Sierra Madre Revenue Grows 10.7% in 2Q25

Sierra Madre Gold and Silver has reported financial results for its 2Q25 operations at the La Guitarra silver-gold mine in the State of Mexico, with revenues increasing 10.7% over the previous quarter despite operational challenges.

For 2Q25 the company generated revenues of US$5.4 million and a gross profit of US$1.3 million. This compares to revenues of US$4.8 million and a gross profit of US$1.2 million in 1Q25. The company sold 65,683oz of silver and 1,096oz of gold during the quarter. "We are very happy with the results of only our second quarter of commercial operations at La Guitarra. Our operating team remains focused on fine-tuning the mining and milling processes at the site, while ramping up the higher-grade Coloso mining center,” said Alex Langer, CEO, Sierra Madre Gold and Silver.

Operationally, the company milled 41,235t of material in 2Q25 and produced 66,011oz of silver and 1,048oz of gold. In April 26, 2025, Sierra Madre restarted the higher-grade Coloso underground mine, located within the Guitarra Complex. The Coloso mine produced 649t of mineralized material, which was below initial expectations as resources were allocated to development work to bring additional production areas online. The company noted a marked improvement in July, with Coloso generating 576t in that month alone.

Sierra Madre noted that 2Q25 production was impacted by an earlier-than-usual onset of heavy seasonal rains in May, which led to power outages and plant downtime. The company said it is evaluating power generation options, aiming to have power redundancies available for the start of the next rainy season in 2Q26.

All-in-sustaining costs (AISC) were US$30.10/oz of silver, compared to US$28.98 in 1Q25. Sierra Madre noted that costs increased during the quarter due to higher equipment rental costs and the impact of a strengthening Mexican peso on its US dollar-reported, peso-denominated mining costs.

Subsequent to the quarter's end, Sierra Madre closed a CA$19.5 million (US$14.1 million) private placement financing. The company plans to use the funds to purchase additional equipment, finalize plans for a plant expansion to increase capacity from the current 500t/d run rate, and prepare for an exploration program that will include over 20,000m of drilling. The company anticipates improved head grades and increased production in 2H25.