Sierra Madre Gol Stock Price, News & Analysis

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.

Sierra Madre Gold and Silver (SMDRF) has reported its FY 2024 financial results, generating $6.5 million in revenues from the Guitarra Mine Complex in Mexico. The company achieved commercial production on January 1, 2025, following a six-month test mining program.

Q4 2024 highlights include $3.9 million in revenues, up from $2.5 million in Q3, with a minimal net loss of $38,000. The company recorded silver revenues of $1.9 million ($31.58/oz) and gold revenues of $2.4 million ($2,667/oz). Cost of sales was $5.1 million for the six-month period, with gross profit reaching $1.36 million for FY 2024.

Operational achievements include processing 38,464 DMT in Q4, with silver recoveries of 79% and gold recoveries of 84%. The company completed concentrate deliveries totaling 795 DMT in Q4, containing approximately 59,178 ounces of silver and 897 ounces of gold.

Sierra Madre Gold and Silver has announced record production figures from its Guitarra Mine Complex for January 2025, marking its first month of full commercial production. The facility is operating at its current capacity of 500 wet metric tonnes per day.

Key production metrics for January 2025 include:

• 349.48 dry metric tonnes of concentrate shipped
• 45.81 tonnes of concentrate in inventory
• Provisional weighted average silver grade of 2,429 grams per tonne
• Average gold grade of 32.124 grams per tonne

The company plans to release year-end financials in April 2025 and Q1 2025 interim financials in May 2025, which will reflect their first quarter of commercial production.

Sierra Madre Gold and Silver (OTCQX: SMDRF) has announced achieving full commercial production at its 100% owned Guitarra Mine Complex in Mexico, effective January 1, 2025. The operation has maintained a consistent capacity of 500 wet metric tonnes per day for 90 consecutive days.

During the 2024 test mining phase, the company shipped 1,292.5 dry metric tonnes of concentrate, with an additional 94.6 tonnes in inventory as of December 31, 2024. The provisional weighted average grades for the 2024 concentrate shipments were 2,594.2 grams per tonne silver and 34.93 grams per tonne gold.

The company reports successful equipment repairs and rebuilding, completed under budget and ahead of schedule, enabling an early restart. Management highlights the establishment of safe, efficient operating procedures and a cost-conscious culture as positive indicators for future operations.

Sierra Madre Gold and Silver has announced the commencement of industrial production at its Guitarra mine processing plant in Mexico. The plant has operated at 86% of milling capacity (516 wet metric tonnes daily) for two months, surpassing the 80% engineering standard required for industrial production declaration.

Production highlights include: October - 13,208 wet tonnes processed, yielding 296.84 dry tonnes of concentrate (21,186 oz silver, 295.3 oz gold); November - 13,064 wet tonnes processed, yielding 317.7 dry tonnes of concentrate (22,917 oz silver, 363.3 oz gold). The company sold 17 truckloads totaling 546.2 dry tonnes of concentrate across both months.

The mine currently operates 11 stopes, including three new vein discoveries outside the 2023 NI 43-101 resource estimation. The company aims to achieve full commercial underground production by December 31, 2024.