Sierra Madre Gold and Silver (SM) Q2 2025 earnings summary

Executive summary

• Achieved strong Q2 results with net revenues of $5.36 million and gross profit of $1.3 million, both increasing over Q1 despite early rainy season impacts; commercial production ramping up at multiple sites.

• Raised $19.5 million in capital through an oversubscribed private placement, supporting expansion, equipment upgrades, and exploration.

• Significant institutional and retail investor participation in financing, including Franklin Templeton and Eric Sprott.

• Sold 173,562 silver equivalent ounces in the second quarter of commercial production.

• Ramped up operations at the higher-grade Coloso mine, with ongoing development and dewatering to access additional stopes.

Financial highlights

• Net revenues reached $5.36 million, up 10.7% from $4.84 million in Q1.

• EBITDA increased 36.5% to $1.46 million from $1.07 million in Q1.

• Gross profit reached $1.29 million, up from $1.23 million in Q1.

• Working capital rose 48.8% to $3.3 million from $2.2 million.

• All-in sustaining costs per AgEq ounce sold were $30.10, up from $28.98 in Q1.

Outlook and guidance

• Targeting 1,000 tons per day production by 2027, with all three mines expected to be producing by next year.

• Anticipates improved grades and lower costs as equipment is purchased and fresh ore increases.

• Plans to expand plant capacity beyond 500 t/d and launch a 20,000-metre exploration drill program at East District.

• Expansion plans and equipment upgrades to be announced around Beaver Creek conference.