June 13, 2025

Sierra Madre Gold and Silver – Q1 2025 Financials And Operations, Mining Commenced At Coloso in Q2, And Optionality From Loan Extension With First Majestic

20 minutes

Alex Langer, President and CEO of Sierra Madre Gold And Silver (TSXV: SM) (OTCQX: SMDRF), joins me to review the Q1 2025 operations and financial metrics showing profitability from the very first quarter of commercial production at the La Guitarra Mine and processing plant, in Mexico. We also look a number of future development and exploration value drivers for the Company across their district-scale land package.

Q1 2025 Highlights

Net Revenues: Silver revenues for the quarter totalled $2.34 million ($31.13 per ounce) and gold revenues totalled $2.89 million ($2,828 per ounce).

The Company sold 75,137 ounces of silver ("Ag") and 1,022 ounces of gold ("Au") or 165,093 silver equivalent ("AgEq") ounces, based on the ratio of Au and Ag prices realized for each shipment in the period.

Cost of sales was $3.6 million, approximately $21.84 per AgEq ounce sold.

All-in-sustaining costs per AgEq ounce sold of $28.98 per ounce, compared to $32.18 in Q4 2024.

Gross Profit was $1.2 million.

Cash provided by operating activities was $535,000.

Current assets, including cash, totaled $4.3 million at March 31, 2025, up from $3.5 million in Q4 2024.

Q1 2025 Operational Details

Mine Operations: Milled 39,167 tonnes of material, silver recoveries averaged 79.21% while gold recoveries averaged 78.77%.

Production: Produced 70,176 ounces of silver and 1,001 ounces of gold.

Coloso Mining: On April 29 2025, Sierra Madre announced the start of underground mining at the Coloso mine within the Guitarra Complex. The estimated resource grades at Coloso are significantly higher in both silver and gold compared to the Guitarra mine veins. During the ramp up of Coloso mining, various blending percentages for mill feed will be tested to ascertain best recovery procedures.

Alex then lays out the envisioned plan is to run the mill at 500 tpd most of next year, at the slated commercial production throughput. However, he then also shares the pathway forward where a modest amount of equipment can be purchased and installed to grow the mill throughput to 650 TPD in 2026, and then all the way up to 1,000+ TPD by the end of 2027. In addition to the potential of growth through production, we also discuss the leverage that a silver and gold producer like Sierra Madre will have to the potential of rising metals prices in 2025 and 2026.

Next we shift over into the larger growth vision of the company, as it will turn it’s it focus to exploring this district scale land package the end of next year, funded through organically generated revenues. The property hosts 8 different past-producing mines, with the first 2 priorities being to explore around the El Rincon and Mina de Agua mines. Additionally, there is a non-compliant 17 million ounce historic resource at the Nazareno Mine, and also solid underground infrastructure at the nearby high-grade Coloso Mine, that First Majestic had put quite a bit of sunk cost into already. Moving the Coloso Mine back into production will be another near-term area of future expansion, which could see supplementary production complimenting the current production coming out of La Guitarra.

If you have any questions for Alex regarding Sierra Madre Gold and Silver, then please email them to me at either [email protected].

In full disclosure, Shad is a shareholder of Sierra Madre Gold & Silver at the time of this recording.

Click here to follow along with the latest news from Sierra Madre Gold & Silver

...more