On May 22, 2026, Sierra Madre Gold and Silver Ltd. (SM:TSX.V; SMDRF:OTCQX) announced approval for the acquisition of the Del Toro Silver Mine in the Chalchihuites District in Mexico from Mexico’s antitrust agency, the Comisión Federal de Competencia Económica (COFECE). Del Toro is a fully permitted, past-producing underground silver-gold-lead mine with an on-site process plant that operated between 2013 and 2019. It features three underground centers, with a total of over 62.5 kilometers of development in place. The site includes a functional process circuit: three mills with a total capacity of 3,000 tonnes per day, sulphide and oxide flotation circuits, as and a new dry stack tailings storage facility.

In the press release, Sierra Madre’s CEO, Alex Langer, said, “Receiving COFECE approval is a key regulatory milestone and a strong validation of our strategy of building a multi-asset producing silver and gold portfolio in Mexico. With this clearance, we are well-positioned to finalize the acquisition and move forward with our plans to advance exploration ahead of a possible planned restart of Del Toro.”

When the acquisition is finalized, Sierra Madre will also hold the La Guitarra mine, where double throughputs are expected by mid-2027 upon the completion of a two-stage expansion. The Del Toro mine is currently expected to restart in mid-2027, with first production anticipated by mid-2028.

Sierra Madre Gold and Silver Ltd. is a metals development, extraction, and exploration company currently focused on the Guitarra mine in the Temascaltepec mining district in Mexico.

Metals Feeling War Pressure

As of the morning of May 26, gold prices had fallen 0.7% to US$4,547.10 per ounce, though gold futures for June remained unchanged at US$4.536.80. Silver prices were down 1.76% at US$76.18. American strikes on Iranian territory are partially responsible for the slight decline of these safe-haven assets, pushing Brent crude oil prices higher and spiking inflation worries over U.S. interest rates. An end to the Iran-U.S. conflict would be welcome news for investors who have been watching the market bounce up and down for the first few months of 2026, but the market seems resilient.

In April, S&P Global wrote, “Gold is expected to remain volatile but structurally supported, with central bank demand and geopolitical risk helping to establish a price floor above recent correction lows.”

Despite the volatility of gold, the sector as a whole is only showing signs of improvement. On May 7, 2026, Brian Taylor of Recycling Today said that the World Bank Group has predicted that overall global metals prices will rise by 17% in 2026, which would mark the first overall market increase since 2022.

Butler Updates Outlook on Sierra Madre

In a May 19, 2026, article for The Gold Advisor, senior analyst Ted Butler said, “Sierra Madre may as well be swinging a baseball bat, as it’s knocked it out of the park with its Q1 2026 financial results.”

While some investors may be wary of the company’s rising cash costs, Butler assuaged their fears. “Admittedly, cash costs also rose to US$42.55 per AgEq ounce produced, up from US$33.63 in Q4 2025, reflecting ramp-up costs at Coloso and Nazareno and broader inflationary pressures. However, management notes that improved head grades are expected through the remainder of 2026 as higher-grade in-resource material is processed, with unit costs expected to fall in turn,” he wrote.

“I have recently upgraded to an overweight position in Sierra Madre, grounded in my belief that management will meaningfully scale up silver production in the coming months. Peter continues to hold a full weighting in the stock,” said Butler.

Butler updated his statement on May 25, 2026, saying, “Ultimately, COFECE approval transforms Del Toro from a pending acquisition into a near-certain one, adding a second — future cash flowing — silver asset to Sierra Madre’s portfolio.”

An Expansion Underway

The first phase of the company’s La Guitarra capacity expansion project is on schedule to be completed by the end of Q2 2026. As per the press release, “As announced on September 8, 2025, the company has initiated a plan to expand production capacity at Guitarra in a two-phase program, with the first phase anticipated for completion by the end of Q2 2026, with the aim to increase the nameplate capacity of the mill from 500 tonnes per day (“tpd”) to a range of 750-800 tpd. The second phase is anticipated to be completed by Q3 2027, with the aim of increasing the capacity to a range of 1,200-1,500 tpd at Guitarra.”

Langer said, “We are also looking forward to closing the Del Toro mine acquisition and preparing for exploration in the East District of the La Guitarra Mine Complex, with over 30,000 meters of drilling planned to start in H2 2026.”

Ownership & Share Information¹

Sierra Madre Gold and Silver Ltd. has a market cap of CA$440.73 million, with 196.75 million shares outstanding. The company’s 52-week range is CA$0.58-CA$3.25. Institutions own 33.6% of shares, while Strategic Investors own 26.21%. Management & Founders own 24.3%, and the remaining 15.89% of shares are held by Retail.