Sierra Madre Gold & Silver (SM.V) which is currently processing about 500 tonnes per day on its La Guitarra gold-silver project in Mexico, has released the financial results for the fourth quarter of last year. Keep in mind the company only declared commercial production on January 1st of this year, but the breakdown of the Q4 results provides a good look under the hood.
As the company’s processing plant continued to ramp up, its reported revenue continuously increased in 2024. Whereas the mine recorded just US$2.5M in revenue in Q3, this number increased by in excess of 50% to US$3.9M in the final quarter of the year. This now also means all eyes will be on the financial results in the first quarter of the year, the very first quarter with commercial production.
In a subsequent update, Sierra Madre has announced it started its underground mining operations at the Coloso mine, located just four kilometers from the La Guitarra processing plant. As First Majestic Silver, the previous owner of the mine, had already developed a ramp into the Coloso mineralized zone (after it had already been mining for several years), which means Sierra Madre was able to get back in at a very low cost and in excess of six months ahead of schedule. Accessing the Coloso veins is important as the average grade on this zone is about 1.2 times higher in gold content and provides a 70% boost to the silver content.
To ensure the blending of the rock from both Guitarra and Coloso doesn’t create any issues, the company has hired a metallurgist to determine the best blending ratio.
Disclosure: The author has a long position in Sierra Madre Gold and Silver. Sierra Madre is a banner sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
