Sierra Madre Gold and Silver (OTCPK:SMDR.F) 2025 Conference Transcript

Summary of Sierra Madre Gold and Silver Conference Call Company Overview - Company: Sierra Madre Gold and Silver (OTCPK:SMDR.F) - Industry: Mining, specifically silver and gold production - Location: Mexico - Current Production: Producing silver from La Guitarra mine, with quarterly production between 150,000 and 190,000 ounces since Q4 2024 [1][2] Key Highlights - Production Achievement: Successfully put the mine into production on time and on budget, marking a significant milestone for the company [2][6] - Investor Support: Welcomed notable investors including Eric Sprott and Fidelity, enhancing the company's financial backing [2] - Expansion Plans: Aiming to triple production over the next two years, with plans to increase production capacity from 500 tons per day to 1,500 tons per day [7][9] Financial Performance - Revenue and Profit: Generated $5 million in revenue and approximately $1.2 million in net profit in Q2, prior to a surge in silver prices [6] - Production Costs: Targeting production costs below $22 per ounce, with potential margins of around $30 per ounce if silver prices remain at $50 [8] Resource and Exploration - Silver Resource: Currently holds a resource of 50 million ounces of silver, with plans for 25,000 meters of drilling to increase this resource [5][11] - Historic Mines: The company operates in a historically significant silver and gold district with nine historic mines, including the recently opened Coloso and Nazareno mines [4][5] Future Projects - El Rincón Mine: Plans to drill at El Rincón, which historically produced silver at 800 grams per ton and gold at 6.5 grams per ton [9][10] - Tepic Project: A second project with a resource of about 10 million ounces of silver, but currently not the main focus due to the need for permits [11][14] Management and Ownership - Management Team: Includes experienced individuals with a history of successful mine operations in Mexico [3][4] - Ownership Structure: Management and founders retain 21% ownership, indicating strong alignment with long-term investor interests [12][13] Market Position - Valuation: The company is considered undervalued, with a market cap below CAD 200 million, presenting a potential investment opportunity [12][18] - Investor Sentiment: Despite recent market fluctuations, the company is viewed as a good entry point for investors [17][18] Additional Notes - Permitting Status: La Guitarra is fully permitted for underground operations, while Tepic requires further permitting [14] - Support from First Majestic: First Majestic has been supportive, providing loans and not selling shares on the market, which is seen as a positive for future capital [16][17]