Sierra Madre repays $2.5M (U.S.) of First Majestic loan

Executive Summary

• Sierra Madre Gold and Silver Ltd. has repaid $2.5 million (U.S.) of its $5 million (U.S.) non-revolving, secured term loan from First Majestic Silver Corp., representing 50% of the facility.
• The repayment was made ahead of schedule, driven by strong silver and gold prices and accelerated cash generation from the La Guitarra mine.
• The company expects to repay the remaining loan balance in the coming months and anticipates reporting Q4 and year-end 2025 results in mid-April 2026.

Key Details

• Loan Repayment: $2.5 million (U.S.) repaid out of a total $5 million (U.S.) non-revolving, secured term loan.
• Lender: First Majestic Silver Corp.
• Repayment Status: Early repayment; half of the loan facility repaid ahead of schedule.
• Remaining Balance: $2.5 million (U.S.) remaining, expected to be repaid in the coming months.
• Maturity Date: The loan maturity was previously extended to May 2027 (per press release dated June 5, 2025).
• Operational Context: Repayment driven by strong precious metals prices and accelerated cash generation from the La Guitarra mine.
• Production Expansion: First stage of La Guitarra production expansion expected to come online at the end of Q2 2026.
• Expansion Capacity: Expected to increase throughput by a minimum of 50% from the current 500-tonnes-per-day run rate.
• Financial Reporting: Sierra Madre expects to report fourth quarter and year-end 2025 financial and operating results in mid-April 2026.
• Mine Status: La Guitarra mine is a permitted underground mine with a 500-tonne-per-day processing facility; commercial production restarted in January 2025.

Notable Quotes

• "We are proud to announce the early repayment of half of our loan facility with First Majestic, driven by a strong silver and gold price environment, which has been reflected in an acceleration of cash generation from La Guitarra. This repayment is ahead of schedule and we expect to repay the remainder of the loan in the coming months." — Alex Langer, President and CEO
• "We continue to look forward to the next phase of growth with the first stage of the La Guitarra production expansion expected to come on line at the end of Q2 2026, which is expected to increase throughputs by a minimum of 50 per cent from the current 500-tonnes-per-day run rate." — Alex Langer, President and CEO