Executive Summary

Q1 2025 showed constrained production but improved unit costs vs late 2024: AuEq sold 3,394 oz with realized prices of $2,956/oz gold and $32.54/oz silver; total cash cost was $2,494/AuEq oz and AISC $3,252/AuEq oz .
Liquidity improved on capital actions: working capital $6.2M and cash $4.9M at 3/31/25, aided by $8.6M raised via ATM YTD through May 8 and receipt of a 79.6M peso (~$4.0M) tax refund on May 7 .
Going-concern runway modestly extended as the company warned operations “may not be possible beyond the third quarter of 2025” absent additional capital, vs prior cautions pointing to 1H25 or as early as Nov-2024; execution on contractor mobilization, equipment upgrades and Three Sisters development remains critical .
No Q1 call was held; management reiterated focus on accelerating access to Three Sisters, adding a third filter press (targeting 1,300 → 1,500 tpd), and deploying a gently used fleet to restore volume and lower unit costs .

What Went Well and What Went Wrong

What Went Well

Liquidity boost: Received a 79.6M peso (~$4.0M) tax refund on May 7, 2025; raised $8.6M net via ATM through May 8, supporting near‑term operations and development .
Cost containment and pricing: Q1 AISC fell to $3,252/AuEq oz (from Q3 2024’s $5,072) while realized gold and silver prices were strong at $2,956/oz and $32.54/oz, respectively .
Strategic focus on Three Sisters: “We’re actively assessing equipment options and pursuing targeted purchases of high-quality rebuilt and/or overhauled equipment to accelerate development and reduce costs…part of a disciplined execution plan” — CEO Allen Palmiere .

What Went Wrong

Operational constraints: Aging mining fleet and mill mechanical issues limited available headings and throughput; company is mining “only one face at a time,” amplifying production shortfall risk .
Going-concern risk persists: Management reiterated substantial doubt about the ability to continue as a going concern without new capital and successful development of new zones .
Production pressure: Grades and tonnes remained lower than prior years; DDGM produced and sold 3,394 AuEq oz with 859 gold oz and 230,320 silver oz, constrained by equipment availability and limited alternative headings .

Financial Results

Note: Revenue/EPS/EBITDA from S&P Global; consensus estimates were unavailable for Q1 2025.

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$18.70*	$12.97*	$12.35*
Net Income ($USD Millions)	-$5.68*	-$14.25*	-$8.32*
Diluted EPS ($)	-$0.064*	-$0.150*	-$0.074*
EBITDA ($USD Millions)	$0.29*	-$5.38*	$0.01*
EBITDA Margin (%)	1.6%*	-41.5%*	0.1%*
Net Income Margin (%)	-30.4%*	-109.9%*	-67.3%*

YoY (Q1 2025 vs Q1 2024): Revenue -34.0%, EPS deterioration to -$0.074 from -$0.064, NI margin -67.3% vs -30.4%*.
QoQ (Q1 2025 vs Q4 2024): Revenue -4.7%, EPS improved to -$0.074 from -$0.150, NI margin improved to -67.3% from -109.9%*.
Values retrieved from S&P Global.

Key production and cost KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
AuEq oz sold	3,526	3,085	3,394
Gold oz sold	1,357	960	859
Silver oz sold	181,434	184,804	230,320
Tonnes milled	83,690	80,367	56,906
Realized gold price ($/oz)	$2,561	$2,706	$2,956
Realized silver price ($/oz)	$30.61	$31.11	$32.54
Total cash cost ($/AuEq oz)	$3,560	—	$2,494
AISC ($/AuEq oz)	$5,072	—	$3,252

Balance and liquidity datapoints

Working capital: $6.1M (9/30/24) ; $2.1M (12/31/24) ; $6.2M (3/31/25) .
Cash: $1.4M (9/30/24) ; $1.6M (12/31/24) ; $4.9M (3/31/25) .

Segment breakdown: Not applicable; primary operations at Don David Gold Mine (DDGM) in Oaxaca, Mexico .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Operating runway (going concern)	2025	May not be possible beyond 1H 2025 absent capital (earlier: beyond Nov 2024 )	May not be possible beyond Q3 2025 absent capital	Extended runway (still contingent)
Throughput target	2025	Add third filter press; target 1,300 → 1,500 tpd	Plan reiterated; pursuing press and fleet; contractor to fast‑track access	Maintained
Capital for fleet/mill	2025	~$7M (equipment+mill upgrades)	~$7M reaffirmed; exploring used equipment/contractor options	Maintained (optimize via used/contractor)
Working capital need	Next 12 months	~$8M to access Three Sisters/Splay 31	~$8M reaffirmed	Maintained
Liquidity actions	2025 YTD	ATM $3.0M raised in Jan–Feb ; refund expected	ATM $8.6M raised through May 8; 79.6M peso refund received May 7	Improved execution (cash inflows realized)
Q1 conference call	Q1 2025	—	No Q1 call due to proximity to year-end call	N/A

Earnings Call Themes & Trends

Note: No Q1 2025 call; themes reflect Q3 2024 press, Q4 2024 call, and Q1 2025 press.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q1 2025)	Trend
Three Sisters development	Q3 2024: infill at Arista; Three Sisters highlighted; drilling suspended Aug 1 to preserve cash . Q4 2024 call: intersected ore, early ore release, aim for >50% of feed by early 2026; higher grades; NSR >$200/t view .	Continuing development; definition drilling progressed; contractor negotiations to accelerate access .	Positive progress; near-term execution critical
Equipment and contractor	Q3 2024: equipment availability a major constraint . Q4 2024: plan to acquire used fleet; contractor mobilization in Q2 .	Pursuing rebuilt/overhauled equipment; contractor negotiations advancing .	Execution in progress
Plant throughput (filter press)	Q4 2024: target +third filter to 1,300 → 1,500 tpd .	Plan reiterated .	Maintained plan
Liquidity and financing	Q3 2024: ~$7M upgrades + ~$8M WC; going-concern risk . Q4 2024: reiterated; ATM $3.0M; $2.5M direct offering; asset sale $0.9M .	ATM $8.6M YTD; received ~79.6M peso refund; still evaluating financing .	Improved but still at risk
Tariffs/customs risk (equipment)	Q4 2024 call: exploring ocean freight to avoid tariff/customs uncertainty .	Not updated.	Watch for logistics pathway
Customer/geography	Q4 2024 call: off-takers are European trading houses; not Asia .	Not updated.	Stable
Safety and operations	Q4 2024: accident-free full-year; LTIFR zero .	Not updated in Q1 release.	Stable record
Accounting/regulatory	Q4 2024: Back Forty stream liability restatement; control remediation; no cash impact .	Not updated.	Monitoring

Management Commentary

“We secured additional capital through ATM sales and received the anticipated tax refund, strengthening our balance sheet and placing us in a better position to move forward with the development of the Three Sisters system…part of a disciplined execution plan—and we’re confident in our ability to deliver anticipated results.” — CEO Allen Palmiere, Q1 press release .
“We are currently negotiating with a contractor to develop and produce from the Three Sisters… We plan to purchase a gently used fleet… [and] secure a third filter press… to increase our throughput initially to 1,300 tonnes/day and thereafter to 1,500 tonnes/day.” — Year-end release and call .
“The ore body was successfully intersected in Q1 2025, confirming thickness and grades… development rates are expected to increase with the arrival of the contractor.” — Q4 2024 call (COO) .

Q&A Highlights

Three Sisters cadence and timing: Management confirmed first ore intersected ~a month before the Apr 9 call and expects Three Sisters to contribute a significant share of feed by year-end, targeting 1,500 tpd by Jan/Feb next year, contingent on development and contractor ramp .
Contractor and fleet specifics: Evaluating a 16‑unit used fleet (bolters, jumbos, scoops, low-profile trucks) with significant spare parts; considering ocean freight to mitigate tariff/customs uncertainty .
Off-taker geography: Current concentrate buyers are international trading houses based in Europe, not Asia .
Insider buying and comp: Management cited blackout and financing processes limiting purchases; noted zero short- and long-term incentive awards for 2024 .

Estimates Context

Wall Street consensus (S&P Global): Consensus for Q1 2025 Primary EPS and Revenue was not available; S&P returned only “actual” values with no estimate counts for EPS/revenue. As a result, we cannot assess beats/misses vs consensus for Q1 2025.
Reported figures used in this recap for revenue, EPS, and EBITDA are from S&P Global where noted with an asterisk. Values retrieved from S&P Global.

Key Takeaways for Investors

The story is binary around funding and execution: capital inflows (ATM + tax refund) extended runway to “beyond Q3 2025,” but continued operations still depend on securing additional financing and rapidly developing new zones .
Unit costs improved vs Q3 2024 on higher metal prices and cost actions; further reductions depend on reaching 1,300–1,500 tpd through press/fleet additions and contractor execution .
Three Sisters is the core catalyst: early ore intersect and promising grades underpin the plan to lift volumes and margins; delays to contractor mobilization or equipment deliveries would be a negative catalyst .
Watch for near-term updates on financing structure (equity/ATM, debt, offtake prepay) and equipment logistics (tariff/customs path); both influence dilution risk and timing .
No Q1 call reduces visibility; next checkpoints include capital raise progress, filter press procurement, fleet arrival (targeted early Q3), and proof of sustained throughput gains .
Medium-term thesis hinges on converting reserve additions (Three Sisters) into cash flow, restoring mine flexibility (multiple headings), and normalizing fixed-cost absorption to drive AISC lower .

Sources

Q1 2025 8-K (Item 2.02) and press release (Ex.99.1): production, costs, liquidity, and runway disclosures .
Q1 2025 standalone press release: production, costs, liquidity actions (ATM, tax refund) .
Year-end 2024 press/8‑K and Q4 2024 earnings call: strategy, throughput targets, contractor/fleet details; Q&A .
Q3 2024 press/8‑K: production, costs, and initial going‑concern warning .

S&P Global data

Revenue, EPS, Net Income, EBITDA, and margins in the “Financial Results” table are from S&P Global and marked with an asterisk. Values retrieved from S&P Global.

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