Bear Creek Mining Reports $30.8 Million Loss in Q3 2025

Bear Creek Mining Corporation, based in Vancouver, British Columbia, announced a significant loss of $30.8 million for the third quarter of 2025. The financial results, covering the three and nine months ending September 30, reveal production challenges at the company’s Mercedes mine, impacting both gold and silver output.

During Q3 2025, Bear Creek produced 6,219 ounces of gold and 18,866 ounces of silver from the Mercedes mine. This production level reflects ongoing operational difficulties, including a development deficit that stemmed from earlier contractor performance issues and ventilation challenges at the Marianas deposit. These factors have significantly hampered mining activities, according to Eric Caba, President and CEO of Bear Creek Mining.

Caba stated, “Both tonnage mined and gold ounces produced were impacted during Q3 2025 by the development deficit at Mercedes that resulted from the operating challenges in the first half of 2025.” The company continues to implement a recovery plan aimed at addressing these issues while exploring strategic options for enhancing overall value.

Financial Overview and Strategic Initiatives

The reported loss for Q3 2025 was largely attributed to $20.2 million in non-cash items, including changes in the fair value of embedded derivatives, warrant liabilities, and unrealized foreign exchange losses. Adjusted earnings for the quarter stood at $(10.6) million, or $(0.04) per share, consistent with recent quarterly trends. Gross revenue from gold and silver sales reached $22.5 million, while the cost of goods sold was $20.6 million.

The company has not provided specific production guidance for the Mercedes mine for the remainder of 2025. As part of its ongoing strategic review initiated in early 2025, Bear Creek is considering various financial options, including potential asset sales and partnerships aimed at optimizing resources at the Corani project.

Production Challenges and Development Plans

Production at the Mercedes mine faced significant setbacks during the quarter, with a total of 76,211 tonnes mined and 79,457 tonnes processed. The average grades of gold and silver mined decreased as operations transitioned away from the higher-grade San Martin deposit. The Marianas deposit, initially expected to be a major contributor to production, is currently undergoing ventilation improvements, which are critical for resuming normal operations.

To address the ventilation issues, the company redesigned its approach, opting for drop raises to enhance airflow within the mine. Despite these measures, uncertainties remain regarding their effectiveness in fully mitigating the impact of the development deficit.

In terms of exploration, Bear Creek continued delineation and infill drilling primarily at the Marianas and Diluvio deposits, investing $0.5 million during Q3 2025. This drilling aims to enhance the confidence in mineral resource classifications and support future mine planning efforts.

Financial Position and Going Concern

As of September 30, 2025, Bear Creek reported cash and short-term investments totaling $2.3 million, a decrease from $6.7 million at the end of the previous year. The company faces a net working capital deficiency of $113.1 million, primarily due to high accounts payable and current liabilities.

The financial statements prepared for this quarter adhere to going concern principles, indicating management’s belief that Bear Creek can continue operations for at least the next twelve months. However, significant uncertainty remains regarding the company’s ability to generate sufficient cash flow from the Mercedes mine, leading to potential reliance on additional financing.

Management is actively implementing operational improvements and exploring financing alternatives to bolster liquidity. Despite these efforts, there are no guarantees that the measures will be successful in addressing the company’s financial challenges.

Overall, Bear Creek Mining Corporation’s Q3 2025 results highlight substantial operational difficulties and a pressing need for strategic reassessment as the company navigates its path forward. The ongoing developments at the Mercedes mine and the Corani project remain critical to its future success.