Gold Exploration Company Receives DTC Eligibility

According to a press release from Sierra Madre Gold and Silver Ltd. (SM:TSX.V; SMDRF:OTCQX), the company's stock has received DTC eligibility, which will allow the company's stock to be available for electronic clearing. Sierra Madre reports that this move will allow the company's shares to be more accessible and easier to trade.

The president and CEO of Sierra Madre, Alexander Langer, commented, "DTC eligibility complements our recent listing qualification on the OTCQX Best Market, announcing on July 28, 2023. Obtaining DTC eligibility represents the company's commitment to increasing visibility and accessibility for shareholders in the United States."

Sierra Madre is a junior exploration company that is focused on silver and gold at its La Guitarra, Tepic, and La Tigra properties in Mexico.

Silver Still Strong

While the market seems to have stalled on gold, according to Rick Mills of Ahead of the Herd, things are still going strong for copper and silver on account of their uses in electronics and green energy.

Technical Analyst Clive Maund reviewed the company in July of 2023 and rated the company as a "Strong Speculative Buy."

According to the report, "much of silver's value is derived from its industrial demand. It's estimated around 60% of silver is utilized in industrial applications, like solar and electronics, leaving only 40% for investing."

Additionally, Rick Mills commented that "the transition to an electrified economy doesn't happen without copper and silver, which is why, in my opinion, they are among the most highly investable commodities now and for the foreseeable future."

Multiple Catalysts in Q4

Technical Analyst Clive Maund reviewed the company in July of 2023 and rated the company as a "Strong Speculative Buy."

According to Maund, "The stock has been in a gentle converging downtrend, which is a bullish Falling Wedge. The volume pattern has been bullish throughout."

He went on to say that the "downside looks done, and it has a lot of upside from here, especially as it should have ‘the wind at its back' soon with the sector taking off higher."

Caesar's Report also released a report on Sierra Madre on October 4, 2023, focused on its mine restart efforts at La Guitarra and commented that "the next 12 to 18 months will be extremely important for Sierra Madre Gold and Silver . . . that's the key element for the company as the incoming cash flow . . . should generate enough cash flow to embark on an exploration program while increasing the production rate." 

Sierra Madre has several catalysts to report, according to its investment presentation. The presentation reports that the company's Mine Restart Study is expected to conclude in Q2 of 2024, and its equipment maintenance and acquisition will conclude in Q4 of 2024, along with the mill upgrades. The company reports that it expects commercial production to begin in Q1 of 2025.

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own 21.1% of the company.

According to Reuters, President and CEO Alexander Langer owns 2.06% of the company with 2.94 million shares, lead director Jorge Ramiro Monroy owns 1.42% of the company with 2.02 million shares, director and Country Manager Alejandro Caraveo owns 1.24% of the company with 1.77 million shares, controller and corporate secretary Kerry Melbourne Spong owns 0.32% with 0.46 million shares, and director and geologist Gregory F. Smith owns 0.18% of the company with 0.25 million shares.

According to Reuters, institutions own 49.77% of the company.

First Majestic Silver Corp. owns 47.7% of the company with 69.06 million shares, and Commodity Capital AG owns 1.37% of the company with 1.95 million shares.

Reuters reports that there are 142.7 million shares outstanding and 66.19 million free-float traded shares. The company has a market cap of 

CA$51.84 million and trades in the 52-week period between CA$0.36 and CA$0.74.

Important Disclosures:

1. Sierra Madre Gold and Silver Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sierra Madre Gold and Silver Ltd.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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