Sierra Madre Announces Fourth Quarter and Year-End 2024 Financial Results Revenues of $6.5 million USD generated in 2024 from the Guitarra Mine
Sierra Madre Announces Fourth Quarter and
Year-End 2024 Financial Results
Revenues of $6.5 million USD generated in 2024 from the
Guitarra Mine
Vancouver, British Columbia--(Newsfile Corp. - April 22, 2025) - Sierra Madre Gold and Silver Ltd.
(TSXV: SM) (OTCQX: SMDRF) ("
Sierra Madre
" or the "
Company
") is pleased to announce its audited
consolidated financial results for the year ended December 31, 2024 (
"FY 2024
"
)
including results for
the fourth quarter ("
Q4 2024
"). All amounts are expressed in U.S. dollars, unless otherwise stated.
Alex Langer, Chief Executive Officer, commented, "In 2024, Sierra Madre generated $6.5 million USD in
revenues as we ramped up the Guitarra Mine Complex in Estado de Mexico, Mexico to the current
operating capacity of 500 t/d. These revenues reflect the six-month test mining program that started mid-
2024 and wrapped up December 31, 2024 as Guitarra reached commercial production on January 1,
2025."
Mr. Langer continued; "Notably, as the test mining program progressed, we saw an increase in revenues
to $3.9 million for Q4, compared to $2.5 million generated in Q3; which equated to a net loss of only
$38,000 for Q4. With Guitarra now operating at full capacity, we are looking forward to releasing our first
set of full quarterly operating metrics next month. I would also like to thank the operating team for working
towards such a smooth restart and ramp up of the operation."
FY 2024 and Q4 2024 Financial Highlights
Net Revenues
:
After refining, treatment and smelting charges, the Company recorded net
revenues of $6.5 million in the six-month period ended December 31, 2024, or approximately
$28.35 per silver equivalent ounce ("AgEq ounce"). The Company averaged $30.37 per silver
("Ag") ounce sold and $2,594 per gold ("Au") ounce sold in the six-month period of operations to
December 31, 2024.
In Q4 2024, Sierra Madre recorded silver revenues totaling approximately $1.9 million ($31.58 per
Ag ounce) and gold revenues totaled approximately $2.4 million ($2,667 per Au ounce).
Cost of Sales
was $5.1 million for the six-month period ended December 31, 2024,
approximately $22.40 per AgEq ounce sold, representing $20.95 per AgEq ounce sold in Q4
($2.8 million) and $24.13 per AgEq ounce sold in Q3 ($2.3 million).
Gross profit
was $1.36 million for FY 2024.
Current assets
, including cash, totaled $3.5 million at December 31, 2024.
FY 2024 and Q4 2024 Operational Highlights
Test Mining
: In June 2024, the Company elected to proceed with test mining and processing to
determine actual operating costs and metal recoveries in order to assess the economic viability of
resuming operations and commenced test milling of mined material on June 25, 2024.
Mineralized Material:
Approximately 22% of processed material came from areas defined in the
Company's November 1, 2023 Resource Report. The rest of the processed material came from
previously unknown silver and gold mineralization, discovered during development, and from
former waste rock material.
A total of 30,253 dry metric tonnes ("DMT") was delivered to the processing plant during Q3 and
38,464 DMT in Q4. Average silver recoveries since test processing began were 79%, and gold
recoveries averaged 84%.
On December 10, 2024, the Company declared the processing plant to
be in industrial production having been operating at 86% of the milling circuit nameplate capacity,
or 516 wet metric tonnes per day, for the preceding two months, exceeding the engineering
standard of 80% for 30 days.
Off-Take
: On July 12, 2024, the Company signed an off-take agreement with Swiss-based global
minerals trader MRI Trading AG for 100% of concentrate sales from the Guitarra mine for a 24-
month term.
Concentrate Deliveries
: Sierra Madre made its first delivery of concentrate on July 26, 2024 and,
to December 31, 2024, completed deliveries totaling approximately 1,293 DMT of silver/gold
concentrates containing an estimated 107,939 ounces of Ag and an estimated 1,436 ounces of
Au.
In Q4 2024, the Company completed deliveries totaling approximately 795 DMT of silver/gold
concentrates containing an estimated 59,178 ounces of Ag and an estimated 897 ounces of Au.
Development Update:
With the achievement of commercial production at Guitarra on January 1,
2025, Sierra Madre expects mine operating costs to decrease as the mining and milling
operations maintain levels closer to expectations targeted for ongoing commercial production.
Improved head grades of the mineralized material in 2025 are expected alongside a decrease in
mining costs on a per-ounce basis going forward.
Dry Stack Tailings
: On May 28, 2024, the Company announced the receipt of regulatory
approvals for dry stack tailings deposition on the existing tailings impoundment, along with paste
backfill of tailings in underground workings, and certain surface drilling pad sites.
Quarterly Financial Overview
Selected financial information set out below is based on and derives from the unaudited condensed
consolidated interim financial statements of the Company for each of the quarters listed, which have
been prepared in accordance with IFRS, as applicable to quarterly reporting:
Dec. 31,
2024 (Q4)
($)
Sep. 30,
2024 (Q3)
($)
Jun. 30,
2024 (Q2)
($)
Mar. 31,
2024 (Q1)
($)
Dec 31,
2023 (Q4)
($)
Sep. 30,
2023 (Q3)
($)
Jun. 30,
2023 (Q2)
($)
Mar. 31,
2023 (Q1)
($)
Revenues
3,938,323
2,535,617
-
-
-
-
-
-
Gross profit
1,111,948
248,031
-
-
-
-
-
-
RTO transaction cost (adjustment)
-
-
-
-
-
-
(453,950)
31,526,697
Impairment
-
-
-
-
2,906,681
-
-
-
Loss for the quarter
(37,936)
(947,092)
(1,885,874)
(1,204,826)
(4,695,897)
(1,840,393)
(932,735)
(32,530,025)
Loss per share - basic and diluted
(0.00)
(0.01)
(0.01)
(0.01)
(0.03)
(0.01)
(0.01)
(0.52)
Weighted average number of shares
153,942,993
152,869,623
152,692,993
149,827,944
146,504,261
143,998,401
143,141,252
62,577,673
This news release should be read in conjunction with the Company's consolidated financial statements
for the year ended December 31, 2024 and associated Management Discussion and Analysis, both are
available on SEDAR+ (
www.sedarplus.ca
) and on the Company's website
(
www.sierramadregoldandsilver.com
).
Silver equivalent ounces sold have been determined using the actual Ag and Au prices obtained during
the fourth quarter and for the six months ended December 31, 2024. The determined ratios used were
84.44 and 84.81 Au:Ag, respectively.
Qualified Person
Mr. Gregory Smith, P. Geo, Director of Sierra Madre, is a Qualified Person as defined by NI 43-101, and
has reviewed and approved the technical data and information contained in this news release. Mr. Smith
has verified the technical and scientific data disclosed herein.
About Sierra Madre
Sierra Madre Gold and Silver Ltd.
(TSXV: SM) (OTCQX: SMDRF) is a precious metals development
and exploration company focused on the Guitarra mine in the Temascaltepec mining district, Mexico,
and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a
permitted underground mine, which includes a 500 t/d processing facility that operated until mid-2018
and restarted commercial production in January 2025.
The +2,600 ha Tepic Project hosts low-sulphidation epithermal gold and silver mineralization with an
existing historic resource.
Sierra Madre's management team has played key roles in managing the exploration and development of
more than 22Moz gold and 600Moz silver in combined mineral reserves and mineral resources. Sierra
Madre's team of professionals has collectively raised over $1 billion for mining companies.
On behalf of the board of directors of Sierra Madre Gold and Silver Ltd.,
"
Alexander Langer
"
Alexander Langer
President, Chief Executive Officer and Director
778-820-1189
Contact:
Cautionary Note Regarding Production Decisions
The Company's decision to place the mine into commercial production, expand a mine, make other
production related decisions, or otherwise carry out mining and processing operations, is largely based
on internal non-public Company data and reports from previous operations and the results of test mining
and processing.
The Company is not basing any production decisions on NI 43-101 compliant reserve
estimates, preliminary economic assessments or feasibility studies and, as a result, there is greater risk
and uncertainty as to future economic results from the Guitarra Mine Complex, including increased
uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including
increased risks associated with developing a commercially mineable deposit, and a higher technical
risk of failure than would be the case if a feasibility study were completed and relied upon to make a
production decision.
Cautionary Note Regarding Forward-Looking Information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
news release.
This press release contains "forward-looking information" and "forward-looking statements" within the
meaning of applicable securities legislation. The forward-looking statements herein are made as of
the date of this press release only, and the Company does not assume any obligation to update or
revise them to reflect new information, estimates or opinions, future events or results or otherwise,
except as required by applicable law. Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled",
"estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes"
or variations (including negative variations) of such words and phrases or may be identified by
statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be
taken, occur or be achieved. Forward-looking statements include, without limitation, statements
regarding discussions of future plans, including the expected timing of concentrate shipments; the
Company increasing production; the Company receiving revenues on a weekly basis and such
revenues allowing the Company to comfortably expand to without further capital needs; production
and the expected timing and production levels thereof.
The forward-looking statements involve numerous risks and uncertainties, and actual results might
differ materially from results suggested in any forward-looking statements. These risks and
uncertainties include, among other things, that predicted production levels will be achieved and that
existing production levels will be maintained.
In making the forward-looking statements in this news release, the Company has applied certain
material assumptions, including without limitation, that the Company will be able to execute its future
plans as intended, that predicted production levels will be achieved and that existing production levels
will be maintained.
Although management of the Company has attempted identify important factors that could cause
actual results to differ materially from those contained in forward-looking statements or forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or
intended. 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. Readers are cautioned that reliance on such information may not be appropriate for other
purposes.
SOURCE:
Sierra Madre Gold and Silver Ltd.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/249397