Bear Creek Mining Reports Q2 2025 Financial and Operating Results

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Vancouver, British Columbia--(Newsfile Corp. - August 13, 2025) - Bear Creek Mining Corporation (TSXV: BCM) (OTCQX: BCEKF) (BVL: BCM) ("Bear Creek" or the "Company") reports its interim consolidated financial results for the three and six months ended June 30, 2025 ("Q2 2025").
This news release should be read in conjunction with the Company's interim consolidated financial statements and management discussion and analysis ("MD&A") for the three and six months ended June 30, 2025, which are available on SEDAR+ (www.sedarplus.ca) and the Company's website (www.bearcreekmining.com). Monetary amounts in this news release are in United States dollars unless otherwise stated and all capitalized terms herein have the same meaning as defined in the Q2 2025 financial statements.
Highlights
During Q2 2025 and to the date of this release, the Company:
Produced 7,973 oz of gold and 33,932 oz of silver from its Mercedes mine in Q2 2025.
Amended agreements with each of Sandstorm Gold Ltd. ("Sandstorm") and Equinox Gold Corp. ("Equinox") to temporarily defer, to December 2025, the payment of interest under certain outstanding debt arrangements otherwise due between February and November 2025.
Announced the issuance of 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.
Actively continued the strategic review process ("Strategic Review") that was initiated by the Company in the first quarter of 2025 to explore and evaluate the strategic and financial options available to the Company with the ultimate view of enhancing value.
Selected Q2 2025 Financial and Production Results
Financial Results (thousands of dollars, except share and per share amounts)
Three Months EndedJune 30, 2025
Revenue
$27,779
Comprehensive earnings (loss) after taxes
$(11,705)
Comprehensive earnings (loss) per share (3)
$(0.04)
Weighted average shares during period
292,175,785
Shares issued and outstanding at end of period
292,175,785Six Months EndedJune 30, 2025
Cash generated from (used in) operating activities
$(1,723)
Cash generated from (used in) investing activities
$(10,343)
Cash generated from (used in) financing activities
$10,129
Mercedes Operating Highlights
Three Months Ended June 30, 2025
Gold ounces produced
7,973
Silver ounces produced
33,932
Cash costs per gold ounce sold (1)
$2,327
AISC per gold ounce sold (1)
$2,753
Tonnes mined (thousands)
91,941
Tonnes processed (thousands)
89,488
Average gold grade mined (g/t)
2.81
Average gold grade processed (g/t)
2.88
Recovery rate gold
96%
Gold ounces sold
8,091
Average realized gold price (2)
$3,278
Development (meters)
1,828
(1) Non-GAAP Measure. Please see "Non-GAAP Measures" below for further information.(2) Inclusive of final settlement adjustments on sales for non-streamed ounces(3) Per share amounts are based on weighted average shares during the period
Eric Caba, President & CEO, states, "The second quarter saw the close out of the contractor problems at Mercedes and began the recovery process from the significant development deficit resulting from these issues. The recovery will progress through the Q3 as we develop increased working faces. Concurrently, we are continuing to focus our efforts on the ongoing Strategic Review."
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 Q2 2025 was garnered from the San Martin, Marianas, Diluvio West, Rey de Oro and Barrancas deposits and totalled 91,941 tonnes mined, 89,488 tonnes processed, and 7,973 ounces of gold produced. This lower than planned production is a result of two primary factors affecting the level of production achieved from the Marianas deposit: continued underperformance during the quarter by the mining contractor engaged in late 2024 to provide specialized equipment, personnel and mining services at the narrow-vein Marianas deposit; and challenging ground conditions, which impacted progress on ventilation improvements required to recover the development deficit resulting from the contractor underperformance. As in the first quarter of the year, delayed production from Marianas was partially offset by accelerating pillar removal at San Martin, which deposit has now been fully mined. Additional information regarding Marianas' ventilation is provided under Development, below.
The Company terminated its mining services agreement with the underperforming contractor during Q2 2025 and has transitioned mining activities at the Marianas deposit to a replacement contractor to support enhanced efficiency and continuity.
The Company is currently implementing a comprehensive recovery plan to address the Marianas development deficit and improve Mercedes' production through the remainder of the year. The Marianas deposit was expected to contribute the majority of Mercedes' production in 2025, however the Company expects to shift production in the second half of 2025 to include Rey de Oro and Rey de Oro Alta as significant contributors.
The Mercedes Mine had no fatalities, no lost time incidents, and no reportable environmental incidents during the first six 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
During Q2 2025, 1,828 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 the contractor underperformance and poor ground conditions issues described above.
Activities related to constructing a new primary ventilation raise at the Marianas deposit commenced in early 2025 with the drilling of pilot holes for epoxy injection needed to stabilize the surrounding rock in the area of the raise. Continual geotechnical evaluation during this process identified significant risks to the stability of the final ventilation raise. As a risk mitigation plan, 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 additional drop raises to be constructed throughout the remainder of the year. The first series of drop raises will be completed later in 2025 and is expected to improve ventilation and mitigate further production delays. Readers are cautioned that there can be no assurance the measures being taken to improve ventilation and to ensure steady production from the Marianas deposit going forward will be successful.
Delineation and Exploration Drilling
During Q2 2025, the Company continued delineation and infill drilling primarily at the Marianas deposit. 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 $1.0 million during the quarter. After being released from the ventilation raise work, a drill rig was deployed to complete one Diluvio NW surface exploration drill hole during this period.
Corani Project
Activities at the Corani Property during Q2 2025 focused primarily on assessment of the Oxides opportunity, continuation of a geometallurgical test program, and ongoing community support initiatives.
Oxides Opportunity
The Company believes the Oxides - near-surface, silver-rich oxidized material that occurs within the Este, Main and Minas deposits at Corani as outlined in the 2019 Corani Report - provide an exciting opportunity to add silver resources to the Corani mineral inventory, and potentially extend the anticipated 15-year Corani mine life, but that additional work is required to fully develop the scope of this opportunity. During Q2 2025, the Company announced that as it is engaged in its Strategic Review process, such additional work will not be undertaken at this time, and hence it will not proceed with completion of an economic study related to the Oxides.
Additional details regarding the Oxides opportunity are provided in the Company's news release dated September 9, 2024.
Social and Environmental Initiatives
During Q2 2025 the Company primarily focused on the maintenance and environmental monitoring activities in the area around the Corani camp and the within the Corani Property.
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 $4.2 million under the 2025 Sandstorm Note. The remaining amount of up to $2.3 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, and August 5, 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 Q2 2025 MD&A, an estimate of the financial effect of the Strategic Review on the Company's interim Q2 2025 financial statements cannot be determined.
Overview of Results of Operations, Liquidity and Capital Resources
For the three months ended March 31, 2025, the Company recorded revenue of $27.8 million from the sale of gold and silver. The cost of goods sold was $19.9 million and depletion, amortization and depreciation amounted to $11.6 million.
During Q2 2025 the Company had a gross loss of $3.7 million and an operating loss of $7.7 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 $11.7 million ($0.04 per share) for Q2 2025.
At June 30, 2025 the Company held cash and cash equivalents and short terms investments totaling $4.8 million (compared to $6.7 million at December 31, 2024). During the six months ended June 30, 2025, operating activities used $1.7 million, investing activities used $10.3 million and financing activities generated $10.1 million in cash.
At June 30, 2025, the Company's net working capital deficiency (current assets less current liabilities) was $92.7 million (compared to $97.0 million at December 31, 2024). Significant amounts contributing to the June 30, 2025 net working capital deficiency are $23.8 million in accounts payable, $23.6 million in current portion of Note payable, $9.9 million in current portion of stream arrangements, and $49.6 million in convertible debentures and notes.
Going Concern
The Company's interim consolidated financial statements for the three months ended June 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 June 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. 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 six months ended June 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 (0.5% in 2024), 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 six months ended June 30, 2025 (available on the Company's website and on SEDAR+).
On behalf of the Board of Directors,
Eric CabaPresident and CEO
For further information contact:Barbara Henderson - VP Corporate CommunicationsDirect: 604-628-1111E-mail: [e-mail] to Bear Creek Mining news
NI 43-101 Disclosure
Unless otherwise indicated, scientific and technical information in this news release is based on work programs and initiatives conducted under the supervision of, and has been reviewed and approved by, Donald Mc Iver, Fellow SEG and Fellow Aus-IMM. Mr. Mc Iver is Vice President, Exploration and Geology of Bear Creek Mining Corporation and is a qualified person ("Qualified Person" or "QP") as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Additional information related to the Mercedes Mine and the Corani Project, including the Quality Assurance and Quality Control measures applied to the Company's sampling and assaying practices, is available in its Annual Information Form for the year ended December 31, 2024, available on its website and on SEDAR+.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements regarding: the delivery of mining services at the Marianas deposit and the anticipated outcomes thereof; anticipated 2025 Mercedes mining plans and sources of production; completion of Marianas ventilation drop raises; the anticipated benefit of delineation and infill drilling at the Mercedes Mine; the potential Oxides opportunity and the requirement for additional analysis to fully understand the potential benefits of the Oxides on the Corani project; the deferral of interest payments under the 2025 Debt Arrangements until December 31, 2025; the payment of the Deferred Interest on December 31, 2025; the Credit Extension and the 2025 Sandstorm Note; the Strategic Review process; and the Company's ability to remain a going concern. These forward-looking statements are provided as of the date of this news release and reflect predictions, expectations or beliefs regarding future events based on the Company's beliefs at the time the statements were made, as well as various assumptions made by and information currently available to them. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to, assumptions related to the Company's operating results, business objectives, goals and capabilities. Although management considers the assumptions underlying its forward-looking statement to be reasonable based on information available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and the risk exists that estimates, forecasts, projections, and other forward-looking statements will not be achieved or that assumptions on which they are based do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions expressed above do not occur, but may include additional risks as described in the Company's latest Annual Information Form, and other disclosure documents filed by the Company on SEDAR+. The foregoing list of factors that may affect future results is not exhaustive. Investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.
Neither 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 release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/262440