April 23, 2025

Sierra Madre Gold And Silver – Q4 And Full-Year Operations And Financials - Future Growth Initiatives

23 minutes

Alex Langer, President and CEO of Sierra Madre Gold And Silver (TSXV: SM) (OTCQX: SMDRF), joins me to review the Q4 and full-year 2024 operations and financial metrics from ramp up 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.

FY 2024 and Q4 2024 Financial Highlights

Net Revenues: After refining, treatment and smelting charges, the Company recorded net revenues of $6.5 million in the six-month period ended December 31, 2024, or approximately $28.35 per silver equivalent ounce ("AgEq ounce"). The Company averaged $30.37 per silver ("Ag") ounce sold and $2,594 per gold ("Au") ounce sold in the six-month period of operations to December 31, 2024.

In Q4 2024, Sierra Madre recorded silver revenues totaling approximately $1.9 million ($31.58 per Ag ounce) and gold revenues totaled approximately $2.4 million ($2,667 per Au ounce).

Cost of Sales was $5.1 million for the six-month period ended December 31, 2024, approximately $22.40 per AgEq ounce sold, representing $20.95 per AgEq ounce sold in Q4 ($2.8 million) and $24.13 per AgEq ounce sold in Q3 ($2.3 million).

Gross profit was $1.36 million for FY 2024.

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.

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