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News Releases

Cerro de Pasco Resources Reports Q1 2023 Results

MONTRÉAL, QUÉBEC, CANADA / May 30, 2023/ Cerro de Pasco Resources Inc. (CSE: CDPR) (OTCPK: GPPRF) (Frankfurt: N8HP) (“CDPR,” or the “Company”) is pleased to announce selected first quarter 2023 financial and operating results.  All currency is in U.S. dollars, unless otherwise stated.  The Company’s Financial Statements and Management’s Discussion & Analysis (“MD&A” are available at and

Selected Q1 2023 financial and operating results

Jorge Lozano, CDPR’s COO commented, “During the first quarter of 2023, CDPR had strong operating performance by exceeding production over budget and when compared to Q1 2022. In addition, this marks the 3rd straight quarter where Santander meets or exceeds guidance The performance of our Santander mine confirms the Company`s strategic goal of stabilizing the operation and creating a track record at Santander. In addition, we achieved significant project milestones by completing our PEA Study and advancing project infrastructure as planned and the processing plant demonstrating the ability to consistently achieve 2,500 tons per day of mineral processing.


Moreover, the challenging environment with market price volatility and inflationary pressures experienced in 2022 persisted throughout the first quarter and is expected to continue during the current year. We are nonetheless executing our planned strategies to increase operational efficiencies and aggressively reduce cost in order to meet market challenges throughout the course of the year. Last, we continue to hold advanced negotiations to secure financing and we remain optimistic in securing the resources for the Pipe project. We are confident in reaffirming our 2023 Outlook"

Summary of Operating Results at Santander


    Q1'23 Q1'22 Var %
Ore Mined t 178,235 92,602 92%
Ore Milled t 176,484 94,918 86%
Zn Head Grade  % 3.27 4.30 -24%
Pb Head Grade  % 0.26 0.20 30%
Ag Head Grade oz/t 0.63 0.56 13%
Zn Recovery  % 94.98 95.30 -0.3%
Pb Recovery  % 66.70 75.10 -11%
Ag recovery  % 42.67 50.30 -15%
Zn Production Mlbs 12.1 8.6 40%
Pb Production Mlbs 0.685 0.314 118%
Ag Production Moz 0.0478 0.0253 89%
Zn Head Grade  % 47.5 48.7 -3%
Pb Head Grade  % 54.7 48.5 13%
Zn Payable sold Mlbs 10.3 7.5 37%
Pb Payable sold Mlbs 0.6 0.2 200%
Ag Payable sold Moz 0.04 0.02 116%
C1 Cash Cost (4) US$/lb 1.67 1.60 4%
AISC (5) US$/lb 1.96 1.60 23%
Finance   Q1'23 Q1'22 Var %
Revenues, net (000)s $ 12,305 14,581 -16%
Cost of Goods Sold (000)s $ -14,605 -9,725 50%
Gross Profit (000)s $ -2,301 4,856 -147%
Sales and Admin Expenses (000s) $ -349 -584 -40%
Adjusted EBITDA (2) (000)s $ -2,650 4,272 -162%
Other income (expense) (000)s $ -886 -18 4823%
EBITDA (1) (000)s $ -3,536 4,254 -183%
Depreciation (000)s $ 1,408 262 437%
EBIT (1)    (000)s $ -2,128 4,516 -147%
    Q1'23 Q1'22 Var %
Mine Operating Expenses (000)s $          13,363 9,517 40%
Smelting and refining (000)s $            4,364 2,459 77%
Distribution (000)s $                403 217 86%
Royalties (000)s $                  50 27 84%
Less: By-product revenues (000)s $ -          1,355 -678 100%
C1 total costs (4) (000)s $ 16,825 11,542 46%
Sustaining CAPEX (000)s $            2,878 198 1354%
Lease Payments (000)s $                   -   0  
AISC total costs (5) (000)s $ 19,703 11,740 68%
Pounds of zinc payable produced Mlbs 10.1 7.2 40%
C1 Cash Cost per pound (4) $ 1.67 1.60 4%
All-in Sustaining Cost per pound (5) $ 1.96 1.60 23%

Q1 2023 business development highlights

Private Placement Financings Completed in Q1 2023

Annual Meeting

The Company will host its Annual Meeting of Shareholders (the "AGM") on Thursday, June 8, 2023 at 10h30 am (ET). During the AGM, the CEO (or the Management) will provide an overview of the Company's activities.

Hybrid Format

The AGM will be held in persont 1, Place Ville Marie, 40th Floor, Montréal, Québec H3B 4M4 and via webcast at at 10:30 a.m. (EDT), on Thursday, June 8, 2023.

The Company is conducting a hybrid meeting that will allow registered shareholders and duly appointed proxyholders to participate both online and in person. The Company is providing the virtual format to provide shareholders with an equal opportunity to attend and participate in the AGM.

For details explaining how to attend, communicate and vote virtually at the AGM please see the Company's Management Information Circular dated May 5, 2023 filed under the Company's profile on SEDAR at or on the Company’s website at Shareholders who have questions about voting their shares or attending the AGM may contact by phone 1-579-476-7000

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. (CDPR) is a mining and resource management company, with the goal to become the next mid-tier producer of base metals in Peru.  CDPR is currently engaged in mining, developing and exploring our wholly owned 6,000 hectare Santander Mine in the highly prospective Antamina-Yauricocha Skarn Corridor, located 215 km from Lima. CDPR is also focused on the development of its principal 100% owned assest, El Metallurgista mining concession comprising mineral tailings and stockpiles extracted from the Cerro de Pasco open-pit mine in central Peru. The company’s approach at El Metalurgista entails the reprocessing and environmental remediation of mining waste and the creation of numerous opportunities in a circular economy. CDPR founded on clear the objectives, to engender long-term economic sustainability and benefit for the local population, from an economic, social and health point of view.

Contact Information

Cerro de Pasco Resources Inc.
Guy Goulet, 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.

  1. EBITDA and EBIT

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.

  1. 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.

  1. Mine Operating Cash Flow

Mine operating Cash Flow is net income from operations adding back the net effects of changes in impairment, tax provisions, tax accruals, depreciation and amortization, non-cash changes in working capital and changes due to non-cash purchase price allocation adjustments.

  1. 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.

  1.  AISC

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.

  1. Non-cash or one-time items

Non-cash or one-time items include depreciation, stock-based compensation, loss or gain on derivatives, change of fair value on contingent payments and other financial assets, losses on the dissolution of subsidiaries, provisions for contingent taxes, gain on the extinguishment of debt and presumed interest on convertible and promissory notes.

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