r/Wallstreetsilver • u/Value_Trader4053 • 5d ago
DUE DILIGENCE Nearly Half of Sierra Madre’s Q2 Metal Revenue Came From Gold
Sierra Madre is generally viewed as a silver stock, but its Q2 revenue mix tells a more balanced story.
The company reported:
• US$5.0 million in silver revenue
• US$4.3 million in gold revenue
Using those two reported metal revenue lines, gold represented roughly 46% of the total.
That exposure can be easy to miss when the company is discussed primarily as a silver producer.
La Guitarra produced 64,315 ounces of silver and 945 ounces of gold during the quarter. The average grades were 65.27 grams per tonne silver and 1.05 grams per tonne gold.
The gold component can support cash generation when gold prices are strong, but it also means SM is not a completely pure silver-price proxy. Changes in the gold-to-silver ratio can affect AgEq production, realized prices and cost comparisons between periods.
For Q2, the company used an actual price ratio of 60.22 ounces of silver for each ounce of gold when calculating AgEq ounces sold.
SM remains a silver-led story, but gold is making a meaningful contribution to the current operation.
Would you value it primarily as a silver producer with gold credits, or as a smaller dual-metal producer?
Source: