Sierra Madre Gold & Silver

Primary tickers: TSXV:SM, OTCQX:SMDRF
Stage of development: Exploration, Development, Production
Primary minerals: Silver, Gold
Projects to promote: La Guitarra
Project location: Mexico
Website: sierramadregoldandsilver.com

Sierra Madre Gold and Silver (TSXV: SM; OTCQX: SMDRF) expects to reach the 500 t/d commercial production rate at its fully permitted, past producing Guitarra mine complex in Mexico’s Silver Belt in Q4 2024.
 
Test mining and processing at the Guitarra complex is ongoing: flotation plant testing started June 25, 2024. The plant has processed 27,990 tonnes of mineralization as of Sept 20 (avg rate of 350 t/d over 30 days). Sierra Madre’s plan is to now move production up to 400 t/d before reaching the 500 t/d target before year-end.
 
Since the start of test mining and processing, Sierra Madre has delivered eight shipments – 466 dry metric tonnes – of silver-gold concentrate to offtake partner MRI Trading AG. With the start of concentrate deliveries, Sierra Madre expects weekly cashflows that should take the company through to commercial production without the need for further capital.
 
The brownfields site was previously operated by (and acquired from) First Majestic – the silver major is Sierra Madre’s single largest shareholder (44.5%). Institutions own 12.9%, Management & Founders hold 24.8%, Retail and High Net Worth own 17.8%.
 
Management has played key roles for managing exploration and development of more than 22Moz gold and 600Moz silver in combined reserves and resources. Sierra Madre’s technical team ran and operated the La Guitarra mine from 2003-2007.
 

Cash: CAD$3M
Debt: USD$5M

Major shareholders:
First Majestic – 44.5%
Institutional – 12.9%
Management and Founders – 24.8%
Retail & HNW – 17.8%

Financials

Management Profile

Alex Langer, CEO, President & Director
Mr. Langer is a successful public markets specialist with 20 years of experience.
 
He started his career as an Investment Advisor with Canaccord Genuity, where he helped fund over 100 private and publicly listed companies including the IPOs for Endeavour Silver, Fortuna Silver, and Great Panther.
 
Most recently he was Co-Founder and Vice President of Prime Mining (TSXV) and Millennial Lithium (TSXV) where he handled Capital Markets for both companies. He is a founding Director of Reyna Silver Corp. (TSXV) and is currently the President and a Director of Li-FT Power Ltd (TSXV).
 

What is your rationale for taking part 121 Mining Investment?

Looking for new long term shareholders

What recent news would you like to highlight to investors attending?

24 September 2024 – Sierra Madre announces revenues in excess of US$2.4 million from sustained 350 tonne per day production at La Guitarra
05 September 2024 – Avg production rate of 300 tonnes per day since inception of test mining reached at Guitarra (as of Aug 31st)
30 July 2024 – First shipments of silver and gold concentrates from the Guitarra mine complex
September 5 2024 – Avg production rate of 300 tonnes per day since inception of test mining reached at Guitarra (as of Aug 31st)
23 July 2024 – Start of test mining and processing at Guitarra
15 July 2024 – Sierra Madre signs a binding off-take agreement with Swiss-based minerals
trader MRI Trading AG for 100% of concentrate sales from the Guitarra for a24-month term.
28 May 2024 – Regulatory approval for dry stack tailings deposition, allowing Sierra Madre to transition from conventional tailings deposition to a more modern system
08 May 2024 – US$5 million loan from First Majestic Silver for finalizing preparations at La
Guitarra

What are your key goals for the next 3 and 6 months?

3 Months:

Test Mining and Processing Ramp Up at Guitarra
• Commercial Production expected Q4 2024
 

6 -12 Months:

Building precious metals ounces at all projects
District exploration and consolidation

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Possible risk 1: market slow-down. Mitigation: flagship asset expected to advance to commercial production without further capital needs
Possible risk 2: slow lab (drill) results. Mitigation: advance with mapping, trenching & drilling. Corporate development (acquiring) new projects.

What do you think makes your company such a compelling investment?

Production focus: expecting to become a producing company in the near-term
Management Team and Board: We have key relationships and a track record of discovery, advancement and monetization in Mexico
Infrastructure: our projects are in proximity to infrastructure, in mining-friendly jurisdictions

What are the top 3 key investor takeaways?

Near-term production vision
Decades of exploration & development success in Mexico,
Infrastructure and jurisdiction focus