Sierra Madre Gold and Silver (SM) 2025 Precious Metals Summit - Beaver Creek summary

Operational highlights

• Achieved full commercial production at La Guitarra mine on January 1, 2025, with Q2 2025 sales of 173,562 silver equivalent ounces and $5.4 million in revenues, generating a gross profit of $1.3 million.

• Coloso mine ramp-up contributed to Q2 2025 production, with expectations for increased grades and output in H2 2025 as development continues at both Guitarra and Coloso.

• Production expected to rise from 1 million to 2.5–3 million silver equivalent ounces annually within 24 months.

• Workforce has grown to 300, boosting the local economy and infrastructure.

• Operations benefit from grid power, ample water, and proximity to major mining infrastructure, with power generation options being evaluated for 2026 to mitigate seasonal outages.

Technical and management strengths

• Technical team led by Greg Liller, with a track record of eight mines brought into production and significant M&A experience.

• Luis Sáenz, with extensive experience in Mexican mining, joined after leading operations at Frisco.

• In-house management of legal, accounting, and permitting, with recent permits for backfill, dry stack tailings, and drilling.

• Leadership and board bring expertise in mine development, exploration, capital markets, and financial management.

• Strong institutional and insider ownership supports strategic direction and funding.

Expansion and production plans

• Plant upgrades include a new cone crusher and additional ball mills to increase throughput, with expansion to 750–800 tons/day by Q2 2026 and 1,200–1,500 tons/day by Q3 2027.

• Tailings capacity secured for 10+ years with a new 5.8 million ton impoundment.

• Expansion to be funded with existing cash and recent C$19.5 million financing, with total capex for upgrades around $10 million.

• New equipment purchases to replace rentals, reducing all-in sustaining costs by $4/oz.

• Ore for expansion to 1,500 tons/day will come from La Guitarra, Coloso, Nazareno, and the high-grade Los Angeles resource.