Earnings call transcript: Sierra Madre Q2 2025 sees revenue rise, stock up 1.19%

Sierra Madre Gold and Silver Ltd reported its second-quarter earnings for 2025, showcasing a notable increase in financial performance. The company achieved net revenues of $5.36 million, marking a 10.7% rise from the previous quarter. According to InvestingPro data, the company maintains strong revenue growth with a 27% increase over the last twelve months. The stock price reacted positively, increasing by 1.19% to close at $0.84, reflecting investor confidence in the company’s strategic initiatives and future outlook.

Key Takeaways

• Sierra Madre’s net revenues increased by 10.7% compared to Q1 2025.
• EBITDA rose significantly by 36.5%, reaching $1.46 million.
• The stock price increased by 1.19% following the earnings announcement.
• The company is targeting a production ramp-up to 150 tons per day by year-end.

Company Performance

Sierra Madre demonstrated strong performance in Q2 2025, driven by increased production efficiencies and strategic investments in its mining operations. The company focused on improving the grades of silver and gold at its Colosso and Guitarra mines, which contributed to the revenue growth. The ramp-up in production and the exploration of new mining areas are expected to sustain this upward trend.

Financial Highlights

• Revenue: $5.36 million, up 10.7% from Q1 2025.
• EBITDA: $1.46 million, up 36.5% from Q1 2025.
• Working capital increased by 48.8% to $3.3 million.
• Cash cost per ounce increased slightly to $23.56.
• All-in costs rose to $30.10 per ounce.

Market Reaction

Sierra Madre’s stock price increased by 1.19% following the earnings release, closing at $0.84. This movement is within its 52-week range, which has seen a high of $0.90 and a low of $0.35. Based on InvestingPro Fair Value analysis, the stock appears undervalued at current levels. The company shows a strong return on equity of 19% and maintains a healthy gross profit margin of 78.35%, indicating efficient operations. The positive market reaction suggests investor optimism about the company’s operational improvements and future growth prospects.

Outlook & Guidance

The company is focused on expanding its production capacity, with a target of reaching 1,000 tons per day by 2027. Sierra Madre is also planning extensive exploration drilling in the East District, with 20,000 to 25,000 meters of drilling scheduled. The company expects to see improved results by late Q4 2025 and into Q1 2026. Analysts tracked by InvestingPro predict continued sales growth and profitability for the current year. Access the complete Pro Research Report for detailed analysis of Sierra Madre’s growth strategy and market position.

Executive Commentary

CEO Alex Langer expressed confidence in the company’s growth potential, stating, "We truly feel it is one of the largest undeveloped silver districts in Mexico." CFO Ken Scott highlighted the focus on improving production grades and anticipated better results in the coming quarters, saying, "We expect to see late Q4, Q1 of next year, substantially better results."

Risks and Challenges

• Rising production costs could impact profitability if not managed effectively.
• Market volatility in silver and gold prices may affect revenue projections.
• Operational challenges in ramping up production could delay targets.
• Dependence on successful exploration results to drive future growth.
• Potential regulatory changes in mining laws could affect operations.

Q&A

During the earnings call, analysts inquired about the progress of the Colosso mine ramp-up and the exploration potential in the East District. Executives also addressed questions regarding the recent financing and its intended use for strategic growth initiatives. The company reiterated its commitment to expanding production and exploring potential acquisitions to enhance its competitive position.

Full transcript - Sierra Madre Gold and Silver Ltd (SM) Q2 2025:

Deborah, Moderator/Analyst: Alright. Thanks, everyone, for joining us today. We have an update with Sierra Madre, who just put out very strong q two numbers, the second quarter of commercial production, so very exciting. With me, I have CEO, Alex Langer, and CFO, Ken Scott. I don’t believe that we’re gonna be working off a presentation today, but there is an updated presentation on the website where you can find forward looking statements.

This session will contain forward looking statements, so feel free to check those out. And we will have a Q and A session, so feel free to enter any questions you have in the Q and A box. With that out of the way, hi, gentlemen. Thanks for joining me.

Alex Langer, CEO, Sierra Madre: Good morning, Deb. Always a pleasure to chat.

Deborah, Moderator/Analyst: Yeah. So maybe you wanna give us a little bit of an update on the quarter, and then we can jump into q and a?

Alex Langer, CEO, Sierra Madre: Yeah. Sounds good. No. Happy always to give everyone an update, and I’m happy that, Ken gets to join us for the first time, which is great. Greg is away.

Well deserved holiday. He’s actually fishing, which is his, absolute passion. So we’re happy that he got away at least one week, this year, which is good. Really happy with the q two numbers. You know, we showed progress in in pretty much every category, which is great.

We did have a little bit of early onset of the rainy season, which did impact things a bit. But, of course, with the capital raise that we just did, the 19 and a half million, we’ll be able to address that for next year. Like, it’s a power density system, some power generation backup. So we’re working through that right now. So, yeah, it got us a little bit early.

Our numbers were still good, so we’re really happy with that, and progress is being made, kind of every which way. So what I think would be best is maybe I hand it over to Ken to maybe walk through some of the highlights of q two. And then from there, we can get into the questions and answers.

Ken Scott, CFO, Sierra Madre: Thanks, Alex. Yeah. I’ll just hit a few of the bigger highlights. So our net revenues, 5,360,000.00, up from 4,840,000.00 in q one. It’s about a 10.7% increase.

EBITDA, 1,460,000.00 versus 1,070,000.00 in q one, so about a 36.5% increase, which we’re obviously very happy with. Our mark to market adjustment for the quarter was 400,000 versus only 120,000 in q one, and that’s because our sales are m plus one. So during the period, silver and gold prices were increasing, which was a positive impact for us. Our working capital increased from around 2,200,000.0 to 3,300,000.0 in the quarter, 48 and 48.8% increase. Those were all very, very exciting numbers for us.

We’re really happy with those. Our cash cost did creep up by about 2% from twenty three dollars and eight cents to $23.56. Our all in costs from $28.98 to $30.10, about a just under 4% increase. And we would attribute most of the increase to power outages from rainy season, the startup of Colosso, and just equipment availability. So, it was, all in all, a very good quarter.

Back to you, Alex.

Alex Langer, CEO, Sierra Madre: Great. Thanks, Ken. Yeah. Deb, I don’t know if you had any questions or anything to get going.

Deborah, Moderator/Analyst: Should q and a?

Alex Langer, CEO, Sierra Madre: Yeah. Let’s do it.

Deborah, Moderator/Analyst: Okay. So starting with the quarterly results, looking at q two performance, how did the Colosso ramp up in the quarter proceed versus earlier expectations, and how should we expect this performance to impact Colosso output over the rest of the year?

Alex Langer, CEO, Sierra Madre: Yeah. So Colosso, I think the big, feature there is it’s about 1.7 times higher silver grade and about 1.2 times higher on the gold grade side. So when the mine shut down in 02/2017, 02/2018, about a 100% of all material, the first Majestic was mined. It came from Colosso. So it’s a new mine, really large entryways and really, really good shape.

So for us, we’re still ramping it up quite a bit. So, obviously, you’re gonna see increased costs, which we saw in the quarter. The plan is to get up to about a 150 tons per day by year end coming from Colosso. So the higher grade material would be about a, you know, just under a third of total output would come from Colosso. Rainy season’s pretty hard right now, so a lot of the work we need to do is dewatering.

So we have a lot of the pumps pumping water, and we’re moving slowly but surely all the way through. So we’ve seen a ramp up absolutely of, you know, 10 tons per day, twenty, thirty, 40. And we’ve had days of even more, material coming from Colosso, and that is increasing kinda gradually as we get up towards the end of the year where it should be about a 150 tons day if we stick to the 500 ton per day, scenario.

Deborah, Moderator/Analyst: Awesome. And can you speak to the development that took place at Katara in, q two and how it’s expected to impact head grades over the rest of the year?

Alex Langer, CEO, Sierra Madre: Yeah. So that’s a a great question. We’re still catching on the development. These things take a long time. You know?

Usually, when a mine shuts down, it takes quite a while to get back and running in terms of underground development. We went forward and started producing relatively quickly. We had some retakes, which are pre blasted old, mining material that we’re able to process, and, you know, we’d be mining fresh ore, you know, even since, the test mining phase late So we’re increasing, fresh ore that we’re mining, you know, literally on a monthly basis. I think when we started, you know, this year, commercial production is only about 20 to 30% in quarter one.

A fresh ore, we’re probably at about fifty fifty kind of for q two. And by the end of the year, I expect it to be about 80 to 20 80% fresh ore coming from Lagatara as well as Colosso and 20% of this Ritaki material, that we do have. So it’s good. What’s nice about fresh ore is is higher grade than the, Ritaki material, as but Ken will always tell me, the Ritakis have a much lower cost as it’s pre blasted, we’re able to process that right away. So it’s a little bit of give and take, but as we get into the higher grade colossal ore, you know, that’s gonna be really significant, especially to the bottom line and and revenues.

So I think those are, you know, kind of the big features. We can only get so far on a daily basis as well in terms of development. You know, we usually blast towards the end of the shift. Takes a couple hours for that material to settle before you can go in and and keep moving. So we do anywhere from three to eight meters of development, say, a Guitar on a daily basis.

Also, equipment availability has been an issue, especially at Colosso. We kinda had just enough, equipment for Guitarra. We had to borrow a wee bit from Guitarra to get over to Colosso, but really happy to announce that we had two brand new well, two new to us ScoopTrams that arrived last week, and they’re already in operation. So our equipment is now being caught up, which was also, you know, a bit of an issue moving things around, but we’re really happy with that. So, you know, development of both Katara and Colossal will continue pretty aggressively from now until we catch up right around the end of the year.

Deborah, Moderator/Analyst: Nice. And then what’s the split between in resource and out of resource material being mined at Guatara in q two, and how do you foresee this split trending over the rest of the year?

Alex Langer, CEO, Sierra Madre: It it’s pretty much the same, as we kinda discussed in terms of Rutakis. Rutakis weren’t part of the resource. So having said that, when we do do development, we do hit interesting visualized material that we’re are able to process, especially at today’s gray or today’s silver and and gold prices, you know, much higher than we we had when we started. So a lot of material was not part of the resource that we’re able to process now and actually, you know, make money on it, which is great. So, it’s kind of in line with that.

I would say fifty fifty about now and, again, 8020, hopefully, hopefully, by the end of the year. And, again, as we do develop and find new areas, we can process that. So, you know, take off 10% of that or something along those lines.

Deborah, Moderator/Analyst: Okay. And then what sort of fine tuning’s ongoing at the mines and mill, and how would it impact production in second half of the year?

Alex Langer, CEO, Sierra Madre: So, we’re doing a lot of, test work to look at some expansion possibilities. You know, the capital we raise, I’m sure we’ll get into that a little bit. You know, we’re figuring out the best use proceeds and and where we wanna expand first. So we’re working right now. One thing we’ve recently done is switched over from regular ball mills to chrome ball mills, which is gonna be, you know, impacting the grind size, which allow for better recoveries.

So that’s already kind of implemented. We’re also looking at a different mesh sizes for the gravity circuit and things like that. So we’re just doing a lot of test work as we speak to hopefully put in some expansion material, whether that’s you know, it will be a combination of ball mill a new ball mill, a new crushing circuit, some new conveyor belts, a lot of different things. So I would expect in quarter three to see us hopefully implement some of that. You know, there’ll probably be a bit of downtime as we put in the new equipment and do some of the test work.

Hopefully, you know, ’4 moving into quarter one of next year that we’ll see increase of throughput at the mine site. We should have proper news on that, I would say, just before Beaver Creek. So in about two weeks, we’re just, you know, still doing a lot of the test work. We have a preliminary idea in mind. We’ve had that in a while, but we just wanna confirm equipment availability.

We are scouring all the surveyors and suppliers of various materials. So, you know, we’d love to have it in there today, but, you know, these things do take a little bit of time of sourcing the right equipment. So it’s ongoing, but we hope to have news on that in the next two weeks.

Deborah, Moderator/Analyst: Awesome. And then any plans to bring Nazareno online in the near term similar to how, you added Coloso? What needs to be done to add this mining center?

Alex Langer, CEO, Sierra Madre: Yeah. So Nacareno is another mining center. It’s actually connected to Colosso. What’s great about Nacareno is its width. They’re really, really wide veins up to 30 meters.

So they’re really low cost mining. In a sense, you do long hole blasting, and then from there, you can muck it out and, you know, kennel like that as it’s really low cost. It is a little bit lower grade, but, you know, if we you know, when we plan to go from 500 to thousand tons per day, eventually, we’re gonna need a lot more material. And I think Nazareno is gonna be a really good, help for that. We’re gonna need that online before we even, you know, get into thousand per day.

So, yeah, you’re kinda looking ahead there. We hope to have news on Nazareno. You know, what we need to do there is, you know, get a little bit better grade control. So a little bit of, you know, underground drilling to understand exactly where we wanna blast it from. You wanna have minimal waste, especially when you’re blasting the such large amounts.

So we gotta make sure we’re up to speed on that, but access is there. So we’re we’re we’re not too far away from Nazareno.

Deborah, Moderator/Analyst: And then I’ve got an audience question for you. Can you project a time frame when all three mines will be at full production?

Alex Langer, CEO, Sierra Madre: Yeah. You were we’re still working through that. You know, I think we’ve kinda guided to the market 2027. We’d like to be at a thousand tons per day. I don’t know exactly what that time frame looks like.

I’d expect all three mines to be actively producing, you know, by next year and at full capacity. You know, it’s gonna be up to the mill and making sure that we have the mill equipment in place and that we also have, you know, the availability of tailing space, whether that’s, you know, backfill going back in, whether it’s, you know, making sure we’re sitting on top of the filter press for a current sailing deposit or even moving into phase four, which is a fully permitted 5,800,000 ton tailings facility. So it’s a combination of all those things. You know, my best guess would be 2027, and everything’s up and running and doing really, really well. But, the combination of all three of those things, you know, being done now and through 2026, should be on the table.

Deborah, Moderator/Analyst: Have you received approval for using cyanide to increase recovery?

Alex Langer, CEO, Sierra Madre: We haven’t, and we haven’t applied for it either. So, cyanide, it’s interesting. So, you know, it has a bad connotation in the market for sure just because of, you know, the word cyanide, but I really think that’s that’s it. If we were to apply for it, you know, it would be something where we’d have to build a a cyanide facility, and it would be, you know, encapsulated. It’d be, you know, quite safe.

It would theoretically, and I know for suggesting actually did quite a bit of work on this, increase, especially the gold recoveries, substantially. Now if you were to do that, you would also need, you know, higher security because you’re gonna be producing a dory product. And, you know, rather than trucking material, you’re gonna be helicoptering it in and out. So your cost do go up quite a bit. I don’t think at 500 tons per day, it would make much sense, but, you know, when?

And I think it’s a when. We get up to a thousand tons per day. It’s definitely something to look at. So it would have to take quite a bit of community consultation. You know, I think the local regulators and environmental groups, the permitting groups have been really positive.

We have conversation with them all the time. They’re it’s amazing. You know, we’re close to 250 people now at site and employment. So it’s a huge, huge boom for the local economy. So if we were to have those conversations with them, I think it would be, received quite well.

So it’s something that’s always been in the back of our minds, and, you know, it’s a great thing. I know Ken’s numbers would definitely improve, with the second cyanide came in. So, it’s definitely on our minds, and, you know, it’s, you know, something we’ll we’ll look into in the future.

Deborah, Moderator/Analyst: Great. Well, Given there’s an audience question here, I’m gonna skip ahead to the exploration section. Okay. And we’ll start with his question or her question. Are you able to speak more towards the potential drill plans?

Alex Langer, CEO, Sierra Madre: Yeah. No. It’s it’s really exciting. You know, it’s one of the reasons why why it’s the main reason we purchased Lac Tara from First Majestic was for the exploration potential. We truly feel it is one of the largest undeveloped silver districts in Mexico.

There’s been a bit of exploration on the West Side, and on the East Side, it’s been very, very, very minimal. I think we’ve identified now about 60 kilometers of vein material at surface. There’s a bunch of historic, really large past producing mines, especially in the East District. One is Minidagua, which had over 10,000 employees during its peak. That one shut down in 1910, just because, it got a little bit too deep and they it flooded.

And there’s no real way of dewatering mines back then as we have now. And then the other one is El Recon. And El Rincon shut down in 1937, but had an incredibly high head grade, about six and a half grams gold and 860 grams silver. So really, really amazing, grades that are there and the potential. So with the capital we just raised, the 19 and a half million, we’ve already earmarked about, over 5,000,000 of that for drilling in the East District.

That should give us 20 to 25,000 meters of drilling. It is lower cost drilling in Mexico. It’s road access for us all over the property, which is great. We actually have a large piece of land there, that we have at least for about 800 hectares that we can, drill from at any time. We’ve also drilled from underground.

So it gives us a lot of flexibility there. So for us, what we need to do to be able to to drill properly is, we are staffing up, right now for exploration geologists. We’re gonna get them in the field, more so. We’re gonna clean up some of the underground workings and map map map map also trench and getting ready for a proper drill program in the 2026. Greg’s big thing is, you know, he needs to hit 80% of his, drill holes.

Otherwise, you know, he he’ll fire himself, and we do need him. So we’re not gonna let that happen. And so we just gotta build up some more drill targets. We do also have to apply for drill permits. We’ll do that relatively soon.

I’m sure there’ll be announcement when that time comes, that we’re applying for permits or that we receive them. You have to be pretty exact now as well when you apply for permits. Previously, you could say, you know, this area is where we’re put the drill pad, and you could be relatively you know, you can move it around a bit. Now you can. You literally where your drill pad goes is where you’re gonna be drilling.

So you we wanna be exact. So we still have to target perfectly where we’re gonna put in the exploration drill holes, and then you apply for the permits of the drill pad, and then we’ll be off and running. To give everyone an example, I think it was about six to eight weeks last time we received drill permits from when we applied for them. So that’s kind of the the time frame. We do have about 54 drill holes permitted in the West District as well, so we can do a little bit of both.

So we’re we’re excited and, working through it right now. But, first half of next year, we expect the drills to be turning.

Deborah, Moderator/Analyst: Awesome. And how quickly can drilling success translate into plant feed, and would additional permits be needed to mine at the East District?

Alex Langer, CEO, Sierra Madre: That’s a good question. So, we went into production again without a feasibility study, without a PEA just because we understood the deposit really well, understood the mining. We had all the historic information from First Majestic and from the previous operators, so that was great. Now the East Sister, it’s actually permitted. It did have a EMEA on it.

Some areas, we could actually start taking that material out right now. So if we were to find a bit more material, again, maybe at that, Eldridge cotton grade of six and a half grams gold and eight sixty silver, you know, a 100 tons per that per day would be pretty helpful. Right, Ken? Yeah. Adding to some of the grades.

So, yeah. To answer your question, yeah, we could start pulling material relatively quickly.

Deborah, Moderator/Analyst: Right. Then moving on to financing. So I guess you’ve already answered this. With the closing of the $19,500,000 financing earlier in July, how would you split that between expansion and exploration? You said $5,000,000 is marked for exploration.

Maybe you could talk a little bit about the expansion plans?

Alex Langer, CEO, Sierra Madre: Yeah. Absolutely. So, you know, the goal is to get up to a thousand tons per day, by 2027. I think eventually, we could probably do more than that. Maybe 1,200, 1,500 would probably be the max.

So 12 to 1,500 eventually. Yeah. So of that capital we raised, we actually went out to raise 10,000,000. That was just for plant expansion. You know, we had a lot of interest.

I think the order book ended up being close to 30,000,000, if not more than 30,000,000. So, we kinda stopped on 16 and a half, which allowed us to do the full full full, drill program, the twenty, twenty five thousand meters. And then we had an investor who we were quite keen on, Eric Sprod, who, decided to come in, and, we thought it would be really helpful to have him as a shareholder and on the registry. So we we open it up again to bring in an extra 3,000,000. So, you know, rough estimates is about, you know, 10,000,000 for plant expansion.

It’s tailings. That’s underground development, that’s equipment. Actually, a couple million of that is for equipment itself. That’s for a new ball mill, conveyor belts, paste backfill facility, everything that is, you know, somewhat CapEx related outside the equipment, as Ken will remind me. And, then the rest of that is for exploration.

And we do have a bit of a slush fund, thanks to Eric coming in, which gives us a bit more for exploration. So if things go well and we expect they will and hope they do, it gives us an extra few million there, to do further drilling, and, you know, even further because we we are in cash flows as well.

Deborah, Moderator/Analyst: Awesome. And you mentioned Eric’s brought. Can you talk about any of the other participants from the financing?

Alex Langer, CEO, Sierra Madre: I think we can now. Yeah. So when we went out to to launch the financing, we’re really fortunate to get a a big lead order. It was just filed, I think, last week on Bloomberg, and it was Franklin Templeton. So they’re an incredibly large, institutional fund, mining based fund.

They’ve done it really, really well. It’s a group what we had identified early on that if they were able to, you know, come in as an investor, you know, we would definitely like that and allow us to, in essence, double production and also do a bit of drilling. So they were the lead investor. They filed 10,000,000 shares. So when you work backwards, it’s a 7,000,000 Canadian lead order, and that’s a fairly small order for them as well.

They usually like to do quite a bit more, which is good, and that’s kinda where the words came in. So management and founders, I think we management, you know, just ourselves, we did well over half a million. Commodity capital who’s been, you know, one of the funds that support us from the very, very, very beginning. They maintain their 8%, so they put another 2,000,000. And then a bunch of institutional money that came in as well.

So relatively small amounts, some some really good names out of Toronto and Europe, The UK, which was good. So majority was institutional institutional money, a lot of it. I think our institutional holdings went from, like, 12% up to 24%. Management, we maintained a good amount from ’24 down to 22, and then, quite a bit of retail as well. I know the book, pretty much everyone has cut back down to 20 to 40% of their allocation just because the order book was, I guess, oversold or oversubscribed quite a bit.

So, I think, you know, if you look in the market right now, trading around, you know, $84.85 cents and a financing at 70, which is fully free trading now. There was a lot of demand, which I think is a good sign.

Deborah, Moderator/Analyst: Yeah. Definitely have seen buying in the market since the financing, so it’s good to see. Also, just talking about where you’re trading currently. You’ve got some warrants that are close to in the money. Can you talk a little bit about those and the potential proceeds and what you might use that money for?

Alex Langer, CEO, Sierra Madre: Sure. And can you help welcome to hop on here. We do have a a 5,000,000 US loan outstanding still to First Majestic. You know, we we’re very well aware of that. We did get a year extension, which was really kind of them.

I just it’s at 15%. So it’s you know, we’re very, very comfortable with it. It’s not a huge amount. It’s 62,500 US a month, so really not a huge amount. But if the work money does start to come in, if we achieve our goals and things trade well, I think, a good chunk of that would be earmarked for that.

And, again, drilling success would breed more drilling need. So that’s kind of what we’re counting on if we’re able to, you know, have success, thanks to the drill bit. That capital would already, you know, provide us with phase two in the East District.

Deborah, Moderator/Analyst: And then another audience question here. Will you be able to complete development and continue exploration using operating cash flow and cash reserves without additional capital?

Alex Langer, CEO, Sierra Madre: Ken?

Ken Scott, CFO, Sierra Madre: Can you give a quick answer to that? Yes. But, Alex, you can expand.

Alex Langer, CEO, Sierra Madre: No. I I think you’ve nailed the head nail on the head there, Ken. Yeah. No. We we should be absolutely fine here, especially the capital coming in.

You know? Obviously, CapEx money is gonna be going into building out the the mill a little bit. I think one of the big things that, you know, we’ve been really harping on is equipment. So we’ve been renting a lot of equipment, and it’s very expensive, especially all trucks and, you know, 100 grit scoops and everything like that. Now that we have the capital, we’re able to buy that equipment, and it’s gonna drop down our our costs substantially.

Ken, do have a rough estimate of what that might look like on a per ounce basis? Oh, you’re on mute now.

Ken Scott, CFO, Sierra Madre: Yep. Sorry. It’s it’s by several dollars Okay. Per ounce that it will drop. So So

Alex Langer, CEO, Sierra Madre: with that equipment

Ken Scott, CFO, Sierra Madre: coming in? Exactly. Exactly. And then as we increase our our grades at the mine, that’s gonna then also translate into lower cash cost per ounce because we’ll pre we’ll be producing way more ounces. So, yeah, it’s a two edged sword.

The the mine always wants to expand production, and the CFO wants to see better grades. So as we get into the better grades, that pretty much flows right to the bottom line. So, we expect to see late q four, q one of next year, substantially better results.

Deborah, Moderator/Analyst: Great. A couple more questions from me. So I know you talked about use of proceeds and what you’d like to do with the cash. Would you also consider looking at acquisitions? Is that part of the plan?

Alex Langer, CEO, Sierra Madre: It’s always part of the plan. Yeah. It’s we’re we’re in a number of data rooms. We’re always looking at projects. It’s, things have gotten more expensive as you would expect just with the price of silver and gold going up.

You know, we only make an acquisition if it was very accretive, for us. You know, we’re looking at Mexico. We’re looking at silver predominantly, some interesting gold, projects as well. There’s nothing in the near term that, you know, we’re jumping at right away, but it’s a lot of due diligence. We’ve been, you know, looking at a number of projects and traveling projects, but Lagatara is a a special beast.

So, you know, we have more than enough on our plate right now in terms of the expansion plan and and in terms of the upcoming drill program that we really wanna be focused on that. But if there’s an opportunity that came to us, you know, we’re we’re definitely spending the time looking at that. And if it’s accretive, it’s something that, you know, we’re prepared to move on.

Deborah, Moderator/Analyst: And one last question for me. So what news flow should investors look for for the rest of the year? What are your catalysts?

Alex Langer, CEO, Sierra Madre: Yeah. It’s gonna be quite a few. I think the one I’m most looking forward to personally is gonna be the expansion plans. So the plan there is to have something down that we’re gonna, you know, put up on the board and work through a Gantt chart and have deliverables for everybody, in terms of, you know, this equipment is coming then and what that looks like and make sure the underground development is caught up for that. So that should be out Red River Creek, and that’ll be, you know, whether we go to six forty or seven fifty, 800, a thousand, kinda giving us a a timeline of when I expect or when we expect, mill expansion to happen and corresponding, you know, material being moved to the mine.

So that’s gonna be the next really big piece. That should be right around Beaver Creek. From there, you will have some news on equipment, that we, you know, hopefully, eventually switch over to a fully fleet of our own, not using rental equipment anymore. We’ll have our you know, and then from there, there’ll be a lot of news when the equipment arrives. So if at a new ball mill, once it’s installed, we’ll talk about that.

We’ll have news on tailings, which is good. And then the quarter three results and really just expansion and making sure everything is moving forward and, really looking forward. I think quarter four is is, you know, progress to be quite a quite a great quarter, especially, right around that. Hopefully, equipment or some plant, upgrades will be in place by then as well. So lots of news coming.

Deborah, Moderator/Analyst: Yeah. Sounds like it. Well, congratulations on a successful quarter and a successful financing. Sounds like this year has been really a formative year for the company. So congratulations to you both.

Looking forward to the second half of the year. Thanks to the audience for your questions and participation. If anyone has any follow-up questions or would like a one on one call, please feel free to reach out. Yeah. Enjoy the rest of the summer.

See you at Beaver Creek.

Alex Langer, CEO, Sierra Madre: Sounds great. Thanks so much, everybody, for the time. Thank you a lot, Deborah.

Ken Scott, CFO, Sierra Madre: Thank you, everyone.

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