Bear Creek Mining Reports Q2 2025 Financial and Operating Results
Bear Creek Mining (OTCQX:BCEKF) reported Q2 2025 financial results, with significant operational challenges at its Mercedes mine. The company produced 7,973 oz of gold and 33,932 oz of silver during Q2, with revenue of $27.8 million and a comprehensive loss of $11.7 million.
Key developments include the termination of an underperforming mining contractor, deferral of debt interest payments to December 2025, and issuance of a $6.5 million secured promissory note to Sandstorm. The company faces significant financial challenges with a $92.7 million working capital deficiency and has expressed material uncertainty about its ability to continue as a going concern.
The company continues its strategic review process to explore financial options and enhance value, while implementing a recovery plan to address development deficits at the Mercedes mine.
Bear Creek Mining (OTCQX:BCEKF) ha pubblicato i risultati finanziari del secondo trimestre 2025, evidenziando rilevanti criticità operative nella miniera Mercedes. La società ha prodotto 7.973 oz di oro e 33.932 oz di argento nel Q2, con ricavi per $27,8 milioni e una perdita complessiva di $11,7 milioni.
Tra gli sviluppi principali figura la risoluzione del contratto con un appaltatore minerario sotto le aspettative, la proroga del pagamento degli interessi sul debito a dicembre 2025 e l'emissione a Sandstorm di un pagaré garantito da $6,5 milioni. La società si trova ad affrontare gravi difficoltà finanziarie, con un deficit di capitale circolante di $92,7 milioni, e dichiara una significativa incertezza sulla capacità di continuare la sua attività come azienda in funzione.
Bear Creek prosegue la revisione strategica per valutare opzioni finanziarie e aumentare il valore, mentre mette in atto un piano di recupero per correggere i deficit di sviluppo alla miniera Mercedes.
Bear Creek Mining (OTCQX:BCEKF) publicó los resultados financieros del segundo trimestre de 2025, mostrando importantes problemas operativos en la mina Mercedes. La compañía produjo 7.973 oz de oro y 33.932 oz de plata durante el trimestre, con ingresos de $27,8 millones y una pérdida integral de $11,7 millones.
Entre los hechos clave figura la terminación de un contratista minero de bajo rendimiento, el aplazamiento del pago de intereses de la deuda hasta diciembre de 2025 y la emisión a Sandstorm de un pagaré garantizado por $6,5 millones. La compañía afronta serias dificultades financieras con un déficit de capital de trabajo de $92,7 millones y declara una incertidumbre material sobre su capacidad para continuar como empresa en funcionamiento.
La compañía continúa su proceso de revisión estratégica para explorar opciones financieras y aumentar el valor, mientras implementa un plan de recuperación para resolver los déficits de desarrollo en la mina Mercedes.
Bear Creek Mining (OTCQX:BCEKF)는 2025년 2분기 재무실적을 발표하면서 Mercedes 광산에서 심각한 운영 문제를 보고했습니다. 회사는 2분기에 금 7,973 oz 및 은 33,932 oz를 생산했으며, 매출은 $27.8 million, 총포괄손실은 $11.7 million이었습니다.
주요 내용으로는 성과가 미흡한 채굴업체와의 계약 해지, 채무 이자 지급을 2025년 12월로 연기한 점, Sandstorm에 대한 $6.5 million 담보 약속어음(프로미서리 노트) 발행 등이 있습니다. 회사는 $92.7 million의 운전자본 부족 등 심각한 재무적 어려움에 직면해 있으며, 계속기업으로서의 존속 가능성에 대해 중대한 불확실성을 표명하고 있습니다.
회사는 재무적 옵션을 모색하고 가치를 제고하기 위한 전략적 검토 과정을 지속하는 한편, Mercedes 광산의 개발 적자를 해소하기 위한 회복 계획을 시행하고 있습니다.
Bear Creek Mining (OTCQX:BCEKF) a publié ses résultats financiers du deuxième trimestre 2025, faisant état de difficultés opérationnelles importantes sur la mine Mercedes. La société a produit 7 973 oz d'or et 33 932 oz d'argent au cours du T2, avec un chiffre d'affaires de 27,8 millions de dollars et une perte globale de 11,7 millions de dollars.
Parmi les faits marquants figurent la résiliation d'un entrepreneur minier peu performant, le report des paiements d'intérêts de la dette à décembre 2025 et l'émission à Sandstorm d'un billet à ordre garanti de 6,5 millions de dollars. La société fait face à de sérieux défis financiers avec un déficit de fonds de roulement de 92,7 millions de dollars et indique une incertitude significative quant à sa capacité à poursuivre son activité.
La société poursuit son processus de revue stratégique pour examiner des options financières et accroître la valeur, tout en mettant en œuvre un plan de redressement pour traiter les déficits de développement de la mine Mercedes.
Bear Creek Mining (OTCQX:BCEKF) veröffentlichte die Finanzergebnisse für das zweite Quartal 2025 und meldete erhebliche operative Probleme in der Mercedes-Mine. Das Unternehmen produzierte im Q2 7.973 oz Gold und 33.932 oz Silber, erzielte Umsätze von $27,8 Millionen und einen umfassenden Verlust von $11,7 Millionen.
Wesentliche Entwicklungen umfassen die Kündigung eines leistungsschwachen Bergbauunternehmers, die Stundung der Zinszahlungen auf Schulden bis Dezember 2025 sowie die Ausgabe einer an Sandstorm gerichteten $6,5 Millionen besicherten Schuldverschreibung. Das Unternehmen steht vor erheblichen finanziellen Herausforderungen mit einem Liquiditätsdefizit (Working Capital) von $92,7 Millionen und weist auf eine wesentliche Unsicherheit hinsichtlich seiner Fortführungsfähigkeit hin.
Bear Creek setzt den strategischen Prüfungsprozess zur Prüfung finanzieller Optionen und zur Steigerung des Unternehmenswerts fort und führt zugleich einen Sanierungsplan zur Behebung der Entwicklungsdefizite in der Mercedes-Mine durch.
- Secured debt interest payment deferrals until December 2025
- Obtained additional $6.5 million financing through Sandstorm Note
- Gold recovery rate at Mercedes mine reached 96%
- No fatalities, lost time incidents, or environmental incidents reported
- Comprehensive loss of $11.7 million in Q2 2025
- Significant working capital deficiency of $92.7 million
- Material uncertainty about company's ability to continue as going concern
- Lower than planned production due to contractor issues and ground conditions
- Cash costs per gold ounce sold increased to $2,327
- Operating activities used $1.7 million in cash during first half of 2025
Vancouver, British Columbia--(Newsfile Corp. - August 13, 2025) - Bear Creek Mining Corporation (TSXV: BCM) (OTCQX: BCEKF) (BVL: BCM) ("Bear Creek" or the "Company") reports its interim consolidated financial results for the three and six months ended June 30, 2025 ("Q2 2025").
This news release should be read in conjunction with the Company's interim consolidated financial statements and management discussion and analysis ("MD&A") for the three and six months ended June 30, 2025, which are available on SEDAR+ (www.sedarplus.ca) and the Company's website (www.bearcreekmining.com). Monetary amounts in this news release are in United States dollars unless otherwise stated and all capitalized terms herein have the same meaning as defined in the Q2 2025 financial statements.
Highlights
During Q2 2025 and to the date of this release, the Company:
Produced 7,973 oz of gold and 33,932 oz of silver from its Mercedes mine in Q2 2025.
Amended agreements with each of Sandstorm Gold Ltd. ("Sandstorm") and Equinox Gold Corp. ("Equinox") to temporarily defer, to December 2025, the payment of interest under certain outstanding debt arrangements otherwise due between February and November 2025.
Announced the issuance of a secured promissory note to a wholly owned subsidiary of Sandstorm (the "2025 Sandstorm Note") in the principal amount of up to
$6.5 million .Actively continued the strategic review process ("Strategic Review") that was initiated by the Company in the first quarter of 2025 to explore and evaluate the strategic and financial options available to the Company with the ultimate view of enhancing value.
Selected Q2 2025 Financial and Production Results
| Financial Results (thousands of dollars, except share and per share amounts) | Three Months Ended June 30, 2025 |
| Revenue | |
| Comprehensive earnings (loss) after taxes | |
| Comprehensive earnings (loss) per share (3) | |
| Weighted average shares during period | 292,175,785 |
| Shares issued and outstanding at end of period | 292,175,785 |
| Six Months Ended June 30, 2025 | |
| Cash generated from (used in) operating activities | |
| Cash generated from (used in) investing activities | |
| Cash generated from (used in) financing activities |
| Mercedes Operating Highlights | Three Months Ended June 30, 2025 |
| Gold ounces produced | 7,973 |
| Silver ounces produced | 33,932 |
| Cash costs per gold ounce sold (1) | |
| AISC per gold ounce sold (1) | |
| Tonnes mined (thousands) | 91,941 |
| Tonnes processed (thousands) | 89,488 |
| Average gold grade mined (g/t) | 2.81 |
| Average gold grade processed (g/t) | 2.88 |
| Recovery rate gold | |
| Gold ounces sold | 8,091 |
| Average realized gold price (2) | |
| Development (meters) | 1,828 |
(1) Non-GAAP Measure. Please see "Non-GAAP Measures" below for further information.
(2) Inclusive of final settlement adjustments on sales for non-streamed ounces
(3) Per share amounts are based on weighted average shares during the period
Eric Caba, President & CEO, states, "The second quarter saw the close out of the contractor problems at Mercedes and began the recovery process from the significant development deficit resulting from these issues. The recovery will progress through the Q3 as we develop increased working faces. Concurrently, we are continuing to focus our efforts on the ongoing Strategic Review."
Mercedes Mine, Mexico
The Mercedes mine is a fully mechanized, ramp-access operation that produces gold and silver. Eleven individual deposits have been mined or are in production. Additionally, seven greenfield targets have been identified on the 69,285-hectare package of Mercedes Mine concessions and are generally in the early exploration stage. Additional brownfield mineralized extension zones proximal to existing workings are at the exploration or drill definition stage.
Production
Mercedes' production during Q2 2025 was garnered from the San Martin, Marianas, Diluvio West, Rey de Oro and Barrancas deposits and totalled 91,941 tonnes mined, 89,488 tonnes processed, and 7,973 ounces of gold produced. This lower than planned production is a result of two primary factors affecting the level of production achieved from the Marianas deposit: continued underperformance during the quarter by the mining contractor engaged in late 2024 to provide specialized equipment, personnel and mining services at the narrow-vein Marianas deposit; and challenging ground conditions, which impacted progress on ventilation improvements required to recover the development deficit resulting from the contractor underperformance. As in the first quarter of the year, delayed production from Marianas was partially offset by accelerating pillar removal at San Martin, which deposit has now been fully mined. Additional information regarding Marianas' ventilation is provided under Development, below.
The Company terminated its mining services agreement with the underperforming contractor during Q2 2025 and has transitioned mining activities at the Marianas deposit to a replacement contractor to support enhanced efficiency and continuity.
The Company is currently implementing a comprehensive recovery plan to address the Marianas development deficit and improve Mercedes' production through the remainder of the year. The Marianas deposit was expected to contribute the majority of Mercedes' production in 2025, however the Company expects to shift production in the second half of 2025 to include Rey de Oro and Rey de Oro Alta as significant contributors.
The Mercedes Mine had no fatalities, no lost time incidents, and no reportable environmental incidents during the first six months of 2025.
As of the date of this news release, Bear Creek has not provided production guidance for the Mercedes Mine for 2025.
Development
During Q2 2025, 1,828 meters of development were achieved at the Mercedes Mine, a significant reduction in development in comparison to recent quarters that is primarily a result of the contractor underperformance and poor ground conditions issues described above.
Activities related to constructing a new primary ventilation raise at the Marianas deposit commenced in early 2025 with the drilling of pilot holes for epoxy injection needed to stabilize the surrounding rock in the area of the raise. Continual geotechnical evaluation during this process identified significant risks to the stability of the final ventilation raise. As a risk mitigation plan, the Management team redesigned the proposed ventilation plan using drop raises (openings between the levels in the underground mine) in the interior of the mine. Two drop raises have been bored with several additional drop raises to be constructed throughout the remainder of the year. The first series of drop raises will be completed later in 2025 and is expected to improve ventilation and mitigate further production delays. Readers are cautioned that there can be no assurance the measures being taken to improve ventilation and to ensure steady production from the Marianas deposit going forward will be successful.
Delineation and Exploration Drilling
During Q2 2025, the Company continued delineation and infill drilling primarily at the Marianas deposit. This drilling is intended to provide increased confidence in the Mineral Resource classification categories to help reduce risk during Mineral Resource to Reserve conversion and subsequent mine planning stages. Mineral Resource delineation and/or conversion drilling expenditures were
Corani Project
Activities at the Corani Property during Q2 2025 focused primarily on assessment of the Oxides opportunity, continuation of a geometallurgical test program, and ongoing community support initiatives.
Oxides Opportunity
The Company believes the Oxides - near-surface, silver-rich oxidized material that occurs within the Este, Main and Minas deposits at Corani as outlined in the 2019 Corani Report - provide an exciting opportunity to add silver resources to the Corani mineral inventory, and potentially extend the anticipated 15-year Corani mine life, but that additional work is required to fully develop the scope of this opportunity. During Q2 2025, the Company announced that as it is engaged in its Strategic Review process, such additional work will not be undertaken at this time, and hence it will not proceed with completion of an economic study related to the Oxides.
Additional details regarding the Oxides opportunity are provided in the Company's news release dated September 9, 2024.
Social and Environmental Initiatives
During Q2 2025 the Company primarily focused on the maintenance and environmental monitoring activities in the area around the Corani camp and the within the Corani Property.
New and Restructured Debt
On April 10, 2025, Sandstorm, Equinox and the Company executed agreements to defer the monthly interest payments on the certain existing debt agreements, whereby monthly interest payments payable from and including February 2025 to November 2025, are deferred until December 31, 2025 (the "Deferred Interest"). Interest automatically accrues on the Deferred Interest at the same rate applicable to the principal under the debt agreements, such rate being
After receiving TSX-V approval on May 8, 2025, the Company issued a secured promissory note to a wholly owned subsidiary of Sandstorm (the "2025 Sandstorm Note") in the principal amount of up to
As of the date of this news release, the Company has drawn an aggregate total of
Strategic Review
The Strategic Review announced by the Company on March 4, 2025 remains actively ongoing as of the date of this release. As previously stated, numerous options may be considered under the Strategic Review including recapitalization, a sale of all or some of the Company's assets, a merger, joint-venture, business combination or any combination thereof. There are no assurances or guarantees that the Strategic Review will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction. As of the date of the Company's Q2 2025 MD&A, an estimate of the financial effect of the Strategic Review on the Company's interim Q2 2025 financial statements cannot be determined.
Overview of Results of Operations, Liquidity and Capital Resources
For the three months ended March 31, 2025, the Company recorded revenue of
During Q2 2025 the Company had a gross loss of
At June 30, 2025 the Company held cash and cash equivalents and short terms investments totaling
At June 30, 2025, the Company's net working capital deficiency (current assets less current liabilities) was
Going Concern
The Company's interim consolidated financial statements for the three months ended June 30, 2025 were prepared following accounting principles applicable to a going concern, which assumes the Company will be able to continue in operation for at least twelve months from June 30, 2025 and will be able to realize its assets and discharge its liabilities in the ordinary course of operations. Despite raising aggregate gross proceeds of
The Company's interim condensed consolidated financial statements for the three and six months ended June 30, 2025 do not include adjustments to the carrying values of the assets and liabilities, the reported revenues and expenses, and the balance sheet classifications used, should the Company be unable to continue as a going concern. These adjustments could be material.
Non-GAAP Measures
This news release includes disclosure of certain financial measures or ratios, as such terms are used in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure, including Cash Costs and AISC. These Non-GAAP financial measures are not standardized financial measures under IFRS Accounting Standards, as issued by the International Accounting Standards Board ("IFRS Accounting Standards"), and might not be comparable to similar measures presented by other companies. The Company believes that these measures and ratios provide investors with an improved ability to evaluate the prospects of the Company as they provide additional information related to operating performance and are widely used in the mining industry.
The Company has adopted the practice of calculating a performance measure consisting of the net cost of producing an ounce of gold after deducting revenues gained from silver by-product production.
Cash Cost and AISC are calculated per ounce of gold sold net of credits for realized silver revenues. The Company adds the governmental royalty of
On behalf of the Board of Directors,
Eric Caba
President and CEO
For further information contact:
Barbara Henderson - VP Corporate Communications
Direct: 604-628-1111
E-mail: barb@bearcreekmining.com
www.bearcreekmining.com
Subscribe to Bear Creek Mining news
NI 43-101 Disclosure
Unless otherwise indicated, scientific and technical information in this news release is based on work programs and initiatives conducted under the supervision of, and has been reviewed and approved by, Donald Mc Iver, Fellow SEG and Fellow Aus-IMM. Mr. Mc Iver is Vice President, Exploration and Geology of Bear Creek Mining Corporation and is a qualified person ("Qualified Person" or "QP") as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Additional information related to the Mercedes Mine and the Corani Project, including the Quality Assurance and Quality Control measures applied to the Company's sampling and assaying practices, is available in its Annual Information Form for the year ended December 31, 2024, available on its website and on SEDAR+.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements regarding: the delivery of mining services at the Marianas deposit and the anticipated outcomes thereof; anticipated 2025 Mercedes mining plans and sources of production; completion of Marianas ventilation drop raises; the anticipated benefit of delineation and infill drilling at the Mercedes Mine; the potential Oxides opportunity and the requirement for additional analysis to fully understand the potential benefits of the Oxides on the Corani project; the deferral of interest payments under the 2025 Debt Arrangements until December 31, 2025; the payment of the Deferred Interest on December 31, 2025; the Credit Extension and the 2025 Sandstorm Note; the Strategic Review process; and the Company's ability to remain a going concern. These forward-looking statements are provided as of the date of this news release and reflect predictions, expectations or beliefs regarding future events based on the Company's beliefs at the time the statements were made, as well as various assumptions made by and information currently available to them. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to, assumptions related to the Company's operating results, business objectives, goals and capabilities. Although management considers the assumptions underlying its forward-looking statement to be reasonable based on information available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and the risk exists that estimates, forecasts, projections, and other forward-looking statements will not be achieved or that assumptions on which they are based do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions expressed above do not occur, but may include additional risks as described in the Company's latest Annual Information Form, and other disclosure documents filed by the Company on SEDAR+. The foregoing list of factors that may affect future results is not exhaustive. Investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.
Neither 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 release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/262440
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