Sierra Madre Gold and Silver (SM) Q3 2024 earnings summary

Executive summary

• Ended care and maintenance at Guitarra and began test mining and milling in July 2024, aiming for commercial production upon successful testing.

• Produced 48,761 oz silver and 539 oz gold (94,820 Ag eq. oz) in Q3 2024; average realized prices were $28.90/oz Ag and $2,474/oz Au.

• Signed a 24-month off-take agreement with MRI Trading AG for 100% of Guitarra concentrate sales.

• Test mining and milling phase expected to improve operational efficiency and reduce costs as operations stabilize.

Financial highlights

• Q3 2024 revenue: $2.54 million; cost of sales: $2.29 million; gross profit: $248,030.

• Net loss for Q3 2024: $947,092, down from $1.84 million in Q3 2023; nine-month loss: $4.04 million, down from $35.3 million in 2023 (prior year included $31.1 million RTO cost).

• Cash and cash equivalents at September 30, 2024: $336,000, down from $1.93 million at year-end 2023.

• Working capital at September 30, 2024: $2.16 million, down from $2.49 million at December 31, 2023.

• Cash used in operations for nine months: $4.27 million; investing: $3.43 million; financing inflow: $6.07 million.

Outlook and guidance

• Test mining and milling at Guitarra expected to continue, with focus on increasing efficiency and reducing per-ounce costs as higher-grade zones are accessed.

• Management anticipates sufficient working capital for at least 12 months, supported by recent financing and concentrate sales.

• Plans to return to exploration at Tepic when financial resources allow; expenditures at Tepic reduced in near term.