Earnings release
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Sierra Madre Announces Solid Q3 2025 Financial Results, La Guitarra Plant Expansion Underway 153,583 Silver Equivalent Ounces Sold in Q3 2025 Quarterly Revenues of US$5.5 Million, Gross Profit of US$1.7 Million US$3.5 Million Exploration Program Started at the East District in October Vancouver, British Columbia--(Newsfile Corp. - November 13, 2025) - Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) (" Sierra Madre " or the " Company ") is pleased to provide financial results for the quarter ended September 30, 2025 (" Q3 2025 "). Unless otherwise noted, all amounts are expressed in U.S. dollars. Alex Langer, Chief Executive Officer, commented, "Q3 revenues of US$5.5 million and gross profit of US$ 1.7 million continue to show quarter-over-quarter growth, notably with a 27% increase to Adjusted EBITDA over Q2 2025, driven by stronger realized silver and gold prices and highlighting our operating leverage. We continue to optimize mining and milling performance, advance into new faces, and add equipment to increase production and reduce costs. At the same time, the Company is ramping up operations at the Coloso and Nazareno mines within the Complex as development progresses, de- watering efforts advance, and access to higher-grade zones progresses. These impacts are expected to be reflected as early as Q4 and into 2026. Longer term, we remain focused on completing a plant expansion, with the first phase — ramping up by over 50% from current 500 tpd levels to 750 tpd - 800 tpd by Q2 2026 — now underway. We have acquired surface and underground equipment for this expansion, including the second crusher with work in progress for its installation. Excavation of the area for the thickener has started, with Purchase Orders issued to start the engineering and civil works for the paste plant and the fabrication of the tank." Mr. Langer continued, "Quarterly silver and gold production from La Guitarra complex in Mexico was more affected than expected by power outages. The mill was only able to produce ~90% of nameplate capacity because of these outages in Q3, due to a longer and heavier rainy season, but we anticipate a stronger Q4 now that the rains ended in late October. Despite these downtimes, our financial performance continues to improve. The company expects to have a backup power generation system in place prior to the 2026 rainy season. We are also pleased to now be conducting exploration in the under-explored East District of La Guitarra, with a US$3.5 million exploration program underway and drilling expected to kick off in Q2 2026." Q3 2025 Highlights Net revenues for Q3 2025 increased by 3.0% to $5.52 million or $35.94 per silver-equivalent (" AgEq ") ounce sold as compared to $5.36 million and $30.87 per AgEq ounce in the quarter ended June 30, 2025 (" Q2 2025 "). Sales : In Q3 2025, the Company sold 68,741 ounces of silver (" Ag ") and 960 ounces of gold (" Au ") or 153,583 AgEq ounces, based on the ratio of Au and Ag prices realized for each shipment in the period. Cost of sales was $3.82 million for Q3, or $24.85 per AgEq ounce sold compared to $4.07 million for Q2, or $23.45 per AgEq ounce sold. Cost Drivers : Cash costs for Q3 increased due to the impact of the strengthening of the Mexican peso versus the US dollar on MXN-denominated mining costs, the impacts of the rainy season in Mexico, including the accompanying power outages, on production volumes. For Q3, cash costs were $24.59 per AgEq ounce sold, as compared to $23.56 in Q2.
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Mill Downtime : Rainy season-related power outages resulted in over 187 hours of mill downtime in Q3 2025, which represents ~47% of the total mill downtime for the quarter. Sierra Madre continues to evaluate power generation options with plans to have power redundancies available for the start of the next rainy season in Q2 2026. Gross Profit was $1.70 million for Q3 2025 ($1.29 million for Q2 2025). Adjusted EBITDA increased by 27% to $1.86 million for Q3 2025 as compared to $1.46 million for Q2 2025. All-in-sustaining costs per AgEq ounce sold of $34.42, compared to $30.10 in Q2 2025. This quarter-on-quarter increase was due to the start of equipment purchases and mine development expenditures funded by the financing closed in July 2025. Current assets , including cash, totaled $16.9 million at September 30, 2025 ($5.93 million at June 30, 2025). Closed C$19.5M Private Placement: On July 24 , and July 31, 2025 , the Company closed the first and second tranches, respectively, of a C$19.5 million brokered private placement. The key participants in the financing were Franklin Templeton, Eric Sprott and Commodity Capital, with strong participation by the management of the Company. Additional Operational Details Equipment Purchases : In the nine months ended September 30, 2025, the Company incurred $2.03 million on acquiring mining and mobile equipment and refurbishing underground equipment. Mine Operations : Milled 38,433 tonnes of material, with silver recoveries averaging 76.96% and gold recoveries averaging 75.55%. In Q2 2025, the Company milled 41,235 tonnes of material, with silver recoveries averaging 76.62% and gold recoveries averaging 77.95%. Production : Produced 67,785 ounces of silver and 967 ounces of gold (vs. production of 66,011 ounces of silver and 1,048 ounces of gold in Q2 2025). Concentrate Deliveries : Completed deliveries totalling 802 dry metric tonnes of silver/gold concentrates (780 dry metric tonnes of silver/gold concentrates delivered in Q2 2025). Development : $855,000 spent on mine development in Q3 2025. Exploration : $516,000 spent on exploration and evaluation activities in the nine months ended September 30, 2025. Coloso Mining : At the end of Q1 2025, Sierra Madre made the decision to re-start production at the Coloso underground mine and subsequently, on April 29 2025 , announced the start of mining at Coloso within the Guitarra Complex with the first stope being brought into production. The estimated resource grades at Coloso are significantly higher in both silver and gold compared to the Guitarra mine veins 1 . Since initiating production at Coloso, the Company has focused on developing more production stopes. Dewatering of the lower mine levels has been accelerated and it is anticipated that production from resource blocks below the existing workings will commence next year. La Guitarra Expansion Plans : On September 8, 2025 , Sierra Madre announced plans for a two-stage plant expansion at La Guitarra. The first phase would grow capacity by more than 50%, to 750 tpd - 800 tpd, by Q2 2026. A subsequent expansion would increase capacity to more than 100% of current capacity, or 1,200 tpd - 1,500 tpd, by Q3 2027. The expansion is expected to be funded from the Company's treasury and cash flow. To date, Sierra Madre has acquired surface and underground equipment for this expansion, including the second crusher with work in progress for its installation. Excavation of the area for the thickener has started, with purchase orders issued to start the engineering and civil works for the paste plant and the fabrication of the tank. Nazareno Development Started : As outlined in the Company's September 30, 2025 press release, underground development has started at the Nazareno mine within La Guitarra, with over 700 tonnes of mineralized material delivered to the Guitarra plant from Nazareno as of September 30, 2025. This material was not included in the 2023 Mineral Resource Estimate. Nazareno is accessed via a one-km underground drive from the Coloso working. Mineralization in
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this area comes from two closely spaced veins with the internal host rock containing economically interesting stockwork mineralization. The width of the economically interesting mineralization averages 4.5 meters, suitable for low cost long-hole stoping techniques. East District Exploration Program : On October 23, 2025 , Sierra Madre announced the start of a $3.5-million exploration program at the East District of La Guitarra; the District covers the historic Temascaltepec mining area. The US$3.5-million East District exploration program is first focusing on drill target definition through mapping, surveying, mapping and sampling of historic workings, and a structural analysis in order to determine the geologic controls of historically mined mineralization. This program is estimated to take nine months to complete and, upon completion, a 20,000 to 25,000 metre drill program would then be undertaken to further assess the targets' economic potential, expected to start in Q2 2026. Outlook With the end of the rainy season in late October, the Company expects stronger fourth-quarter production as power outages subside and operations restart progresses at the Coloso and Nazareno mines with development, de-watering and access towards higher-grade areas. Following the closing of the July 2025 financing, the Company plans to purchase additional equipment for enhanced mine efficiency and increased overall grades, backup power generation, and production volumes. Quarterly Financial Overview Selected financial information set out below is based on and derives from the unaudited condensed consolidated interim financial statements of the Company for each of the quarters listed, which have been prepared in accordance with IFRS, as applicable to quarterly reporting: Sep. 30, 2025 (Q3) ($) Jun. 30, 2025 (Q2) ($) Mar. 31, 2025 (Q1) ($) Dec. 31, 2024 (Q4) ($) Sep. 30, 2024 (Q3) ($) Jun. 30, 2024 (Q2) ($) Mar. 31, 2024 (Q1) ($) Dec 31, 2023 (Q4) ($) Revenues 5,519,847 5,357,415 4,841,242 3,938,323 2,535,617 - - - Gross profit 1,703,944 1,288,214 1,236,354 1,111,948 248,031 - - - Care and maintenance expenses - - - - - 349,401 553,693 657,197 Foreign exchange loss (gain) 94,727 56,879 (64,065) (175,608) 52,302 (207,388) 48,921 168,091 Interest expense 220,152 220,813 199,845 191,469 55,250 28,350 - - Impairment - - - - - - - 2,906,681 Income (loss) for the quarter 67,842 276,160 335,875 (37,936) (947,092) (1,885,874) (1,204,826) (4,695,897) Total assets 51,676,308 37,714,506 36,182,560 34,891,015 34,479,382 33,931,187 30,226,383 30,478,627 Total non - current liabilities 8,961,154 8,817,414 8,710,461 8,431,885 8,249,918 7,929,490 2,935,772 2,949,152 Income (loss) per share - basic and diluted 0.00 0.00 0.00 (0.00) (0.01) (0.01) (0.01) (0.03) Weighted average number of shares - basic - diluted 176,309,293 177,912,944 154,225,345 155,576,337 153,942,993 154,295,653 153,942,993 153,942,993 152,869,623 152,869,623 152,692,993 152,692,993 149,827,944 149,827,944 146,504,261 146,504,261 This news release should be read in conjunction with the Company's condensed consolidated interim financial statements for the quarter ended September 30, 2025 and associated Management Discussion and Analysis ("MD&A"), both are available on SEDAR+ ( www.sedarplus.ca ) and on the Company's website ( www.sierramadregoldandsilver.com ).
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AgEq ounces produced have been determined using a ratio of 87.63 Au:Ag for Q3 and 97.86 for Q2. AgEq ounces sold have been determined using the actual Ag and Au prices obtained during the quarter. The determined ratio used was 88.70 Au:Ag for Q3 and 98.43 for Q2. The Company reports non-GAAP measures, which include Cash Cost of Production per Tonne, Cash Cost per AgEq ounce sold, All-in Sustaining Cash Cost per AgEq ounce sold and Average Realized Price per AgEq ounce sold and Adjusted EBITDA. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and may differ from methods used by other companies with similar descriptions. See "Non-GAAP and Other Financial Measures" section of the Company's Q3 2025 MD&A for definitions and reconciliations to GAAP measures. Qualified Person Mr. Gregory Smith, P. Geo, Director of Sierra Madre, is a Qualified Person as defined by NI 43-101, and has reviewed and approved the technical data and information contained in this news release. Mr. Smith has verified the technical and scientific data disclosed herein. About Sierra Madre Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) is a precious metals development and exploration company focused on the Guitarra mine in the Temascaltepec mining district, Mexico, and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500 t/d processing facility that operated until mid-2018 and restarted commercial production in January 2025. The +2,600 ha Tepic Project hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource. Sierra Madre's management team has played key roles in managing the exploration and development of silver and gold mineral reserves and mineral resources. Sierra Madre's team of professionals has collectively raised over $1 billion for mining companies. On behalf of the board of directors of Sierra Madre Gold and Silver Ltd., " Alexander Langer " Alexander Langer President, Chief Executive Officer and Director 778-820-1189 Contact: investor@sierramadregoldandsilver.com Cautionary Note Regarding Production Decisions The Company's decision to place the mine into commercial production, expand a mine, make other production related decisions, or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports from previous operations and the results of test mining and processing. The Company is not basing any production decisions on NI 43-101 compliant reserve estimates, preliminary economic assessments or feasibility studies and, as a result, there is greater risk and uncertainty as to future economic results from the Guitarra Mine Complex, including increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit, and a higher technical risk of failure than would be the case if a feasibility study were completed and relied upon to make a production decision.
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Cautionary Note Regarding Forward-Looking Information Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements include, without limitation, statements regarding discussions of future plans, including the expected timing of concentrate shipments; the Company increasing production; the Company receiving revenues on a weekly basis and such revenues allowing the Company to comfortably expand to without further capital needs; production and the expected timing and production levels thereof. The forward-looking statements involve numerous risks and uncertainties, and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, that predicted production levels will be achieved and that existing production levels will be maintained. In making the forward-looking statements in this news release, the Company has applied certain material assumptions, including without limitation, that the Company will be able to execute its future plans as intended, that predicted production levels will be achieved and that existing production levels will be maintained. Although management of the Company has attempted identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. SOURCE: Sierra Madre Gold and Silver Ltd. 1 A copy of the 2023 NI 43-101 report, prepared by TechSer Mining Consultants Ltd. ("TechSer") of Vancouver B.C., by David Thomas, P.Geo. and QP Geology and Cristian Garcia, P.Eng. and QP Mining, titled "La Guitarra Mineral Resource Estimate Guitarra Silver-Gold Project, Temascaltepec, Estado de México, México" with an effective date of October 24, 2023, is available on SEDAR+ and the company's website at https://sierramadregoldandsilver.com/presentations/NI-43-101-La-Guitarra-Mineral-Resource-Estimate.pdf To view the source version of this press release, please visit https://www.newsfilecorp.com/release/274428