Sierra Madre Gold and Silver (SM) investor relations material

Business highlights

• Achieved commercial production at La Guitarra Silver and Gold Mine as of January 1, 2025, with six consecutive quarters of revenue and profit growth.

• Acquired Del Toro Silver and Gold Mine from First Majestic for $40–$60 million, with closing expected in two weeks pending final approvals.

• Raised $57.5 million to support the Del Toro acquisition, resulting in a strong cash position.

• Workforce expanded from 250 to 350, significantly impacting the local economy and community.

• Largest shareholder, First Majestic, will increase its stake to 33% post-acquisition; major funds Jupiter and Franklin Templeton each hold 9.9%.

Operational and expansion plans

• La Guitarra mine is located near Mexico City, with excellent infrastructure and a large, active workforce.

• Production at La Guitarra increased from 200 to 500 tons per day, with plans to reach 750 by June and 1,200–1,500 by Q3 2027.

• Expansion is fully capitalized, with phase one costing $3.6 million and phase two $5 million.

• Del Toro mine in Zacatecas is fully permitted, with a 3,000+ tons per day capacity and significant exploration upside.

• Plans to drill 80,000 meters across both projects, one of the largest exploration programs in Mexico.

Financial performance and outlook

• Cash flow positive since production began; Q4 net income was $7.4 million, with strong Q1 expected.

• Cash costs currently at $27/oz, expected to decrease as economies of scale and development catch up.

• Analysts estimate all-in sustaining costs (AISC) at $22/oz, with potential for further reduction as throughput increases.

• Market cap is approximately $400 million, with recent share price appreciation.

• Management and founders retain an 18% stake post-transaction.