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

• Market Cap: C$342.78M
• Dividend Yield: N/A
• Average Volume (3M): 406.41K
• Price to Earnings (P/E): 405.2
• Beta (1Y): 1.93
• Revenue Growth: 694.29%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): 0.00
• Shares Outstanding: 145,861,980
• 10 Day Avg. Volume: 526,510
• 30 Day Avg. Volume: 406,407
• PEG Ratio: 0.14
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 11.06
• P/FCF Ratio: -13.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: C$2.50 ▲(22.55% Upside)

The score is driven by improving financial performance (turnaround to positive profitability and a relatively solid balance sheet) and strong technical momentum. These positives are materially offset by valuation risk from an extremely high P/E and the remaining weakness in free cash flow.

Positive Factors

Balance Sheet Strength

Manageable leverage and a sizable equity base provide a durable financial buffer for capital-intensive exploration and development. Lower debt reduces refinancing risk and preserves optionality to fund projects or absorb commodity shocks over the next several months.

Revenue and Margin Turnaround

The company shows a clear operating turnaround with growing revenues and material improvement in underlying margins. Sustained top-line growth with operating leverage improves the odds of stable cash generation and supports advancement toward production over the medium term.

Improving Operating Cash Flow

A shift from negative to positive operating cash flow reflects improving cash conversion from operations. This trend reduces near-term dependence on external financing and strengthens the company's ability to fund exploration and development activity over the coming months if it continues.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow indicates operations are not yet self-funding after capex and working-capital needs. Continued negative FCF raises the prospect of external financing, dilution, or constrained project spending, a structural risk to sustainability in the medium term.

Thin Net Margin and Volatility

A thin net margin leaves limited cushion against commodity-price swings, higher costs, or operational setbacks. Coupled with recent sharp losses, this indicates earnings remain volatile and could reverse profitability quickly under adverse conditions, stressing long-term stability.

Low Return on Equity

Low ROE suggests current capital deployment generates limited shareholder returns, raising questions about capital allocation efficiency. For a capital-intensive miner, slow ROE improvement can mean prolonged timelines to meaningful value creation and potential pressure on funding choices.

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

Company Description

Sierra Madre Gold and Silver Ltd., a mineral exploration company, engages in the acquisition, exploration, and development of resource properties. It holds an interest in the Tepic silver-gold property comprising five mining concessions covering an area of 2,612.5 hectares located to the south-southeast from the city of Tepic, Nayarit; and the La Tigra gold-silver property that consists of seven mining concessions covering an area of 357 hectares located in the State of Nayarit, Mexico. The company is based in West Vancouver, Canada.

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

Income statement reflects an operating turnaround with positive TTM profitability and strong revenue growth, and the balance sheet shows modest leverage and a solid equity base. The main drag is cash flow: operating cash flow is positive but free cash flow remains negative, indicating the improvement is not yet consistently self-funding.

Income Statement

TTM (Trailing-Twelve-Months) results show a clear operating turnaround: revenue of ~19.7M with positive profitability (gross margin ~27%, EBITDA margin ~20%, EBIT margin ~10%) and a modest net margin (~3%). Revenue growth is strong (about 18%), but earnings quality is still developing given the relatively thin net margin and the sharp losses in 2024 (net loss of ~5.6M with deeply negative margins), highlighting higher volatility typical of an early-stage mining ramp.

Balance Sheet

Leverage appears manageable with low debt relative to equity in TTM (debt-to-equity ~0.14) and a sizable equity base (~39.5M) against total assets (~51.7M). This improved versus 2024 (debt-to-equity ~0.22). The main weakness is profitability on equity: TTM return on equity is positive but low (~2%), following meaningfully negative levels in prior years, suggesting the balance sheet is solid but still early in translating into strong shareholder returns.

Cash Flow

Cash generation is improving but not yet consistently strong. TTM operating cash flow is positive (~1.4M), a major improvement versus 2024 (negative ~3.7M), but free cash flow remains negative (about -0.36M) and has deteriorated versus the prior period (free cash flow growth around -70%). Operating cash flow covers less than half of net income in TTM, and negative free cash flow indicates ongoing reinvestment or working-capital/capex pressure that could persist.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.66M	6.47M	0.00	0.00	0.00	0.00
Gross Profit	5.34M	1.36M	-17.72K	-12.95K	-2.30K	0.00
EBITDA	3.88M	-3.34M	-53.51M	-4.48M	-7.11M	-1.08M
Net Income	641.94K	-5.58M	-40.00M	-2.56M	-7.11M	-1.20M
Balance Sheet
Total Assets	51.68M	50.18M	30.48M	28.11M	10.93M	15.80M
Cash, Cash Equivalents and Short-Term Investments	11.56M	650.18K	1.93M	88.24K	10.21M	15.28M
Total Debt	5.38M	7.74M	15.26K	0.00	0.00	0.00
Total Liabilities	12.17M	14.29M	3.78M	12.42M	141.87K	524.07K
Stockholders Equity	39.50M	35.89M	26.70M	15.68M	10.79M	15.27M
Cash Flow
Free Cash Flow	-359.14K	-5.50M	-7.24M	-2.07M	-4.71M	-1.33M
Operating Cash Flow	1.37M	-3.73M	-5.34M	-2.01M	-4.70M	-1.33M
Investing Cash Flow	-3.31M	-5.20M	-1.07M	-397.20K	-23.01K	34.59K
Financing Cash Flow	13.19M	8.31M	8.01M	2.48M	-351.59K	16.54M

Sierra Madre Gold & Silver Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.04
• 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 Neutral. The current price of 2.04 is below the 20-day moving average (MA) of 2.42, above the 50-day MA of 1.83, and above the 200-day MA of 1.13, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 20.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SM	61 Neutral	C$342.78M	405.17	2.04%	―	694.29%	―
SSV	58 Neutral	C$333.05M	-34.17	-19.63%	―	―	-34.83%
SLVR	53 Neutral	C$519.13M	-91.89	-4.86%	―	―	-14.43%
DEF	51 Neutral	C$120.14M	-46.48	-4.10%	―	―	43.20%
BRC	47 Neutral	C$520.73M	-18.36	-151.33%	―	―	-198.87%
PGDC	47 Neutral	C$544.11M	-49.37	―	―	14.89%	-24.08%

Sierra Madre Gold & Silver Ltd. Corporate Events

Sierra Madre Raises $57.5 Million to Advance Del Toro Silver Mine Acquisition

Sierra Madre Gold and Silver Ltd. has closed the second and final tranche of its brokered private placement, raising total gross proceeds of approximately $57.5 million through the issuance of over 44.2 million subscription receipts priced at $1.30 each. The financing, led by Beacon Securities alongside a syndicate of agents, is tied to the company’s planned acquisition of the Del Toro Silver Mine in Mexico, with most of the proceeds held in escrow until regulatory and transactional conditions are met; funds are earmarked to complete the acquisition, advance exploration and development at Del Toro, and support working capital, underscoring Sierra Madre’s strategy to expand its production pipeline and strengthen its position in the Mexican silver mining space.

The most recent analyst rating on (TSE:SM) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Sierra Madre Gold & Silver Ltd. stock, see the TSE:SM Stock Forecast page.

Sierra Madre Secures Key Land Use Approvals and Expands Holdings at La Guitarra’s East District

Sierra Madre Gold & Silver has secured federal authorization to change the land use designation of its 34.7-hectare Tlacotal property in the East District of the La Guitarra silver-gold complex from agriculture/forestry to mining and has executed land purchase agreements covering this permit area plus an additional 33.1 hectares. The newly authorized Tlacotal area will serve as a staging ground for near-term exploration and is positioned for potential future mine development and support facilities for the Mina de Agua–Santa Ana vein deposit, while the company has also obtained an option to purchase the Lopez Extension lands, including the current tailings facility and adjoining private ground, supported by a 30-year lease extension that facilitates planning for a tailings expansion, improved mine access, and space optimization around existing operations; together, these steps underpin Sierra Madre’s strategy to build a production hub in the East District, with 20,000 to 25,000 metres of drilling scheduled to begin in the second half of 2026.

The most recent analyst rating on (TSE:SM) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on Sierra Madre Gold & Silver Ltd. stock, see the TSE:SM Stock Forecast page.

Sierra Madre Secures Key Land Approvals and Expansion at La Guitarra’s East District

Sierra Madre Gold & Silver has secured authorization to change the land use designation of its 34.7-hectare Tlacotal property in the East District of the La Guitarra silver-gold complex from agriculture and forestry to mining, and has executed land purchase agreements covering this area plus an additional 33.1 hectares. The Tlacotal area will serve as a staging ground for near-term exploration and is strategically located for potential future mine development and support facilities tied to the Mina de Agua–Santa Ana vein deposit and other vein systems, while an option to purchase the Lopez Extension—covering the current tailings facility and adjacent lands—along with a 30-year lease extension, positions the company to pursue a tailings facility expansion, reconfigure site access and infrastructure, and advance its plan to develop the East District into a production hub, with drilling of 20,000 to 25,000 metres scheduled to begin in the second half of 2026.

The most recent analyst rating on (TSE:SM) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on Sierra Madre Gold & Silver Ltd. stock, see the TSE:SM Stock Forecast page.

Sierra Madre Raises $39.7 Million in First Tranche to Fund Del Toro Mine Acquisition

Sierra Madre Gold & Silver Ltd. has closed the first tranche of its brokered private placement, raising approximately $39.7 million through the issuance of over 30.5 million subscription receipts at $1.30 each, as part of a larger $50 million offering led by Beacon Securities and a syndicate of investment dealers. The bulk of the proceeds have been placed in escrow and will be released upon completion of regulatory and shareholder approvals tied to the company’s planned acquisition of the Del Toro Silver Mine from First Majestic Silver, with funds earmarked to finalize the transaction, advance exploration and development at Del Toro, and support working capital, underscoring Sierra Madre’s effort to accelerate its growth in Mexican silver mining while navigating standard regulatory, escrow and related-party requirements.

The most recent analyst rating on (TSE:SM) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Sierra Madre Gold & Silver Ltd. stock, see the TSE:SM Stock Forecast page.

Sierra Madre Reports Strong Q3 2025 Results and Expansion Plans

Sierra Madre Gold & Silver Ltd. reported solid financial results for Q3 2025, with revenues of $5.5 million and a gross profit of $1.7 million, driven by stronger silver and gold prices. The company is expanding its La Guitarra plant and has initiated a $3.5 million exploration program in the East District. Despite challenges from power outages due to a heavy rainy season, Sierra Madre anticipates improved performance in Q4 and plans to implement a backup power system by 2026. The company also closed a C$19.5 million private placement to support its expansion and development efforts.