Bear Creek Mining Stock Price, News & Analysis

Bear Creek Mining (BCEKF) reported Q1 2025 financial results with significant operational challenges. The company produced 8,262 oz of gold and 36,466 oz of silver at its Mercedes mine. Financial results showed revenue of $23.7 million but a comprehensive loss of $13.3 million. The company faces liquidity concerns with a working capital deficiency of $88.2 million. Key developments include completing a $10 million private placement, deferring debt payments to December 2025, and initiating a strategic review process. Production challenges were mainly due to contractor underperformance in narrow vein mining. The company's cash costs were $2,066 per gold ounce with AISC at $2,646.

Bear Creek Mining (OTCQX: BCEKF) has announced two significant developments. First, the company appointed Eduardo Flores as Senior Vice President of Business Development, bringing over 30 years of mining industry experience from companies like Antofagasta, Barrick, and Kinross. Second, the company has drawn down US$1.2 million from its 2025 Sandstorm Note, which has a maximum principal amount of US$6.5 million.

The Sandstorm Note bears a 7% annual interest rate, matures on September 22, 2028, and allows monthly drawdowns up to US$600,000. Interest payments from June to November 2025 are deferred until December 31, 2025. The company plans to seek TSX Venture Exchange approval for a conversion right at C$0.73 per common share, with Sandstorm's ownership restricted to 19.99% on a non-diluted basis.

Bear Creek Mining (BCEKF) has issued a secured promissory note to Sandstorm Gold Ltd. for up to US$6.5 million. The note features monthly drawdowns of up to US$600,000 for working capital, with a 7% annual interest rate and maturity on September 22, 2028. Monthly interest payments of approximately $40,000 will begin June 30, 2025, with interest from June to November 2025 deferred until December 31, 2025. The company plans to service the debt using revenue from its Mercedes Mine in Mexico. The note includes potential conversion rights at C$0.73 per share, pending TSXV approval, with Sandstorm's ownership capped at 19.99%. The loan is secured by first-ranking interests in various company assets, including shares in subsidiaries operating the Mercedes mine and Corani project.

Bear Creek Mining (BCEKF) reported challenging Q1 2025 results from its Mercedes Mine, producing 8,262 ounces of gold and 36,466 ounces of silver. The company faced significant delays in transitioning to Marianas and Rey de Oro deposits due to contractor underperformance. The mine compensated by accelerating pillar removal from San Martin and mining additional material from the lower-grade Diluvio deposit, resulting in diminished gold grades and production. During Q1, the mine processed 105,611 tonnes of ore with a gold grade of 2.56 gpt and 95% recovery rate. Additionally, Bear Creek announced it would not proceed with the Preliminary Economic Assessment of the Corani Oxides opportunity at this time, citing the need for additional analysis while undergoing a Strategic Review process.

Bear Creek Mining (BCEKF) has reported its 2024 year-end financial results, producing 40,220 oz gold and 217,676 oz silver at its Mercedes Mine. The company recorded revenue of $103.7M but faced a comprehensive loss of $66.8M, including a non-cash impairment charge of $27.2M for Mercedes Mine.

Key operational metrics include cash costs of $1,471 and AISC of $1,888 per gold ounce sold, with an average realized gold price of $2,347. The company completed significant restructuring with Sandstorm Gold , reducing gold deliverables and suspending silver deliveries until April 2028.

The company has initiated a strategic review process to enhance shareholder value and secured approximately $10M through a bought deal private placement. Production challenges continued in 2024, particularly in the transition to narrow vein mining at Marianas, leading to underperformance in recent months.

Bear Creek Mining (BCEKF) has finalized debt amendments with Equinox Gold and Sandstorm Gold to temporarily defer monthly interest payments from February 2025 to November 2025, with payment now due on December 31, 2025. The deferral applies to three debt agreements: the Equinox Note (US$26 million), Sandstorm Convertible Debenture (US$22.5 million), and 2024 Sandstorm Note (US$21.6 million).

The deferred interest will accrue at 7% per annum, compounded monthly. Additionally, the company plans to issue a new 2025 Sandstorm Note worth up to US$6.5 million, with Sandstorm committing up to US$600,000 monthly for working capital. This new note, subject to TSXV approval, will have similar terms including a September 2028 maturity and 7% annual interest rate.

Bear Creek Mining (TSXV: BCM) (OTCQX: BCEKF) has announced key changes to its Board of Directors and provided updates on debt restructuring efforts. Andrew Swarthout, a company founder who served as President and CEO until 2017, and Sandra Daycock, who joined the board in November 2023, have retired from their positions as directors.

The company is currently finalizing documentation for two significant financial arrangements: (1) Debt Amendments with Equinox Gold Corp. and Sandstorm Gold to temporarily defer certain interest payments, and (2) a Credit Extension of up to US$6.5 million from Sandstorm. Both arrangements are pending approval from the TSX Venture Exchange.

Bear Creek Mining (BCEKF) has filed a Technical Report for its Mercedes gold and silver mine in Sonora, Mexico. The report, dated September 30, 2024, was prepared by Global Resource Engineering (GRE) and supports the previously announced updated Mercedes Mineral Resource and Mineral Reserve estimates from January 29, 2025.

The Technical Report, titled 'NI 43-101 Technical Report, Mercedes Gold - Silver Mine, Sonora State, Mexico,' contains no material differences from the January 29, 2025 News Release. Both documents are publicly available on SEDAR+ and the company's website.

The report was prepared by a team of Qualified Persons including experts in mining engineering, metallurgy, geology, environmental engineering, and geotechnical engineering from GRE and Bear Creek Mining

Bear Creek Mining (BCEKF) has successfully closed a brokered private placement, raising C$14.5 million through the issuance of 64,445,000 common shares at C$0.225 per share. The offering was underwritten by BMO Capital Markets and Canaccord Genuity Corp., with a 6% commission paid on 38,667,000 shares.

Sandstorm Gold and Equinox Gold Corp. each participated by purchasing 32,222,500 shares (12,889,000 net after concurrent sale). Post-offering, Sandstorm and Equinox hold approximately 19.98% and 13.10% of total shares, respectively.

The proceeds will fund:

• Exploration and resource drilling at Mercedes mine in Mexico
• Construction of ventilation raise bore and secondary escape way at Marianas deposit
• Reduction of Mercedes' trade payables

Notably, the company reported a significant working capital deficiency of US$93.2 million as of September 30, 2024, raising going concern risks.