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In the movie Treasure of the Sierra Madre, two down and out American ex-patriots in Tampico, Mexico, team up with an old prospector to look for gold. Throughout the movie, these three men are faced with various challenges. They must fight off bandits, try to survive in the wilderness and learn to tolerate and trust each other.

The movie opens on the hands of a scraggly looking bum, dirty and scrounging, holding a lottery ticket. This man is later introduced as Dobbs. He is begging for money from richer looking men until he is given some. He takes the money and goes to the barbershop for a shave and a haircut.

Dobbs then accepts a job for eight American dollars a day. When the job is finished, he and another guy (the bum that he had met earlier on) are not paid. The younger American, named Curtain asks Dobbs, how much money they had left between them, hoping it was enough to rent a bed somewhere. They find a place that they can afford and when they get there overhear someone talking. The old man, a scruffy toothless gold prospector named Howard is describing the adventurous hunt for gold.

Being half drunk and overtired, Dobbs cannot resist taking an interest in the conversation. He, Curtain, and Howard decide to pool their money together for a total of 500 dollars. Howard does not think it is enough to buy tools and such, but it will do. Just then, the little boy that Dobbs bought the lottery ticket from comes in exclaiming that Dobbs has won 200 pesos. This was enough, added to their other money to send them on their trip. They venture on and eventually find gold. What they find, they do not believe is gold, but sand. Only after closely inspecting it, are they sure it is truly genuine.

A mysterious man follows Curtain from the village he was sent to for supplies back to their camp. He is introduces as Cody and wonders if he could be a partner. Curtain, Dobbs, and Howard figure...