Interview with Guy Goulet, CEO of Cerro de Pasco Resources Inc.

Recording date: 2nd March 2025

Cerro de Pasco Resources is on the cusp of an exciting new chapter as it advances its world-class silver-polymetallic project in central Peru.  With Excelsior Stockpile and Quiulacocha TSF, the company's flagship asset is a massive above-ground mineral stockpile the legacy of nearly 400 years of mining at one of Latin America's most prolific mineral camps. With over 430 million silver-equivalent ounces now confirmed, this remarkable resource is poised to vault CDPR into the ranks of major global silver producers.

The most thrilling aspect of the Cerro de Pasco story is how rapidly the company can begin monetizing this vast stockpile. With material already at surface and permitting in place, CDPR benefits from an accelerated timeline and greatly reduced capital intensity compared to a traditional mining project. Cash flow from toll-milling operations could begin as early as 2024, with the potential to self-fund a larger stand-alone plant that would dramatically increase production and profitability.

Cerro de Pasco also shines when it comes to cost structure. At an anticipated operating cost of just $10/tonne, the project is set to deliver robust margins through all phases of the commodity price cycle. Even with silver at multi-year lows, the stockpile would generate over $50/tonne of profit, translating to annual free cash flows well in excess of $100 million. And that's before factoring in the enormous upside potential from soaring gallium values.

The recent discovery of significant gallium grades throughout the Cerro de Pasco stockpiles was a game-changer that few could have predicted. With demand for this critical tech metal skyrocketing and supply becoming ever-more precarious, CDPR now finds itself with a second crown jewel in addition to its elite silver resource. As the company unlocks the value of the gallium endowment in parallel with silver production, it's not hard to envision profits multiplying several-fold.

It's difficult to overstate the positive impact that the Cerro de Pasco project will have on local communities and stakeholders. Reprocessing the stockpiles will create over 2000 desperately-needed jobs in an area of high unemployment, while generating sustainable revenues that can fund education and social development initiatives. Longer-term, the environmental remediation of the historic mine will leave a lasting legacy of a cleaner, safer, and more prosperous Cerro de Pasco for generations to come.

Ultimately, CDPR represents a uniquely compelling opportunity that combines the best aspects of a large-scale silver producer with the growth potential of an earlier-stage exploration company. It's rare to find a world-class resource base that is already fully permitted and construction-ready, let alone one with such exceptional profit margins and a clear path to value creation. As the CDPR story reaches a wider audience in the months ahead, the company appears destined for a significant re-rating to align with the immense value of its asset base and growth potential.

View Cerro de Pasco's company profile: https://www.cruxinvestor.com/companies/cerro-de-pasco-resources

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