Sierra Madre Gold and Silver Ltd. (TSXV:SM; OTCQX:SMDRF) announced their financial results for Q2 2025, with net revenues having increased by 10.7% to US$5.36M, or $30.87 per AgEq ounce sold. This is compared to US$4.84M, or $29.32 per AgEq ounce reported in Q1, which ended 31 March 2025.
Broken down, silver revenues for the quarter totalled US$2.18M ($33.20 per ounce) and gold revenues totalled US$3.59M ($3,271 per ounce). In Q2, the company sold 65,683oz silver and 1,096oz gold, or 173,562 silver equivalent ounces.
Other key highlights from the Q2 financial results include:
- Cost of sales: $4.07M, or approximately $23.45 per AgEq ounce sold
- Site-level cost impacts: Production unit costs were impacted by an early rainy season in Mexico and related power outages. Costs also increased from Q1 due to increased rental costs and the impact of the strengthening Mexican Peso vs the US dollar
- Adjusted EBITDA: Increased by 37.5% to $1.46M, compared to $1.07M in Q1
- All-in-sustaining costs: $30.10 per ounce AgEq, compared to $28.98 in Q1
- Gross profit: $1.29M
- Current assets: $5.93M, including cash
- Closed C$19.5M Private Placement: Closed on 24 and 31 July 2025
- First Majestic loan extension: 30 May 2025, Sierra Madre and First Majoestic Silver Corp. agreed to extend the $5M senior secured project financing loan for an additional 12 months, ending 8 May 2027.
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.”
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