Sierra Madre Gold and Silver (SM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues reached $5.5 million, with gross profit of $1.7 million, reflecting quarter-over-quarter growth and a 27% increase in Adjusted EBITDA over Q2 2025, driven by higher realized silver and gold prices and operational improvements.

• Production was impacted by over 187 hours of mill downtime due to rainy season-related power outages, but a backup power system is planned for 2026.

• Operations ramped up at Coloso and Nazareno mines, with development, dewatering, and access to higher-grade zones progressing.

• A $3.5 million exploration program began at the East District in October, focusing on drill target definition and structural analysis.

Financial highlights

• Net revenues for Q3 2025 increased by 3.0% to $5.52 million compared to Q2 2025.

• Gross profit was $1.70 million for Q3 2025, up from $1.29 million in Q2 2025.

• Adjusted EBITDA rose 27% to $1.86 million in Q3 2025 from $1.46 million in Q2 2025.

• All-in-sustaining costs per AgEq ounce sold increased to $34.42 from $30.10 in Q2 2025, reflecting equipment purchases and mine development.

• Current assets, including cash, totaled $16.9 million at September 30, 2025, up from $5.93 million at June 30, 2025.

Outlook and guidance

• Stronger Q4 production is expected as power outages subside and operations at Coloso and Nazareno ramp up.

• Additional equipment purchases, backup power generation, and increased production volumes are planned following July 2025 financing.

• The first phase of La Guitarra plant expansion, increasing capacity by over 50% to 750–800 tpd, is underway and targeted for Q2 2026.

• A subsequent expansion to 1,200–1,500 tpd is planned for Q3 2027, funded from treasury and cash flow.