Sierra Madre Announces Strong Q2 2025 Financial Results, Ramps up Coloso Mine at La Guitarra

Executive Summary

• Sierra Madre reported Q2 2025 revenues of US$5.36 million and gross profit of US$1.29 million, a 10.7% revenue increase versus Q1.
• The company closed a C$19.5 million private placement (two tranches) after quarter‑end to fund equipment purchases, plant expansion and exploration.
• Adjusted EBITDA rose 37.5% to US$1.46 million; operating cash flow was US$1.00 million for H1 2025.

Key Details

• Production & Sales – Sold 173,562 AgEq oz (65,683 oz Ag and 1,096 oz Au). Produced 66,011 oz Ag and 1,048 oz Au in Q2 2025.
• Revenue Breakdown – Silver revenue US$2.18 M ($33.20/oz); Gold revenue US$3.59 M ($3,271/oz).
• Cost of Sales – US$4.07 M (≈US$23.45 per AgEq oz), up from US$3.60 M in Q1.
• All‑in‑Sustaining Cost – US$30.10 per AgEq oz sold (Q2) vs. US$28.98 (Q1).
• Adjusted EBITDA – US$1.46 M, a 37.5% increase YoY Q1.
• Cash Flow – Operating cash provided US$1.00 M for H1 2025 (includes US$0.535 M generated in Q1).
• Balance Sheet – Total assets US$37.71 M at 30‑Jun‑2025; current assets including cash US$5.93 M.
• Private Placement – Closed C$19.5 M on July 24 and July 31, 2025 (brokered). Proceeds earmarked for equipment purchases, plant capacity expansion (from 500 t/d) and a 20,000‑m drill program in the East District.
• Loan Extension – First Majestic senior secured project loan ($5 M) extended to 8 May 2027; terms unchanged.
• Mine Operations – Milled 41,235 t (silver recovery 76.62%, gold recovery 77.95%). Concentrate deliveries: 780 dry t in Q2.
• Coloso Underground Mine – Restarted production April 29 2025; produced 649 t in Q2 (below plan) with improvement to 576 t in July.
• Capital Expenditures H1 2025 – $764,000 on mining/mobile equipment ($378k in Q1); $113,000 on development; $362,000 on exploration and concession fees.
• Outlook – Expect higher head grades in H2 2025, lower per‑ounce costs, increased production from Coloso and Guitarra, and continued plant expansion.

Notable Quotes

“We are very happy with the results of only our second quarter of commercial operations… We expect grades to increase into the second half of 2025…” – Alex Langer, CEO
“The C$19.5 million financing will enable equipment upgrades and plant improvements to reduce costs and boost production.” – Alex Langer, CEO