Disseminated on behalf of Sierra Madre Gold & Silver Ltd.
Silver has long been cherished for its aesthetic appeal in jewelry, but its true value in today’s world is increasingly tied to technology. As the global economy pivots towards renewable energy, electric vehicles (EVs), and advanced electronics, silver has emerged as a critical material. Its exceptional conductivity and reflectivity make it indispensable for solar panels, EV batteries, and 5G networks. This shift marks a transformative chapter for the silver market—one that is driven more by functionality than fashion. Companies like Sierra Madre Gold & Silver Ltd. are poised to meet this burgeoning demand.
Rising Demand from the Green Transition
The clean energy transition is reshaping the landscape of silver usage. According to the Silver Institute, global silver demand reached a staggering 1.2 billion ounces in 2024, with over 30% allocated for industrial applications, primarily in solar power and electronics. This trend is expected to accelerate as countries ramp up their renewable energy capacities.
In 2024, industrial silver consumption hit an all-time high of 680.5 million ounces, driven largely by solar manufacturing, electric vehicles, and electronics. Solar energy alone now accounts for over 30% of industrial demand. Each photovoltaic (PV) panel contains approximately 15–25 grams of silver, and projections indicate that by 2030, solar installations could exceed 500 gigawatts annually, necessitating around 250 million ounces of silver each year.
Electric vehicles represent another significant growth area. A single EV can use up to 50 grams of silver—about twice the amount found in a traditional vehicle. As production scales up, the automotive sector’s silver demand could triple by 2030. These trends are tightening the global silver market, with inventories dwindling and analysts warning of persistent supply deficits through the end of the decade.
The Supply Challenge: Falling Mine Output
While demand for silver surges, mine output is struggling to keep pace. The Silver Institute estimates that global silver production will reach approximately 819.7 million ounces in 2024, a mere 1% increase from the previous year. Even with this slight uptick, a supply deficit of 117.6 million ounces is anticipated for 2025, highlighting ongoing long-term shortages.
Mexico remains the world’s largest silver producer, contributing about 23% of global output. However, much of this production comes from aging or polymetallic mines where silver is a by-product. New players like Sierra Madre Gold & Silver are attracting investor interest by combining modern exploration techniques with production capabilities in one of the richest silver belts on Earth.
Sierra Madre’s Portfolio: Reviving Proven Silver Assets
Sierra Madre Gold & Silver Ltd. (TSXV: SM, OTCQX: SMDRF) is advancing two key projects in Mexico’s Sierra Madre mineral belt: La Guitarra and Tepic. Together, these projects represent a blend of production and exploration potential.
La Guitarra Mine (State of Mexico)
La Guitarra, acquired from First Majestic Silver Corp., is a fully permitted and operational underground mine with existing processing infrastructure. The company achieved commercial production at a rate of 500 tonnes per day in January 2025, with plans to expand to 1,500 tonnes per day by 2027. This project aims to restore one of Mexico’s most renowned silver mines to its former glory.
Tepic Project (Nayarit)
The Tepic project is a high-grade epithermal gold-silver deposit featuring near-surface mineralization, which offers significant exploration potential and options for future growth.
Sierra Madre strategically targets assets with established infrastructure and clear development paths, minimizing costs and timeline risks compared to early-stage explorers.
Positioned for the New Industrial Cycle
The global shift towards cleaner energy sources is transforming silver into a strategic commodity. Governments and industries now recognize silver as vital for achieving energy-transition goals. As demand continues to outstrip supply, producers with near-term restart potential are best positioned to benefit.
Sierra Madre fits seamlessly into this narrative. The La Guitarra project has resumed production much faster than greenfield developments, which often require years for permits and construction. Meanwhile, its exploration project adds scalability and long-term growth potential.
Mexico boasts a robust mining infrastructure and a skilled workforce, providing Sierra Madre with significant logistical advantages. As the U.S. implements policies to secure supply chains for essential materials, Mexico’s role as a reliable supplier becomes increasingly important.
Market Dynamics: Silver as a Strategic Metal
Silver’s price movements in 2025 highlight profound shifts in its role within both industrial and investment spheres. After climbing nearly 25% year-to-date, silver reached an all-time high of $54.24 per ounce in October before correcting to the high-$40 range. Analysts from Metals Focus project that prices could exceed $60 by late 2026 if current supply deficits and clean energy demand trends persist, particularly in solar and electronics.
Supporting this rally, silver exchange-traded products (ETPs) absorbed 95 million ounces in the first half of 2025, pushing global holdings to 1.13 billion ounces—just 7% below their all-time peak. According to the World Silver Survey 2025, industrial fabrication demand reached a new record of 680.5 million ounces in 2024, maintaining upward momentum through 2025. The supply side remains structurally tight, with analysts projecting a market deficit of approximately 149 million ounces this year, marking five consecutive years of demand outpacing annual mine production.
Why Sierra Madre Stands Out
Production: La Guitarra’s restart is complete, with targeted output ramp-up in 2026 and 2027.
High-Quality Assets: Two projects located in Mexico’s most productive silver-gold belt.
Operational Readiness: A fully permitted plant and existing infrastructure at La Guitarra reduce start-up costs.
Strong Market Tailwinds: Record-setting silver demand from solar, EVs, and electronics.
Experienced Leadership: A proven management team with expertise in Mexican mining operations.
These factors create a unique blend of production, exploration, and expansion potential, positioning Sierra Madre as a key player in one of the fastest-growing industrial metals markets.
A New Chapter for Silver – and for Sierra Madre
Silver’s increasing significance in the clean-energy transition marks a pivotal moment for the mining industry. Once primarily viewed as a precious metal, silver is now a cornerstone of the technologies driving global decarbonization.
Sierra Madre Gold & Silver is among the few junior miners successfully restarting a permitted mine in Mexico’s silver heartland while planning for near-term expansion. This strategic positioning allows them to capitalize on the current structural shift in the market. With rising demand and limited supply, the company is well-equipped to advance its plans for La Guitarra, connecting Mexico’s rich mining heritage with a sustainable future.
Disclaimer
New Era Publishing Inc. and/or CarbonCredits.com (“We” or “Us”) are not securities dealers or brokers, investment advisers, or financial advisers, and you should not rely on the information herein as investment advice. Sierra Madre Gold and Silver Ltd. (“Company”) made a one-time payment of $25,000 to provide marketing services for a term of one month. None of the owners, members, directors, or employees of New Era Publishing Inc. and/or CarbonCredits.com currently hold, or have any beneficial ownership in, any shares, stocks, or options of the companies mentioned.
This article is informational only and is solely for use by prospective investors in determining whether to seek additional information. It does not constitute an offer to sell or a solicitation of an offer to buy any securities. Please conduct your own research before investing, including reviewing the companies’ SEDAR+ and SEC filings, press releases, and risk disclosures.
For more information on the Company, investors should review the Company’s continuous disclosure filings available on SEDAR+ at www.sedarplus.ca.
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