Sierra Madre Clears Mexican Antitrust Hurdle for Del Toro Acquisition

Mexico's COFECE approves Sierra Madre's $60M Del Toro acquisition. Restart targeted for mid-2027, with record Q1 revenue and strong stock gains fueling growth.

The path to multi-asset production is opening up for Sierra Madre Gold and Silver. Mexico’s competition authority, COFECE, has signed off on the company’s $60 million purchase of the Del Toro mine from First Majestic Silver, removing a key regulatory barrier. Shareholders had already given their blessing in April 2026, and the green light from the antitrust body allows the deal to close.

Del Toro is no greenfield project. The underground mine – which produced silver, gold and lead between 2013 and 2019 – comes with existing infrastructure including three underground centres and a processing plant capable of handling 3,000 tonnes per day. Sierra Madre plans to restart operations by mid-2027, with first commercial output expected a year later. CEO Alex Langer has called the acquisition a cornerstone of the company’s business model.

While Del Toro moves through the permitting and financing stages, Sierra Madre is pushing ahead with a parallel expansion at its producing La Guitarra mine. Management aims to more than double throughput at La Guitarra by mid-2027. The first phase of that upgrade is nearing completion, and the company expects fresh data on capacity gains before the end of June.

Financially, the company is building momentum. In the first quarter of 2026, Sierra Madre recorded record revenue of $10.1 million, with adjusted EBITDA climbing to $2.8 million. Operating cash flow reached $3.5 million, and investments in new equipment and generators are targeting lower operating costs. Adding to the backdrop, the Silver Institute estimates a structural supply deficit of roughly 67 million ounces this year, providing favourable tailwinds for Sierra Madre’s growth plans.

The market has taken notice. On Monday, shares climbed more than 8% to €1.40, and were later seen as high as €1.42, representing a near-10% gain. Year to date, the stock is up roughly 30%, and over the past twelve months it has gained more than 275%, reflecting investor confidence in the company’s trajectory.

Looking ahead, Sierra Madre will launch an extensive 30,000-metre drilling programme in the East District during the second half of 2026. The campaign is designed to expand the resource base and drive down unit costs over the longer term. For now, the focus is on execution: Del Toro’s timeline is ambitious, and the company still needs to secure additional financing and final permits before the mine can deliver its first ounces by mid-2028.