Cabral Gold's $45.1M Gold Loan: A Strategic Move to Fast-Track Cuiú Cuiú Production

The global gold market in 2025 is defined by a confluence of structural and cyclical forces. Central bank demand, geopolitical uncertainty, and a weakening U.S. dollar have propelled gold prices to record highs, with J.P. Morgan Research forecasting an average of $3,675 per ounce by Q4 2025 and a potential ascent toward $4,000 by mid-2026. Against this backdrop, Cabral Gold's recent $45.1 million gold loan emerges as a masterstroke of capital structuring, enabling the company to accelerate its Cuiú Cuiú heap leach project while leveraging non-dilutive financing in a rising price environment.

Non-Dilutive Financing: A Strategic Advantage

Cabral Gold's gold loan, secured from Precious Metals Yield Fund, is a prime example of innovative capital deployment. The loan involves 345 kilograms of gold valued at $45.1 million, secured by corporate guarantees and first-ranking security from the company and its subsidiaries. This structure avoids equity dilution-a critical consideration for investors in a sector where share price volatility often undermines capital-raising efforts. Instead, the company issued 10 million non-transferrable warrants exercisable at C$0.71 over 24 months, aligning investor incentives without immediate dilution.

The loan's terms are particularly advantageous given the current gold price trajectory. With gold trading above $3,340 per ounce in 2025, the economic viability of Cabral's Cuiú Cuiú project has improved markedly. The Updated Pre-Feasibility Study (PFS) now projects an after-tax IRR of 139% and an NPV of $138 million at this price point, compared to 78% IRR and $74 million NPV at a base-case $2,500/ounce. This underscores how the loan's timing-secured as gold prices surged-amplifies the project's returns.

Accelerating Production: A 12-Month Countdown

The Cuiú Cuiú heap leach starter project is now in full construction mode, with a 12-month timeline targeting plant commissioning in Q3 2026 and first gold pour by Q4 2026. The $45.1 million loan fully funds the $37.7 million capital expenditure outlined in the July 2025 PFS, eliminating the need for further financing during construction. This accelerates the path to cash flow, a critical differentiator in a sector where prolonged capital raises often delay production.

The project's economics are further bolstered by its low all-in sustaining cost of $1,210 per ounce, a margin that expands as gold prices rise. With 141 employees and contractors already on-site as of November 2025, Cabral is capitalizing on operational momentum, while its regional exploration drilling program-focused on upgrading inferred oxide resources to indicated status-positions the project for future expansion.

Geopolitical Tailwinds and Resource Growth

Cabral's strategic positioning in Brazil's Tapajós Gold Province-a district with district-scale resource growth potential-adds another layer of appeal. Recent drilling at the PDM target returned 23 meters at 4.7 g/t gold, including a 11.9-meter interval at 7.4 g/t, signaling significant upside. These results, combined with the rising gold price environment, justify a dual-track strategy: near-term production from oxide material and long-term exploration for deeper, higher-grade deposits.

Central bank demand, which accounts for 25% of total gold demand in 2024, further reinforces the long-term outlook. As emerging markets diversify reserves away from the U.S. dollar, structural demand for gold is set to outpace supply, creating a tailwind for producers like Cabral.

Conclusion: A Model for Capital Efficiency

Cabral Gold's gold loan exemplifies how non-dilutive financing can align with macroeconomic trends to fast-track project economics. By securing funding as gold prices surged, the company has not only de-risked its capital structure but also amplified the Cuiú Cuiú project's returns. With a 6.2-year mine life, a robust IRR, and a resource base that supports expansion, Cabral is well-positioned to capitalize on the gold bull market. For investors, this represents a compelling case of strategic execution in a sector where timing and capital discipline are paramount.