Sierra Madre Announces Strong Q2 2025 Financial Results, Ramps up Coloso Mine at La Guitarra 173,562 Silver Equivalent Ounces Sold During Second Quarter of Commercial Production Revenues of US$5.4 Million in Q2 2025, Gross Profit of US$1.3 Million
Sierra Madre Announces Strong Q2 2025
Financial Results, Ramps up Coloso Mine at
La Guitarra
173,562 Silver Equivalent Ounces Sold During Second Quarter of Commercial Production
Revenues of US$5.4 Million in Q2 2025, Gross Profit of US$1.3 Million
C$19.5 Million Private Placement Closed Following Quarter-End
Vancouver, British Columbia--(Newsfile Corp. - August 21, 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 June 30, 2025 ("
Q2 2025
"). Unless otherwise noted, all amounts are
expressed in U.S. dollars. The Company will participate in a webinar to discuss the financial results on
Monday, August 25 at 2pm ET. Registration details below.
Alex Langer, Chief Executive Officer, commented, "We are very happy with the results of only our second
quarter of commercial operations at La Guitarra silver-gold mine complex in Mexico. The second quarter
generated revenues of $5.4 million and a gross profit of $1.3 million, with both numbers showing growth
over Q1 2025, despite Q2 2025 production being impacted by an earlier-than-usual onset of seasonal
heavy rains in May, which resulted in power outages with correlating plant downtime. Our operating team
remains focused on fine-tuning the mining and milling processes at the site, while ramping up the higher-
grade Coloso mining centre where dewatering and underground development are underway. We expect
grades to increase into the second half of 2025 from development work underway at both the Guitarra
and Coloso mines."
Mr. Langer continued, "Following quarter-end, we also closed a C$19.5 million financing supported by
high-quality institutional shareholders. We are planning to deploy these funds in part to purchase
additional equipment and implement improvements at the mine to reduce costs and increase production
grades and volumes in the near-term. We are also finalizing plans for a plant expansion to increase
capacity up from the current 500 t/d run rate, and preparing for a significant exploration program at the
East District concessions, which will include a drill program of over 20,000 metres. On behalf of the
entire team, I would like to thank our existing shareholders for their continued confidence and support
and welcome our new shareholders who participated in this financing. Your commitment strengthens our
ability to advance our strategic goals, and we look forward to continuing to build value for all
stakeholders."
Q2 2025 Highlights
Net Revenues
: Silver revenues for the quarter totalled $2.18 million ($33.20 per ounce) and gold
revenues totalled $3.59 million ($3,271 per ounce).
Net revenues for Q2 2025 increased by 10.7% to $5.36 million or $30.87 per AgEq ounce sold as
compared to $4.84 million or $29.32 per AgEq ounce in the quarter ended March 31, 2025 ("
Q1
2025
").
Sales
: In Q2, the Company sold 65,683 ounces of silver ("
Ag
") and 1,096 ounces of gold ("
Au
") or
173,562 silver equivalent ("
AgEq
") ounces, Q1 2025 sales totalled 75,137 ounces of Ag and
1,022 ounces of Au or 165,093 AgEq ounces, based on the ratio of Au and Ag prices realized for
each shipment in the period.
Cost of sales
was $4.07 million for Q2 2025, or approximately $23.45 per AgEq ounce sold as
compared to $3.60 million, or $21.84 per AgEq ounce sold for Q1 2025.
Site-Level Cost Impacts
: In Q2 2025, production unit costs were impacted by the effects of an
early onset of the Mexico rainy season and related power outages on production volumes, wage
increases, increased depreciation and depletion compared to Q1 2025 due to a higher proportion
of in-resource mineralized material mined and the resulting units-of-production depletion as well as
depreciation of mining interests and equipment. The Company is currently evaluating power
generation options and hopes to have power redundancies available for the start of the next rainy
season in Q2 2026.
In Q2 2025, costs also increased when compared to Q1 2025 due to increased rental costs and
the impact of the strengthening of the Mexican Peso vs the U.S. dollar on Peso-denominated
mining costs.
Adjusted EBITDA
increased by 37.5% to $1.46 million for Q2 2025, compared to $1.07 million
for Q1 2025.
All-in-sustaining costs
per AgEq ounce sold of $30.10 per ounce, compared to $28.98 in Q1
2025.
Gross Profit
was $1.29 million for Q2 2025 ($1.23 million in Q1 2025).
Cash provided by operating activities
was $1.00 million for the six months ended June 30,
2025 ("
H1 2025
") and includes $535,000 generated in Q1 2025.
Current assets
, including cash, totaled $5.93 million at June 30, 2025 ($4.33 million at March 31,
2025).
Closed C$19.5M Private Placement:
On
July 24
, and
July 31, 2025
, the Company closed the
first and second tranches, respectively, of a C$19.5 million brokered private placement.
First Majestic Loan Extension
: On May 30, 2025, the Company and First Majestic Silver Corp.
agreed to
extend
the $5 million senior secured project financing loan for an additional twelve
months to mature on May 8, 2027.
All other terms of the agreement remain unchanged.
Additional Operational Details
Mine Operations
: Milled 41,235 tonnes of material, with silver recoveries averaging 76.62% and
gold recoveries averaging 77.95%.
In Q1 2025, the Company milled 39,167 tonnes of material, silver recoveries averaged 79.21%
while gold recoveries averaged 78.77%.
Production
: Produced 66,011 ounces of silver and 1,048 ounces of gold (vs. production of
70,176 ounces of silver and 1,001 ounces of gold in Q1 2025).
Concentrate Deliveries
: Completed deliveries totalling 780 dry metric tonnes of silver/gold
concentrates (871 dry metric tonnes delivered in Q1 2025).
Coloso Mining
: At the end of Q1 2025, Sierra Madre made the decision to re-start production at
the Coloso underground mine and subsequently, on
April 29 2025
, announced the start of mining
at Coloso within the Guitarra Complex with the first stope being brought into production. The
estimated resource grades at Coloso are significantly higher in both silver and gold compared to
the Guitarra mine veins.
In Q2 2025, Coloso produced 649 tonnes of mineralized material, which was below the mine plan
expectations due to production sequencing and a focus on development, based on the decision to
allocate resources to bring additional stopes into production. Additional production areas would
allow the Company to smooth out the production profile and improve efficiencies. In July 2025, the
additional production areas allowed Coloso to generate 576 tonnes in a marked improvement
over the previous months.
Equipment Purchases
: In H1 2025, spent $764,000 to acquire mining and mobile equipment
and refurbish underground equipment (including $378,000 spent in Q1 2025).
Development
: $113,000 spent on mine development in H1 2025.
Exploration
: spent $362,000 on exploration and evaluation activities in H1 2025, which includes
capitalized concession fees.
Outlook
The Company anticipates improved head grades of the mineralized material in the second half of
2025, resulting in increased production and a decrease in mining costs on a per-ounce basis
going forward, with Coloso production and reductions in equipment rentals expected to be the key
drivers of these improvements. The improved head grades are anticipated as we continue to
complete development work and de-watering to access the higher-grade stopes in the Guitarra
and Coloso mines.
Quarterly Financial Overview
Selected financial information set out below is based on and derives from the unaudited condensed
consolidated interim financial statements of the Company for each of the quarters listed, which have
been prepared in accordance with IFRS, as applicable to quarterly reporting:
Jun. 30,
2025 (Q2)
($)
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)
($)
Revenues
5,357,415
4,841,242
3,938,323
2,535,617
-
-
-
-
Gross profit
1,288,214
1,230,723
1,111,948
248,031
-
-
-
-
Care and
maintenance
expenses
-
-
-
-
349,401
553,693
657,197
794,937
Foreign
exchange loss
(gain)
56,879
(64,065)
(175,608)
52,302
(207,388)
48,921
168,091
242,452
Interest expense
220,813
199,845
191,469
55,250
28,350
-
-
-
Impairment
-
-
-
-
-
-
2,906,681
-
Income (loss) for
the quarter
276,160
335,875
(37,936)
(947,092)
(1,885,874)
(1,204,826)
(4,695,897)
(1,840,393)
Total assets
37,714,506
36,182,560
34,891,015
34,479,382
33,931,187
30,226,383
30,478,627
39,672,959
Total non-
current
liabilities
8,817,414
8,710,461
8,431,885
8,249,918
7,929,490
2,935,772
2,949,152
8,093,548
Income (loss) per
share – basic
and diluted
0.00
0.00
(0.00)
(0.01)
(0.01)
(0.01)
(0.03)
(0.01)
Weighted
average number
of shares
- basic
- diluted
154,225,345
155,576,337
153,942,993
154,295,653
153,942,993
153,942,993
152,869,623
152,869,623
152,692,993
152,692,993
149,827,944
149,827,944
146,504,261
146,504,261
143,998,401
143,998,401
WEBINAR REGISTRATION
The Company will participate in a webinar on August 25, 2025, at 2:00 PM ET hosted by Adelaide
Capital, reviewing Sierra Madre's Q2 2025 results, including key operating and financial highlights and
mine development updates. Questions can be submitted during the session or in advance to
.
Registration link:
https://us02web.zoom.us/webinar/register/WN_wMse8zEUTuaoHxmQQvYdLw#/registration
A replay will be made available on the Adelaide Capital YouTube channel here:
https://www.youtube.com/channel/UC7Jpt_DWjF1qSCzfKlpLMWw
.
This news release should be read in conjunction with the Company's condensed consolidated interim
financial statements for the quarter ended June 30, 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 97.86 Au:Ag for Q2 2025 and 88.96 for
Q1 2025. AgEq ounces sold have been determined using the actual silver and gold prices obtained
during the quarter. The determined ratio used was 98.43 Au:Ag for Q2 2025 and 88.20 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 Q2 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/263330