La Guitarra Silver Operation Delivers US$8.23M Q2 Revenues

Source: Streetwise Reports 08/31/2026

Sierra Madre Gold and Silver reports strong Q2 results with US$8.23 million in net revenues from La Guitarra while advancing mill expansion and East District drilling plans.

Sierra Madre Gold and Silver Ltd. (SM:TSX.V; SMDRF:OTCQX) posted US$8.23 million in net revenues and US$1.58 million in gross profit for the quarter ended June 30, 2026, from its La Guitarra silver-gold operation in Mexico. The company sold 123,483 silver-equivalent ounces and closed the period with US$22.2 million in cash plus US$25.0 million in working capital.

These results arrive as silver prices have moved above US$70 per ounce, drawing fresh retail-investor attention to producers with operating cash flow and clear expansion timelines. Sierra Madre generated positive cash from operations of US$1.89 million in the first half of 2026, up from US$1.37 million a year earlier, while adjusted EBITDA reached US$3.5 million.

Why Q2 Results Matter for Retail Investors Right Now

Silver traded at US$70.536 per ounce on August 28 after rising 22.36 percent in the prior month.

Trading Economics data dated August 28 showed silver at US$70.536 per ounce after the metal had climbed above US$70 and reached a more than two-month high.

Trading Economics also reported on August 28 that gold had reached US$4,606.29 per ounce. Higher metal prices improve margins for companies already generating revenue and cash flow from existing mines.

Key Investor Takeaways

• La Guitarra produced 137,313 silver-equivalent ounces in Q2 while throughput climbed to 672 tonnes per day.
• Phase I mill expansion to 750-800 tonnes per day remains on track for completion before the end of Q3 2026.
• East District drilling permits cover 22 pads and target up to 30 vein systems in a fully funded 30,000-meter program.
• Acquisition of the Del Toro silver mine closed in June after regulatory approvals, with exploration budgeted at US$12 million.
• Analyst coverage includes a Buy rating and CA$2.70 per share target from VSA Capital.
• Strong balance sheet and operating cash flow support both expansion and exploration.

Company Advantages and Operational Position

Silver revenues reached US$5.0 million at an average realized price of US$75.65 per ounce, while gold revenues totaled US$4.3 million at US$4,529 per ounce. The company processed 41,567 tonnes and achieved recoveries of 73.58 percent for silver and 67.97 percent for gold.

Although costs rose during the ramp-up at Coloso and Nazareno, management added equipment, including a narrow-profile jumbo drill, two haul trucks, and additional scoops to support higher mining rates.

Expansion Progress and Near-Term Catalysts

The company reported that modifications to the existing mill and installation of larger-capacity pumps had increased daily throughput to as much as 672 tonnes per day. A used ball mill rated at 900 tonnes per day is ready. Thickener tank construction was completed in mid-August, with testing underway, and a dry-stack tailings facility is permitted, with site work expected to begin in October. Phase II expansion to 1,200-1,500 tonnes per day is slated for Q3 2027 and requires no additional permits.

At La Guitarra, Sierra Madre’s August 2026 corporate presentation outlined a two-stage expansion alongside a large East District exploration program. Drilling bids have been received for a long-hole program from the permitted Tlacotal property, with the first holes expected in the second half of 2026.

Broader Precious-Metals Sector Timing

In an August 27 report, The Motley Fool’s Katie Brockman described increased uncertainty across financial markets as major U.S. stock indexes had declined during the previous two weeks.

Reuters reported through CNBC later on August 27 that precious metals markets had remained focused on interest rates and inflation ahead of Federal Reserve Chair Kevin Warsh’s remarks at the Jackson Hole symposium, which occurred on Friday. These macro conditions continue to support higher gold and silver prices.

Analyst Views and Valuation Context

VSA Capital analyst Oliver O’Donnell highlighted the Eastern District drilling permits covering 22 pads as the start of a 30,000-meter program. He maintained a Buy rating and CA$2.70 per share target, noting that the combination of higher metal prices, positive cash flow, and a clean balance sheet creates an opportunity for systematic exploration across the district. [OWNERSHIP_CHART-10135]

Share Structure and Near-Term Events¹

Sierra Madre Gold and Silver Ltd. has a market cap of CA$348 million, with 261.3 million shares outstanding. The company’s 52-week range is CA$0.84-CA$3.25.

Institutions own 41.44% of shares, while Strategic Investor First Majestic Silver Corp. (AG:TSX; AG:NYSE; FMV:FSE) owns 24.74%. Management & Founders own 19.21%, and the remaining shares are held by Retail.

Common Questions from Investors

When will Phase I capacity be reached at La Guitarra? Management expects nameplate capacity of 750-800 tonnes per day before the end of Q3 2026, after additional foundation and electrical work on the larger mill.

What is the status of the Del Toro acquisition? Sierra Madre closed the 100 percent acquisition in June 2026 following shareholder and Mexican antitrust approvals, with drilling planned to begin in mid-2027.

How is the East District drill program funded? The 30,000-meter program is fully budgeted from treasury and operating cash flow, with no additional equity financing required.

What are the next milestones for Del Toro? A possible Del Toro mine restart is budgeted at US$10 million over one year, with the budget designed to support an initial 800-tonne-per-day run rate and an eventual target of 1,600 tonnes per day.

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Important Disclosures:

1. Sierra Madre Gold and Silver Ltd. is a billboard sponsor of Streetwise Reports. The company pays a monthly sponsorship fee of US$3,000–US$6,000 for banner advertising and an enhanced company profile page. Streetwise Reports’ editorial content is fully independent and is not influenced by sponsorship.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sierra Madre Gold and Silver Ltd.
3. Jordan Nova wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

( Companies Mentioned: SM:TSX.V; SMDRF:OTCQX, )

Source: https://www.streetwisereports.com/article/2026/08/31/la-guitarra-silver-operation-delivers-us-8-23m-q2-revenues.html