Sierra Madre Announces Positive Q1 2025 Financial Results
- Revenue growth to $4.8M in Q1 2025, up from $3.9M in Q4 2024
- Positive operating cash flow of $535,000
- Reduction in all-in-sustaining costs to $28.98/oz from $32.18/oz in Q4
- Current assets increased to $4.3M from $3.5M in Q4 2024
- Start of higher-grade Coloso mine operations expected to improve grades and reduce costs
- First profitable quarter with $335,875 in net income
- High cost of sales at $21.84 per AgEq ounce
- Significant development work required, diverting equipment from production
- Capital expenditure of $378,000 for equipment purchases impacting cash flow
165,093 Silver Equivalent Ounces Sold During First Full Quarter of Commercial Production Revenues of US
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
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 averaged78.77% . - 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 t o 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
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
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
FAQ
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