Sierra Madre Gold & Silver Ltd. (SM) AI Stock Analysis

• Market Cap: C$67.50M
• Dividend Yield: N/A
• Average Volume (3M): 96.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: N/A
• EPS Growth: 95.16%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Other Precious Metals
• EPS (TTM): N/A
• Shares Outstanding: 112,505,150
• 10 Day Avg. Volume: 57,912
• 30 Day Avg. Volume: 96,684
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -5.38K
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Sierra Madre Gold & Silver Ltd. faces significant challenges with profitability and cash flow, despite some revenue growth. Technical indicators and recent corporate events provide a slightly positive outlook, though the negative valuation metrics and lack of earnings call insights weigh on the overall stock score.

Sierra Madre Gold & Silver Ltd. Business Overview & Revenue Model

Company Description

Sierra Madre Gold & Silver Ltd. (SM) is a mining company engaged in the exploration and development of precious metal properties, primarily focusing on gold and silver deposits. The company operates within the mining sector, striving to discover, acquire, and develop mineral resources that can be economically extracted. Sierra Madre Gold & Silver aims to build a portfolio of high-quality assets in strategically significant locations to maximize shareholder value.

How the Company Makes Money

Sierra Madre Gold & Silver Ltd. generates revenue primarily through the exploration, development, and eventual production of precious metals such as gold and silver from its mining operations. The company's revenue model involves identifying and acquiring promising mineral properties, conducting detailed exploration and feasibility studies, and developing these assets into productive mines. Once operational, the company sells the extracted metals on the commodities market. Key revenue streams include the direct sale of gold and silver, as well as potential joint ventures and strategic partnerships with other mining entities that provide additional funding or resources to expedite project development. Market prices for gold and silver, as well as operational efficiency and successful project management, significantly impact the company's earnings.

Sierra Madre Gold & Silver Ltd. Financial Statement Overview

Summary

Sierra Madre Gold & Silver Ltd. is experiencing a transition towards revenue generation with $8.87 million in revenue for 2024, but is not yet profitable with a negative net income of $5.58 million. The company has a conservative capital structure with a debt-to-equity ratio of 0.22, but its negative operating cash flow indicates potential liquidity issues.

Income Statement

Sierra Madre Gold & Silver Ltd. has shown an improvement in revenue with $8.87 million in 2024, a first since the last five years, indicating growth potential. However, profitability remains a significant concern with a negative net income of $5.58 million in 2024 and negative EBIT and EBITDA margins. The company is yet to achieve a positive net profit margin, reflective of high operational costs relative to revenue.

Balance Sheet

The balance sheet shows a moderate level of total debt at $7.74 million against a substantial stockholder's equity of $35.89 million, yielding a debt-to-equity ratio of 0.22, which is relatively low and indicates a conservative capital structure. However, the equity ratio stands at 71.53%, reflecting a strong equity base but also highlighting a reliance on equity financing. The return on equity is negative due to persistent net losses.

Cash Flow

Cash flow analysis shows a negative operating cash flow of $5.11 million and a significant negative free cash flow of $9.35 million in 2024, due to high capital expenditures. The company’s operating cash flow to net income ratio is improving, but still negative. Continued cash outflows highlight potential liquidity issues and a need for effective cash management.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
-17.72K	-12.95K	-2.30K	0.00	0.00
	EBIT
-5.18M	-3.25M	-7.02M	-1.08M	-216.39K
	EBITDA
-53.20M	-4.48M	-7.11M	-1.08M	-221.37K
	Net Income Common Stockholders
-40.00M	-2.56M	-7.11M	-1.20M	-221.37K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.93M	88.24K	10.21M	15.28M	0.00
	Total Assets
30.48M	28.11M	10.93M	15.80M	0.00
	Total Debt
15.26K	0.00	0.00	0.00	0.00
	Net Debt
-1.91M	-88.24K	-10.21M	-15.28M	0.00
	Total Liabilities
3.78M	12.42M	141.87K	524.07K	0.00
	Stockholders Equity
26.70M	15.68M	10.79M	15.27M	0.00
Cash Flow		Free Cash Flow
-7.24M	-2.07M	-4.71M	-1.33M	0.00
	Operating Cash Flow
-5.34M	-2.01M	-4.70M	-1.33M	0.00
	Investing Cash Flow
-1.07M	-397.20K	-23.01K	34.59K	0.00
	Financing Cash Flow
8.01M	2.48M	-351.59K	16.54M	0.00

Sierra Madre Gold & Silver Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SM, the sentiment is Positive. The current price of 0.6 is above the 20-day moving average (MA) of 0.60, above the 50-day MA of 0.58, and above the 200-day MA of 0.52, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.63 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SM.

Sierra Madre Gold & Silver Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDO	78 Outperform	C$2.67B	19.71	27.15%	―	67.54%	―
OR	74 Outperform	$6.20B	272.66	2.50%	0.79%	12.78%	―
ELD	74 Outperform	$5.78B	12.62	8.91%	―	41.46%	187.54%
SSL	73 Outperform	$3.58B	179.48	2.05%	0.65%	6.23%	36.40%
BTO	73 Outperform	$5.78B	―	-17.61%	4.54%	5.97%	-1677.31%
SM	50 Neutral	C$67.50M	―	-9.93%	―	―	95.16%
Sector *	49 Neutral	$1.94B	-1.18	-21.28%	3.73%	1.05%	-29.44%

Sierra Madre Gold & Silver Ltd. Corporate Events

Sierra Madre Expands Operations with Early Start at Coloso Mine

Sierra Madre Gold & Silver Ltd. has commenced underground mining operations at the Coloso mine within the Guitarra Complex in Mexico, significantly ahead of schedule. This development is expected to enhance the company’s production capabilities, as the Coloso mine boasts higher average resource grades compared to the Guitarra veins. The company is also optimizing its processing plant operations by hiring a metallurgist to determine the best blend of materials from Coloso and Guitarra, aiming to maximize economic returns. This strategic move is likely to strengthen Sierra Madre’s position in the precious metals market and improve its operational efficiency.

Spark’s Take on TSE:SM Stock

According to Spark, TipRanks’ AI Analyst, TSE:SM is a Underperform.

Sierra Madre Gold & Silver Ltd. faces significant financial challenges with ongoing losses and cash flow concerns. While technical indicators show some positive momentum, these are overshadowed by negative financial performance and valuation metrics. The lack of earnings call insights further limits assessment of future prospects.

To see Spark’s full report on TSE:SM stock, click here.

Sierra Madre Gold & Silver Ltd. Reports $6.5 Million Revenue in 2024, Achieves Full Production at Guitarra Mine

Sierra Madre Gold & Silver Ltd. reported $6.5 million USD in revenues for 2024, primarily from the Guitarra Mine, which reached full commercial production on January 1, 2025. The company saw increased revenues during the fourth quarter as the mine ramped up to full capacity, with expectations for improved operational efficiency and reduced costs moving forward. The successful test mining and processing phase demonstrated the economic viability of the mine, and Sierra Madre has secured an off-take agreement with MRI Trading AG for its concentrate sales, positioning the company for continued growth in the silver and gold market.

Spark’s Take on TSE:SM Stock

According to Spark, TipRanks’ AI Analyst, TSE:SM is a Underperform.

Sierra Madre Gold & Silver Ltd. faces significant financial challenges with ongoing losses and cash flow concerns. While technical indicators show some positive momentum, these are overshadowed by negative financial performance and valuation metrics. The lack of earnings call insights further limits assessment of future prospects.

To see Spark’s full report on TSE:SM stock, click here.

Sierra Madre Achieves Record Production at Guitarra Mine

Sierra Madre Gold and Silver Ltd. announced record production for January 2025 at its Guitarra Mine Complex in Mexico, marking a significant milestone as it achieved full commercial production at the start of the year. The company shipped 349.48 dry metric tonnes of concentrate, with a weighted average silver grade of 2,429 grams per tonne and gold at 32.124 grams per tonne, with further production insights to be shared quarterly, reflecting its first commercial production quarter.