Sierra Madre Gold & Silver – Q2 Operations, Financial, Exploration Update At La Guitarra & Del Toro

The KE Report Sep 7, 2026 21:13

Summary

Daily throughput at La Guitarra climbed 34% to 672 tpd, with a new ball mill set to push capacity to roughly 1,400-1,500 tpd.

Q2 AISC (All-In Sustaining Cost — what it really costs to produce an ounce) jumped to $5,473 from $3,254 on FX, development, and lower-grade ore.

Sierra Madre plans a year of mapping at Del Toro's three past-producing mines and 3,000 tpd mill before any restart decision.

Phase 1 drilling at La Guitarra begins early Q4 with 13 long holes; Del Toro drilling is slated for mid-2027 — roughly 60,000m combined.

Repayment of the First Majestic Silver term loan leaves Sierra Madre with $22.2M cash and $25M working capital and no funded debt.

The CEO notes Sierra Madre paid off its $4.5 million First Majestic loan more than a year ahead of a three-year term, at 50% interest, from operating cash flow.
First Majestic is also referenced as a past operator that developed some of the underground levels Sierra Madre is now reopening at La Guitarra.

The CEO points out that Del Toro sits next to Pan American Silver's La Colorada mine, describing the area as an 'incredible copper-silver skarn' relevant to Del Toro's exploration upside.

The CEO argues Q2 throughput reached 672 tons per day at La Guitarra (about a 34% jump) and that a larger ball mill, due online by end of September, should push capacity to 1,400-1,500 tons per day.
All-in sustaining cost rose to $5,473 in Q2 2026 from $3,254 a year earlier, with the CEO attributing roughly 15% to FX, about $10/oz to extra underground development work, and lower-grade development ore blended into the mill feed.
The company paid off its $4.5 million First Majestic loan more than a year ahead of a three-year term and ended Q2 with about $25 million in cash and no debt on the books.
At Del Toro, the CEO frames the acquired 3,000 ton-per-day Zacatecas facility as a long-dated growth asset, with 20,000-30,000m of exploration drilling planned for mid-2027 and notable copper skarn and manto potential alongside mid-sulfidation veins.
A custom drill rig with kilometer-long holes targeting up to 30,000m at La Guitarra is set to begin in early Q4 2026, which the CEO calls a major catalyst for both geological information and a possible market rerating.

Top takeaway As host, Markwitz frames the discussion around the catalysts investors care about: cost trajectory, the throughput ramp, and the upcoming drill programs at La Guitarra and Del Toro.
He underscores that running development ore through the mill at current metal prices is 'a symptom of higher metals prices' and is not eating into reserves.

Top takeaway Langer argues Sierra Madre is in a rerating window, pointing to 672 tpd throughput, a larger ball mill bringing capacity to 1,400-1,500 tpd, and expected cost reductions starting in Q4 2026 and continuing into Q1 2027.
He positions Del Toro as a long-dated exploration asset: the facility is too large and the resource too thin to justify starting small, so the plan is to drill first (mid-2027) before any commissioning decision.
On costs, he expects AISC to fall as underground development tapers, the company shifts from rental to owned equipment (close to $10 million of mobile fleet bought over the past year), and grade lifts as higher-grade Colosso ore is blended into the mill.
On macro, Langer says he is constructive on silver and gold over the next couple of years, framing recent dips as healthy within a longer uptrend.
He flags the upcoming custom drill rig with kilometer-long holes at La Guitarra (starting early Q4 2026) as a near-term catalyst, arguing each hole should intersect multiple veins and meaningfully expand the geological picture.