Mine Operating Income Tops US$8.2M in First Half of 2025

Executive Summary

• Mine operating income was $3.38 M for Q2 2025 – the fifth consecutive positive quarter, bringing H1 2025 operating income to $8.2 M.
• Adjusted EBITDA of $1.89 M was also positive for the fifth straight quarter.
• Production for the quarter totaled 659,237 silver‑equivalent ounces (321,990 oz Ag, 2,913 oz Au, 683,163 lb Pb, 853,646 lb Zn).

Key Details

• Operating Income: $3.38 M Q2 2025; $8.2 M H1 2025 (fifth consecutive positive quarter).
• Adjusted EBITDA: $1.89 M for the quarter (positive for five quarters in a row).
• Working Capital: Improved 56% YoY, moving from –$15.4 M to –$6.7 M at H1 end.
• Realized Prices: Silver $33.58/oz (up 5.2% QoQ); Gold $3,278/oz.
• Quarterly Production:
• Silver‑equivalent ounces: 659,237 AgEq
• Silver: 321,990 oz
• Gold: 2,913 oz
• Lead: 683,163 lb
• Zinc: 853,646 lb
• Mine Portfolio: Results derived from El Cubo Mines Complex, Valenciana Mines Complex, San Ignacio Mine (Guanajuato) and Topia Mine (Durango).
• Non‑IFRS Measures Disclosure: Detailed explanations of mine operating cash flow, EBITDA, Adjusted EBITDA, cash cost per AgEq oz, AISC per AgEq oz, and related reconciliation notes provided.
• Management Commentary: CEO James Anderson highlighted continued positive income generation, leverage to metal prices, and a strategic shift toward higher‑grade production (“grade will be king”). SVP Rick Trotman emphasized focus on grade over tonnes and margin over total ounces.

Notable Quotes

“Our mines are generating operating income, and we remain highly leveraged to the price of silver and gold… moving into the second half of the year, ‘grade will be king,’ as we focus on the quality of the ounces we produce rather than simply the quantity.” – James Anderson, CEO & Chairman

“All the components for success are present and readily available… I am excited by the opportunity to help build Mexico's next mid‑tier precious metals producer.” – Rick Trotman, Senior Vice‑President