Canadian exploration and development company Gold Mountain Mining experienced a sharp revenue decline in the third quarter of the 2025 financial year, with earnings falling to $594 404, compared with $1.78-million in the same period last year.

The Vancouver-based mining company attributes the drop to reduced gold production and sales volumes, despite higher realised gold prices, which averaged $2 290/oz during the quarter.

The company sold 256 oz of gold in the quarter, down from 826 oz in the third quarter of the 2024 financial year, as it focused on extensive stripping to access higher-grade ore at the Elk gold mine’s Siwash North Pit.

This stripping activity drove the strip ratio to 66.7, significantly up from 28.4 in the previous year, and contributed to increased unit costs. Total cash costs per ounce sold rose to $9 578, compared with $5 192 in the same quarter of the prior financial year.

Financial results reflected these operational challenges, with a net loss of $1.76-million, compared with a net loss of $3.2-million in the third quarter of the prior year. Mine operating losses for the quarter totaled $2-million, while the company posted an adjusted loss before interest, taxes, depreciation and amortisation of $1.72-million.

Despite these setbacks, Gold Mountain raised $6.5-million during the quarter through a convertible secured debenture to support its operational ramp-up and address working capital needs. The debenture allows conversion into common shares at $0.08 a share and carries an annual interest rate of 10%.

Looking ahead, the company is focused on optimising its block model, pit design and mine planning to improve operational efficiency. Management expects production to increase in the fourth quarter of the 2025 financial year as higher-grade ore is accessed, which it says should stabilise unit costs.

Further, Gold Mountain continues to engage with local indigenous communities to address concerns surrounding its mining activities.

With efforts underway to enhance ore processing, grade control and sampling, Gold Mountain aims to achieve improved financial and operational results in the coming quarters.