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)-- 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:

(In thousands of dollars, except per share and cash cost amounts, consolidated figures unless noted otherwise)										Year ended December 31,
	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 operations3	$	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 EBITDA2 from continuing operations3	$	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	)	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 US dollars, unless stated)		December 31, 2024		December 31, 2023		December 31, 2024	December 31, 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, unless stated)		December 31, 2024	December 31, 2023		December 31, 2024	December 31, 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/

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

Source: Sierra Metals Inc.