Sierra Metals Announces Fourth Quarter & Year End 2022 Consolidated Financial Results
Sierra Metals announced its fourth quarter and year-end 2022 financial results, reporting a revenue of $46.2 million for Q4 and $192.1 million for the full year. However, the company faced a significant net loss of $26.5 million in Q4 and $87.5 million for 2022, largely due to impairment charges totaling $50 million. As of December 31, 2022, cash and equivalents stood at $5.1 million with negative working capital of $84.4 million. The company aims to enhance operations in 2023, focusing on improved safety and productivity. Production guidance for 2023 includes 1,500,000 oz of silver and 13,500,000 lbs of copper.
- Production guidance for 2023 estimates 1.5 million oz of silver and 13.5 million lbs of copper.
- Improved short-term liquidity through refinancing $6.25 million of debt.
- Net loss attributable to shareholders of $87.5 million for 2022, reflecting a 220% increase in losses year-over-year.
- Negative working capital of $84.4 million as of December 31, 2022.
- Revenue decreased by 29% to $192.1 million in 2022 compared to 2021.
Conference Call and Webcast will be held on
Fourth Quarter and Year-End 2022 Operating and Financial Highlights
-
Revenue from metals payable of
$46.2 million $192.1 million -
Adjusted EBITDA(1) of
( in Q4 2022 and$0.5) million $13.0 million -
Net loss attributable to shareholders for Q4 2022 of
$26.5 million $0.16 $87.5 million $0.53 -
Net loss of
$88.3 million $0.54 $25.0 million $25.0 million $5.3 million -
Cash and cash equivalents as at
December 31, 2022 was$5.1 million $84.4 million - The focus in 2023 is to improve safety practices, reduce costs, improve productivity through increased equipment availability.
On
(1) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.
Strategic Update
As first announced on
The Special Committee continues to evaluate certain strategic alternatives. The Company will report to shareholders upon completion of the Special Committee’s review. Concurrently, over the course of the strategic review process the Special Committee and the management team have identified and have implemented a number of opportunities to improve the Company’s operational and financial position.
Progress made to-date includes the following:
- Successfully implementing a transition of executive level management.
- Organizational changes designed to create a shift in the corporate culture and instill a more “hands-on” approach to operations.
- Placing a renewed emphasis on safety and employee engagement. The Company has hired a VP of Health and Safety, instituted new safety protocols across all of its operations, increased training and communication efforts, and invested in remote-controlled equipment which is designed to reduce risk of injury.
- Streamlining operations to reduce costs, and refinancing debt obligations in order to preserve working capital as production levels improve.
- Advancing discussions with secured lenders on refinancing of material short-term obligations, and steps to improve short-term liquidity through ancillary financing arrangements.
- Initiatives to increase productivity at the mines, including increasing asset utilization, focused underground development of mine sequencing, and improvements to ventilation and pumping systems.
- Prioritizing spending to focus resources on the Company’s core assets at Yauricocha and Bolivar.
- Initiating activities designed to identify additional mineral resources at the Yauricocha and Bolivar mines to sustain long-term production increases.
- Enhancements to internal financial forecasting, reporting and integration of information across functions to ensure timely decision making.
2023 Guidance
Production Guidance
The Bolivar mine exited fourth quarter 2022 with improved operations and expectations of continued improved performance throughout 2023. The Yauricocha mine is expected to gradually and safely ramp up production throughout 2023 at the current depth. Meanwhile, Yauricocha’s focus will remain on obtaining the necessary permits to access the deeper, high-grade ore bodies.
The table summarizing 2023 production guidance from the Yauricocha and the Bolivar mines is provided below. Management considers the Cusi mine as 'non-core' and it has been excluded from the guidance.
| 2023 Guidance | 2022 |
||
| Low | High | Actual | |
| Silver (000 oz) | 1,500 |
1,700 |
1,218 |
| Copper (000 lbs) | 13,500 |
15,400 |
27,127 |
| Lead (000 lbs) | 46,000 |
50,500 |
12,216 |
| Zinc (000 lbs) | 14,000 |
15,400 |
38,100 |
| Gold (oz) | 37,300 |
42,400 |
9,361 |
| Copper equivalent |
74,300 |
83,300 |
56,108 |
(1) 2023 metal equivalent guidance was calculated using the following prices:
Cost Guidance
A breakdown of 2023 production guidance, cash costs and all-in sustaining costs (“AISC”) are included in the table below.
| Actual for 2022 | ||||||
| Equivalent Production | Cash costs range | AISC(2) range | Cash costs | AISC(2) | ||
| Mine | Range (1) | per CuEqLb | per CuEqLb | per CuEqLb | per CuEqLb | |
| Yauricocha | Copper Eq Lbs ('000) | 40,000 - 44,000 |
|
|
||
| Bolivar | Copper Eq Lbs ('000) | 34,500 - 39,500 |
|
|
||
| (1) 2023 metal equivalent guidance was calculated using the following prices: |
||||||
| (2) AISC includes treatment and refining charges, selling costs, G&A costs and sustaining capital expenditure | ||||||
Capital Expenditures
A breakdown by mine of the throughput and planned capital investments is shown in the following table:
| Amounts in $M | |||
| Sustaining | Growth | Total | |
| Yauricocha | 10 |
11 |
21 |
| Bolivar | 22 |
4 |
26 |
| Total Capital Expenditure | 32 |
15 |
47 |
Total sustaining capital for 2023, excluding Cusi, is expected to be
Growth capital for 2023, projected at
Management will continue to review performance throughout the year, while exploring value enhancing opportunities.
Conference Call & Webcast
The Company will host a conference call on
| Date: |
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Time: |
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Webcast: |
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Telephone: |
Access code: 077974 |
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Other: 1 929 526 1599 |
The webcast, presentation slides and 2022 Financial Statements and Management Discussion and Analysis will be available at www.sierrametals.com, with an archive of the webcast available for 180 days.
Summary of Operating and Financial Results
The information provided below are excerpts from the Company’s Annual Financial Statements and Management’s Discussion and Analysis, which are available on the Company's website (www.sierrametals.com) and on SEDAR (www.sedar.com) under the Company’s profile.
| (In thousands of dollars, except per share and cash cost amounts, consolidated figures unless noted otherwise) | Q4 2022 | Q3 2022 | Q4 2021 |
|
2022 |
|
|
2021 |
|
Var% | ||||||||
| Operating | ||||||||||||||||||
| Ore Processed / Tonnes Milled |
|
494,980 |
|
|
561,906 |
|
|
590,057 |
|
|
2,287,797 |
|
|
2,902,220 |
|
-21 |
% |
|
| Silver Ounces Produced (000's) |
|
570 |
|
|
669 |
|
|
805 |
|
|
2,581 |
|
|
3,527 |
|
-27 |
% |
|
| Copper Pounds Produced (000's) |
|
6,170 |
|
|
6,299 |
|
|
6,071 |
|
|
27,127 |
|
|
31,757 |
|
-15 |
% |
|
| Lead Pounds Produced (000's) |
|
2,071 |
|
|
3,878 |
|
|
6,011 |
|
|
13,498 |
|
|
30,816 |
|
-56 |
% |
|
| Zinc Pounds Produced (000's) |
|
6,367 |
|
|
10,815 |
|
|
14,913 |
|
|
38,100 |
|
|
79,281 |
|
-52 |
% |
|
| Gold Ounces Produced |
|
3,411 |
|
|
2,199 |
|
|
1,863 |
|
|
10,155 |
|
|
9,572 |
|
6 |
% |
|
| Copper Equivalent Pounds Produced (000's)1 |
|
14,073 |
|
|
16,637 |
|
|
17,841 |
|
|
64,218 |
|
|
89,926 |
|
-29 |
% |
|
| Cash Cost per Tonne Processed | $ |
63.30 |
|
$ |
65.60 |
|
$ |
58.21 |
|
$ |
63.89 |
|
$ |
48.69 |
|
31 |
% |
|
| Cash Cost per CuEqLb2 | $ |
2.44 |
|
$ |
2.41 |
|
$ |
2.29 |
|
$ |
2.55 |
|
$ |
1.81 |
|
41 |
% |
|
| AISC per CuEqLb2 | $ |
4.19 |
|
$ |
3.82 |
|
$ |
4.13 |
|
$ |
4.15 |
|
$ |
3.40 |
|
22 |
% |
|
| Cash Cost per CuEqLb (Yauricocha)2 | $ |
3.16 |
|
$ |
2.01 |
|
$ |
1.61 |
|
$ |
2.23 |
|
$ |
1.46 |
|
53 |
% |
|
| AISC per CuEqLb (Yauricocha)2 | $ |
5.02 |
|
$ |
3.36 |
|
$ |
3.09 |
|
$ |
3.69 |
|
$ |
2.77 |
|
33 |
% |
|
| Cash Cost per CuEqLb (Bolivar)2, 3 | $ |
1.76 |
|
$ |
3.38 |
|
$ |
5.29 |
|
$ |
2.99 |
|
$ |
2.18 |
|
37 |
% |
|
| AISC per CuEqLb (Bolivar)2, 3 | $ |
3.69 |
|
$ |
5.12 |
|
$ |
8.58 |
|
$ |
5.07 |
|
$ |
4.22 |
|
20 |
% |
|
| Cash Cost per AgEqOz (Cusi)2 | $ |
16.35 |
|
$ |
14.58 |
|
$ |
11.80 |
|
$ |
16.77 |
|
$ |
16.71 |
|
0 |
% |
|
| AISC per AgEqOz (Cusi)2 | $ |
22.14 |
|
$ |
19.23 |
|
$ |
21.09 |
|
$ |
23.17 |
|
$ |
28.15 |
|
-18 |
% |
|
| Financial | ||||||||||||||||||
| Revenues | $ |
46,150 |
|
$ |
38,787 |
|
$ |
62,240 |
|
$ |
192,119 |
|
$ |
272,014 |
|
-29 |
% |
|
| Adjusted EBITDA2 | $ |
(537 |
) |
$ |
(3,867 |
) |
$ |
18,843 |
|
$ |
12,997 |
|
$ |
104,732 |
|
-88 |
% |
|
| Operating cash flows before movements in working capital | $ |
2,860 |
|
$ |
(6,768 |
) |
$ |
15,126 |
|
$ |
5,163 |
|
$ |
91,114 |
|
-94 |
% |
|
| Adjusted net income (loss) attributable to shareholders2 | $ |
(6,758 |
) |
$ |
(10,705 |
) |
$ |
5,443 |
|
$ |
(23,149 |
) |
$ |
21,571 |
|
-207 |
% |
|
| Net income (loss) attributable to shareholders | $ |
(26,456 |
) |
$ |
(46,150 |
) |
$ |
(34,716 |
) |
$ |
(87,503 |
) |
$ |
(27,363 |
) |
220 |
% |
|
| Cash and cash equivalents | $ |
5,074 |
|
$ |
13,690 |
|
$ |
34,929 |
|
$ |
5,074 |
|
$ |
34,949 |
|
-85 |
% |
|
| Working capital 3 | $ |
(84,401 |
) |
$ |
(52,345 |
) |
$ |
17,321 |
|
$ |
(84,401 |
) |
$ |
17,321 |
|
-587 |
% |
|
(1) Copper equivalent pounds and Silver equivalent ounces were calculated using the following realized prices:
Q4 2022 -
Q3 2022 -
Q4 2021 -
FY 2022 -
FY 2021 -
(2) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.
(3) The negative working capital is largely the result of the reclassification of the long-term portion of the corporate facility and term loan to current, as the Company defaulted on its debt covenants. The Company has received accommodation from the banks for non- compliance of the corporate facility as at
2022 Operational Highlights
At the Bolivar mine, throughput increased by
Throughput from the Yauricocha mine was severely impacted in Q4 2022 by the mudslide incident that occurred at the end of Q3 2022 followed by a road blockade by the local communities. As compared to Q4 2021, Yauricocha throughput was
Consolidated annual ore throughput was 2,287,797 tonnes, a decrease of
2022 Consolidated Financial Summary
-
Revenue from metals payable of
$192.1 million 29% from 2021 annual revenue of$272.0 million
-
Yauricocha’s cash cost per copper equivalent payable pound(1) was
$2.23 $1.46 $3.69 $2.77
-
Bolivar’s cash cost per copper equivalent payable pound(1) was
$2.99 $2.18 $5.07 $4.22
-
Cusi’s cash cost per silver equivalent payable ounce(1) was
$16.77 $16.71 $23.17 $28.15
-
Adjusted EBITDA(1) of
$13.0 million $104.7 million
-
Net loss attributable to shareholders for 2022 was
$87.5 million $0.53 $27.4 million $0.17 $25.0 million $25.0 million $35.0 million
-
Adjusted net loss attributable to shareholders(1) of
$23.1 million $0.14 $21.6 million $0.13
-
A large component of the net income (loss) for every period is the non-cash depletion charge in
Peru , which was$5.3 million $9.3 million Sociedad Minera Corona S.A. de C.V. (“Corona”) of$371.0 million
-
Cash flow generated from operations before movements in working capital of
$5.2 million $91.1 million
-
Cash and cash equivalents of
$5.1 million $(84.4) million December 31, 2022 compared to$34.9 million $17.3 million $38.3 million $1.1 million $7.3 million
(1) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.
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 consolidated financial statements for the three months and years ended
| Three Months Ended |
Years Ended |
|||
2022 |
2021 |
2022 |
2021 |
|
| Net income (loss) |
|
|
|
|
| Adjusted for: | ||||
| Depletion and depreciation | 7,068 |
10,526 |
35,449 |
46,074 |
| Interest expense and other finance costs | 1,865 |
886 |
4,963 |
3,645 |
| NRV adjustments on inventory | 366 |
3,619 |
7,879 |
5,746 |
| Share-based payments | (112) |
20 |
467 |
1,059 |
| Derivative gains | - |
- |
- |
(451) |
| Costs related to COVID | - |
1,590 |
1,693 |
9,582 |
| Foreign currency exchange and other provisions | 907 |
(280) |
2,322 |
(583) |
| Impairment charges | 18,000 |
35,000 |
50,000 |
35,000 |
| Legal settlement and related charges | - |
- |
- |
1,665 |
| Income taxes | (1,049) |
702 |
(1,470) |
25,103 |
| Adjusted EBITDA |
|
|
|
|
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
| Three Months Ended |
Years Ended |
|||||||||||
| (In thousands of |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
| Net income (loss) attributable to shareholders | $ |
(26,456 |
) |
$ |
(34,716 |
) |
$ |
(87,503 |
) |
$ |
(27,363 |
) |
| Non-cash depletion charge on Corona's acquisition |
|
772 |
|
|
2,084 |
|
|
5,300 |
|
|
9,329 |
|
| Deferred tax recovery on Corona's acquisition depletion charge |
|
(235 |
) |
|
(284 |
) |
|
(1,614 |
) |
|
(2,831 |
) |
| NRV adjustments on inventory |
|
366 |
|
|
3,619 |
|
|
7,879 |
|
|
5,746 |
|
| Share-based compensation |
|
(112 |
) |
|
20 |
|
|
467 |
|
|
1,059 |
|
| Legal settlement and related charges |
|
- |
|
|
- |
|
|
- |
|
|
1,665 |
|
| Derivative gains |
|
- |
|
|
- |
|
|
- |
|
|
(451 |
) |
| Foreign currency exchange loss (gain) |
|
907 |
|
|
(280 |
) |
|
2,322 |
|
|
(583 |
) |
| Asset impairment |
|
18,000 |
|
|
35,000 |
|
|
50,000 |
|
|
35,000 |
|
| Adjusted net income (loss) attributable to shareholders | $ |
(6,758 |
) |
$ |
5,443 |
|
$ |
(23,149 |
) |
$ |
21,571 |
|
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. The Company considers cost of sales per silver equivalent payable ounce and copper equivalent payable pound to be the most comparable IFRS measure to cash cost per silver equivalent payable ounce, copper equivalent payable pound, and zinc equivalent payable pound, and has included calculations of this metric in the reconciliations within the applicable tables to follow.
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 consolidated statement of income for the three months and years 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 | 18,670 |
13,981 |
6,973 |
39,624 |
24,695 |
15,393 |
6,465 |
46,553 |
|
| Reverse: Workers Profit Sharing | 514 |
- |
- |
514 |
(748) |
- |
- |
(748) |
|
| Reverse: D&A/Other adjustments | (3,946) |
(2,854) |
(1,033) |
(7,833) |
(5,564) |
(3,790) |
(1,549) |
(10,903) |
|
| Reverse: Variation in Finished Inventory | (29) |
(31) |
(914) |
(974) |
(471) |
(151) |
68 |
(554) |
|
| Total Cash Cost | 15,209 |
11,096 |
5,026 |
31,331 |
17,912 |
11,452 |
4,984 |
34,348 |
|
| Tonnes Processed | 152,586 |
270,313 |
72,081 |
494,980 |
277,531 |
227,722 |
84,804 |
590,057 |
|
| Cash Cost per Tonne Processed | $ | 99.67 |
41.05 |
69.74 |
63.30 |
64.54 |
50.29 |
58.77 |
58.21 |
| Twelve months ended | Twelve 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 | 97,463 |
63,331 |
25,853 |
186,647 |
105,665 |
57,415 |
27,715 |
190,795 |
|
| Reverse: Workers Profit Sharing | - |
- |
- |
- |
(4,266) |
- |
- |
(4,266) |
|
| Reverse: D&A/Other adjustments | (19,738) |
(13,339) |
(4,175) |
(37,252) |
(24,899) |
(15,963) |
(7,110) |
(47,972) |
|
| Reverse: Variation in Finished Inventory | (1,771) |
(910) |
(553) |
(3,234) |
814 |
1,736 |
190 |
2,740 |
|
| Total Cash Cost | 75,954 |
49,082 |
21,125 |
146,161 |
77,314 |
43,188 |
20,795 |
141,297 |
|
| Tonnes Processed | 1,053,980 |
941,910 |
291,907 |
2,287,797 |
1,256,847 |
1,349,602 |
295,771 |
2,902,220 |
|
| Cash Cost per Tonne Processed | $ | 72.06 |
52.11 |
72.36 |
63.89 |
61.51 |
32.00 |
70.31 |
48.69 |
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
| YAURICOCHA | Three months ended | Years ended | |||
| (In thousand of US dollars, unless stated) | |||||
| Cash Cost per zinc equivalent payable pound | |||||
| Total Cash Cost | 15,209 |
17,912 |
75,954 |
77,314 |
|
| Variation in Finished inventory | 29 |
471 |
1,771 |
(814) |
|
| Total Cash Cost of Sales | 15,238 |
18,383 |
77,725 |
76,500 |
|
| Treatment and Refining Charges | 2,868 |
8,534 |
23,892 |
35,634 |
|
| Selling Costs | 438 |
1,026 |
2,909 |
4,670 |
|
| G&A Costs | 2,949 |
2,166 |
9,967 |
9,344 |
|
| Sustaining Capital Expenditures | 2,709 |
5,235 |
13,903 |
18,843 |
|
| All-In Sustaining Cash Costs | 24,202 |
35,344 |
128,396 |
144,991 |
|
| Copper Equivalent Payable |
4,819 |
11,427 |
34,782 |
52,251 |
|
| Cash Cost per Copper Equivalent Payable Pound | (US$) | 3.16 |
1.61 |
2.23 |
1.46 |
| All-In Sustaining Cash Cost per Copper Equivalent Payable Pound | (US$) | 5.02 |
3.09 |
3.69 |
2.77 |
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
| BOLIVAR | Three months ended | Years ended | |||
| (In thousand of US dollars, unless stated) | |||||
| Cash Cost per copper equivalent payable pound | |||||
| Total Cash Cost | 11,096 |
11,452 |
49,082 |
43,188 |
|
| Variation in Finished inventory | 31 |
151 |
910 |
(1,736) |
|
| Total Cash Cost of Sales | 11,127 |
11,603 |
49,992 |
41,452 |
|
| Treatment and Refining Charges | 2,977 |
2,435 |
8,865 |
14,240 |
|
| Selling Costs | 1,596 |
728 |
4,443 |
3,986 |
|
| G&A Costs | 1,994 |
1,181 |
4,780 |
5,997 |
|
| Sustaining Capital Expenditures | 5,601 |
2,870 |
16,783 |
14,551 |
|
| All-In Sustaining Cash Costs | 23,295 |
18,817 |
84,863 |
80,226 |
|
| Copper Equivalent Payable |
6,321 |
2,194 |
16,745 |
19,033 |
|
| Cash Cost per Copper Equivalent Payable Pound | (US$) | 1.76 |
5.29 |
2.99 |
2.18 |
| All-In Sustaining Cash Cost per Copper Equivalent Payable Pound | (US$) | 3.69 |
8.58 |
5.07 |
4.22 |
The following table provides detailed information on Cusi’s cash cost, and all-in sustaining cost per silver equivalent payable ounce for the three months and years ended
| CUSI | Three months ended | Years ended | |||
| (In thousand of US dollars, unless stated) | |||||
| Cash Cost per silver equivalent payable ounce | |||||
| Total Cash Cost | 5,026 |
4,984 |
21,125 |
20,795 |
|
| Variation in Finished inventory | 914 |
(68) |
553 |
(190) |
|
| Total Cash Cost of Sales | 5,940 |
4,916 |
21,678 |
20,605 |
|
| Treatment and Refining Charges | 466 |
1,061 |
1,643 |
3,899 |
|
| Selling Costs | 358 |
342 |
1,128 |
1,227 |
|
| G&A Costs | 710 |
928 |
2,267 |
2,449 |
|
| Sustaining Capital Expenditures | 564 |
1,536 |
3,248 |
6,537 |
|
| All-In Sustaining Cash Costs | 8,038 |
8,783 |
29,964 |
34,717 |
|
| Silver Equivalent Payable Ounces (000's) | 363 |
416 |
1,293 |
1,233 |
|
| Cash Cost per Silver Equivalent Payable Ounce | (US$) | 16.35 |
11.80 |
16.77 |
16.71 |
| All-In Sustaining Cash Cost per Silver Equivalent Payable Ounce | (US$) | 22.14 |
21.09 |
23.17 |
28.15 |
| CONSOLIDATED | Three months ended | Years ended | |||
| (In thousand of US dollars, unless stated) | |||||
| Total Cash Cost of Sales | 32,305 |
34,902 |
149,395 |
138,557 |
|
| All-In Sustaining Cash Costs | 55,534 |
62,944 |
243,223 |
259,934 |
|
| Copper Equivalent Payable |
13,260 |
15,240 |
58,581 |
76,355 |
|
| Cash Cost per Copper Equivalent Payable Pound | (US$) | 2.44 |
2.29 |
2.55 |
1.81 |
| All-In Sustaining Cash Cost per Copper Equivalent Payable Pound | (US$) | 4.19 |
4.13 |
4.15 |
3.40 |
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. The following other financial measures are used:
- 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 terms described above do not have a standardized meaning prescribed by IFRS, and therefore the Company’s definitions are 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 are 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.
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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, including the accuracy of the Company’s current mineral resource estimates; that the Company’s activities will be conducted in accordance with the Company’s public statements and stated goals; that there will be no material adverse change affecting the Company, its properties or its production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing, and recovery rate estimates and may be impacted by unscheduled maintenance, labour and contractor availability and other operating or geo-political uncertainties on the Company’s production, workforce, business, operations and financial condition); the expected trends in mineral prices, inflation and currency exchange rates; that all required approvals will be obtained for the Company’s business and operations on acceptable terms; that there will be no significant disruptions affecting the Company's operations. 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. Forward-looking statements include those relating to the Company’s guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; anticipated market prices of metals; the Company’s ability to comply with contractual and permitting or other regulatory requirements; formalizing the refinancing contract and the timeline related thereto and the timing of senior management’s conference call to discuss the Company’s financial and operating results for the year ended
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 of not meeting the expectations contemplated herein and 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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