Sierra Madre Announces Solid Q3 2025 Financial Results, La Guitarra Plant Expansion Underway

Core Insights - Sierra Madre Gold and Silver Ltd. reported Q3 2025 revenues of US$5.5 million, a 3% increase from Q2 2025, with a gross profit of US$1.7 million, reflecting continued operational growth driven by higher silver and gold prices [2][3] - The company initiated a US$3.5 million exploration program in the East District of La Guitarra, focusing on drill target definition and expected to commence drilling in Q2 2026 [2][6] Financial Performance - Q3 2025 net revenues were US$5.52 million, with an average of US$35.94 per silver-equivalent ounce sold, compared to US$5.36 million and US$30.87 per ounce in Q2 2025 [3] - Gross profit for Q3 2025 was US$1.70 million, up from US$1.29 million in Q2 2025, while adjusted EBITDA increased by 27% to US$1.86 million [3][8] - Cash costs per silver-equivalent ounce sold rose to US$24.59 in Q3 from US$23.56 in Q2, influenced by the strengthening of the Mexican peso and rainy season impacts [3][8] Production and Operations - The company sold 68,741 ounces of silver and 960 ounces of gold, totaling 153,583 silver-equivalent ounces in Q3 2025 [3] - Mill downtime due to power outages during the rainy season accounted for over 187 hours, approximately 47% of total downtime for the quarter [3][6] - Production from the La Guitarra complex was impacted by power outages, with the mill operating at about 90% of its nameplate capacity [2][3] Future Outlook - The company anticipates stronger production in Q4 2025 as power outages decrease and operations at the Coloso and Nazareno mines ramp up [6] - Plans for a plant expansion are underway, aiming to increase processing capacity from 500 tonnes per day (tpd) to 750-800 tpd by Q2 2026, with further expansions planned for 1,200-1,500 tpd by Q3 2027 [2][6][7] - The East District exploration program is expected to take nine months, followed by a 20,000 to 25,000 meter drill program to assess economic potential [6][7]