Bear Creek Mining Stock Price, News & Analysis

Bear Creek Mining (BCEKF) has reported its 2024 year-end financial results, producing 40,220 oz gold and 217,676 oz silver at its Mercedes Mine. The company recorded revenue of $103.7M but faced a comprehensive loss of $66.8M, including a non-cash impairment charge of $27.2M for Mercedes Mine.

Key operational metrics include cash costs of $1,471 and AISC of $1,888 per gold ounce sold, with an average realized gold price of $2,347. The company completed significant restructuring with Sandstorm Gold , reducing gold deliverables and suspending silver deliveries until April 2028.

The company has initiated a strategic review process to enhance shareholder value and secured approximately $10M through a bought deal private placement. Production challenges continued in 2024, particularly in the transition to narrow vein mining at Marianas, leading to underperformance in recent months.

Bear Creek Mining (BCEKF) has finalized debt amendments with Equinox Gold and Sandstorm Gold to temporarily defer monthly interest payments from February 2025 to November 2025, with payment now due on December 31, 2025. The deferral applies to three debt agreements: the Equinox Note (US$26 million), Sandstorm Convertible Debenture (US$22.5 million), and 2024 Sandstorm Note (US$21.6 million).

The deferred interest will accrue at 7% per annum, compounded monthly. Additionally, the company plans to issue a new 2025 Sandstorm Note worth up to US$6.5 million, with Sandstorm committing up to US$600,000 monthly for working capital. This new note, subject to TSXV approval, will have similar terms including a September 2028 maturity and 7% annual interest rate.

Bear Creek Mining (TSXV: BCM) (OTCQX: BCEKF) has announced key changes to its Board of Directors and provided updates on debt restructuring efforts. Andrew Swarthout, a company founder who served as President and CEO until 2017, and Sandra Daycock, who joined the board in November 2023, have retired from their positions as directors.

The company is currently finalizing documentation for two significant financial arrangements: (1) Debt Amendments with Equinox Gold Corp. and Sandstorm Gold to temporarily defer certain interest payments, and (2) a Credit Extension of up to US$6.5 million from Sandstorm. Both arrangements are pending approval from the TSX Venture Exchange.

Bear Creek Mining (BCEKF) has filed a Technical Report for its Mercedes gold and silver mine in Sonora, Mexico. The report, dated September 30, 2024, was prepared by Global Resource Engineering (GRE) and supports the previously announced updated Mercedes Mineral Resource and Mineral Reserve estimates from January 29, 2025.

The Technical Report, titled 'NI 43-101 Technical Report, Mercedes Gold - Silver Mine, Sonora State, Mexico,' contains no material differences from the January 29, 2025 News Release. Both documents are publicly available on SEDAR+ and the company's website.

The report was prepared by a team of Qualified Persons including experts in mining engineering, metallurgy, geology, environmental engineering, and geotechnical engineering from GRE and Bear Creek Mining

Bear Creek Mining (BCEKF) has successfully closed a brokered private placement, raising C$14.5 million through the issuance of 64,445,000 common shares at C$0.225 per share. The offering was underwritten by BMO Capital Markets and Canaccord Genuity Corp., with a 6% commission paid on 38,667,000 shares.

Sandstorm Gold and Equinox Gold Corp. each participated by purchasing 32,222,500 shares (12,889,000 net after concurrent sale). Post-offering, Sandstorm and Equinox hold approximately 19.98% and 13.10% of total shares, respectively.

The proceeds will fund:

• Exploration and resource drilling at Mercedes mine in Mexico
• Construction of ventilation raise bore and secondary escape way at Marianas deposit
• Reduction of Mercedes' trade payables

Notably, the company reported a significant working capital deficiency of US$93.2 million as of September 30, 2024, raising going concern risks.

Bear Creek Mining (BCEKF) reports Q4 2024 production of 7,937 ounces of gold and 55,803 ounces of silver from its Mercedes Mine. Production decreased during Q4 due to the transition from bulk mining at San Martin to narrow-vein mining methods. The company faced delays in obtaining specialized equipment and supplies, along with unplanned ground condition remediation.

For full-year 2024, Mercedes produced 40,220 ounces of gold and 217,675 ounces of silver, processing 400,771 tonnes of ore with a 95% gold recovery rate. Development meters reached 3,090 in Q4 2024, significantly higher than previous quarters. The company plans an aggressive exploration program for 2025 to test near-mine brownfield targets identified in late 2024.

Bear Creek Mining has announced updated Mineral Resources and Mineral Reserves estimates for its Mercedes Mine in Sonora, Mexico, effective September 30, 2024. The key findings include:

- Proven and Probable Mineral Reserves of 0.43 million tonnes at 3.95 g/t gold and 22.71 g/t silver (54,300 oz gold, 312,500 oz silver)
- Measured and Indicated Mineral Resources of 2.34 million tonnes at 5.98 g/t gold and 52.12 g/t silver (449,700 oz gold, 3.9M oz silver)
- Inferred Mineral Resources of 0.38 million tonnes at 5.26 g/t gold and 36.06 g/t silver (64,900 oz gold, 444,600 oz silver)

The reserves and resources have decreased since December 2021 due to depletion, increased operating costs, higher dilution, and inaccessible regions. The reduction is substantial and likely to negatively impact the carrying value of Mercedes Mine as of December 31, 2024.

Bear Creek Mining reported Q3 2024 financial results, achieving a gross profit of $5.9 million and its first profit after operating expenses since acquiring Mercedes mine. The mine produced 10,751 ounces of gold and 76,939 ounces of silver during Q3 2024, with cash costs of $1,285 and AISC of $1,697 per gold ounce. Revenue reached $29.7 million, with comprehensive loss of $7.0 million ($0.03 per share). The company held $7.7 million in cash as of September 30, 2024. Operations at Mercedes showed improved efficiency with higher gold and silver production, benefiting from stronger metal prices. The company continues development at Corani Project, with a PEA expected by end of 2024.

Bear Creek Mining announced production results from its Mercedes Mine for Q3 2024. The mine produced 10,751 ounces of gold and 76,939 ounces of silver. Gold production improved compared to the previous quarter due to increased tonnage and higher recovery rates. Silver production saw a substantial increase, reflecting improved recovery rates and metallurgical differences.

Key highlights include:

• Ore processed: 102,535 tonnes
• Gold grade processed: 3.40 gpt
• Gold recovery: 96%
• Development: 2,025 meters

The company is transitioning to narrow vein mining techniques and restructuring its workforce. Updated Mineral Resource and Reserve estimates are expected in Q4 2024. New exploration targets have been identified on the Mercedes property for potential inclusion in the 2025 drilling program.