Silver Miners Eye Possible Regulation Breakthroughs in Mexico

1. Regency Silver Corp., MAG Silver Corp., and Sierra Madre Gold and Silver Ltd. are billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$3,000 and US$6,000. In addition, Regency Silver has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
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* Disclosure for the quote from the John Newell article published on September 10, 2025

1. For the quoted article (published on September 10, 2025), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,000.
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As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it's advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.

A backlog in the issuance of mining permits accumulated over the past four years in Mexico has been reduced by about 50% as of 2025, the Latin business news website BNamericas reported September 3.

Eighty permits had been granted so far, according to Fernando Aboitiz, head of the Extractive Activities Coordination Unit at the Ministry of Economy (SE), according to the report.

Mexico's environment ministry, Semarnat, is currently reviewing and updating official standards and regulations that directly affect mining activities, BNamericas reported September 16. The aim is to enhance environmental protection without leading to "overregulation."

The country is the world's largest producer of silver, which is in a bull market, most experts agree and is needed for the world's energy transition. The country's former left-wing president, Andrés Manuel López Obrador, took a firmer stance toward mining companies.

According to an annual survey of mining companies compiled by Julio Mejía and Elmira Aliakbari, the Fraser Institute said Mexico increased its Investment Attractiveness Index score by almost 18 points and climbed to the 49th spot (of 82) after ranking 74th (of 86) last year.

"On policy alone, Mexico saw an increase of 4.76 points and climbed in the policy ranking to the 61st spot (of 82) after ranking 68th (of 86) last year," the survey noted. "Miners expressed decreased concern over Mexico's geological database (-29 points), labor regulations (-18 points), and political stability (-15 points). Investors also expressed an increased concern over Mexico's regulatory duplication and inconsistencies (+13 points), uncertainty concerning its environmental regulations (+12 points), and its socioeconomic agreements (+6 points)."

New Regulations to be Published Soon?

According to the BNamericas report, Luz Mariana Pérez, director of mining at Semarnat, said at the Mexico Mining Forum, "We currently have Standard 120 in force, which deals with environmental protection classifications for mining exploration activities. We are currently undergoing a systematic review of this standard because, as you know, some modifications have been made at the national level."

She added that the government, private sector, academia, and the Mexican Mining Chamber (Camimex) are involved in this process to determine "whether it remains in effect, whether it no longer exists, or whether it requires modification."

BNamericas said it learned from two industry sources, who requested anonymity, that the mining regulations are expected to be published in September, and a draft of them has been circulated. BNamericas was unable to independently confirm the existence of the document.

Regarding the issue of closures, mining lawyer Alberto Vázquez told the website that all Environmental Impact Assessments (EIAs) have a section erroneously titled "Closure and Abandonment," which includes environmental restoration and remediation at the end of the operation.

"These conditions will very likely change, and in that sense, the current EIAs will need to be adjusted, which is a potential problem especially in terms of foreign investment," he said. "These companies are the ones that must be closely monitoring this issue in the environmental reform and the aforementioned regulations."

The lawyer added that Pérez's statements reflect that authorities consider the reform to the Mining Law to be final, although two unconstitutionality lawsuits remain against it in the Supreme Court.

For her part, the official assured that the regulatory initiatives promoted by Semarnat would not only apply to new projects or those about to begin operations, but also to existing ones. "Of course, we would always seek to ensure that the transition or application provides adequate space to comply with these initiatives," she said.

Pérez emphasized that the changes aim to balance environmental protection with the sector's operating conditions. "It doesn't work for us to fill them with regulatory instruments, and these will be unattainable, right? It's important to achieve that balance."

Finally, the Semarnat representative called on the sector to submit comments through Camimex: "I think this would be a good time for you to express these concerns regarding the processes we are currently modifying."

Regarding environmental permits, the official reiterated that work is being done to expedite response times: "We are working closely with the Ministry of Economy to expedite many of the pending procedures. The intention is that through Semarnat's initiatives, we can ensure an optimal response time for all of you, whether favorable or unfavorable, but so that you know the status of the procedures," Pérez said.

An Ongoing Dialogue

Fresnillo Plc is among the companies that have recently received pending permits in Zacatecas, as stated by its CEO, Octavio Alvídrez. In March, during the Mexico Mining Forum 2025 PDAC in Toronto, Aboitiz had predicted that the legal framework for mining in Mexico would become clearer by mid-year, with the anticipated publication of regulations required to implement the Mining Law, reformed in May 2023. However, these regulations have yet to be published.

Aboitiz emphasized ongoing dialogue with Camimex, whose president, Pedro Rivero, has stressed the importance of a clear regulatory framework, the need to expedite permit issuance, and the necessity of enhancing security against organized crime.

On the government side, Aboitiz explained that the primary concerns relate to the closure of mining operations and the environmental liabilities they may create. He stressed that environmental measures must ensure that nearby communities are not adversely affected and that there is shared prosperity in the social dimension.

"We've been trying to resolve this and see how to reach a new agreement where you can have certainty and we can have the peace of mind that this future will be different," Aboitiz said. "We're at that stage. Sometimes it's complex and, for some, frustrating, but truly, given the circumstances we found ourselves in, the progress has been substantial. It hasn't been easy, but I insist there's no better way to resolve differences than by talking."

Looking ahead, Aboitiz noted that as long as mining remains environmentally and socially responsible, the relationship with the government will continue to progress. "I invite us to continue on this path and reiterate our willingness to work together," he added.

There are several companies exploring for and producing silver and other precious and critical metals in the country that could be directly affected by any changes. Here are three that experts recommend for your portfolios.

Pan American Silver Corp.

Pan American Silver Corp. (PAAS:TSX; PAAS:NYSE) has expanded its presence in the country after it completed its previously announced acquisition of all issued and outstanding common shares of MAG Silver Corp. through a plan of arrangement.

This acquisition provides Pan American with a 44% joint venture interest in the large-scale, high-grade Juanicipio silver mine in Zacatecas, Mexico, operated by Fresnillo Plc. This transaction strengthens Pan American's position as a leading global silver producer, enhances its top-tier silver reserve base, and offers significant near-term cash flow growth and long-term exploration opportunities.

"The Juanicipio Mine is a high-quality addition to our portfolio that will contribute meaningfully to our silver production, reserves, and cash flow," said Michael Steinmann, President and Chief Executive Officer of Pan American. "We are pleased to welcome MAG shareholders to Pan American, who now benefit from participation in a larger, diversified, and growth-oriented silver and gold producer. We also look forward to working collaboratively with Fresnillo, the mine's operator, to advance the potential of the Juanicipio asset for the benefit of all stakeholders."

The inclusion of the Juanicipio asset adds approximately 5 million ounces (Moz) per annum of attributable silver production to Pan American Silver Corp.'s output, marking a ~22% increase, noted BMO Capital Markets Analyst Matthew Murphy in an updated research note on September 4.

This asset contributes around US$170 million in annual free cash flow at current market prices, lowers the company's all-in sustaining costs (AISC), and elevates silver production to about 22% of revenue amid silver's price outperformance, said the analyst, who raised the firm's target price to CA$45 and maintained its Market Perform rating.

"Juanicipio's performance in 2024 made it the largest scale and lowest-cost primary silver mine globally," Murphy wrote.

Pan American's Q2 production and AISC for both silver and gold met the quarterly guidance, according to an updated report by Edison analysts Andrew Keen and Andrey Litvin on August 14. They revised their valuation of the stock, which was US$31.66 per share at the time of writing, from US$33.70 per share to US$38 per share.

"Despite some sequential increase in costs and slightly lower sales, stronger commodity prices have led to a 10% increase in EBITDA and record operating cash flow, resulting in a higher net cash position and a 2c increase in its quarterly dividend," the analyst wrote. "We have upgraded our estimates on higher commodity prices and raised our discounted cash flow (DCF)-based valuation to US$38.0/share."

Analyst Carey MacRury of Canaccord Genuity Capital Markets has rated the stock a Buy with a price target of US$38 and especially highlighted the newly discovered mineralization style. "The eastern extensions of NC2/Mariana, the Cristina-San Geronimo corridor, and the contact-related replacement discovery collectively point to meaningful near-mine resource growth potential," MacRury wrote. "With emerging gold credits in select structures and multiple open directions, the program supports longer mine life and potential economics improvement ahead of the June 30, 2025, reserve/resource update."

In a September 4 Daily Bulletin on the company, National Bank of Canada Analyst Don DeMarco noted the upcoming mineral resource estimate (MRE) update as a catalyst and maintained his Outperform rating, increasing his target price to CA$62 from CA$52.50.

DeMarco called Pan American's acquisition of MAG "prescient" and said it "lifts silver reserves and high-margin silver production in a constructive silver tape against a backdrop of diminishing remaining silver M&A targets while adding compelling exploration opportunity."

Global Analyst Adrian Day, writing on September 16, noted that Pan American's closing of the agreement with MAG adds about 5 Moz of production per year for the company, an increase of a little over 20%. Last year, "Juanicipio was the world's lowest-cost primary silver mine, and is thought to have considerable exploration potential," Day wrote.

According to Refinitiv, less than 1% of the company is owned by insiders and management and about 55% is owned by institutions, leaving the rest in retail.

Top shareholders include Van Eck Associates Corp. with 7.05%, The Vanguard Group with 3.33%, Mirae Asset Global Investments with 2.47%, Pan American Silver Corp. with 2.15%, and Invesco Advisers Inc. with 2.11%.

Its market cap is US$15.12 billion with 421.98 million shares outstanding. It trades in a 52-week range of US$19.80 and US$37.73.

Regency Silver Corp.

Regency Silver Corp. (RSMX:TSXV; RSMXF:OTCQB) plans to drill approximately 4,500 meters across six to eight holes in an upcoming program at its Dios Padre project. The focus will be on exploring along-strike extensions of high-grade mineralization previously encountered at the Dios Padre project, including: 38 meters of 7.36 grams per tonne gold (g/t Au) in hole REG 23-2; 36 meters of 6.84 g/t Au, 0.88% copper (Cu), and 21.8 g/t silver (Ag) in hole REG 22-01; and 29.4 meters of 6.32 g/t Au in hole REG 23-14.

"We are excited to get back drilling to target the expansion of the significant high sulfidation Au-Cu-Ag discovery at Dios Padre," said Chairman and Chief Executive Officer Bruce Bragagnolo.

Recent drilling at Dios Padre, which is in Sonora, Mexico, has significantly expanded the zone rich in gold, copper, and silver.

Additionally, Regency has announced high-grade silver findings from drilling at the historic Dios Padre silver mine, including:

Earlier this month, the company successfully closed its previously announced and oversubscribed brokered private placement. The offering involved the sale of 40,000,000 units, including the full exercise of the over-allotment option, at CA$0.10 per unit, raising total gross proceeds of CA$4 million. Regency indicated that the net proceeds will be used to initiate drilling at Dios Padre this month, with results anticipated in January, and for general corporate purposes.

The site benefits from excellent infrastructure, including access to a major highway, small aircraft facilities, power, and a skilled workforce, the company said.

It's also situated in a prime location. Pan American's Dolores open-pit mine, located 80 kilometers away, has been operational since 2009. In 2022, it produced 2.24 Moz silver and 136,000 ounces of gold. The proven and probable reserves for 2022 were 21 million tonnes, containing 11 million ounces Moz Ag at 19 g/t and 318,000 ounces Au at 0.58 g/t, according to Pan American.

Alamos Gold Inc.'s (AGI:TSX; AGI:NYSE) Mulatos mine and Agnico Eagle Mines Ltd.'s (AEM:TSX; AEM:NYSE) La India open-pit mine are also each less than 50 kilometers from the project.

*John Newell of Newell & Associates observed on September 10 that the company prioritizes new discoveries to speed up the investment cycle for shareholders, "capturing the value spike seen at the discovery stage rather than waiting years for production."

He characterized Dios Padre as a high sulfidation/porphyry mineralized system with considerable potential. Situated along the same mineral belt as some of Mexico's most productive gold and silver mines, Dios Padre is close to producing headframes operated by major companies, reinforcing the notion that "the best place to find a new mine is near an old one."

The company's chart reveals a dramatic turnaround after a prolonged decline during the challenging bear market that junior explorers faced over the past decade. He set the following price targets: first target, CA$0.45; second target, CA$0.65; third target, CA$0.95; and Big-Picture Target, CA$2.20.

"Regency Silver offers a discovery story with clear catalysts: high-grade intercepts in a growing breccia body, a historic silver resource beside existing workings, and a management team that has built mines and created value in Mexico before," the expert wrote. "The system remains open, and continued drilling has the potential to significantly expand the scale of the project. With experienced leadership advancing a gold-silver discovery during a historic precious metals bull market, Regency Silver stands out as a compelling exploration play. For these reasons, we view the company as a Speculative Buy at the current price of CA$0.14."

According to the company, about 7% is owned by insiders and management and a strategic investment group from London owns nearly 6%. The rest is retail.

Some top shareholders include Bragagnolo with 8.13%, Director Michael Thomson with 2.09%, Director and Head Geologist Michael Tucker with 0.94%, and Director Patrick Elliott with 0.09%, Refinitiv reported.

Its market cap is CA$12.63 million with 56.04 million shares outstanding. It trades in a 52-week range of CA$0.32 and CA$0.09.

Sierra Madre Gold and Silver Ltd.

Sierra Madre Gold and Silver Ltd. (SM:TSX.V; SMDRF:OTCQX) has just unveiled a comprehensive two-phase plan to expand its La Guitarra silver-gold mining complex in Mexico's Temascaltepec district.

The company intends to more than double its processing capacity from the current 500 tonnes per day (tpd) to between 1,200 and 1,500 tpd by the third quarter of 2027. The initial phase, set to be completed by the second quarter of 2026, aims to increase capacity by 50%, reaching 750 to 800 tpd.

This first phase involves building a paste fill and thickener plant, adding a fourth ball mill and a second cone crusher, and upgrading the conveyor system. The company is already in the process of acquiring key equipment, with deliveries expected by November 2025.

The second phase focuses on further capacity expansion and includes constructing a fully permitted dry stack tailings storage facility (TSF) with a 5.8 million-tonne capacity.

Additional infrastructure will feature a second crushing circuit and the replacement of an existing ball mill to accommodate higher throughput. These enhancements are designed to produce finer material, potentially improving recoveries starting in Q2 2026. Sierra Madre has stated it has sufficient funds from its treasury and cash flow to finance these expansions. In July 2025, the company completed a CA$19.5 million private placement to support ongoing development at La Guitarra.

CEO Alex Langer expressed enthusiasm about the company's future, stating, "With commercial production achieved at La Guitarra only nine months ago, we are excited to be planning our next two major milestones."

In Q2 2025, Sierra Madre reported revenue of US$5.4 million and a gross profit of US$1.3 million, driven by the production of 66,011 ounces of silver and 1,048 ounces of gold. Commercial production at La Guitarra began in January, ahead of schedule and under budget.

On July 17, VSA Capital reaffirmed its Buy recommendation for Sierra Madre Gold and Silver Ltd., setting a target price of CA$1.40 per share, which indicated a potential 100% increase from the CA$0.70 share price at that time.

Analyst Oliver O'Donnell highlighted on September 8 that the company's CA$19.5 million private placement, which was increased from an initial CA$10 million offering, enabled Sierra Madre to fast-track its growth initiatives and exploration efforts across its broader license area.

He noted that "as a brownfield site which has previously operated at higher run rates, the capex requirement is modest," and mentioned that the funds would be allocated for plant enhancements, equipment acquisitions, and initiatives to boost operational efficiency. O'Donnell also stressed the potential of the company's Eastern District, where 59 kilometers of veins have been identified, with historical grades surpassing 600 g/t silver and up to 4 g/t gold. He concluded that "accelerating the ramp up to take advantage of the rise in precious metals prices is a positive decision which we believe will bring forward stronger cash flow generation for only modest capex."

VSA reiterated its Buy rating and CA$1.40 target.

On July 19, Thibaut Lepouttre of Caesars Report commented on Sierra Madre's fundraising activities and their implications for growth. He mentioned that the company would use the proceeds from the increased CA$19.5 million financing to expand capacity at the La Guitarra mine. He also noted that "the recent [upsizing] of the financing (from the initially announced CA$10M) will likely also allow for a substantial drill program."

On August 22, Ted Butler provided further analysis following Sierra Madre's Q2 2025 results. He reported that revenue increased to US$5.4 million and gross profit reached US$1.3 million, up from US$4.8 million and US$1.2 million in Q1. Production rose to 173,562 silver-equivalent ounces from 165,093 in the previous quarter. He stated that adjusted EBITDA grew by 37.5% quarter-over-quarter to US$1.46 million, reflecting improved operational efficiency.

Butler highlighted progress at the company's Coloso mine, which is now contributing higher-grade material. July output reached 576 tonnes from Coloso, in a marked improvement over previous months from additional production areas.

Sierra Madre provided a breakdown of the company's ownership and share structure, where management and founders own approximately 21.4% of the company.

According to Refinitiv, President and CEO Alexander Langer owns 2.27% of the company, Director Jorge Ramiro Monroy owns 1.1%, Director Alejandro Caraveo owns 1.1%, Director Kerry Melbourne Spong owns 0.43%, and Director Gregory F. Smith owns 0.12%.

Institutional investors own 24.3% of the company. Commodity Capital A.G. owns 4.4%, Refinitiv reported. Strategic investors hold 37.7%. The rest is retail.