Metals Investor Forum 2026

May 9, 2026

Overview of ES Gold. Our last presenter today is Alex Langer of Sierra Madre. Alex, floor is yours. Thank you. Thank you. Perfect. Thank you, Peter. Good afternoon, everybody. As Peter said, my name is Alex Langer, and I'm President and CEO of Sierra Madre Gold & Silver. Sierra Madre Gold & Silver, we're probably one of the newest precious metals producers out there. We announced commercial production on our 100% owned La Guitarra Silver and Gold Mine on January 1st, 2025. Things have gone really well. Obviously, the price of silver has hidden a bit of the flaws, but it's been great. We've been cash flow positive since week 1 of when we started. We've had 6 consecutive growths of increased revenue as well as profits, which is great. Our next quarter one of 2026, should be out in the next couple weeks. At $80 silver, it better be good as well. Really, really happy, really, really fortunate, really, really lucky to be in production right now. It's gone so well, in fact, that we've purchased another mine. That's the photo you see here. That's the Del Toro Silver and Gold Mine. We purchased that from First Majestic. We announced that in December of 2025. We're paying between $40 million-$60 million US dollars for the mine. It's massive. It's 3,000+ tons per day. It's fully permitted. Replacement value on the thing is well over $400 million US dollars, getting a lot of value for that mine. We love it. It's right in elephant country, literally right beside La Colorada for Pan American Silver Corp., some other really, really big mines within the area. We're excited to get a hold of that. We should be controlling it or closing that acquisition in the next 2 weeks. We're just waiting on final Mexican antitrust approval. We've had shareholder approval. We raised $57.5 million on the back of that transaction, so our cash position is very, very strong. We will need TSX venture approval, which should come shortly after antitrust. We're excited. We've gone from 1 mine to eventually 2 mines, and I'll get into the story a little bit here. Forward-looking statements. I've already made a few. I'll be making many, many, many more, please review when you get a chance. Two mines and locations. The first one is La Guitarra mine. We're actually located in the state of Mexico City. In terms of locations for mines, it's pretty amazing. We're about two, maybe two and a half hours, including traffic, away from Mexico City. From Vancouver, for myself, it's a five-hour flight. I land at the airport, and I drive to site. Power, water. There's actually a toll road all the way to site. There's about 30,000 people that live within the project boundary, so a really ample, active workforce. We've gone from about 250 people to 350 people over the last quarter as well, so it's been a huge boon for the economy. We're probably the largest, I guess, employer within that area of Mexico City State. We've seen new restaurants come in. We've seen new hotels. It's been pretty amazing to see what's happened and the amount of livelihoods that we've impacted. Mexico says it's about 6 to 1, but realistically it's about 10 to 1 for every 1 employee you have. About 3,000 people are being impacted from the new mine that's come online. It's been a amazing honeymoon period. I drive through the area with the Sierra Madre truck, people are waving and screaming and yelling. It's pretty cool to see. When the mine shut down originally in 2017, a lot of the former workers would have had to go on and work construction, which pays about a third of what mining does, or they worked in other mines across Mexico. Doing that, you're probably working 10 days on, five days off, so hard to be away from your family. It's been pretty amazing to see what we've been able to do at La Guitarra and the community benefit associated with that. Del Toro, that's a mine we just acquired from First Majestic, or we will be. That's located in the state of Zacatecas. Similar to our friends at GR, we will be going from Durango. It's about an hour and 45 minute drive from Durango, just across the border. Again, quite a safe area. A lot of huge mines within the area. A really well-known mining region. Two very good spots in Mexico, that we have, with both of our projects. Technically, everything we're doing is really based around two gentlemen. One is Gregory Liller, the other one is Luis Saenz. Gregory's an exploration geologist. However, he's ran and operated numerous mines. He's now actually had 8 projects become mines. He's had a bunch of success in M&A, including Gammon Gold, Mex Gold, as well as Genco. Genco ran and operated the La Guitarra mine. They took it from Luismin, moved it from 100 to 500 tons per day, which is currently what the La Guitarra mine is doing. We had a rich history with the mine. He ran that for about 4 years before First Majestic bought it, and that's who we acquired it from, First Majestic as well. Luis Saenz actually stuck around with that mine. He was at La Guitarra for about 7 years. Most recently, before he joined us, he was sub-director of mining at Frisco, so he was in charge of 14 different mining operations in Mexico. It's a full Mexican team. Gregory Liller, myself, my CFO, we're the only gringos. Everyone else is a full, proper Mexican mining team. Really good relations in country. Everything we're doing legal. Accounting is all in-house. We're not relying on any consultants. We're able to handle things internally. Here's quickly the La Guitarra land package. It's about 25,000 hectares. It's one of the largest mining concessions in the area. The La Guitarra mining district is the 3rd most prolific district in colonial times for silver and gold. We've now identified 24 kind of major colonial mines within the area and over 600 workings. We're currently mining from Coloso, Nazareno, and La Guitarra up in the west area. We'll go back here. Up in here. It's these other mines that really attract us to this project. Original plan was to put this, do about $10 million in exploration. Silver went crazy, ran to $24, we decided to put the mine in production. We gave the market 2 years, we did it in 11 months. We've always been ahead of schedule by everything we've done, it's gone well, we will be tripling production, which I'll get into in the next little while here. This is a resource. As soon as we acquired the mine, we did a quick resource. There's been over 56,000 meters of drilling done at project. If you want to replicate that today, it'd probably cost you about $60 million, more importantly, take you five or six years. This is the impetus for us to get into production. Also gives us a lot of leeway to triple production. Having, you know, in all categories, close to 50 million ounces of silver. Historically, this mine was producing about 1 to 1.2 million ounces of silver, if we're able to triple it, we should be able to get some much better numbers coming from that. These are our revenues to date. You know, they've been gradually moving on up. We started at 200, 250 tons per day, went to 325, 425, and now 500 tons per day, and that will change. We did announce in September that we want to increase production. We're doing a two-phase expansion. First phase should be complete by the end of June, so actually very, very soon. We're gonna be going from 500 tons per day up to 750 tons per day, and then from there we're gonna move up to 1,200 to 1,500 tons per day by Q3 2027, so within 18 months, and that's fully capitalized as well. In terms of revenues, Q4 was quite good. Net income was $7.4 million. If you look at that, in all of 2025, the majority of the revenues came in Q4. Q1 should also be very, very strong. Our costs are way, way too high. They're at cash costs around $27 an ounce. That number will stay high for a while, but it will come down. Economies of scale are coming up. We went from a full rental fleet to our own fleet. We've purchased well over $9 million worth of equipment out of cash flows, so you're gonna see those numbers come down. We're also doing extensive development. When a mine's shut down, you usually shut off your development. You just kind of pull out whatever you can, leave it for the next guy. Unfortunately, we're the next guy, so we're catching up on that. Within the next quarter or 2, we'll be fully caught up in development, especially as we increase throughput. You're gonna see those numbers come on down. As Peter mentioned earlier, if you wanted to use the gold as a byproduct, you know, a lot of companies are at 85%, we'd be negative. We'd be paid just for our silver, just 'cause of the gold value. Costs are high now. In this market it's not fantastic, it's fine, because the price of silver, but those numbers will be coming down. Analysts have us around 22 AISC. I think that's a good goal for us. I think we can beat that eventually as well, and as we increase throughput, the numbers should hopefully even drop more. All right, here's the expansion plan. As I mentioned, phase 1 will get us to 750, 800. That's fully budgeted. It's only about $3.6 million. That's U.S. Phase two is about $5 million, that'll bring us up to 1,200-1,500 tons per day, that's all on track. It's gone really, really well. Usually mining, things go wrong. So far only a few things have gone wrong, but we're well on track for both expansions at this time. Here's the district, as I mentioned. The inter areas we're going to be drilling is here in the east district. Zoom in a little bit. The two we really like are El Rincon and Minatitlan. Minatitlan shut down in 1910, had over 10,000 workers. During that time, they got a little bit too deep. Not just a clever name, Minatitlan, it flooded. As the other guy said, once you get a little bit too deep in terms of the water table, you can't go much further, but these things can extend up to 600 meters. We'll be drilling there here shortly. Also El Rincon. El Rincon was one of the highest grade mines that I've ever seen. Head grade there was 6.5 grams gold and over 850 grams silver. This is the prize. This is why we bought the mine, we'll be drilling there later this year. We've budgeted 30,000 meters here just in the east district, we'll have those drills turning after the rainy season, which is in October, ends in October. Quickly, Del Toro. Del Toro, as I mentioned, is in elephant country. You have La Colorada by Pan American, Guantes, from Grupo México, Sabinas from Peñoles. We're right in elephant country here in Zacatecas. Operations historically was producing about 2.5 million ounces of silver equivalent from 3 separate underground mines. What really interests us is the rest of the geology there. There's skarns, there's CRDs, which are some of the richest silver deposits in all of Mexico are CRDs. This project was actually really pushed by our Mexican team. They worked at these projects. They understand the exploration upside, and we'll be doing now close to 50,000 meters of drilling here at Del Toro. It's kind of a 2-pronged approach. We'll be drilling close to 80,000 meters in Mexico, which is one of the largest programs down there. Those are current resources to give you an idea. This is historic, it's about 400 grams silver equivalent, very, very high grade. Just a quick warning. Now things are going really well here at Del Toro, we wanna turn it on. It's about $10 million. We'll need about a year to do that. What the plan here is to drill first, that 30,000-50,000 meters of drilling. Once that's complete, we'll take a look if we wanna turn it on again. $10 million for a CapEx is very, very low. That's what it looks like. It's pretty impressive equipment. These filter presses are over $1 million each, they're built in Italy. They're quite nice. Finally, quickly on the share structure, really strong share structure. Market cap's about $400 million. We've had a little bit of a jump here the last little while. Our largest shareholder will be First Majestic. They're gonna be going from 26% to 33% after we close the transaction. Management founders, we're still quite high. We'll be about 18% after this. I've invested well over CAD 2 million myself. I will be buying more. You'll see that in the market as soon as I'm allowed. I've been blacked out for the last while here. We've been doing our financials, but it's gone well. 3 really strong funds have come in recently. Jupiter, they're out of Europe. They've invested well over $30 million over the last 8 months. They own 9.9. Franklin Templeton out of Palo Alto, a multi-trillion-dollar fund, they're in 9.9 as well. Commodity Capital, they're at 8%, and they've been along every step of the way. Things have gone well. They're gonna continue to go well. Yeah, if you have any more questions, find us at any time just outside. We're easy to get ahold of. Thank you very much. Well, that's it for this session. Thanks very much, Alex. Great overview of Sierra Madre. If anybody has questions, hopefully you do, come pick their brains. We're gonna be next door in another room to be able to follow up with that. Thanks for coming to hear about silver and some great silver companies. Appreciate your time.