Sierra Madre Announces Positive Q1 2025 Financial Results 165,093 Silver Equivalent Ounces Sold During First Full Quarter of Commercial Production Revenues of US$4.8 Million
Sierra Madre Announces Positive Q1 2025
Financial Results
165,093 Silver Equivalent Ounces Sold During First Full
Quarter of Commercial Production Revenues of US$4.8 Million
- Generating Cash of US$535,000
Vancouver, British Columbia--(Newsfile Corp. - May 7, 2025) - Sierra Madre Gold and Silver Ltd.
(TSXV: SM) (OTCQX: SMDRF) ("
Sierra Madre
" or the "
Company
") is pleased to provide financial
results for the quarter ended March 31, 2025 ("
Q1 2025
"). All amounts are expressed in U.S. dollars.
The Company will participate in a webinar to discuss the financial results on Tuesday, May 13 at 11am
ET. Registration details below.
Alex Langer, Chief Executive Officer, commented "We are very pleased with the Q1 results, with $4.8
million in revenues and a gross profit of $1.2 million, including $535,000 in cash generated from
operations, reflecting an exciting first quarter of commercial operations at our Guitarra silver-gold mine
complex. I would like to highlight our consistent production and revenue growth month over month since
the Guitarra restart. We are expecting accelerating revenue growth for Q2 and Q3."
Mr. Langer continued, "These results establish a solid base for further growth as we ramp up the Coloso
Mine in the complex, which just recently started supplementing higher-grade feed to the plant last month.
The Sierra Madre team continues to fine-tune the operation with new mining faces being accessed and
significant equipment purchases being made from cash flows. We expect continued improvements in the
mining and milling processes as the site runs at the commercial throughput capacity of 500 tonnes per
day."
Q1 2025 Highlights
Net Revenues
: Silver revenues for the quarter totalled $2.34 million ($31.13 per ounce) and gold
revenues totalled $2.89 million ($2,828 per ounce).
The Company sold 75,137 ounces of silver ("
Ag
") and 1,022 ounces of gold ("
Au
") or 165,093
silver equivalent ("
AgEq
") ounces, based on the ratio of Au and Ag prices realized for each
shipment in the period.
Cost of sales
was $3.6 million, approximately $21.84 per AgEq ounce sold.
All-in-sustaining costs
per AgEq ounce sold of $28.98 per ounce, compared to $32.18 in Q4
2024.
Gross Profit
was $1.2 million.
Cash provided by operating activities
was $535,000.
Current assets
, including cash, totaled $4.3 million at March 31, 2025, up from $3.5 million in Q4
2024.
Q1 2025 Operational Details
Mine Operations
: Milled 39,167 tonnes of material, silver recoveries averaged 79.21% while gold
recoveries averaged 78.77%.
Production
: Produced 70,176 ounces of silver and 1,001 ounces of gold.
Concentrate Deliveries
: During the quarter ended March 31, 2025, completed deliveries totalling
871 dry metric tonnes of silver/gold concentrates.
Coloso Mining
: On
April 29 2025
, Sierra Madre announced the start of underground mining at
the Coloso mine within the Guitarra Complex. The estimated resource grades at Coloso are
significantly higher in both silver and gold compared to the Guitarra mine veins. During the ramp up
of Coloso mining, various blending percentages for mill feed will be tested to ascertain best
recovery procedures.
The Company anticipates improved head grades of the mineralized material in 2025 and a
reduction in mining costs on a per-ounce basis going forward with Coloso expected to be a key
driver of these improvements.
Equipment Purchases
: Spent $378,000 to acquire mining and mobile equipment and refurbish
underground equipment used in mine development. A large front-end loader and excavator were
purchased, replacing costly rental equipment. Three personnel transport vehicles for both surface
and underground work were also purchased, helping to accelerate the opening of the Coloso mine.
A rebuilt engine and transmission were acquired for the low-profile underground haul truck,
significantly extending its working life. After the end of Q1, a second explosives truck was
purchased for use at Coloso and as backup for Guitarra.
Development
:
Development work was accelerated in Q1 2025, focusing on access to the larger
higher-grade blocks defined in the 2023 resource estimate. The newly discovered veins, outside
the existing resources, also required additional development work to ready them for stope
production. This focus on development will result in the Company having more mineralized material
available for processing in the later part of 2025. The diverting of equipment to development work
was offset by processing low cost retaques, old backfill that contains economically interesting
material, from areas that were mined in the 1990's when the mine cutoff was 8 to 10 grams per
tonne gold-equivalent.
Hiring
: The company has hired a degreed metallurgist with extensive flotation experience as
Process Plant Superintendent, to oversee the proper blending of Coloso material with the current
Guitarra mill feed. The metallurgist will also manage more in-house metallurgical testing.
A civil
engineer was hired to oversee the ongoing tailings dam work and other construction projects. Both
of these hires reduce the Company's reliance on outside contractors and engineering firms.
Successful Transition to Commercial Production
: In July 2024, the Company commenced test
mining and milling at Guitarra, which was designed to provide further information on the current
actual mining and milling costs to further assess the internal mine plan. The test program,
underground development, and commissioning activities continued until December 31, 2024,
when it was determined that the asset was consistently reaching the operating levels intended by
management. On January 1, 2025, the Company declared commercial production at Guitarra, as
announced on
January 9, 2025
.
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:
Mar. 31,
2025 (Q1)
($)
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)
($)
Revenues
4,841,242
3,938,323
2,535,617
-
-
-
-
-
Gross profit
3,604,888
1,111,948
248,031
-
-
-
-
-
Impairment
-
-
-
-
-
2,906,681
-
-
Income (loss)
for the quarter
335,875
(37,936)
(947,092)
(1,885,874)
(1,204,826)
(4,695,897)
(1,840,393)
(932,735)
Income (loss)
per share -
basic and
diluted
0.00
(0.00)
(0.01)
(0.01)
(0.01)
(0.03)
(0.01)
(0.01)
Weighted
average
number of
shares - basic
153,942,993
153,942,993
152,869,623
152,692,993
149,827,944
146,504,261
143,998,401
143,141,252
WEBINAR REGISTRATION
The Company will participate in a webinar on May 13, 2025, at 11:00 AM ET hosted by Adelaide
Capital, reviewing Sierra Madre's Q1 2025 results, including key highlights and mine development. The
webinar will also include a Q&A session.
Registration link:
https://streamyard.com/watch/Rza6eXxwbmQy
.
This news release should be read in conjunction with the Company's condensed consolidated interim
financial statements for the quarter ended March 31, 2025 and associated Management Discussion and
Analysis ("MD&A"), both are available on SEDAR+ (
www.sedarplus.ca
) and on the Company's website
(
www.sierramadregoldandsilver.com
).
AgEq ounces produced have been determined using a ratio of 83.33 Au:Ag. AgEq ounces sold have
been determined using the actual silver and gold prices obtained during the quarter. The determined
ratio used was 84.43 Au:Ag for Q4 2024 and 90.87 Au:Ag for Q1 2025.
The Company reports non-GAAP measures, which include Cash Cost of Production per Tonne, Cash
Cost per AgEq ounce sold, All-in Sustaining Cash Cost per AgEq ounce sold and Average Realized
Price per AgEq ounce sold and Adjusted EBITDA. These measures are widely used in the mining
industry as a benchmark for performance, but do not have a standardized meaning and may differ from
methods used by other companies with similar descriptions. See "Non-GAAP and Other Financial
Measures" section of the Company's Q1 2025 MD&A for definitions and reconciliations to GAAP
measures.
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
silver and gold 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/251186