Sierra Madre Gol Stock Price, News & Analysis

Sierra Madre Gold and Silver (OTCQX: SMDRF) has commenced underground development at the Nazareno silver and gold mine within its La Guitarra complex in Mexico. Over 700 tonnes of mineralized material have been delivered to the Guitarra processing plant, with production grades exceeding the resource model by 40% for silver and 30% for gold.

The company has identified merged silver and gold-bearing veins forming zones up to 8 meters wide. The 2023 Mineral Resource Estimate shows 309,877 tonnes of Indicated resources at 257.3 g/t AgEq and 753,784 tonnes of Inferred resources at 251.5 g/t AgEq. Sierra Madre plans to expand plant capacity from 500 t/d to double capacity by Q3 2027.

Sierra Madre Gold and Silver (OTCQX: SMDRF) has announced a two-stage expansion plan for its La Guitarra silver-gold mine in Mexico. The first phase, targeted for Q2 2026, will increase processing capacity by 50% to 750-800 tpd from the current 500 tpd, featuring a new paste fill plant, fourth ball mill, and second cone crusher.

The second phase, scheduled for Q3 2027, will further expand capacity to 1,200-1,500 tpd, including construction of a new 5.8 million tonne Dry Stack Tailings Storage Facility. The company plans to self-fund the expansions through its treasury and cash flow, following a recent C$19.5M private placement in July.

Sierra Madre Gold and Silver (OTCQX:SMDRF) reported strong Q2 2025 financial results, with revenues of $5.4 million and gross profit of $1.3 million. The company sold 173,562 silver equivalent ounces during the quarter, consisting of 65,683 ounces of silver and 1,096 ounces of gold.

Key operational highlights include the ramp-up of the higher-grade Coloso mine and successful completion of a C$19.5 million private placement post-quarter. Despite challenges from early seasonal rains causing power outages, adjusted EBITDA increased 37.5% to $1.46 million. The company plans to expand plant capacity beyond the current 500 t/d and implement a 20,000-metre exploration program at East District concessions.

Sierra Madre Gold and Silver (OTCQX: SMDRF) has announced the grant of 2,750,000 stock options to various stakeholders including employees, directors, management, and consultants. The options are priced at $0.73 per share with a five-year exercise period.

The majority of options will vest in three tranches: one-third immediately, one-third after six months, and the final third after 12 months. A special allocation of 40,000 options to Adelaide Capital, the company's investor relations consultant, will vest quarterly over one year. The grant remains subject to TSX Venture Exchange approval.

Sierra Madre Gold and Silver (TSXV: SM) has successfully closed the first tranche of its brokered private placement, raising $17.75 million through the issuance of 25,358,000 units at $0.70 per unit. Each unit includes one common share and half a warrant, with each full warrant exercisable at $0.85 for 12 months.

The company plans to use the proceeds to expand the Guitarra mine capacity, conduct exploration at the East District, and for working capital. Beacon Securities acted as lead agent, with company insiders participating by subscribing for 686,000 units ($480,200). The agents received a cash fee of $1.17 million plus compensation options.

The total offering size is up to $19.5 million, with this first tranche representing approximately 91% of the total placement.

Sierra Madre Gold and Silver (SMDRF) held its Annual General Meeting on June 18, 2025, with 75,415,346 votes cast representing 48.989% of eligible shares. Shareholders approved all proposed motions with overwhelming support. The board of directors was set at five members, with all nominees receiving over 99.8% approval: Alexander Langer, Greg Smith, Alejandro Caraveo-Vallina, Jorge Ramiro Monroy, and Sean McGrath. Davidson & Company LLP was reappointed as auditors with 99.954% approval, and the company's 10% Rolling Stock Option Plan was approved with 99.936% of votes in favor.

Sierra Madre Gold and Silver has secured a 12-month extension on its US$5 million loan from First Majestic Silver Corp, extending the maturity date to May 7, 2027. The loan maintains its 15% annual interest rate with monthly interest-only payments. The company has deferred the first six months' interest payment of US$365,000, due at loan maturity. The extension aims to provide flexibility for potential expansion of the Guitarra silver-gold mine's plant and mill capacity in Mexico's silver belt and accelerate district-wide exploration. Additionally, Sierra Madre granted 950,000 stock options to new employees and consultants at $0.69 per share, vesting over 12 months.

Sierra Madre Gold and Silver reported strong Q1 2025 financial results from its Guitarra silver-gold mine complex. The company achieved revenues of $4.8 million and generated $535,000 in operating cash flow. During Q1, they sold 165,093 silver equivalent ounces, consisting of 75,137 ounces of silver ($2.34M) and 1,022 ounces of gold ($2.89M). Production metrics included 39,167 tonnes milled with silver and gold recoveries around 79%. The company reported gross profit of $1.2 million and all-in-sustaining costs of $28.98 per AgEq ounce, down from $32.18 in Q4 2024. Sierra Madre recently started mining at the higher-grade Coloso mine, which is expected to improve head grades and reduce per-ounce mining costs in 2025.

Sierra Madre Gold and Silver has commenced underground mining operations at the Coloso silver-gold mine, part of the Guitarra Complex in Mexico. The mine, previously operated by First Majestic Silver, features over 12 kilometers of underground workings, enabling a restart 7 months ahead of schedule with minimal pre-production costs.

Mining has begun at the Jessica vein system, starting at 50 tonnes per day with plans to reach 150 tonnes daily by year-end. The Coloso resource shows significantly higher grades compared to Guitarra veins:

• Coloso: 221 g/t silver and 1.61 g/t gold (432,000 indicated tonnes)
• Guitarra: 123 g/t silver and 1.25 g/t gold (1,649,000 indicated tonnes)

The company has hired a metallurgist to optimize the blending ratio of Coloso to Guitarra mill feed for maximum economic benefit. The processing plant continues to operate at 500 tonnes per day, with Coloso material gradually replacing some Guitarra feed.