(All $ figures reported in USD)
- Adjusted EBITDA of $89.8 million in 2018 increased 11% from $81.0
million in 2017 due to the increase in revenus at all three Mines
- Operating cash flows before movements in working capital of $90.1
million in 2018 increased 13% from $80.0 million in 2017
- Revenue from metals payable of $232.4 million in 2018 increased by
13% from $205.1 million in 2017 due to higher throughput
- 2018 consolidated copper production of 34.0 million pounds,
consolidated silver production of 2.7 million ounces, consolidated
zinc production of 76.8 million pounds, consolidated lead production
of 27.7 million pounds, and consolidated gold production of 7,743
ounces; a 27% increase, 17% increase, 1% increase, a 7% decrease, and
a 25% increase respectively, compared to 2017, and within production
guidance(1)
- Reduction in the all-in sustaining costs in 2018: 6% lower at
Yauricocha, 21% lower at Bolivar, and 35% lower at Cusi vs 2017
- $21.8 million of cash and cash equivalents as at December 31, 2018
- Net Income attributable to shareholders of $0.12 per share
- Net Debt of $34.4 million as at December 31, 2018
- Shareholder conference call to be held Friday, March 29, 2019, at
10:30 AM (EST)
(1) Silver equivalent ounces and copper and
zinc equivalent pounds for Q4 2018 were calculated using the following
realized prices: $14.63/oz Ag, $2.77/lb Cu, $0.89/lb Pb, $1.16/lb Zn,
$1,238/oz Au. Silver equivalent ounces and copper and zinc equivalent
pounds for Q4 2017 were calculated using the following realized
prices: $16.77/oz Ag, $3.13/lb Cu, $1.11/lb Pb, $1.45/lb Zn, $1,282/oz
Au. Silver equivalent ounces and copper and zinc equivalent pounds for
12M 2018 were calculated using the following realized prices:
$15.65/oz Ag, $2.96/lb Cu, $1.02/lb Pb, $1.31/lb Zn, $1,269/oz Au.
Silver equivalent ounces and copper and zinc equivalent pounds for 12M
2017 were calculated using the following realized prices: $17.14/oz
Ag, $2.82/lb Cu, $1.06/lb Pb, $1.32/lb Zn, $1,265/oz Au.
TORONTO -- (Business Wire)
Sierra Metals Inc. (TSX:SMT)(BVL:SMT)(NYSE American:SMTS)
(“Sierra Metals” or the “Company”) today reported revenue of $232.4
million and adjusted EBITDA of $89.8 million on throughput of 2,325,288
tonnes and metal production of 18.0 million silver equivalent ounces,
95.2 million copper equivalent pounds, and 215.1 million zinc equivalent
pounds for the year ended December 31, 2018.
During 2018, the annual consolidated production of silver, copper, zinc
and gold increased 17%, 27%, 1%, and 25%, respectively, while annual
consolidated lead production decreased 7% compared to 2017. The Company
achieved record consolidated quarterly ore throughput during Q4 2018, as
well as record quarterly ore throughput from the Bolivar and Cusi Mines.
These results continued the Company’s successful production increases
realized during the first three quarters of 2018, which resulted in
strong annual consolidated production figures.
Metal production at Yauricocha increased 14% in Q4 2018 compared to Q4
2017 due to 5% higher ore throughput, higher head grades of all metals,
except zinc, and higher lead and gold recoveries. At Bolivar, 20% higher
ore throughput, and higher silver and gold head grades resulted in a 16%
increase in copper equivalent pounds produced in Q4 2018 compared to Q4
2017. The Cusi Mine realized a 258% increase in throughput which
resulted in a 70% increase in silver equivalent ounces produced during
Q4 2018 compared to Q4 2017.
Igor Gonzales, President, and CEO of Sierra Metals stated: “I am very
pleased with the Company’s performance during Q4 and full year 2018.
Despite challenges such as harsh weather events in Q3 at the Bolivar
Mine, the Company generated positive cash flow at its three operating
Mines, realizing a 13% increase over 2017, and our production results
were solid with year over year increases to the consolidated production
of all metals except lead. The Company continues to realize positive
returns on the capital investments and operational improvement efforts
at all our Mines.This is best demonstrated through our improving
operating performance, strengthening of our asset base, significantly
lower all-in sustaining costs and continued strong cash flow.
2019 will be an important year for the Company as we begin to ramp up
production in Mexico.Most equipment is in place at Bolivar for
the Mill Expansion and the Cusi Mill is also closer to completion. The
development in both Mexican Mines continues with a goal of increasing
production volume and recoveries which are expected to support higher
metal production starting in Q2 2019.We continue to modernize
and improve all our Mines, implementing best operational practices.
These improvements are expected to allow for the Company to increase
metal production over the course of the coming year. Our Company-wide
ongoing brownfield exploration programs should also lead to further
significant growth in reserves and resources, which will add to the
value of our assets during the year ahead.
The 2019 Capex budget of $83 million provides for the Company’s
extensive growth plans. Similar to previous Capex programs, these are
investments which will provide the Company with significant returns on
the capital invested and continue to be a very efficient use of capital,
when considering the production and resource growth that they will
deliver to Company and its shareholders.The 2019 Capex program
is expected to be funded through 2019 EBITDA as well as existing cash,
nevertheless, a new US$100 million credit facility recently put in place
provides the Company with ample flexibility to make these prudent
investments.
He continued, “Sierra Metals’ balance sheet remains strong with the
liquidity needed to meet our operational and growth expenditure
requirements.The Company is on track for further growth in 2019
based upon positive PEA studies released earlier this year,
demonstrating robust growth opportunities for the Company at all Mines.We continue working on Life of Mine plans which are expected to be
completed in mid-2019. Additionally, NI 43-101 Technical Reports are
expected to be completed for the Yauricocha Mine by the end of Q2 2019
and for Bolivar and Cusi Mines by the end of Q4 2019, this will also
include a maiden reserve estimate for the Cusi Mine. We are very
optimistic that these updated reports will provide for additional
reserves and resources at all Mines.”
The following table displays selected financial and operational
information for the three months and year ended December 31, 2018:
Q4 and 12M 2018 Financial Highlights
MDA Selected Financial Results |
|
|
|
|
| | Three Months Ended | Twelve Months Ended |
(In thousands of dollars, except per share and cash cost amounts,
consolidated figures unless noted otherwise) | December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 |
Operating |
|
|
|
|
|
Ore Processed / Tonnes Milled
| | 599,297 | | |
498,199
| | | 2,325,288 | | |
1,988,738
| |
Silver Ounces Produced (000's)
| | 701 | | |
496
| | | 2,716 | | |
2,317
| |
Copper Pounds Produced (000's)
| | 8,932 | | |
7,471
| | | 33,968 | | |
26,775
| |
Lead Pounds Produced (000's)
| | 7,948 | | |
5,736
| | | 27,714 | | |
29,704
| |
Zinc Pounds Produced (000's)
| | 17,545 | | |
19,545
| | | 76,831 | | |
76,088
| |
Gold Ounces Produced
| | | 2,137 | | |
1,591
| | | 7,743 | | |
6,197
| |
Copper Equivalent Pounds Produced (000's)1 | | 23,447 | | |
21,856
| | | 95,184 | | |
90,354
| |
Zinc Equivalent Pounds Produced (000's)1 | | 56,287 | | |
47,287
| | | 215,053 | | |
193,152
| |
Silver Equivalent Ounces Produced (000's)1 | | 4,445 | | |
4,078
| | | 17,988 | | |
14,865
| |
| | | | |
|
Cash Cost per Tonne Processed
| $ | 50.44 | |
$
|
50.57
| | $ | 47.55 | |
$
|
46.87
| |
Cost of sales per AgEqOz
| | $ | 7.99 | |
$
|
7.91
| | $ | 7.35 | |
$
|
7.75
| |
Cash Cost per AgEqOz2 | | $ | 7.68 | |
$
|
7.54
| | $ | 7.03 | |
$
|
7.41
| |
AISC per AgEqOz2 | | $ | 10.59 | |
$
|
12.42
| | $ | 10.04 | |
$
|
12.34
| |
Cost of sales per CuEqLb2 | | $ | 1.51 | |
$
|
1.48
| | $ | 1.39 | |
$
|
1.27
| |
Cash Cost per CuEqLb2 | | $ | 1.45 | |
$
|
1.41
| | $ | 1.33 | |
$
|
1.22
| |
AISC per CuEqLb2 | | $ | 2.00 | |
$
|
2.32
| | $ | 1.90 | |
$
|
2.03
| |
Cost of sales per ZnEqLb2 | | $ | 0.63 | |
$
|
0.68
| | $ | 0.61 | |
$
|
0.60
| |
Cash Cost per ZnEqLb2 | | $ | 0.61 | |
$
|
0.65
| | $ | 0.58 | |
$
|
0.57
| |
AISC per ZnEqLb2 | | $ | 0.84 | |
$
|
1.07
| | $ | 0.83 | |
$
|
0.95
| |
| | | | |
|
Cash Cost per ZnEqLb (Yauricocha)2 | $ | 0.52 | |
$
|
0.57
| | $ | 0.52 | |
$
|
0.50
| |
AISC per ZnEqLb (Yauricocha)2 | $ | 0.73 | |
$
|
0.90
| | $ | 0.73 | |
$
|
0.78
| |
Cash Cost per CuEqLb (Bolivar)2 | $ | 1.67 | |
$
|
1.72
| | $ | 1.44 | |
$
|
1.49
| |
AISC per CuEqLb (Bolivar)2 | | $ | 2.37 | |
$
|
3.03
| | $ | 2.13 | |
$
|
2.68
| |
Cash Cost per AgEqOz (Cusi)2 | $ | 18.96 | |
$
|
18.66
| | $ | 15.71 | |
$
|
15.37
| |
AISC per AgEqOz (Cusi)2 |
| $ | 23.27 |
|
$
|
36.33
|
| $ | 22.09 |
|
$
|
33.90
|
|
Financial |
|
|
|
|
|
Revenues
| | $ | 55,019 | |
$
|
51,170
| | $ | 232,371 | |
$
|
205,118
| |
Adjusted EBITDA2 | | $ | 15,263 | |
$
|
19,208
| | $ | 89,756 | |
$
|
81,034
| |
Operating cash flows before movements in working capital
| $ | 15,167 | |
$
|
17,812
| | $ | 90,148 | |
$
|
79,785
| |
Adjusted net income attributable to shareholders2 | $ | 783 | |
$
|
3,241
| | $ | 29,009 | |
$
|
23,482
| |
Net income (loss) attributable to shareholders
| $ | (2,654 | ) |
$
|
2,118
| | $ | 18,814 | |
$
|
(4,645
|
)
|
Cash and cash equivalents
| | $ | 21,832 | |
$
|
23,878
| | $ | 21,832 | |
$
|
23,878
| |
Working capital
|
| $ | (8,290 | ) |
$
|
(6,784
|
)
| $ | (8,290 | ) |
$
|
(6,784
|
)
|
(1) Silver equivalent ounces and copper and zinc
equivalent pounds for Q4 2018 were calculated using the following
realized prices: $14.63/oz Ag, $2.77/lb Cu, $0.89/lb Pb, $1.16/lb
Zn, $1,238/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for Q4 2017 were calculated using the following
realized prices: $16.77/oz Ag, $3.13/lb Cu, $1.11/lb Pb, $1.45/lb
Zn, $1,282/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for 12M 2018 were calculated using the following
realized prices: $15.65/oz Ag, $2.96/lb Cu, $1.02/lb Pb, $1.31/lb
Zn, $1,269/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for 12M 2017 were calculated using the following
realized prices: $17.14/oz Ag, $2.82/lb Cu, $1.06/lb Pb, $1.32/lb
Zn, $1,265/oz Au. |
(2) This is a non-IFRS performance measure, see Non-IFRS
Performance Measures section of the MD&A. |
Revenue from metals payable of $232.4 million in 2018 increased by 13%
from $205.1 million in 2017. Higher revenues are primarily attributable
to the 8% increase in throughput, and the higher head grades and
recoveries for copper and gold at Yauricocha in 2018 compared to 2017;
the 16% increase in throughput, higher silver and gold head grades, and
higher gold recoveries resulted in Bolivar’s revenues being 17% higher
than 2017; and the 112% increase in throughput, and higher silver
recoveries resulted in Cusi’s revenues being 88% higher than 2017; the
increase in revenues were realized despite decreases in the prices of
silver (9%), lead (4%), and zinc (1%), which copper prices increased by
5% and gold prices were consistent with 2017.
Yauricocha’s cash cost per zinc equivalent payable pound was $0.52 (2017
- $0.50), and AISC per zinc equivalent payable pound of $0.73 (2017 -
$0.78). The decrease in the AISC per zinc equivalent payable pound for
2018 compared to 2017 was a result of lower sustaining capital
expenditures and higher zinc equivalent payable pounds, while cash costs
remained consistent; this was partially offset by slight increases in
general and administrative costs. These cost decreases were realized
despite a $2.0 million increase in labor costs, due to the Company’s
union agreement and a salary adjustment to bring the 2018 salaries in
line with the current market rates. The payment was made during November
and December 2018 but retroactive to the entire year’s salaries. Going
forward these costs will be amortized over the entire year for 2019. The
union was formed in July 2017 and has grown to 406 workers at the end of
2018, equivalent to approximately 60% of the Company’s workforce,
representing the majority of the mine employees.
Bolivar’s cash cost per copper equivalent payable pound was $1.44 (2017
- $1.49), and AISC per copper equivalent payable pound was $2.13 (2017 -
$2.70) for 2018 compared to 2017. The decrease in the AISC per copper
equivalent payable pound during 2018 compared to 2017 was due to the
increase in copper equivalent payable pounds resulting from higher
throughput, higher silver and gold head grades and higher gold
recoveries, as well as a decrease in sustaining capital expenditures.
Cusi’s cash cost per silver equivalent payable ounce was $15.71 (2017 -
$15.37), and AISC per silver equivalent payable ounce was $22.09 (2017 -
$33.90) for 2018 compared to 2017. AISC per silver equivalent payable
ounce decreased due to higher silver equivalent payable ounces resulting
from higher throughput, higher silver recoveries, lower treatment and
refining charges, and lower sustaining capital expenditures.
Adjusted EBITDA(1) of $89.8 million for 2018 increased 11%
compared to $81.0 million in 2017. The increase in adjusted EBITDA in
2018 was due to the increase in revenues realized at all three Mines
during 2018, mainly the result of higher throughput.
Cash flow generated from operations before movements in working capital
of $90.1 million for 2018 increased compared to $79.8 million in 2017.
The increase in operating cash flow is mainly the result of higher
revenues generated and higher gross margins realized.
Net income (loss) attributable to shareholders for 2018 was $18.8
million (2017: $(4.6) million) or $0.12 per share (basic and diluted)
(2017: $(0.03)). The net loss incurred in 2017 included a $4.4 million
non-cash loss on the distribution of Cautivo Mining Inc. assets to
Sierra shareholders.
Cash and cash equivalents of $21.8 million and working capital of $(8.3)
million as at December 31, 2018 compared to $23.9 million and $(6.8)
million, respectively, at the end of 2017. Cash and cash equivalents
have decreased by $2.0 million during 2018 due to $61.9 million of
operating cash flows, and $10.0 million drawn down from a short term
revolving line of credit, being offset by capital expenditures incurred
in Mexico and Peru of $(49.3) million, repayment of loans, credit
facilities and interest of $(21.5) million, dividends paid to
non-controlling interest shareholders of $(2.9) million.
(1) This is a non-IFRS performance measure, see Non-IFRS
Performance Measures section of the MD&A.
Project Development
Mine development at Bolívar during Q4 2018 totaled 1,136 meters. Most of
these meters (553m) were developed to prepare stopes for mine
production. The remainder of the meters (583m) were related to the
deepening of ramps and developing service ramps to be used for
ventilation and pumping in the El Gallo Inferior orebody.
During Q4 2018, at the Cusi property, mine development totaled 1,059
meters, which included 25 meters of ramp development at the Santa Rosa
de Lima Zone; the rest of the development related to stope preparation
in various zones within the Mines.
Exploration Update
Peru:
During Q4 2018, the Company drilled 58 holes totaling 10,537 meters at
Yauricocha. The drilling included the following:
Exploration Drilling:
-
Copper Porphyry Mineralization (Central Mine Zone Level 720): 2 holes
totaling 1,341 meters were drilled to continue to test the priority
anomaly located in the monzonite intrusive zone, where a copper
molybdenum mineralized porphyry was discovered earlier in the year;
drill results continue to display the presence of a copper molybdenum
porphyry orebody, where we have observed typical alterations, as well
as copper mineralization disseminated in the encased rock, as veinlets
with quartz and copper are present with molybdenum;
-
Cuye Orebody (Level 1070 Central Mine Zone): 1 hole totaling 210
meters to explore the continuity of mineralization of the orebody at
depth; the hole confirmed the continuity of this mineralized orebody
at depth;
-
Catas Orebody (Level 1070 Central Mine Zone) – 1 hole totaling 681
meters confirmed the continuity of the copper mineralization at depth;
-
Contacto Occidental Orebody (Level 1070 Central Mine Zone): 1 hole
totaling 86 meters confirmed the continuity of the mineralization at
depth of this “cuerpo chico” “small orebody”;
-
Escondida Norte (Level 870 Cachi Cachi): 4 holes totaling 1,745 meters
with the objective of exploring and defining the fresh sulphide zones,
as areas previously explored in this area have intercepted oxide zones
with silver and lead mineralization; these holes drilled intercepted
mineralized structures of polymetallic sulphide zones;
-
Cachi Cachi Norte (Level 720 Cachi Cachi): 2 holes totaling 681 meters
with the objective of exploring the northern part of the mineralized
ore bodies within the Cachi Cachi Mine that did not encounter any
mineralization of ore grade material.
Definition Drilling:
-
Antacaca Sur (Level 920): 17 holes totaling 2,186 meters with the
objective of defining more certainty on the orebody between the 970
level sublevel and the future sublevel 8 meters above the 1020 level;
-
Esperanza (Level 970): 14 holes totaling 1,770 meters which confirmed
the continuity of mineralization of the orebody; holes were executed
between the sublevel development level 8 meters above the 1020 level
and the 1020 level;
-
Angelita (Level 870 Cachi Cachi): 11 holes totaling 1,577 meters which
represents the orebody on the 870 sublevel between an area 16 meters
and 8 meters above the 870 level;
-
Yoselin (920 Level Cachi Cachi Mine): 5 holes totaling 260 meters
which confirmed the orebody and the extension of the orebody to 1070
level. These drill holes provided more geological information to help
plan potential mining of the orebody. Once the drift reaches the 1070
level the remainder of orebody below will be drilled off from the 1070
level. Initial highlights of the average grades encountered in this
“cuerpo chico” or “small orebody” included 1.2 Oz Ag, 4.8% Pb, 0.09%
Cu, 8.5% Zn. Further assay results are pending but we will continue to
drill the Yoselin zone.
Mexico:
Bolivar
-
At Bolívar during Q4 2018, 6,258 meters were drilled from surface as
well as diamond drilling within the mine. 2,183 meters were drilled
within the mine in the El Gallo zone. There was also 3,865 meters
drilled at the Bolivar West extension to explore the extension of the
orebody to the North and West, exploring the skarn orebody with
semi-massive magnetite, and disseminated nodules of chalcopyrite.
There was also 210 meters drilled at La Campana, which is a new
exploration target where we are exploring the possibility of finding a
skarn orebody with copper and zinc;
Cusi
-
During Q4 2018 the Company drilled 1,781 meters to support the
development of the Santa Rosa de Lima vein in Promontorio to further
verify the size and continuity of the orezone. 2,497 meters of surface
diamond drilling was performed to explore the depth of the mineralized
structure of San Nicolas in the area of the San Juan Mine.
Conference Call Webcast
Sierra Metals’ senior management will host a conference call on Friday,
March 29, 2019, at 10:30 AM (EDT) to discuss the Company’s financial and
operating results for the three months and year ended December 31, 2018.
Via Webcast:
A live audio webcast of the meeting will be available on the Company’s
website: https://event.on24.com/wcc/r/1898495/E8829E56C3B2257B5C944637465B69C3
The webcast along with presentation slides will be archived for 180 days
on www.sierrametals.com.
Via phone:
For those who prefer to listen by phone, dial-in instructions are below.
To ensure your participation, please call approximately five minutes
before the scheduled start time of the call.
Participant Number (Toll-Free North America): (833) 245-9659
Participant
Number (Toll-Free Peru): 0800-71-476
Participant Number
(International): +1 (647) 689-4231
Conference ID: 1687775
Quality Control
All technical production data contained in this news release has been
reviewed and approved by Gordon Babcock, P.Eng., Chief Operating Officer
and a Qualified Person under National Instrument 43-101 – Standards of
Disclosure for Mineral Projects.
Americo Zuzunaga, MAusIMM CP (Mining Engineer) and Vice President of
Corporate Planning is a Qualified Person and chartered professional
qualifying as a Competent Person under the Joint Ore Reserves Committee
(JORC) Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves.
Augusto Chung, FAusIMM CP (Metallurgist) and Consultant to Sierra Metals
is a Qualified Person and chartered professional qualifying as a
competent person on metallurgical processes.
About Sierra Metals
Sierra Metals Inc. is Canadian based growing polymetallic mining company
with production from its Yauricocha Mine in Peru, and its Bolivar and
Cusi Mines in Mexico. The Company is focused on increasing production
volume and growing mineral resources. Sierra Metals has recently had
several new discoveries and still has additional brownfield exploration
opportunities at all three Mines in Peru and Mexico that are within or
close proximity to the existing Mines. Additionally, the Company has
large land packages at all three Mines with several prospective regional
targets providing longer term exploration upside and mineral resource
growth potential.
The Company’s Common Shares trade on the Bolsa de Valores de Lima and on
the Toronto Stock Exchange under the symbol “SMT” and on the NYSE
American Exchange under the symbol “SMTS”.
For further information regarding Sierra Metals, please visit www.sierrametals.com.
Continue to Follow, Like and Watch our progress:
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Metals Inc
Forward-Looking Statements
This press release contains “forward-looking information” and
“forward-looking statements” within the meaning of Canadian and U.S.
securities laws related to the Company (collectively, “forward-looking
information”). Forward-looking information includes, but is not limited
to, statements with respect to the Company’s operations, including the
anticipated developments in the Company’s operations in future periods,
the Company’s planned exploration activities, the adequacy of the
Company’s financial resources, and other events or conditions that may
occur in the future. Statements concerning mineral reserve and resource
estimates may also be considered to constitute forward-looking
statements to the extent that they involve estimates of the
mineralization that will be encountered if and when the properties are
developed or further developed. These statements relate to analyses and
other information that are based on forecasts of future results,
estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
using words or phrases such as “expects”, “anticipates”, “plans”,
“projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”,
“objectives”, “potential” or variations thereof, or stating that certain
actions, events or results “may”, “could”, “would”, “might” or “will” be
taken, occur or be achieved, or the negative of any of these terms and
similar expressions) are not statements of historical fact and may be
forward-looking information.
Forward-looking information is subject to a variety of risks and
uncertainties, which could cause actual events or results to differ from
those reflected in the forward-looking information, including, without
limitation, risks inherent in the mining industry including
environmental hazards, industrial accidents, unusual or unexpected
geological formations, floods, labour disruptions, explosions, cave-ins,
weather conditions and criminal activity; commodity price fluctuations;
higher operating and/or capital costs; lack of available infrastructure;
the possibility that future exploration, development or mining results
will not be consistent with the Company's expectations; risks associated
with the estimation of mineral resources and the geology, grade and
continuity of mineral deposits and the inability to replace reserves;
fluctuations in the price of commodities used in the Company's
operations; risks related to foreign operations; changes in laws or
policies, foreign taxation, delays or the inability to obtain necessary
governmental permits; risks relating to outstanding borrowings; issues
regarding title to the Company's properties; risks related to
environmental regulation; litigation risks; risks related to uninsured
hazards; the impact of competition; volatility in the price of the
Company's securities; global financial risks; inability to attract or
retain qualified employees; potential conflicts of interest; risks
related to a controlling group of shareholders; dependence on third
parties; differences in U.S. and Canadian reporting of mineral reserves
and resources; potential dilutive transactions; foreign currency risks;
risks related to business cycles; liquidity risks; reliance on internal
control systems; credit risks, including risks related to the Company's
compliance with covenants with respect to its Corporate Facility;
uncertainty of production and cost estimates for the Yauricocha Mine,
the Bolivar Mine and the Cusi Mine; and other risks identified in the
Company's filings with Canadian securities regulators and the U.S.
Securities and Exchange Commission ("SEC"), which filings are available
at www.sedar.com
and www.sec.gov,
respectively.
This list is not exhaustive of the factors that may affect any of the
Company's forward-looking information. Forward-looking information
includes statements about the future and are inherently uncertain, and
the Company's actual achievements or other future events or conditions
may differ materially from those reflected in the forward-looking
information due to a variety of risks, uncertainties and other factors.
The Company's statements containing forward-looking information are
based on the beliefs, expectations, and opinions of management on the
date the statements are made, and the Company does not assume any
obligation to update forward-looking information if circumstances or
management's beliefs, expectations or opinions should change, other than
as required by applicable law. For the reasons set forth above, one
should not place undue reliance on forward-looking information.
Note Regarding Reserve and Resource Estimates
All reserve and resource estimates reported by the Company are
calculated in accordance with the Canadian National Instrument 43-101 -
Standards of Disclosure for Mineral Projects and the Canadian Institute
of Mining and Metallurgy Classification system. These standards differ
significantly from the requirements of the SEC. The differences between
these standards are discussed in our SEC filings. Mineral resources
which are not mineral reserves do not have demonstrated economic
viability.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190328005948/en/
Contacts:
Mike McAllister
VP, Corporate Development
Sierra Metals
Inc.
+1 (416) 366-7777
info@sierrametals.com
Ed Guimaraes
CFO
Sierra Metals Inc.
+1 (416)
366-7777
Igor Gonzales
President & CEO
Sierra Metals Inc.
+1
(416) 366-7777
Source: Sierra Metals Inc.
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