Sierra Madre Gold and Silver (SM) Q4 2025 earnings summary

Executive summary

• Achieved annual net revenues of $25 million and adjusted EBITDA of $6 million for 2025, marking a turnaround from prior year losses.

• Restarted La Guitarra mine in early 2025, with sequential improvements in head grades and quarterly revenues.

• Sold 628,196 silver equivalent ounces in 2025, with 271,204 oz silver and 4,041 oz gold sold.

• Net income reached $8.13 million ($0.05/share) in 2025, compared to a $4.08 million loss in 2024, aided by a $6.1 million income tax recovery.

• Initiated two-stage La Guitarra plant expansion, with Phase 1 commissioning expected by end of Q2 2026.

Financial highlights

• Gross silver revenues: $10.68 million ($39.37/oz); gross gold revenues: $13.77 million ($3,407/oz) for 2025.

• Cash costs rose to $27.90 per AgEq ounce in 2025 from $22.97 in 2024, due to FX impacts, weather, and ramp-up costs.

• Cash from operations was $4.09 million in 2025, reversing a $3.65 million cash use in 2024.

• Q4 2025 net revenues rose 40.5% sequentially to $8.32 million; gross profit for Q4 was $3.72 million.

• Cash and equivalents at year-end 2025 totaled $17.3 million.

Outlook and guidance

• Anticipates further head grade improvements and lower per-ounce mining costs in early 2026.

• Phase 1 of La Guitarra expansion expected online by late Q2 2026, increasing throughput to 750–800 tpd and reducing unit costs.

• Del Toro mine acquisition expected to close in May 2026, aiming to replicate La Guitarra's restart success.

• Exploration in East District of La Guitarra to begin H2 2026, with 30,000 meters of drilling planned.