Sierra Metals Reports Consolidated Financial Results for the Third Quarter of 2022
Sierra Metals reported Q3 2022 revenue of $38.8 million, a 36% decline from Q3 2021 and a 22% decrease from Q2 2022. Adjusted EBITDA was $(3.9 million), marking a 122% drop year-over-year. The company faced a net loss of $46.2 million or $(0.28 per share), compared to a net loss of $4.8 million in Q3 2021. Factors contributing to these results included lower throughput at Yauricocha, flooding at Bolivar, operational restrictions, and a 25% impairment charge at Bolivar. Production guidance is suspended due to these ongoing challenges.
- None.
- 36% revenue decline year-over-year.
- 22% decrease in revenue from Q2 2022.
- Adjusted EBITDA of $(3.9 million), down 122% from Q3 2021.
- Net loss of $46.2 million, compared to $4.8 million in Q3 2021.
- 25 million impairment charge for Bolivar mine.
- Suspended production and financial guidance.
Conference Call
(All $ figures reported in USD)
-
Revenue from metals payable of
$38.8 million 36% decrease from$60.7 million 22% decrease from the previous quarter, due to lower throughput at Yauricocha and slower ramp up at Bolivar as a result of a flooding event and operational restrictions due to limited ventilation in the Bolivar NorthWest zone. -
Adjusted EBITDA of
$(3.9) million $17.4 million $1.4 million -
Net loss attributable to shareholders for Q3 2022 of
$46.2 million $(0.28) $4.8 million $0.03 $15.3 million $(0.09) -
Net loss for Q3 2022 and 9M 2022 includes an impairment charge of
$25.0 million $7.0 million -
Adjusted net loss attributable to shareholders(1) of
$10.7 million $(0.07) $1.7 million $(0.01) $11.6 million $0.07 -
$13.7 million $(52.3) million September 30, 2022 . -
Net Debt of
$73.6 million September 30, 2022 . - Suspension of production and financial guidance remains in effect.
1 The negative working capital is largely due to the reclassification of the long-term portion of the credit facility as current, resulting from the breach of certain debt covenants as at
A shareholder conference call will be held
We have all been deeply impacted by the tragic mudslide incident at Yauricocha. As our primary objective remains the safety and well-being of all employees and contractors, a rigorous safety assurance process continues at the mine. Although production is ramping up, full production can only be reached once this process is complete.
In the coming months, we will continue to incorporate ore from the high-grade Fortuna zone and work towards recovery of tonnage at the
He continued, “at Bolivar, unexpected flooding during most of the quarter in addition to the operational restrictions due to limited ventilation at the Bolivar NorthWest zone, negatively impacted throughput and grades.
On a consolidated basis, the Company’s revenues and EBITDA decreased
He concluded, “Recent setbacks at both the Yauricocha and
The following table displays selected financial and operational information for the three months and nine months ended
Nine Months Ended |
|||||||||||||||
| (In thousands of dollars, except per share and cash cost amounts, consolidated figures unless noted otherwise) | Q3 2022 |
Q2 2022 |
Q3 2021 |
2022 |
2021 |
||||||||||
| Operating | |||||||||||||||
| Ore Processed / Tonnes Milled |
|
561,906 |
|
|
640,181 |
|
|
750,208 |
|
|
1,792,817 |
|
|
2,312,163 |
|
| Silver Ounces Produced (000's) |
|
669 |
|
|
608 |
|
|
807 |
|
|
2,011 |
|
|
2,722 |
|
| Copper Pounds Produced (000's) |
|
6,299 |
|
|
8,334 |
|
|
8,256 |
|
|
20,957 |
|
|
25,686 |
|
| Lead Pounds Produced (000's) |
|
3,878 |
|
|
3,333 |
|
|
7,841 |
|
|
11,427 |
|
|
24,805 |
|
| Zinc Pounds Produced (000's) |
|
10,815 |
|
|
10,426 |
|
|
19,112 |
|
|
31,733 |
|
|
64,368 |
|
| Gold Ounces Produced |
|
2,199 |
|
|
2,622 |
|
|
2,261 |
|
|
6,744 |
|
|
7,709 |
|
| Copper Equivalent Pounds Produced (000's)1 |
|
16,637 |
|
|
17,794 |
|
|
21,870 |
|
|
50,202 |
|
|
71,966 |
|
| Cash Cost per Tonne Processed | $ |
65.60 |
|
$ |
65.21 |
|
$ |
44.63 |
|
$ |
64.05 |
|
$ |
46.25 |
|
| Cash Cost per CuEqLb2 | $ |
2.41 |
|
$ |
2.47 |
|
$ |
1.65 |
|
$ |
2.58 |
|
$ |
1.65 |
|
| AISC per CuEqLb2 | $ |
3.82 |
|
$ |
3.94 |
|
$ |
3.35 |
|
$ |
4.14 |
|
$ |
3.14 |
|
| Cash Cost per CuEqLb (Yauricocha)2 | $ |
2.01 |
|
$ |
2.06 |
|
$ |
1.37 |
|
$ |
2.09 |
|
$ |
1.42 |
|
| AISC per CuEqLb (Yauricocha)2 | $ |
3.36 |
|
$ |
3.39 |
|
$ |
2.83 |
|
$ |
3.49 |
|
$ |
2.69 |
|
| Cash Cost per CuEqLb (Bolivar)2, 3 | $ |
3.38 |
|
$ |
3.39 |
|
$ |
2.02 |
|
$ |
3.71 |
|
$ |
1.76 |
|
| AISC per CuEqLb (Bolivar)2, 3 | $ |
5.12 |
|
$ |
5.49 |
|
$ |
4.34 |
|
$ |
5.88 |
|
$ |
3.63 |
|
| Cash Cost per AgEqOz (Cusi)2 | $ |
14.58 |
|
$ |
24.84 |
|
$ |
17.06 |
|
$ |
16.92 |
|
$ |
19.15 |
|
| AISC per AgEqOz (Cusi)2 | $ |
19.23 |
|
$ |
33.83 |
|
$ |
28.93 |
|
$ |
23.58 |
|
$ |
31.65 |
|
| Financial | |||||||||||||||
| Revenues | $ |
38,787 |
|
$ |
49,941 |
|
$ |
60,701 |
|
$ |
145,969 |
|
$ |
209,774 |
|
| Adjusted EBITDA2 | $ |
(3,867 |
) |
$ |
1,413 |
|
$ |
17,444 |
|
$ |
13,534 |
|
$ |
85,889 |
|
| Operating cash flows before movements in working capital | $ |
(6,768 |
) |
$ |
(1,630 |
) |
$ |
15,126 |
|
$ |
2,303 |
|
$ |
75,859 |
|
| Adjusted net income (loss) attributable to shareholders2 | $ |
(10,705 |
) |
$ |
(11,631 |
) |
$ |
(1,677 |
) |
$ |
(16,391 |
) |
$ |
14,001 |
|
| Net income (loss) attributable to shareholders | $ |
(46,150 |
) |
$ |
(15,266 |
) |
$ |
(4,815 |
) |
$ |
(61,047 |
) |
$ |
7,353 |
|
| Cash and cash equivalents | $ |
13,690 |
|
$ |
16,404 |
|
$ |
58,288 |
|
$ |
13,690 |
|
$ |
58,288 |
|
| Working capital 3 | $ |
(52,345 |
) |
$ |
(6,426 |
) |
$ |
38,096 |
|
$ |
(52,345 |
) |
$ |
38,096 |
|
(1) Copper equivalent pounds and Silver equivalent ounces were calculated using the following realized prices: |
Q3 2022 - |
Q2 2022 - |
Q3 2021 - |
9M 2022 - |
9M 2021 - |
(2) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the Company’s management discussion and analysis for the three and nine months ended |
(3) The negative working capital is largely the result of the reclassification of the long-term portion of the credit facility to current, as the Company defaulted on certain debt covenants. After the end of the Q3 2022, the Company has received waivers from the lending banks for this non-compliance. |
The following table shows the Company’s realized selling prices for the three months ended
| Realized Metal Prices | 2022 |
2021 |
||||||||||||
| (In US dollars) | Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
|||||||
| Silver (oz) | $ |
19.26 |
$ |
22.65 |
$ |
23.95 |
$ |
23.41 |
$ |
24.20 |
$ |
26.80 |
$ |
26.44 |
| Copper (lb) | $ |
3.51 |
$ |
4.30 |
$ |
4.53 |
$ |
4.40 |
$ |
4.25 |
$ |
4.37 |
$ |
3.88 |
| Lead (lb) | $ |
0.90 |
$ |
1.00 |
$ |
1.06 |
$ |
1.06 |
$ |
1.07 |
$ |
0.97 |
$ |
0.92 |
| Zinc (lb) | $ |
1.49 |
$ |
1.79 |
$ |
1.69 |
$ |
1.55 |
$ |
1.36 |
$ |
1.34 |
$ |
1.24 |
| Gold (oz) | $ |
1,730 |
$ |
1,872 |
$ |
1,875 |
$ |
1,795 |
$ |
1,790 |
$ |
1,818 |
$ |
1,778 |
Q3 2022 Consolidated Operating Highlights
Copper equivalent production of 16.6 million pounds; a
Consolidated Q3 2022 throughput of 561,906 tonnes was a
Throughput from the
At the
At Cusi, throughput was 65,180 tonnes during Q3 2022. When compared to Q3 2021, a
Q3 2022 Consolidated Financial Highlights
Revenues Declined Due to Decrease in Metal Sales and a Drop in Metals Prices
Revenue from metals payable of
Revenues for Q3 2022 were
Cost of Operations Increased at Yauricocha and
Yauricocha’s cash cost per copper equivalent payable pound was
Bolivar’s cash cost per copper equivalent payable pound was
Cusi’s Q3 2022 cash cost per silver equivalent payable ounce decreased to
EBITDA, Net Income and Cash Flow Generation Impacted by Lower Revenues and Higher Operating Costs
Adjusted EBITDA(1) decreased
Net loss attributable to shareholders for Q3 2022 was
Adjusted net loss attributable to shareholders(1) of
Operating cash flow before movements in working capital of
Cash and cash equivalents of
Cash and cash equivalents decreased during the nine-month period ended
Financing activities included
1 This is a non-IFRS performance measure. See the Non-IFRS Performance Measures section of the MD&A.
- Mine development at Bolivar during Q3 2022 totaled 2,080 meters, which included 1,265 meters of development to prepare stopes for mine production, and 815 meters to development of ramps; and
- Mine development at Cusi during Q3 2022 totaled 631 meters.
Exploration Update
Peru:
- Approximately 2,532 meters of diamond drilling was completed during Q3 2022 in the Fortuna North, Katty and Violeta zones with the aim to replace and increase the depleted mineral resources. Additionally, approximately 2,000 meters of greenfield exploration drilling was completed in the Tucumachay prospect.
Bolivar
-
At Bolivar during Q3 2022, 18,318 meters were drilled in the Bolivar West, Bolivar NorthWest, the
Cieneguita zones and El Gallo Superior encountering skarn intersections with mineralization. Additionally, infill drilling of 4,479 meters was completed in the Bolivar West, El Gallo Inferior and Bolivar NorthWest zones;
Cusi
-
During Q3 2022, the Company completed 2,196 meters of infill drilling to support the development of the
Santa Rosa de Lima vein and NE Trend.
Covid-19 Update And Outlook
The COVID-19 pandemic has impacted the Company’s operations over the past two years. While there are still concerns regarding the newer variants of the virus, there is reduced pressure on the operations due to relaxed measures as the Company has achieved almost
Impairment Charge
Lower market capitalization due to the drop in the Company’s share price, declining metal prices, lower production and consequent decrease in profitability were considered as indicators of impairment as on
The Company updated the Bolivar LOM using updated information from the mine performance, required capex, metal prices and discount rate, and concluded that an impairment of
The Cusi LOM was updated for the latest metal prices and discount rate. Following this analysis, management concluded that an impairment of
The updated Yauricocha LOM did not indicate any impairment as at
Suspended Guidance
In addition to the delays in the anticipated turnaround at the Bolivar mine due to the unexpected flooding in the Bolivar NW zone during the quarter, the Company also experienced production delays at the Yauricocha mine as a result of the mudslide incident and ensuing community blockade in September. Although mining restarted in parts of Yauricocha in October, the Company is following due assurance processes to ensure safe operations in the remaining sections of the mine. In view of these delays, the Company has suspended its production and financial guidance for 2022.
Strategic Review Process
In response to liquidity challenges from an accumulation of operational losses and negative cashflows, primarily from its Mexican operations, the Company announced, on
The mandate of the Special Committee, comprised of its independent directors, includes exploring, reviewing and considering options to optimize the operations of the Company and possible financing, restructuring and strategic options in the best interests of the Company. Financial and legal advisors with particular expertise in turnaround and restructuring matters have been engaged to advise on this process.
The Company has engaged
Delisting
As previously announced, the Company will voluntarily delist its common shares from the New York Stock Exchange American (“NYSE”) and the Bolsa de
The Company is continuing to pursue its BVL delisting and suspension from trading is anticipated later during the year. An update will be provided once a final trading date of the common shares on the BVL has been confirmed.
The Company’s common shares will continue to be listed and traded in Canadian dollars on the
Conference Call and Webcast
Via Webcast:
A live audio webcast of the meeting will be available on the Company's website:
https://events.q4inc.com/attendee/756129326
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 prior to the scheduled start time of the call.
US dial-in number (Toll Free): 1 844 200 6205
US dial-in number (Local): 1 646 904 5544
All other locations: +1 929 526 1599
Access code: 991150
Press *1 to ask a question, *2 to withdraw your question, or *0 for operator assistance
Non-IFRS Performance Measures
The non-IFRS performance 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.
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 document. 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 condensed interim consolidated financial statements for the three and nine months ended
Three Months Ended |
Nine Months Ended |
|||||||||||
2022 |
2021 |
|
2022 |
2021 |
||||||||
| Net income (loss) | $ |
(47,114 |
) |
$ |
(3,727 |
) |
$ |
(60,724 |
) |
$ |
11,112 |
|
| Adjusted for: | ||||||||||||
| Depletion and depreciation |
|
9,765 |
|
|
11,739 |
|
|
28,381 |
|
|
35,548 |
|
| Interest expense and other finance costs |
|
1,381 |
|
|
1,016 |
|
|
3,098 |
|
|
2,759 |
|
| NRV adjustments on inventory |
|
2,295 |
|
|
1,386 |
|
|
7,513 |
|
|
2,127 |
|
| Share-based payments |
|
253 |
|
|
315 |
|
|
579 |
|
|
1,039 |
|
| Derivative gains |
|
- |
|
|
- |
|
|
- |
|
|
(451 |
) |
| Costs related to COVID |
|
109 |
|
|
2,505 |
|
|
1,693 |
|
|
7,992 |
|
| Foreign currency exchange and other provisions |
|
(147 |
) |
|
(800 |
) |
|
1,415 |
|
|
(303 |
) |
| Impairment charges |
|
32,000 |
|
|
- |
|
|
32,000 |
|
|
- |
|
| Legal settlement and related charges |
|
- |
|
|
951 |
|
|
- |
|
|
1,665 |
|
| Income taxes |
|
(2,409 |
) |
|
4,059 |
|
|
(421 |
) |
|
24,401 |
|
| Adjusted EBITDA | $ |
(3,867 |
) |
$ |
17,444 |
|
$ |
13,534 |
|
$ |
85,889 |
|
Non-IFRS reconciliation of adjusted net income
The Company has included the non-IFRS financial performance measure of adjusted net income, defined by management as the net income attributable to shareholders shown in the statement of earnings plus the non-cash depletion charge due to the acquisition of Corona and the corresponding deferred tax recovery and certain non-recurring or non-cash items such as share-based compensation and foreign currency exchange (gains) losses. 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 to the condensed interim consolidated financial statements for the three and nine months ended
Three Months Ended |
Nine Months Ended |
|||||||||||
| (In thousands of |
2022 |
2021 |
|
2022 |
2021 |
|||||||
| Net income (loss) attributable to shareholders | $ |
(46,150 |
) |
$ |
(4,815 |
) |
$ |
(61,047 |
) |
$ |
7,353 |
|
| Non-cash depletion charge on Corona's acquisition |
|
1,428 |
|
|
2,347 |
|
|
4,528 |
|
|
7,245 |
|
| Deferred tax recovery on Corona's acquisition depletion charge |
|
(384 |
) |
|
(1,061 |
) |
|
(1,379 |
) |
|
(2,547 |
) |
| NRV adjustments on inventory |
|
2,295 |
|
|
1,386 |
|
|
7,513 |
|
|
2,127 |
|
| Share-based compensation |
|
253 |
|
|
315 |
|
|
579 |
|
|
1,039 |
|
| Legal settlement and related charges |
|
- |
|
|
951 |
|
|
- |
|
|
1,665 |
|
| Derivative gains |
|
- |
|
|
- |
|
|
- |
|
|
(451 |
) |
| Foreign currency exchange loss (gain) |
|
(147 |
) |
|
(800 |
) |
|
1,415 |
|
|
(303 |
) |
| Asset impairment |
|
32,000 |
|
|
- |
|
|
32,000 |
|
|
- |
|
| Adjusted net income (loss) attributable to shareholders | $ |
(10,705 |
) |
$ |
(1,677 |
) |
$ |
(16,391 |
) |
$ |
16,128 |
|
Cash cost per silver equivalent payable ounce and copper equivalent payable pound
The Company uses the non-IFRS measure of cash cost per silver equivalent ounce and 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.
All-in sustaining cost per silver equivalent payable ounce and copper equivalent payable pound
All‐In Sustaining Cost (“AISC”) is a non‐IFRS measure and was calculated based on guidance provided by the
AISC is a more comprehensive measure than cash cost per ounce/pound for the Company’s consolidated operating performance by providing greater visibility, comparability and representation of the total costs associated with producing silver and 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 expense and share-based payments. The Company believes that this measure represents the total sustainable costs of producing silver and 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 silver and 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 cash costs to cost of sales, as reported in the Company’s condensed interim consolidated statement of income for the three and nine months ended
Three months ended |
Three months ended |
||||||||||||||||
| (In thousand of US dollars, unless stated) |
|
|
|||||||||||||||
Yauricocha |
Bolivar |
Cusi |
Consolidated |
Yauricocha |
Bolivar |
Cusi |
Consolidated |
||||||||||
| Cash Cost per Tonne of Processed Ore | |||||||||||||||||
| Cost of Sales | 25,084 |
|
16,633 |
|
4,770 |
|
46,487 |
|
25,240 |
|
12,819 |
|
7,698 |
|
45,757 |
|
|
| Reverse: Workers Profit Sharing | 103 |
|
- |
|
- |
|
103 |
|
(877 |
) |
- |
|
- |
|
(877 |
) |
|
| Reverse: D&A/Other adjustments | (5,348 |
) |
(3,958 |
) |
(1,052 |
) |
(10,358 |
) |
(6,203 |
) |
(4,550 |
) |
(2,846 |
) |
(13,599 |
) |
|
| Reverse: Variation in Finished Inventory | 271 |
|
(296 |
) |
653 |
|
628 |
|
1,351 |
|
1,067 |
|
(220 |
) |
2,198 |
|
|
| Total Cash Cost | 20,110 |
|
12,379 |
|
4,371 |
|
36,860 |
|
19,511 |
|
9,336 |
|
4,632 |
|
33,479 |
|
|
| Tonnes Processed | 269,057 |
|
227,669 |
|
65,181 |
|
561,907 |
|
324,196 |
|
364,941 |
|
61,071 |
|
750,208 |
|
|
| Cash Cost per Tonne Processed | $ | 74.75 |
|
54.37 |
|
67.07 |
|
65.60 |
|
60.18 |
|
25.58 |
|
75.85 |
|
44.63 |
|
Bolivar cost of sales for the three-month ended
Nine months ended |
Nine months ended |
||||||||||||||||
| (In thousand of US dollars, unless stated) |
|
|
|||||||||||||||
Yauricocha |
Bolivar |
Cusi |
Consolidated |
Yauricocha |
Bolivar |
Cusi |
Consolidated |
||||||||||
| Cash Cost per Tonne of Processed Ore | |||||||||||||||||
| Cost of Sales | 78,793 |
|
49,350 |
|
18,880 |
|
147,023 |
|
80,970 |
|
42,022 |
|
21,250 |
|
144,242 |
|
|
| Reverse: Workers Profit Sharing | (514 |
) |
- |
|
- |
|
(514 |
) |
(3,518 |
) |
- |
|
- |
|
(3,518 |
) |
|
| Reverse: D&A/Other adjustments | (15,792 |
) |
(10,485 |
) |
(3,142 |
) |
(29,419 |
) |
(19,335 |
) |
(12,173 |
) |
(5,561 |
) |
(37,069 |
) |
|
| Reverse: Variation in Finished Inventory | (1,742 |
) |
(879 |
) |
361 |
|
(2,260 |
) |
1,285 |
|
1,887 |
|
122 |
|
3,294 |
|
|
| Total Cash Cost | 60,745 |
|
37,986 |
|
16,099 |
|
114,830 |
|
59,402 |
|
31,736 |
|
15,811 |
|
106,949 |
|
|
| Tonnes Processed | 901,394 |
|
671,597 |
|
219,826 |
|
1,792,817 |
|
979,316 |
|
1,121,880 |
|
210,967 |
|
2,312,163 |
|
|
| Cash Cost per Tonne Processed | $ | 67.39 |
|
56.56 |
|
73.23 |
|
64.05 |
|
60.66 |
|
28.29 |
|
74.95 |
|
46.25 |
|
The following table provides detailed information on Yauricocha’s cash cost, and AISC per copper equivalent payable pound for the three and nine months ended
| YAURICOCHA | Three months ended |
Nine months ended |
||||||
| (In thousand of US dollars, unless stated) |
|
|
|
|
||||
| Cash Cost per zinc equivalent payable pound | ||||||||
| Total Cash Cost | 20,110 |
|
19,511 |
|
60,745 |
59,402 |
|
|
| Variation in Finished inventory | (271 |
) |
(1,351 |
) |
1,742 |
(1,285 |
) |
|
| Total Cash Cost of Sales | 19,839 |
|
18,160 |
|
62,487 |
58,117 |
|
|
| Treatment and Refining Charges | 6,495 |
|
8,343 |
|
21,024 |
27,100 |
|
|
| Selling Costs | 841 |
|
1,071 |
|
2,471 |
3,644 |
|
|
| G&A Costs | 2,495 |
|
2,341 |
|
7,018 |
7,178 |
|
|
| Sustaining Capital Expenditures | 3,476 |
|
7,550 |
|
11,194 |
13,608 |
|
|
| All-In Sustaining Cash Costs | 33,146 |
|
37,465 |
|
104,194 |
109,647 |
|
|
| Copper Equivalent Payable |
9,856 |
|
13,215 |
|
29,887 |
40,804 |
|
|
| Cash Cost per Copper Equivalent Payable Pound | (US$) | 2.01 |
|
1.37 |
|
2.09 |
1.42 |
|
| All-In Sustaining Cash Cost per Copper Equivalent Payable Pound | (US$) | 3.36 |
|
2.83 |
|
3.49 |
2.69 |
|
The following table provides detailed information on Bolivar’s cash cost, and AISC per copper equivalent payable pound for the three and nine months ended
| BOLIVAR | Three months ended |
Nine months ended |
|||||
| (In thousand of US dollars, unless stated) |
|
|
|
|
|||
| Cash Cost per copper equivalent payable pound | |||||||
| Total Cash Cost | 12,379 |
9,336 |
|
37,986 |
31,736 |
|
|
| Variation in Finished inventory | 296 |
(1,067 |
) |
879 |
(1,887 |
) |
|
| Total Cash Cost of Sales | 12,675 |
8,269 |
|
38,865 |
29,849 |
|
|
| Treatment and Refining Charges | 1,303 |
3,392 |
|
5,888 |
11,805 |
|
|
| Selling Costs | 757 |
872 |
|
2,846 |
3,258 |
|
|
| G&A Costs | 856 |
1,751 |
|
2,786 |
4,816 |
|
|
| Sustaining Capital Expenditures | 3,626 |
3,428 |
|
11,183 |
11,681 |
|
|
| All-In Sustaining Cash Costs | 19,217 |
17,712 |
|
61,568 |
61,409 |
|
|
| Copper Equivalent Payable |
3,752 |
4,085 |
|
10,476 |
16,918 |
|
|
| Cash Cost per Copper Equivalent Payable Pound | (US$) | 3.38 |
2.02 |
|
3.71 |
1.76 |
|
| All-In Sustaining Cash Cost per Copper Equivalent Payable Pound | (US$) | 5.12 |
4.34 |
|
5.88 |
3.63 |
|
The following table provides detailed information on Cusi’s cash cost, and AISC per silver equivalent payable ounce for the three and nine months ended
CUSI |
Three months ended |
Nine months ended |
||||||
| (In thousand of US dollars, unless stated) |
|
|
|
|
||||
| Cash Cost per silver equivalent payable ounce | ||||||||
| Total Cash Cost | 4,373 |
|
4,632 |
16,099 |
|
15,811 |
|
|
| Variation in Finished inventory | (653 |
) |
220 |
(361 |
) |
(122 |
) |
|
| Total Cash Cost of Sales | 3,720 |
|
4,852 |
15,738 |
|
15,689 |
|
|
| Treatment and Refining Charges | 332 |
|
770 |
1,177 |
|
2,838 |
|
|
| Selling Costs | 154 |
|
266 |
770 |
|
885 |
|
|
| G&A Costs | 312 |
|
937 |
1,557 |
|
1,521 |
|
|
| Sustaining Capital Expenditures | 388 |
|
1,402 |
2,685 |
|
5,001 |
|
|
| All-In Sustaining Cash Costs | 4,905 |
|
8,227 |
21,926 |
|
25,934 |
|
|
| Silver Equivalent Payable Ounces (000's) | 255 |
|
284 |
930 |
|
819 |
|
|
| Cash Cost per Silver Equivalent Payable Ounce | (US$) | 14.58 |
|
17.06 |
16.92 |
|
19.15 |
|
| All-In Sustaining Cash Cost per Silver Equivalent Payable Ounce | (US$) | 19.24 |
|
28.93 |
23.58 |
|
31.65 |
|
Consolidated:
CONSOLIDATED |
Three months ended |
Nine months ended |
|||
| (In thousand of US dollars, unless stated) |
|
|
|
|
|
| Total Cash Cost of Sales | 36,234 |
31,281 |
117,090 |
103,655 |
|
| All-In Sustaining Cash Costs | 57,268 |
63,404 |
187,688 |
196,990 |
|
| Copper Equivalent Payable |
15,005 |
18,920 |
45,317 |
62,792 |
|
| Cash Cost per Copper Equivalent Payable Pound | (US$) | 2.41 |
1.65 |
2.58 |
1.65 |
| All-In Sustaining Cash Cost per Copper Equivalent Payable Pound | (US$) | 3.82 |
3.35 |
4.14 |
3.14 |
Additional non-IFRS measures
The Company uses other financial measures, the presentation of which is not meant to be a substitute for other subtotals or totals presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. This includes:
- 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.
This term does not have a standardized meaning prescribed by IFRS, and therefore the Company’s definition is unlikely to be comparable to similar measures presented by other companies. The Company’s management believes that their presentation provides useful information to investors because cash flows generated from operations before changes in working capital excludes the movement in working capital items. This, in management’s view, provides useful information of the Company’s cash flows from operations and is considered to be meaningful in evaluating the Company’s past financial performance or its future prospects. The most comparable IFRS measure is cash flows from operating activities.
Qualified Persons
Américo Zuzunaga, FAusIMM (Mining Engineer)
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Forward-Looking Statements
This press release contains forward-looking information within the meaning of Canadian and
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
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.
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Email: info@sierrametals.com
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