Sierra Metals Reports Strong Fourth Quarter and Full Year 2024 Financial and Operating Results
Full Year 2024 Highlights
-- Record revenue of $272 million, an increase of 19% over 2023
-- Adjusted EBITDA of $74.2 million, a 40% increase compared to 2023
-- Exceeded 2024 annual production guidance
-- AISC at both mines were below 2024 guidance
-- Cash and cash equivalents of $19.8 million at year end, compared to $9.1
million at the end of 2023
Fourth Quarter 2024 Highlights
-- Strongest quarter yet, with record revenue of $81 million
-- Adjusted EBITDA of $26.6 million
-- Record consolidated throughput rates of 798 kt processed, a 19% increase
over Q3 2024
TORONTO--(BUSINESS WIRE)--March 26, 2025--
Sierra Metals Inc. (TSX: SMT | OTCQX: SMTSF | BVL: SMT) ("Sierra Metals" or the "Company") reports consolidated financial and operating results for the three months ("Q4") and full year ("FY") ending December 31, 2024. All figures are in US dollars.
Ernesto Balarezo, CEO of Sierra Metals, commented, "The fourth quarter of 2024 capped off a tremendous year for Sierra Metals. During the quarter, we achieved record throughput rates, which increased metal production leading to record revenue. This, combined with lower costs during a period of higher metal prices, has led to higher margins, an increase in cash flow generation, accelerated capital investments to secure long-term performance, a solid capital structure, and an overall stronger financial position."
Mr. Balarezo continues, "Momentum continues to build, and in 2025 we expect to deliver further production increases, lower costs, and stronger cash flows. Most notably, we remain on track to deliver EBITDA of approximately $130 million for the full year in 2025, as we continue creating long-term value for all shareholders."
Conference Call & Webcast
Management will host a conference call and webcast to discuss these results on March 27, 2025 at 11:00 a.m. (Eastern time). Details are as follows for the webcast -- English version and Spanish version -- and on the telephone - Canada/US toll free at 1-844-763-8274 or +1-647-484-8814.
2024 Financial and Operating Highlights
The following table displays selected financial and operating information for Q4 2024 and FY 2024:
Year ended December 31,
----------------------- ---------------------------------------
(In thousands of
dollars, except per
share and cash cost
amounts, consolidated
figures unless noted
otherwise) Q4 2024 Q3 2024 Q4 2023 2024 2023 2022
----------------------- -------- --------- --------- --------- --------- ---------
Operating
----------------------- ------- ------- ------- --------- --------- ---------
Ore Processed /
Tonnes Milled 797,774 668,647 673,846 2,732,352 2,464,932 1,995,890
Copper Pounds
Produced (000's) 13,533 11,009 12,096 44,320 40,317 27,127
Zinc Pounds Produced
(000's) 12,301 11,184 9,629 44,889 43,612 38,100
Silver Ounces
Produced (000's) 544 503 468 1,861 1,838 1,218
Gold Ounces Produced 4,009 3,973 4,708 15,925 16,461 9,361
Lead Pounds Produced
(000's) 2,381 2,537 2,481 11,020 13,273 12,216
Cash Cost per CuEqLb
(Yauricocha)(1,2,4) $ 3.17 $ 3.25 $ 2.84 $ 3.39 $ 3.02 $ 3.21
AISC per CuEqLb
(Yauricocha)(1,2,4) $ 3.57 $ 3.75 $ 3.43 $ 3.73 $ 3.46 $ 3.61
Cash Cost per CuEqLb
(Bolivar)(1,2,4) $ 2.43 $ 2.42 $ 2.48 $ 2.50 $ 2.56 $ 4.00
AISC per CuEqLb
(Bolivar)(1,2,4) $ 3.06 $ 3.23 $ 3.32 $ 3.21 $ 3.24 $ 5.00
Financial
----------------------- ------- ------- ------- --------- --------- ---------
Revenues $ 81,036 $ 70,934 $ 60,632 $ 272,634 $ 229,543 $ 165,233
Net income (loss)
- Continuing
operations(3) $ 8,153 $ 7,619 $(11,266) $ 17,521 $ (6,567) $ (60,140)
- Discontinued
Operations $ 1,351 $ (2,679) $ (1,907) $ (3,003) $ (12,760) $ (28,166)
Net income (loss)
attributable to
shareholders,
including
discontinued
operations $ 6,740 $ 3,766 $(13,724) $ 15,780 $ (19,334) $ (87,503)
Adjusted EBITDA(2)
from continuing
operations(3) $ 26,563 $ 22,307 $ 13,436 $ 74,157 $ 51,492 $ 9,621
Operating cash flows
before movements in
working capital $ 16,004 $ 22,129 $ 12,845 $ 69,541 $ 43,297 $ 5,163
Adjusted net income
(loss) attributable
to shareholders (2)
(3)
- Continuing
operations $ 23,537 $ 4,927 $ (7,267) $ 39,932 $ 2,121 $ (21,170)
- Discontinued
Operations $ 1,351 $ (2,679) $ (1,829) $ (3,003) $ (6,074) $ (1,979)
Cash and cash
equivalents $ 19,826 $ 18,599 $ 9,122 $ 19,826 $ 9,122 $ 5,074
----------------------- ------- ------- ------- --------- --------- ---------
(1) Copper equivalent pounds were calculated using the following realized prices:
Q4 2024 - $4.14/lb Cu, $1.38/lb Zn, $31.32/oz Ag, $0.91/lb Pb, $2,654/oz Au.
Q3 2024 - $4.19/lb Cu, $1.27/lb Zn, $29.64/oz Ag, $0.94/lb Pb, $2,470/oz Au.
Q4 2023 - $3.70/lb Cu, $1.13/lb Zn, $23.22/oz Ag, $0.96/lb Pb, $1,976/oz Au.
FY 2024 - $4.13/lb Cu, $1.27/lb Zn, $28.47/oz Ag, $0.95/lb Pb, $2,368/oz Au.
FY 2023 - $3.85/lb Cu, $1.20/lb Zn, $23.38/oz Ag, $0.97/lb Pb, $1,943/oz Au.
FY 2022 - $3.99/lb Cu, $1.59/lb Zn, $21.77/oz Ag, $0.98/lb Pb, $1,802/oz Au.
(2) Cash Cost per Copper Equivalent Pound ("CuEqLb"), All-In Sustaining Cost ("AISC"), Adjusted
EBITDA and Adjusted net income (loss) attributable to shareholders are non-IFRS performance
measures, see "Non-IFRS Performance Measures" and corresponding reconciliations in this news
release and in the Management's Discussion and Analysis for the year ended December 31, 2024
(the "FY 2024 MD&A").
(3) Please refer to the 'selected financial information' table included in section 5 -- 'key
information for the past eight quarters' of the FY 2024 MD&A.
(4) G&A Costs for the three months and year ended December 31, 2024 include site G&A only. These
costs for the comparative periods have been adjusted accordingly.
FY 2024 Operating Highlights
Consolidated throughput during 2024 was more than 2.7 million tonnes, an 11% increase when compared to 2023. Consolidated copper, zinc and silver production was 10%, 3% and 1%, respectively, higher than in 2023, while gold and lead production was slightly lower. When comparing annual consolidated production results to 2024 guidance, copper, silver, gold and zinc exceeded guidance while lead met guidance.
Throughput in Q4 2024 was a record 798 thousand tonnes, 18% higher than in Q4 2023. This was driven by Bolivar operating at 10% higher throughput rates and Yauricocha, now primarily mining below the 1120 level, increasing throughput rates by 31%. Yauricocha's Q4 2024 production of copper, zinc and silver were 29%, 28%, and 20%, respectively, higher than Q4 2023 with gold production flat and lead production lower by 4% on a quarter-over-quarter basis. When comparing Bolivar's production for Q4 2024 and Q4 2023, copper was flat, silver was 9% higher and gold was 19% lower.
For FY 2024, Bolivar's cash cost per copper equivalent payable pound(1) was $2.50 (2023 - $2.56) which was below 2024 guidance range of $2.56 to $2.72. AISC per copper equivalent payable pound(2) of $3.21 (2023 - $3.24) was below 2024 guidance range of $3.28 to $3.36.
Yauricocha's cash cost per copper equivalent payable pound(1) of $3.39 (2023 - $3.02) was within the 2024 guidance range of $3.31 to $3.41 and AISC per copper equivalent payable pound(1) of $3.73 (2023 - $3.46) was below 2024 guidance range of $3.75 to $3.86.
(1) Copper equivalent (CuEq) pounds were calculated using the following metal
prices:
FY 2024 - $4.13/lb Cu, $1.27/lb Zn, $28.47/oz Ag, $0.95/lb Pb, $2,368/oz
Au.
FY 2023 - $3.85/lb Cu, $1.20/lb Zn, $23.38/oz Ag, $0.97/lb Pb, $1,943/oz
Au.
FY 2024 Financial Highlights
Revenue from metals payable of $272.6 million in 2024 represents an increase of 19% from 2023 annual revenue of $229.5 million. Revenue in 2024 increased as a result of the production and commercial improvements at the Yauricocha and Bolivar mines.
Adjusted EBITDA, excluding discontinued operations, was $74.2 million for 2024, representing an increase of 44% from the adjusted EBITDA of $51.5 million for 2023.
Cash flow generated from operations before movements in working capital of $69.5 million for 2024 was higher than $43.3 million in 2023, mainly due to higher revenue.
Cash and cash equivalents of $19.8 million as at December 31, 2024 compared to $9.1 million at the end of 2023. Cash and cash equivalents increased by $10.7 million during 2024 as the $65.1 million generated from operating activities and net $2.7 million generated from financing activities was offset by $57.0 million used in investing activities, as the Company has been advancing the capital investments required to support operations in the long-term.
FY 2024 Exploration Highlights
Exploration to replace mineral depletion and set the basis for future operational growth is a priority for Sierra Metals.
At Yauricocha, a total of 46,390 meters of diamond drilling was completed during 2024, of which 20,551 meters were conducted in the mineralized zones above the 1120 level of the Central mine. The main objective of the drilling program was to explore for new mineralized resources. Additionally, 8,605 meters of diamond drilling was completed to recategorize mineral resources into mineral reserves. Finally, 17,233 meters of infill drilling was completed mostly above level 1120 as the extraction during 2024 was mainly conducted in the upper part of the mine.
At Bolivar, a total of 43,849 meters were drilled during 2024, of which 34,017 meters of diamond drilling was conducted with the objective to recategorize resources into reserves in the Bolivar Northwest, Cieneguita, Dulce, El Gallo, and Marian ore bodies. Further, 9,832 meters of diamond drilling was completed to explore for new resources as well as to replace the ore mined during 2024.
Outlook for 2025
On December 5, 2024, the Company announced its 2025 production and cost guidance, which included full capacity throughput at both the Yauricocha and Bolivar mines.
The Company expects production at Yauricocha in 2025 to be primarily below the 1120 level, complemented by the recent discovery of a new high-grade zone in the upper part of the mine. A number of investments made in 2024 and planned during 2025 should continue to maintain throughput rates close to the 4,000 tonnes per day ("tpd"). As previously noted, the operating consents for Yauricocha allow for an excess of 10% over the permitted capacity of 3,600 tpd. The expected increase in production is driven by the ore bodies below level 1120 as the developments continue to be successful.
At Yauricocha, there are significant exploration opportunities below the 1120 level as the ore body appears open in all directions. Additionally, operating in that area gives Sierra Metals the opportunity to meaningfully explore the near-by zones more rapidly from underground with the goal to increase the reserves conversion to improve the mine sequencing.
At Bolivar, Sierra Metals expects to successfully complete a series of initiatives to increase throughput rates as well as higher grades as the team works towards incorporating the new ore bodies of Dulce and Marian as part of the 2025 production profile by the end of the year. Marian and Dulce are expected to not only provide more minable tonnage, but also higher grades than what was planned.
At Bolivar, ongoing near-mine exploration and district-scale study work has the potential to significantly expand the resource at the mine as well as providing additional upside through prospective opportunities. The two most recent discoveries of Dulce and Marian ore bodies are a great indication of the potential and continuation of the deposit as Bolivar continues with its systematic exploration program.
Overall expectations in 2025 are to reap the benefits of mining below the 1120 level at Yauricocha while putting in place the foundation for future growth at Bolivar through expansion of the tailing facilities. During 2025, Management's plan at Yauricocha is to convert resources into proven and probable reserves, while at Bolivar the target is to increase the resources, while maintaining the level of reserve conversion.
Production Guidance
Consolidated 2025 Guidance 2024
----------------------------
Low High Actual
--------------------------- ------- ------ ------
Copper production (000 lb) 44,600 48,500 44,320
Zinc production (000 lb) 53,600 58,400 44,889
Silver production (000 oz) 1,900 2,060 1,861
Gold production (oz) 10,200 11,100 15,925
Lead production (000 lb) 13,700 15,000 11,020
Yauricocha 2025 Guidance 2024
----------------------------
Low High Actual
--------------------------- ------- ------ ------
Copper production (000 lb) 19,500 21,100 16,866
Zinc production (000 lb) 53,600 58,400 44,889
Silver production (000 oz) 1,220 1,320 1,049
Gold production (oz) 2,800 3,000 2,501
Lead production (000 lb) 13,700 15,000 11,020
Bolivar 2025 Guidance 2024
----------------------------
Low High Actual
--------------------------- ------- ------ ------
Copper production (000 lb) 25,100 27,400 27,454
Silver production (000 oz) 680 740 812
Gold production (oz) 7,400 8,100 13,424
Cost Guidance
Cash Costs (1) AISC (1)
Low High Low High
-------------- -------------- ---------- ---------- ---------- ----------
Yauricocha $/CuEq (2) $2.42 $2.59 $2.91 $3.11
Bolivar $/CuEq (2) $2.64 $2.77 $3.45 $3.62
-------------- -------------- ---------- ---------- ---------- ----------
Notes:
(1) This is a non-IFRS performance measure, see "Non-IFRS Performance
Measures" and corresponding reconciliations in this news release and in
the FY 2024 MD&A.
(2) Copper equivalent (CuEq) pounds were calculated using the following
metal prices $4.18/lb copper, $1.23/lb zinc, $28.50/oz silver, $2,237/oz
gold and $0.95/lb lead.
Non-IFRS Performance Measures
Certain financial measures within this news release, including Cash costs per copper equivalent pound, AISC per copper equivalent pound, Adjusted EBITDA, Adjusted net income (loss) attributable to shareholders and Operating cash flows before movements in working capital, are not measures recognized by International Financial Reporting Standards, as issued by the International Accounting Standards Board ("IFRS"). The non-IFRS measures presented do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be directly comparable to similar measures presented by other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as alternatives to other measures of financial performance calculated in accordance with IFRS. The foregoing non-IFRS financial measures are provided to assist investors with their evaluation of Sierra Metals. Management considers these non-IFRS financial measures to be important indicators in assessing its performance. See additional disclosure below and the "Non-IFRS Performance Measures" section of the FY 2024 MD&A for further information on the definition, calculation and reconciliation of non-IFRS financial measures.
Non-IFRS Reconciliation of Adjusted EBITDA
EBITDA is a non-IFRS measure that represents an indication of the Company's continuing capacity to generate earnings from operations before taking into account management's financing decisions and costs of consuming capital assets, which vary according to their vintage, technological currency, and management's estimate of their useful life. EBITDA comprises revenue less operating expenses before interest expense (income), property, plant and equipment amortization and depletion, and income taxes. Adjusted EBITDA has been included in this news release. Under IFRS, entities must reflect in compensation expense the cost of share-based payments. In the Company's circumstances, share-based payments involve a significant accrual of amounts that will not be settled in cash but are settled by the issuance of shares in exchange for cash. As such, the Company has made an entity specific adjustment to EBITDA for these expenses. The Company has also made an entity-specific adjustment to the foreign currency exchange (gain)/loss. The Company considers cash flow before movements in working capital to be the IFRS performance measure that is most closely comparable to adjusted EBITDA.
The following table provides a reconciliation of adjusted EBITDA to the consolidated financial statements for the three months and years ended December 31, 2024 and 2023:
Three months ended
December 31, Year ended December 31,
2024 2023 2024 2023
----------------- ------- ------- ------- -------
Net income $ 5,786 $(13,173) $ 14,518 $(19,327)
Adjusted for:
Depletion and
depreciation 12,140 12,394 40,174 38,784
Interest expense
and other
finance costs 6,050 2,196 15,065 9,824
NRV adjustments
on inventory - 453 - 4,655
Share-based
compensation 389 1,470 2,458 2,118
Foreign currency
exchange and
other
provisions 12,807 599 10,536 1,496
Inventory
adjustments 9,155 - 3,844 -
Reorganizational
expenses & one
time charges 1,151 1,203 2,803 1,203
Charges related
to closed mine 397 - 397 -
Impairment
charges - - - 2,500
Income taxes (19,961) 6,476 (18,641) 5,910
----------------- ------- ------- ------- -------
Adjusted EBITDA $ 27,914 $ 11,618 $ 71,154 $ 47,163
----------------- ------- ------- ------- -------
Less: Adjusted
EBITDA from
discontinued
operations 1,351 (1,818) (3,003) (4,329)
Adjusted EBITDA
from continuing
operations 26,563 13,436 74,157 51,492
Non-IFRS Reconciliation of Adjusted Net Income (Loss)
Adjusted net income (loss) attributable to shareholders represents net income (loss) attributable to shareholders excluding certain impacts, net of taxes, such as non-cash depletion charge due to the acquisition of Corona, impairment charges and reversal of impairment charges, write-down of assets, and certain non-cash and non-recurring items including but not limited to share-based compensation and foreign exchange (gain) loss. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors may want to use this information to evaluate the Company's performance and ability to generate cash flows. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance in accordance with IFRS.
The following table provides a reconciliation of adjusted net income (loss) to the consolidated financial statements for the three months and years ended December 31, 2024 and 2023:
Three months ended
December 31, Year ended December 31,
(In thousands of
United States
dollars) 2024 2023 2024 2023
----------------- ------ ------- ------ -------
Net income
attributable to
shareholders $ 6,740 $ (13,724) $ 15,780 $(19,334)
Non-cash
depletion charge
on Corona's
acquisition 1,078 $ 1,298 3,471 4,905
Deferred tax
recovery on
Corona's
acquisition
depletion
charge (364) $ (395) (1,207) (1,496)
NRV adjustments
on inventory - $ 453 - 4,655
Inventory
adjustments 2,691 $ - 2,691 -
Reorganizational
expenses & one
time charges 1,150 $ 1,203 2,803 1,203
Charges related
to closed mine 397 $ - 397 -
Share-based
compensation 389 $ 1,470 2,458 2,118
Foreign currency
exchange loss
(gain) 12,807 $ 599 10,536 1,496
Impairment
charges - $ - - 2,500
----------------- ------ ------- ------ -------
Adjusted net
income (loss)
attributable to
shareholders $24,888 $ (9,096) $ 36,929 $ (3,953)
----------------- ------ ------- ------ -------
Less: Adjusted
net income
(loss) from
discontinued
operations 1,351 (1,829) (3,003) (6,074)
Adjusted net
income (loss)
from continuing
operations 23,537 (7,267) 39,932 2,121
Cash Cost per Copper Equivalent Payable Pound
The Company uses the non-IFRS measure of cash cost per copper equivalent payable pound to manage and evaluate operating performance. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flows. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The Company considers cost of sales per copper equivalent payable pound to be the most comparable IFRS measure to cash cost per copper equivalent payable pound and has included calculations of this metric in the reconciliations within the applicable tables to follow.
All-in Sustaining Cost per Copper Equivalent Payable Pound
All--In Sustaining Cost (AISC) is a non--IFRS measure and is calculated based on guidance provided by the World Gold Council ("WGC"). WGC is not a regulatory industry organization and does not have the authority to develop accounting standards for disclosure requirements. Other mining companies may calculate AISC differently as a result of differences in underlying accounting principles and policies applied, as well as differences in definitions of sustaining versus development capital expenditures.
AISC is a more comprehensive measure than cash cost per pound for the Company's consolidated operating performance by providing greater visibility, comparability and representation of the total costs associated with producing copper from its current operations.
The Company defines sustaining capital expenditures as, "costs incurred to sustain and maintain existing assets at current productive capacity and constant planned levels of productive output without resulting in an increase in the life of assets, future earnings, or improvements in recovery or grade. Sustaining capital includes costs required to improve/enhance assets to minimum standards for reliability, environmental or safety requirements. Sustaining capital expenditures excludes all expenditures at the Company's new projects and certain expenditures at current operations which are deemed expansionary in nature."
Consolidated AISC includes total production cash costs incurred at the Company's mining operations, including treatment and refining charges and selling costs, which forms the basis of the Company's total cash costs. Additionally, the Company includes sustaining capital expenditures and corporate general and administrative expenses. AISC by mine does not include certain corporate and non--cash items such as general and administrative expenses and share-based payments. The Company believes that this measure represents the total sustainable costs of producing copper from current operations and provides the Company and other stakeholders of the Company with additional information of the Company's operational performance and ability to generate cash flows. As the measure seeks to reflect the full cost of copper production from current operations, new project capital and expansionary capital at current operations are not included. Certain other cash expenditures, including tax payments, dividends and financing costs are also not included.
The following table provides a reconciliation of cost of sales to cash cost, as reported in the Company's consolidated statement of income for the three months and years ended December 31, 2024 and 2023:
Three months ended Three months ended
(In thousand of US
dollars, unless
stated) December 31, 2024 December 31, 2023
-------------------- ---- -------------------- ----------------------
Yauricocha Bolivar Yauricocha Bolivar
-------------------- ---- ---------- -------- ---------- ----------
Cash Cost per Tonne of
Processed Ore
--------------------------
Cost of Sales 40,752 24,626 23,243 24,955
Reverse: Workers Profit
Sharing - - (82) (476)
Reverse: D&A/Other
adjustments (11,019) (6,456) (5,230) (7,065)
Reverse: Variation in
Inventory 19 $(585.SI)$ 1,544 1,621
-------------------------- --------- ------- --------- -------
Total Cash Cost 29,752 17,585 19,475 19,035
Tonnes Processed 345,161 452,612 263,852 409,995
Cash Cost per Tonne
Processed US$ 86.20 38.85 73.81 46.43
-------------------- ---- --------- ------- --------- -------
Years ended Years ended
(In thousand of
US dollars,
unless stated) December 31, 2024 December 31, 2023
---------------- ---- ---------------------- ------------------------
Yauricocha Bolivar Yauricocha Bolivar
---------------- ---- ---------- ---------- ---------- ------------
Cash Cost per Tonne of
Processed Ore
----------------------
Cost of Sales 119,526 87,406 95,519 82,188
Reverse: Workers
Profit Sharing - 15 (82) (1,382)
Reverse: D&A/Other
adjustments (28,598) (16,614) (21,959) (16,175)
Reverse: Variation
in Inventory (526) (760) 2,586 1,700
---------------------- --------- --------- --------- ---------
Total Cash Cost 90,402 70,047 76,064 66,331
Tonnes Processed 1,105,912 1,626,440 987,043 1,477,889
Cash Cost per
Tonne
Processed US$ 81.74 43.07 77.06 44.88
---------------- ---- --------- --------- --------- ---------
The following table provides detailed information on Yauricocha's cash cost, and all-in sustaining cost per copper equivalent payable pound for the three months and years ended December 31, 2024 and 2023:
YAURICOCHA Three months ended Years ended
(In thousand of December
US dollars, December 31, December 31, 31, December 31,
unless stated) 2024 2023 2024 2023
---------------- ------ ------------ ------------- -------- -------------
Cash Cost per Copper
equivalent payable
pound
------------------------
Total Cash Cost 29,752 19,475 90,402 76,064
Variation in Finished
inventory (19) (1,544) 526 (2,586)
Treatment and
Refining Charges 9,328 7,118 26,830 25,217
Selling Costs 924 788 3,222 3,022
G&A Costs(1) 771 1,842 6,727 6,784
------------------------ -------- --------- -------- ---------
Total Cash Cost of
Sales 40,756 27,679 127,707 108,501
Sustaining Capital
Expenditures 5,227 5,724 12,836 15,670
------------------------ -------- --------- -------- ---------
All-In Sustaining Cash
Costs 45,983 33,403 140,543 124,171
Copper Equivalent
Payable Pounds
(000's)(1) 12,874 9,751 37,640 35,899
------------------------ -------- --------- -------- ---------
Cash Cost per
Copper
Equivalent
Payable Pound (US$) 3.17 2.84 3.39 3.02
---------------- ------ -------- --------- -------- ---------
All-In
Sustaining Cash
Cost per Copper
Equivalent
Payable Pound (US$) 3.57 3.43 3.73 3.46
---------------- ------ -------- --------- -------- ---------
(1) G&A Costs for the three months and year ended December 31, 2024 include
site G&A only. These costs for the three months and year ended December 31,
2023 have been adjusted for comparative purposes.
(2) Copper equivalent payable pounds were calculated using the following
realized prices:
Q4 2024 - $4.14/lb Cu, $1.38/lb Zn, $31.32/oz Ag, $0.91/lb Pb, $2,654/oz Au.
Q4 2023 - $3.70/lb Cu, $1.13/lb Zn, $23.22/oz Ag, $0.96/lb Pb, $1,976/oz Au.
FY 2024 - $4.13/lb Cu, $1.27/lb Zn, $28.47/oz Ag, $0.95/lb Pb, $2,368/oz Au.
FY 2023 - $3.85/lb Cu, $1.20/lb Zn, $23.38/oz Ag, $0.97/lb Pb, $1,943/oz Au.
The following table provides detailed information on Bolivar's cash cost, and all-in sustaining cost per copper equivalent payable pound for the three months and years ended December 31, 2024 and 2023:
BOLIVAR Three months ended Years ended
(In thousand of
US dollars, December December 31, December December 31,
unless stated) 31, 2024 2023 31, 2024 2023
---------------- ------ --------- -------------- --------- --------------
Cash Cost per copper
equivalent payable
pound
------------------------
Total Cash Cost 17,585 19,035 70,047 66,331
Variation in Finished
inventory 585 (1,621) 760 (1,700)
Treatment and
Refining Charges 2,434 2,344 9,656 10,392
Selling Costs 2,739 2,103 9,981 8,041
G&A Costs(1) 659 788 5,371 5,503
------------------------ --------- ---------- --------- ----------
Total Cash Cost of
Sales 24,002 22,649 95,815 88,567
Sustaining Capital
Expenditures 6,145 7,703 27,314 23,626
------------------------ --------- ---------- --------- ----------
All-In Sustaining Cash
Costs 30,147 30,352 123,129 112,193
Copper Equivalent
Payable Pounds
(000's)(1) 9,861 9,150 38,333 34,579
------------------------ --------- ---------- --------- ----------
Cash Cost per
Copper
Equivalent
Payable Pound (US$) 2.43 2.48 2.50 2.56
---------------- ------ --------- ---------- --------- ----------
All-In
Sustaining Cash
Cost per Copper
Equivalent
Payable Pound (US$) 3.06 3.32 3.21 3.24
---------------- ------ --------- ---------- --------- ----------
(1) G&A Costs for the three months and year ended December 31, 2024 include
site G&A only. These costs for the three months and year ended December 31,
2023 have been adjusted for comparative purposes.
(2) Copper equivalent payable pounds were calculated using the following
realized prices:
Q4 2024 - $4.14/lb Cu, $1.38/lb Zn, $31.32/oz Ag, $0.91/lb Pb, $2,654/oz Au.
Q4 2023 - $3.70/lb Cu, $1.13/lb Zn, $23.22/oz Ag, $0.96/lb Pb, $1,976/oz Au.
FY 2024 - $4.13/lb Cu, $1.27/lb Zn, $28.47/oz Ag, $0.95/lb Pb, $2,368/oz Au.
FY 2023 - $3.85/lb Cu, $1.20/lb Zn, $23.38/oz Ag, $0.97/lb Pb, $1,943/oz Au.
Additional Non-IFRS Measures
Operating cash flows before movements in working capital excludes the movement from period-to-period in working capital items including trade and other receivables, prepaid expenses, deposits, inventories, trade and other payables and the effects of foreign exchange rates on these items. The most comparable IFRS measure is cash flows from operating activities.
Qualified Persons Statement
Ricardo Salazar Milla (AIG #8551), Corporate Manager -- Mineral Resources of Sierra Metals, is a Qualified Person as defined under National Instrument NI 43-101 -- Standards of Disclosure for Mineral Projects. Mr. Salazar has reviewed and approved the scientific and technical content of this news release.
About Sierra Metals
Sierra Metals is a Canadian mining company focused on copper production with additional base and precious metals by-product credits at its Yauricocha Mine in Peru and Bolivar Mine in Mexico. The Company is intent on safely increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company has large land packages at each of its mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.
Forward-Looking Statements
This press release contains forward-looking information within the meaning of Canadian securities legislation. Forward-looking information relates to future events or the anticipated performance of Sierra and reflect management's expectations or beliefs regarding such future events and anticipated performance based on an assumed set of economic conditions and courses of action. In certain cases, statements that contain forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur" or "be achieved" or the negative of these words or comparable terminology. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual performance of Sierra to be materially different from any anticipated performance expressed or implied by such forward-looking information. Forward-looking statements in this press release include, but are not limited to, statements with respect to the Company's production and cost guidance for the year to be ended December 31, 2025, the significance of drill results, the ability to incorporate new drilling in an updated mineral resource and the Company's ability to grow the deposit at the Bolivar Mine and to recategorize mineral resources at Yauricocha into mineral reserves. 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, the risks described under the heading "Risk Factors" in the Company's annual information form dated March 26, 2025 for its fiscal year ended December 31, 2024 and other risks identified in the Company's filings with Canadian securities regulators, which are available at www.sedarplus.ca.
The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company's forward-looking information. Forward-looking information includes statements about the future and is 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 such 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250325303489/en/
CONTACT:
For further information regarding Sierra Metals, please visit www.SierraMetals.com or contact:
Investor Relations
Sierra Metals Inc.
+1 (866) 721-7437
info@sierrametals.com
Media Relations
John Vincic
Principal
Oakstrom Advisors
+1 (647) 402-6375
john@oakstrom.com
(END) Dow Jones Newswires
March 26, 2025 18:00 ET (22:00 GMT)