Sierra Metals Inc.

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Sierra Metals is a premier Latin American precious and base metals producer with significant resource growth potential. The Company owns and operates three mines in commercial production: the Yauricocha Mine in Peru, the Bolivar and Cusi mines in Mexico.

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Sierra Metals Inc.

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Sierra Metals is a premier Latin American precious and base metals producer with significant resource growth potentia......

people7 Members       (0)


Sierra Metals Reports Strong Q3-2019 Financial Results Including a 16% Increase in Adjusted EBITDA at Its Sociedad Minera Corona Subsidiary in Peru


Sierra Metals Reports Strong Q3-2019 Financial Results Including a 16% Increase in Adjusted EBITDA at Its Sociedad Minera Corona Subsidiary in Peru

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Sierra Metals Inc. (TSX:SMT, BVL:SMT) (“Sierra Metals” or the “Company”) announces the filing of Sociedad Minera Corona S.A.’s (“Corona”) unaudited Financial Statements and the Management Discussion and Analysis (“MD&A”) for the third quarter of 2019 (“Q3 2019”).


The Company holds an 81.8% interest in Corona. All amounts are presented in US dollars unless otherwise stated, and have not been adjusted for the 18.2% non-controlling interest.


Corona’s Highlights for the Three Months Ended September 30, 2019



  • Revenues of US$44.4 million vs. US$38.1 million in Q3 2018

  • Adjusted EBITDA of US$20.5 million vs. US$17.6 million in Q3 2018

  • Total tonnes processed of 307,239 vs. 283,446 in Q3 2018; a new record

  • Net production revenue per tonne of ore milled increased by 10% to US$145.64

  • Cash cost per zinc equivalent payable pound decreased by 21% to US$0.38

  • All in sustaining cost (“AISC”) per zinc equivalent payable pound consistent at US$0.66

  • Zinc equivalent production of 57.2 million pounds vs. 42.9 million pounds in Q3 2018

  • $29.0 million of cash and cash equivalents as at September 30, 2019

  • $56.8 million of working capital as at September 30, 2019


The Company achieved record quarterly equivalent metal production and ore throughput from the Yauricocha Mine during Q3 2019, which has helped to continue to make-up for the lost production realized during the illegal strike during March and April 2019. Revenues increased by 17%, and Adjusted EBITDA increased by 16% during Q3 2019 compared to Q3 2018, and the cash flows generated during Q3 2019 allowed the Company to fund its capital expenditure programs despite a challenging base metal price environment, and significant increases in zinc treatment and refining costs. Cash costs decreased by 21% quarter over quarter due to a 40% increase in zinc equivalent payable pounds, as a result of the 8% increase in throughput, and higher head grades and recoveries for all metals, except zinc. However, the increase in zinc payable pounds was offset by the increase in treatment and refining charges related to the zinc concentrate produced, as well as higher general and administrative costs incurred from higher labour costs, which resulted in the All-in sustaining cost per zinc equivalent payable pound remaining consistent, quarter over quarter. In addition to the record quarterly production realized during Q3 2019, the Company has also been able to build-up a stockpile of approximately 30,000 tonnes of polymetallic ore which is expected to be processed during Q4 2019.


 

Igor Gonzales, President and CEO of Sierra Metals commented, “I am very pleased with the Yauricocha Mine’s excellent quarterly financial results as highlighted with notable improvements to revenue and adjusted EBITDA, while seeing lower realized cash costs. These strong improvements were made possible by the excellent production results that were realized this quarter. Our efforts to recover as much lost tonnage as possible from the illegal strike earlier in this year have been successful and we remain committed to falling within the published guidance for Yauricocha. In addition, we continue to reap the benefit of improvements being made at the Mine and Plant and expect these improvements to continue to benefit the Company through the remainder of the year.”


He continued, “Looking ahead, the fourth quarter is an important time for projects, improvements, and exploration at Yauricocha. We are working to complete the Yauricocha NI 43-101 Reserve and Resource Update which is expected in December this year. We are continuing surface drilling at Don Leona and Kilkaska which are high value, exploration targets and will hopefully have newsflow with the results before year end. Additionally, work continues on the completion of the next level of the tailings deposition facility, needed for the expansion of Yauricocha to the 3,600 tonnes per day level. Furthermore, we continue to sink the Yauricocha shaft towards the 1270 level to provide the Company access to further reserves and resources in the Mine. Finally, work has commenced on the ramp connecting the 820 level with the 720 level of the Yauricocha Mine providing for an additional 10,000 tonnes per month of increased capacity to move ore and waste from the Mine.”


He concluded, “Yauricocha continues its strong operational and financial performance for the Company and Corona continues to have a solid balance sheet and strong liquidity. Management remains positive that continued operational efficiencies and future operational and resource growth are possible at Yauricocha.”


The following table displays selected unaudited financial information for the three months and nine months (“9M 2019”) ended September 30, 2019:


Read more here: https://www.quotemedia.com/portal/quote/?qm_symbol=SMT%3ACC&qmodStoryID=7025951361438482 

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Sierra Metals Inc. (TSX:SMT, BVL:SMT) (“Sierra Metals” or the “Company”) announces the filing of Sociedad Minera Corona S.A.’s (“Corona”) unaudited Financial Statements and the Management Discussion and Analysis (“MD&A”) for the third quarter of 2019 (“Q3 2019”).

The Company holds an 81.8% interest in Corona. All amounts are presented in US dollars unless otherwise stated, and have not been adjusted for the 18.2% non-controlling interest.

Corona’s Highlights for the Three Months Ended September 30, 2019

  • Revenues of US$44.4 million vs. US$38.1 million in Q3 2018
  • Adjusted EBITDA of US$20.5 million vs. US$17.6 million in Q3 2018
  • Total tonnes processed of 307,239 vs. 283,446 in Q3 2018; a new record
  • Net production revenue per tonne of ore milled increased by 10% to US$145.64
  • Cash cost per zinc equivalent payable pound decreased by 21% to US$0.38
  • All in sustaining cost (“AISC”) per zinc equivalent payable pound consistent at US$0.66
  • Zinc equivalent production of 57.2 million pounds vs. 42.9 million pounds in Q3 2018
  • $29.0 million of cash and cash equivalents as at September 30, 2019
  • $56.8 million of working capital as at September 30, 2019

The Company achieved record quarterly equivalent metal production and ore throughput from the Yauricocha Mine during Q3 2019, which has helped to continue to make-up for the lost production realized during the illegal strike during March and April 2019. Revenues increased by 17%, and Adjusted EBITDA increased by 16% during Q3 2019 compared to Q3 2018, and the cash flows generated during Q3 2019 allowed the Company to fund its capital expenditure programs despite a challenging base metal price environment, and significant increases in zinc treatment and refining costs. Cash costs decreased by 21% quarter over quarter due to a 40% increase in zinc equivalent payable pounds, as a result of the 8% increase in throughput, and higher head grades and recoveries for all metals, except zinc. However, the increase in zinc payable pounds was offset by the increase in treatment and refining charges related to the zinc concentrate produced, as well as higher general and administrative costs incurred from higher labour costs, which resulted in the All-in sustaining cost per zinc equivalent payable pound remaining consistent, quarter over quarter. In addition to the record quarterly production realized during Q3 2019, the Company has also been able to build-up a stockpile of approximately 30,000 tonnes of polymetallic ore which is expected to be processed during Q4 2019.

 

Igor Gonzales, President and CEO of Sierra Metals commented, “I am very pleased with the Yauricocha Mine’s excellent quarterly financial results as highlighted with notable improvements to revenue and adjusted EBITDA, while seeing lower realized cash costs. These strong improvements were made possible by the excellent production results that were realized this quarter. Our efforts to recover as much lost tonnage as possible from the illegal strike earlier in this year have been successful and we remain committed to falling within the published guidance for Yauricocha. In addition, we continue to reap the benefit of improvements being made at the Mine and Plant and expect these improvements to continue to benefit the Company through the remainder of the year.”

He continued, “Looking ahead, the fourth quarter is an important time for projects, improvements, and exploration at Yauricocha. We are working to complete the Yauricocha NI 43-101 Reserve and Resource Update which is expected in December this year. We are continuing surface drilling at Don Leona and Kilkaska which are high value, exploration targets and will hopefully have newsflow with the results before year end. Additionally, work continues on the completion of the next level of the tailings deposition facility, needed for the expansion of Yauricocha to the 3,600 tonnes per day level. Furthermore, we continue to sink the Yauricocha shaft towards the 1270 level to provide the Company access to further reserves and resources in the Mine. Finally, work has commenced on the ramp connecting the 820 level with the 720 level of the Yauricocha Mine providing for an additional 10,000 tonnes per month of increased capacity to move ore and waste from the Mine.”

He concluded, “Yauricocha continues its strong operational and financial performance for the Company and Corona continues to have a solid balance sheet and strong liquidity. Management remains positive that continued operational efficiencies and future operational and resource growth are possible at Yauricocha.”

The following table displays selected unaudited financial information for the three months and nine months (“9M 2019”) ended September 30, 2019:

Read more here: https://www.quotemedia.com/portal/quote/?qm_symbol=SMT%3ACC&qmodStoryID=7025951361438482 


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