, properties and assets of the Company or H2-SPHERE. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company will not update any forward-looking statements or forward-looking information included herein, except as required by applicable securities laws.

Cautionary Note Regarding Non-IFRS Financial Performance Measures

This MD&A refers to the following non-IFRS financial performance measures: Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Earnings before interest and taxes (“EBIT”), Adjusted EBITDA, Adjusted EBIT, Adjusted Earnings per Share, Net Debt, C1 Cash Cost and All-In Sustaining Cost (“AISC”).

These measures are not recognized under IFRS as they do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. CDPR uses these measures internally to evaluate the underlying operating performance of the Company for the reporting periods presented. The use of these measures enables the Company to assess performance trends and to evaluate the results of the underlying business. CDPR understands that certain investors, and others who follow the Company’s performance, also assess performance in this way.

The Company believes that these metrics measure our performance and are useful indicators of our expected performance in future periods. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.


EBITDA provides insight into overall business performance. This measure assists readers in understanding the ongoing cash generating potential of the business including liquidity to fund working capital, service debt, and fund capital expenditures and investment opportunities. EBITDA is profit attributable to shareholders before net finance expense, income taxes and depreciation, depletion, and amortization. EBIT is EBITDA after depreciation, depletion, and amortization. Other companies may calculate EBIT and EBITDA differently.

Adjusted EBITDA, Adjusted EBIT and Adjusted Earnings per Share

Adjusted EBITDA consists of EBITDA less the impact of impairments or reversals of impairment and other non-cash and non-recurring expenses and recoveries. Adjusted EBIT consists of EBIT less the impact of impairments or reversals of impairment and other non-cash and non-recurring expenses and recoveries. These expenses and recoveries are removed from the calculation of EBITDA and EBIT as the Company does not believe they are reflective of the Company's ability to generate liquidity and its core operating results.

Adjusted Earnings per Share consists of net income or loss in the period less the impact of impairments or reversals of impairment, settlement mark-to-market, fair value (gain) loss on financial instruments, (gain) loss on foreign exchange, restructuring expenses and other income or expenses

C1 Cash Cost

This measures the estimated cash cost to produce a pound of payable zinc. This measure includes mine operating production expenses such as mining, processing, administration, indirect charges (including surface maintenance and camp), and smelting, refining and freight, distribution, royalties, and by-product metal revenues divided by pounds of payable zinc produced. C1 Cash Cost per pound of payable zinc produced does not include depreciation, depletion, and amortization, reclamation expenses, capital sustaining and exploration expenses.


This measures the estimated cash costs to produce a pound of payable zinc plus the estimated capital sustaining costs to maintain the mine and mill. This measure includes the C1 Cash Cost per pound and capital sustaining costs divided by pounds of payable zinc produced. All-In Sustaining Cost per pound of zinc payable produced does not include depreciation, depletion, and amortization, reclamation, and exploration expenses.

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