403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Bear Creek Mining Reports Q3 2025 Financial And Operating Results
| Financial Results (thousands of dollars, except share and per share amounts) | Three Months Ended September 30, 2025 |
| Revenue | $22,549 |
| Comprehensive earnings (loss) after taxes | $(30,767) |
| Comprehensive earnings (loss) per share (1) | $(0.11) |
| Adjusted earnings (loss) after taxes (2) | $(10,555) |
| Adjusted earnings (loss) per share (1)(2) | $(0.04) |
| Weighted average shares during period | 292,175,785 |
| Shares issued and outstanding at end of period | 292,175,785 |
| | Nine Months Ended September 30, 2025 |
| Cash generated from (used in) operating activities | $(5,978) |
| Cash generated from (used in) investing activities | $(11,447) |
| Cash generated from (used in) financing activities | $13,024 |
| Mercedes Operating Highlights | Three Months Ended September 30, 2025 |
| Gold ounces produced | 6,219 |
| Silver ounces produced | 18,866 |
| Cash costs per gold ounce sold (2) | $3,161 |
| AISC per gold ounce sold (1) | $3,563 |
| Tonnes mined (thousands) | 76,211 |
| Tonnes processed (thousands) | 79,457 |
| Average gold grade mined (g/t) | 2.84 |
| Average gold grade processed (g/t) | 2.53 |
| Recovery rate gold | 96% |
| Gold ounces sold | 6,271 |
| Average realized gold price (3) | $3,473 |
| Development (meters) | 1,257 |
(1) Per share amounts are based on weighted average shares during the period
(2) Non-GAAP Measure. Please see "Non-GAAP Measures" below for further information.
(3) Inclusive of final settlement adjustments on sales for non-streamed ounces
Mercedes Mine, Mexico
The Mercedes mine is a fully mechanized, ramp-access operation that produces gold and silver. Eleven individual deposits have been mined or are in production. Additionally, seven greenfield targets have been identified on the 69,285-hectare package of Mercedes Mine concessions and are generally in the early exploration stage. Additional brownfield mineralized extension zones proximal to existing workings are at the exploration or drill definition stage.
Production
Mercedes' production during Q3 2025 was garnered from the San Martin, Marianas, Diluvio, Rey de Oro and Barrancas deposits and totalled 76,211 tonnes mined, 79,457 tonnes processed, and 6,219 ounces of gold produced. The average gold and silver grades of material mined at Mercedes during Q3 2025 decreased in comparison to recent quarters as the Company transitioned out of mining at the higher-grade San Martin deposit prior to the current quarter.
Production and development during the third quarter were both significantly impacted by two primary factors: the ongoing deficit in development and production faces related to the contractor underperformance issues in early 2025 and challenging ground conditions at the Marianas deposit, which impacted progress on ventilation improvements required to recover this development deficit. The Company is implementing a comprehensive recovery plan to address this development deficit, which included the transition to a replacement contractor. The Marianas deposit was expected to contribute the majority of Mercedes' production in 2025, however production has recently shifted to the Rey de Oro and Rey de Oro Alta deposits while the Marianas ventilation issues are being addressed. These deposits are now expected to contribute to production in Q4 2025 and Q1 2026.
The Mercedes Mine had no fatalities, no lost time incidents, and no reportable environmental incidents during the first nine months of 2025.
As of the date of this news release, Bear Creek has not provided production guidance for the Mercedes Mine for 2025.
Development
Early in 2025 the Company initiated engineering plans and development for a primary ventilation raise at the Marianas deposit. Continual geotechnical evaluation during this process identified significant risks to the stability of the planned ventilation raise, which was ultimately deemed unviable. As a risk mitigation plan earlier this year, the management team redesigned the proposed ventilation plan using drop raises (openings between the levels in the underground mine) in the interior of the mine. Two drop raises have been bored with several more to be constructed through the remainder of 2025. Although these drop raises are expected to improve ventilation and help mitigate further production delays, there can be no assurance they will be successful in providing sufficient ventilation to fully recover the Marianas development deficit.
During Q 3 2025, 1,257 meters of development were achieved at the Mercedes Mine, a significant reduction in development in comparison to recent quarters that is primarily a result of ventilation remediation measures described above.
Delineation and Exploration Drilling
During Q3 2025, the Company continued delineation and infill drilling primarily at the Marianas and Diluvio deposits. This drilling is intended to provide increased confidence in the Mineral Resource classification categories to help reduce risk during Mineral Resource to Reserve conversion and subsequent mine planning stages. Mineral Resource delineation and/or conversion drilling expenditures were $0.5 million during the quarter.
Corani Project
Activities at the Corani Property during Q3 2025 focused primarily on ongoing community support initiatives and on maintenance and environmental monitoring activities in the area around the Corani camp and within the Corani Property. The Company continues to maintain excellent working relationships with local communities.
The Company continues to investigate financing alternatives to fund the development of Corani. In the meantime, the Company contributes to maintaining roads from the Interoceanic Highway through the Tantamaco, Huiquisa, and Corani communities. Continuing support is provided to the authorities to complete the required transmission lines and the connection and commissioning of the Antapata substation to allow for provision of needed power to the local communities.
New and Restructured Debt
On April 10, 2025, Sandstorm, Equinox and the Company executed agreements to defer the monthly interest payments on the certain existing debt agreements, whereby monthly interest payments payable from and including February 2025 to November 2025, are deferred until December 31, 2025 (the "Deferred Interest"). Interest automatically accrues on the Deferred Interest at the same rate applicable to the principal under the debt agreements, such rate being 7% per annum, compounded monthly, and the Deferred Interest and any accrued and unpaid interest thereon is payable in full on December 31, 2025. All other terms of the debt agreements remain unchanged and in full force and effect. These debt amendments were approved by the TSX Venture Exchange ("TSX-V") on April 10, 2025
After receiving TSX-V approval on May 8, 2025, the Company issued a secured promissory note to a wholly owned subsidiary of Sandstorm (the "2025 Sandstorm Note") in the principal amount of up to $6.5 million (the "Credit Extension"), with Sandstorm committing up to $600,000 per month of credit to the Company for working capital purposes. The 2025 Sandstorm Note contains substantially similar terms to the Sandstorm Promissory Note, including a maturity date of September 22, 2028, an interest rate of 7% per annum and a conversion price of C$0.73 per common share (or such greater price as may be required by the TSX-V).
As of the date of this news release, the Company has drawn an aggregate total of $5.4 million under the 2025 Sandstorm Note. The remaining amount of up to $1.1 million may be drawn down subject to prior approval by Sandstorm in its sole discretion. Additional information regarding the 2025 Sandstorm Note and periodic drawdowns to date is provided in the Company's news releases dated March 4, May 8, May 22, July 16, August 5, and October 9, 2025.
Strategic Review
The Strategic Review announced by the Company on March 4, 2025 remains actively ongoing as of the date of this release. As previously stated, numerous options may be considered under the Strategic Review including recapitalization, a sale of all or some of the Company's assets, a merger, joint-venture, business combination or any combination thereof. There are no assurances or guarantees that the Strategic Review will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction. As of the date of the Company's Q3 2025 MD&A, an estimate of the financial effect of the Strategic Review on the Company's interim Q3 2025 financial statements cannot be determined.
Overview of Results of Operations, Liquidity and Capital Resources
For the three months ended September 30, 2025, the Company recorded revenue of $22.5 million from the sale of gold and silver. The cost of goods sold was $20.6 million and depletion, amortization and depreciation amounted to $7.2 million.
During Q3 2025 the Company had a gross loss of $5.3 million and an operating loss of $8.9 million. After operating expenses, other income and expenses, changes in the fair value of the financial instruments (principally due to higher gold prices), and tax expenses and recoveries, the Company recorded a comprehensive net loss of $30.8 million ($0.11 per share) for Q3 2025.
Substantially higher spot gold prices partially offset lower production during Q3 2025 and helped to support revenue during the quarter. However, Mercedes' operating loss (primarily driven by lower production and higher operating costs) plus non-cash losses on the valuation of the Company's financial instruments (primarily reflecting changes in the Company's share price, increased forward metals prices and lower discount rates during the quarter) resulted in a net loss of $30.9 million for Q3 2024.
Adjusted earnings (a Non-GAAP measure that excludes non-cash items such as deferred tax, unrealized foreign exchange, changes in fair values of financial instruments, impairments and other items that are not reflective of the underlying operational performance of the Company), for the quarter ended September 30, 2025 were $(10.6) million or $(0.04) per share. Please see "Non-GAAP Measures" below for further information.
At September 30, 2025 the Company held cash and short terms investments totaling $2.3 million (compared to $6.7 million at December 31, 2024). During the nine months ended September 30, 2025, operating activities used $6.0 million, investing activities used $11.4 million and financing activities generated $13.0 million in cash.
At September 30, 2025, the Company's net working capital deficiency (current assets less current liabilities) was $113.1 million (compared to $97.0 million at December 31, 2024). Significant amounts contributing to the September 30, 2025 net working capital deficiency are $27.2 million in accounts payable, $28.9 million in current portion of Note payable, $10.8 million in current portion of stream arrangements, and $54.3 million in convertible debentures and notes.
Going Concern
The Company's interim consolidated financial statements for the three months ended September 30, 2025 were prepared following accounting principles applicable to a going concern, which assumes the Company will be able to continue in operation for at least twelve months from September 30, 2025 and will be able to realize its assets and discharge its liabilities in the ordinary course of operations. Despite raising aggregate gross proceeds of $10 million through a bought deal private placement during Q1 2025 as well as restructuring existing debt and obtaining additional loan financing during Q2 2025 (as described under New and Restructured Debt, above), material uncertainty remains in relation to the ability of the Company to achieve the operating results and cash flow generation from the Mercedes mine necessary to avoid seeking additional financing, which gives rise to significant doubt about the Company's ability to continue as a going concern. Management is evaluating various strategic options and implementing operational improvements aimed at reducing costs and enhancing cash generation. However, there can be no assurance that the steps management is taking to improve the Company's liquidity will be successful.
The Company's interim condensed consolidated financial statements for the three and nine months ended September 30, 2025 do not include adjustments to the carrying values of the assets and liabilities, the reported revenues and expenses, and the balance sheet classifications used, should the Company be unable to continue as a going concern. These adjustments could be material.
Non-GAAP Measures
This news release includes disclosure of certain financial measures or ratios, as such terms are used in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure, including Cash Costs and AISC. These Non-GAAP financial measures are not standardized financial measures under IFRS Accounting Standards, as issued by the International Accounting Standards Board ("IFRS Accounting Standards"), and might not be comparable to similar measures presented by other companies. The Company believes that these measures and ratios provide investors with an improved ability to evaluate the prospects of the Company as they provide additional information related to operating performance and are widely used in the mining industry.
The Company has adopted the practice of calculating a performance measure consisting of the net cost of producing an ounce of gold after deducting revenues gained from silver by-product production.
Cash Cost and AISC are calculated per ounce of gold sold net of credits for realized silver revenues. The Company adds the governmental royalty of 1% for special mining law, third-party net smelter royalties and adjustments for finished goods related to the increase or decrease in remaining inventory to the cost of production. Other adjustments may be made as required. For further information regarding these Non-GAAP financial measures including reconciliations of these measures to the applicable costs items as reported in the consolidated financial statements for the respective periods, please see the information under the heading "Cash Cost and All-in-Sustaining Cost ("AISC") for Mercedes" in the Company's MD&A for the three and nine months ended September 30, 2025 (available on the Company's website and on SEDAR+).
On behalf of the Board of Directors,
Eric Caba
President and CEO
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
More Story
Comments
No comment