Sierra Madre Gold and Silver

SMDRF

Other Precious Metals · Basic Materials

Price

$1.07

+0.07 (+7.30%)

Market Cap

$211.1M

Exchange

Other OTC

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 9, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+203.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 56.7M (2021) → 172.0M (2025)

Sierra Madre Gold and Silver Ltd. is a Canadian mining company that explores for and produces gold and silver. Its main asset is the Guitarra Mine, a silver and gold operation located in the state of Mexico in central Mexico. The company sells its metal production to refiners and commodity buyers, placing it in the precious metals mining industry.

Sierra Madre earns revenue by extracting ore, processing it, and selling the resulting gold and silver at prevailing market prices. It operates entirely in Mexico, making it a small-cap, single-asset miner with a market cap around $200 million. The gross margin of roughly 35% suggests reasonable production economics at current metal prices, but the company faces real risks from metal price swings, permitting challenges, and the operational complexity of running a mine in a remote region. The key growth driver is expanding production at Guitarra, though any delays in permitting or unexpected geological issues could significantly impact results.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+105.9% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

-22.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (3%)

Research and development spending

Insider Activity

75.7%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$13M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Strong grower

Sierra Madre Gold and Silver is growing revenue at 106% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

35.1%

Modest — 35.1% gross margin

Operating Margin

15.9%

Healthy — 15.9% operating margin

ROCE

2.7%

Weak — 2.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+158.3%

Fast-growing sales (+158.3% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

73%

Modest — 73% of profit becomes cash

FCF Margin

-5.3%

Burning cash (-5.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.05

Conservative — low debt load (0.05)

Interest Cover

5.52x

Adequate interest coverage (5.5x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

24.1x

Growth-priced — P/E 24.1

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+18.9

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (24.1 → 5.2)

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Dividends

Not applicable for this business.

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