Mexico Mine Posts 628K Ounces in 2025 as Expansion and Second Project Advance

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1.  Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Sierra Madre Gold and Silver Ltd. (SM:TSX.V; SMDRF:OTCQX) reported its audited consolidated financial results for the year ended December 31, 2025, including fourth quarter results. The company reported that it sold a total of 628,196 silver equivalent ounces in 2025, consisting of 271,204 ounces of silver and 4,041 ounces of gold.

For the full year, gross silver revenues totaled US$10.68 million and gross gold revenues totaled US$13.77 million. Including provisional and final settlements of concentrate shipments, total revenues reached approximately US$24.96 million. The company reported net income of US$8.13 million, or US$0.05 per share, compared to a net loss of US$4.08 million in 2024. Cash from operating activities totaled US$4.09 million for 2025, compared to a use of cash of US$3.65 million in the prior year. Adjusted EBITDA was US$6.03 million for 2025, compared to a loss of US$1.99 million in 2024.

In the fourth quarter, net revenues increased to US$8.32 million, compared to US$5.92 million in the third quarter. The company reported gross profit of US$3.72 million for Q4 2025, compared to US$2.10 million in Q3 2025. During the quarter, 135,958 silver equivalent ounces were sold.

Operationally, the company milled 40,869 tonnes of material in Q4 2025, with average silver recoveries of 73.89% and gold recoveries of 71.53%. Production totaled 68,296 ounces of silver and 1,050 ounces of gold during the quarter. Development work totaled 770.20 meters, compared to 653.0 meters in Q3 2025.

Alex Langer, Chief Executive Officer, stated in the news release, "As we report our full year results, 2025 marked a transformational year for the company with the restart of La Guitarra at the start of 2025. On the mine operations front, we saw consecutive improvements in head grades through each quarter of 2025, as well as sequential increases in quarterly net revenues, for a total of US$24.96 million recorded for the year and US$2.57 million in income before income taxes."

The company also reported that cash costs for 2025 were US$27.90 per silver equivalent ounce sold, compared to US$22.97 per ounce in 2024. Cash and cash equivalents and short-term investments totaled US$17.3 million as of December 31, 2025.

Additional developments included the initiation of a two-phase expansion at the La Guitarra plant, continued ramp-up activities at the Coloso and Nazareno mining areas, and progress on the proposed acquisition of the Del Toro mine. The company also completed a CA$19.5 million private placement in July 2025 and a CA$57.5 million financing related to the Del Toro transaction, which closed in escrow.

Precious Metals Sector Sees Central Bank Demand, Supply Deficits, and Shifting Reserve Trends

Kitco News reported on April 27 that gold demand remained supported by central bank activity and broader macroeconomic conditions. Lorenzo Portelli of Amundi Investment Institute said, "Central bank demand is likely to remain strong, especially among emerging market authorities that continue to diversify reserves away from traditional currencies." He also stated, "Gold remains a strategic asset for reserve managers seeking to reduce dependency on the U.S. dollar and enhance portfolio resilience," and added that "we continue to view gold as a valuable safe-haven asset."

According to an April 29 report from Deutsche Bank, the role of gold in global reserves had been shifting in response to geopolitical conditions rather than monetary policy frameworks. The report stated, "We argue that the share of gold in central bank reserves is not driven by the global monetary system, but by the global geopolitical environment." It added that the composition of reserves had been changing, noting that "the dollar's losses as a share of central bank reserves have not gone to other fiat currencies, but to gold." The report also highlighted continued participation from emerging markets, stating, "EM central banks have been actively buying gold…there could be a long way to go in the trend."

Peter Krauth wrote on April 29 that supply and demand dynamics in the silver market continued to shape pricing conditions. He stated that "2025 suffered the largest silver deficit ever at -318.4Moz," and added that "demand is simply too robust and continues to outpace supply." He also noted that "2026 is forecast to be deeper than 2025," referring to projected supply deficits, and observed that global holdings had increased, stating that "holdings have more than doubled in the last decade."

Third-Party Coverage Highlights Financial Growth, Operational Progress

According to FactSet, VSA Capital analyst Oliver O'Donnell issued a Buy rating on Sierra Madre on February 13, 2026, with a CA$3 target price.

Peter Krauth and Ted Butler wrote on April 29 that Sierra Madre "publishes positive Q4 and year-end 2025 results as Del Toro mine acquisition receives shareholder approval." Ted Butler stated that "Sierra Madre's financial results just came in for Q4 and year-end 2025 — and to say they landed sweetly would be an understatement, with sequential revenue increases recorded each quarter." He also noted that "shareholders have approved the acquisition of the Del Toro silver mine," adding that "this paves the way for even higher future cash flows amid an elevated silver price."

Butler further wrote that "a similar story of steady growth was observed in Q4 output numbers," and described operational developments, including that "at Coloso, after initiating production in Q1/25, 6 active stopes are now operating across 2 veins," and that "at Nazareno, a transition to a jumbo drill has allowed for a more rapid ramp construction." He also stated that "at La Guitarra, a refurbished 3-ft crusher came online in April, and a new ball mill installation is planned for May."

Operational Expansion and Development Milestones

The company reported that Phase 1 of the La Guitarra plant expansion is anticipated for completion by the end of Q2 2026, with the objective of increasing nameplate capacity from 500 tonnes per day to a range of 750 to 800 tonnes per day. Phase 2 is anticipated for completion by Q3 2027, targeting capacity expansion to between 1,200 and 1,500 tonnes per day.

As part of Phase 1 activities, a used 3-foot crusher was purchased, refurbished, and brought online in April 2026. Modifications to the primary crusher are intended to support the Phase 1 throughput target. A ball mill with a capacity of 600 to 700 tonnes per day was purchased in December 2025 and is nearing completion of refurbishment, with installation planned for May 2026 pending geotechnical test results.

Construction of an 800-tonne per day thickener tank began in January 2026, with completion expected in June 2026. The system is designed to produce thickened tailings for underground stope backfill. A fourth ball mill is planned to support redundancy and Phase 2 expansion requirements. Additional equipment purchases include seven underground and surface haul trucks to support increased production capacity.

At the Coloso mine, production expanded to six active stopes across two veins following the restart decision made at the end of Q1 2025. Accelerated dewatering of lower mine levels is expected to enable access to additional resource blocks in the second half of 2026. Production from deeper resource blocks is expected to come online next year.

At Nazareno, development includes two ramps connecting multiple levels of mineralization, with two stopes established at the 180 level. Installation of an underground electrical substation and the transition to a jumbo drill have been completed, with full production from long-hole stopes at the 180 level expected to begin in late April.

The company also reported that installation of backup diesel generators across operations is underway following power disruptions experienced during the 2025 rainy season.

Exploration activities include a US$3.5 million program at the East District of the La Guitarra mine complex. A 30,000-meter drill program is planned following completion of this program, with drilling expected to begin in the second half of 2026.

Regarding the Del Toro project, the company indicated that a 30,000-meter drilling program is planned to begin in 2026, with an exploration budget of US$12 million over a 24 to 30-month period. The program includes diamond drilling, geological staffing, and assay work, with a target of producing a new resource report within 18 months of acquisition (targeted for early 2028).

The Del Toro acquisition includes a total consideration of up to US$60 million in cash and shares over a four-year period. Initial payments include US$20 million in cash and US$10 million in shares at closing, followed by staged payments over time based on operational milestones.

The company also outlined a restart plan for Del Toro, including a budget of approximately US$10 million over one year to support a restart at an 800 tonne per day run rate. The plan includes US$5 million allocated to mining development, US$5.3 million for mining equipment, US$2.3 million for plant work, US$1.0 million for laboratory infrastructure, and a contingency allocation.

Production at Del Toro is slated for mid-2028 following completion of development and exploration activities, with infrastructure already in place, including processing facilities, underground access, and supporting site services.

Ownership and Share Structure¹

Management and founders own approximately 24.3% of the company. According to LSEG, President and CEO Alexander Langer holds 2.68%, Executive Chairman and COO Gregory K. Liller owns 1.77%, Director Jorge Ramiro Monroy holds 1.32%, Director Alejandro Caraveo owns 1.26%, Director Kerry Melbourne Spong owns 0.57%, and Director Gregory F. Smith holds 0.14%, based on data prior to the Del Toro acquisition.

Institutional investors control 33.6% of the company, including an 8% stake held by Commodity Capital A.G. Strategic investors account for 26.2%, with the remaining ownership held by retail shareholders (pre-acquisition).

Sierra Madre Gold and Silver Ltd. has a market capitalization of approximately CA$330.51 million and a 52-week trading range of CA$0.55 to CA$3.25. The Company has 196,752,026 shares outstanding.