Sierra Metals Reports Strong Fourth Quarter and Full Year 2024 Financial and Operating Results
Sierra Metals (SMTSF) reported strong financial results for Q4 and Full Year 2024, with record annual revenue of $272 million, up 19% from 2023. The company achieved Adjusted EBITDA of $74.2 million, a 40% increase year-over-year.
Q4 2024 marked their strongest quarter with record revenue of $81 million and consolidated throughput of 798kt processed, representing a 19% increase over Q3. The company ended the year with cash and equivalents of $19.8 million, up from $9.1 million in 2023.
Both Yauricocha and Bolivar mines exceeded 2024 production guidance, with consolidated copper, zinc, and silver production increasing by 10%, 3%, and 1% respectively compared to 2023. The company expects to deliver EBITDA of approximately $130 million for 2025, focusing on production increases and lower costs.
Sierra Metals (SMTSF) ha riportato risultati finanziari solidi per il quarto trimestre e per l'intero anno 2024, con un fatturato annuale record di 272 milioni di dollari, in aumento del 19% rispetto al 2023. L'azienda ha raggiunto un EBITDA rettificato di 74,2 milioni di dollari, con un incremento del 40% rispetto all'anno precedente.
Il quarto trimestre del 2024 ha segnato il loro trimestre più forte con un fatturato record di 81 milioni di dollari e un throughput consolidato di 798 kt processati, che rappresenta un aumento del 19% rispetto al terzo trimestre. L'azienda ha chiuso l'anno con liquidità e equivalenti di 19,8 milioni di dollari, in aumento rispetto ai 9,1 milioni di dollari del 2023.
Sia la miniera di Yauricocha che quella di Bolivar hanno superato le previsioni di produzione per il 2024, con una produzione consolidata di rame, zinco e argento aumentata rispettivamente del 10%, 3% e 1% rispetto al 2023. L'azienda prevede di generare un EBITDA di circa 130 milioni di dollari per il 2025, concentrandosi su aumenti di produzione e riduzione dei costi.
Sierra Metals (SMTSF) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024, con un ingreso anual récord de 272 millones de dólares, un aumento del 19% en comparación con 2023. La compañía logró un EBITDA ajustado de 74,2 millones de dólares, un incremento del 40% interanual.
El cuarto trimestre de 2024 marcó su trimestre más fuerte con un ingreso récord de 81 millones de dólares y un procesamiento consolidado de 798 kt, lo que representa un aumento del 19% respecto al tercer trimestre. La compañía terminó el año con efectivo y equivalentes de 19,8 millones de dólares, en comparación con 9,1 millones de dólares en 2023.
Tanto las minas de Yauricocha como de Bolivar superaron las guías de producción de 2024, con una producción consolidada de cobre, zinc y plata que aumentó un 10%, 3% y 1% respectivamente en comparación con 2023. La compañía espera entregar un EBITDA de aproximadamente 130 millones de dólares para 2025, enfocándose en aumentos de producción y reducción de costos.
Sierra Metals (SMTSF)는 2024년 4분기 및 전체 연도에 대해 강력한 재무 결과를 보고했으며, 연간 수익이 2억 7200만 달러로 2023년 대비 19% 증가했습니다. 이 회사는 조정된 EBITDA가 7420만 달러에 달하며, 이는 전년 대비 40% 증가한 수치입니다.
2024년 4분기는 8100만 달러의 기록적인 수익과 798kt의 처리량을 기록하며 가장 강력한 분기로 기록되었습니다. 회사는 2023년 910만 달러에서 증가한 1980만 달러의 현금 및 현금성 자산으로 연도를 마감했습니다.
Yauricocha와 Bolivar 광산은 2024년 생산 지침을 초과 달성했으며, 구리, 아연 및 은의 통합 생산량은 2023년 대비 각각 10%, 3%, 1% 증가했습니다. 이 회사는 2025년까지 약 1억 3000만 달러의 EBITDA를 달성할 것으로 예상하며, 생산 증가와 비용 절감을 목표로 하고 있습니다.
Sierra Metals (SMTSF) a annoncé de solides résultats financiers pour le quatrième trimestre et l'année entière 2024, avec un chiffre d'affaires annuel record de 272 millions de dollars, en hausse de 19 % par rapport à 2023. L'entreprise a atteint un EBITDA ajusté de 74,2 millions de dollars, soit une augmentation de 40 % par rapport à l'année précédente.
Le quatrième trimestre 2024 a marqué leur meilleur trimestre avec un chiffre d'affaires record de 81 millions de dollars et un débit consolidé de 798 kt traités, représentant une augmentation de 19 % par rapport au troisième trimestre. L'entreprise a terminé l'année avec des liquidités et équivalents de 19,8 millions de dollars, en hausse par rapport à 9,1 millions de dollars en 2023.
Les mines de Yauricocha et de Bolivar ont dépassé les prévisions de production de 2024, avec une production consolidée de cuivre, de zinc et d'argent augmentant respectivement de 10 %, 3 % et 1 % par rapport à 2023. L'entreprise s'attend à réaliser un EBITDA d'environ 130 millions de dollars pour 2025, en se concentrant sur l'augmentation de la production et la réduction des coûts.
Sierra Metals (SMTSF) berichtete über starke finanzielle Ergebnisse für das 4. Quartal und das gesamte Jahr 2024, mit einem Rekordjahresumsatz von 272 Millionen Dollar, was einem Anstieg von 19% gegenüber 2023 entspricht. Das Unternehmen erzielte ein bereinigtes EBITDA von 74,2 Millionen Dollar, was einem Anstieg von 40% im Jahresvergleich entspricht.
Das 4. Quartal 2024 war ihr stärkstes Quartal mit einem Rekordumsatz von 81 Millionen Dollar und einem konsolidierten Durchsatz von 798 kt, was einem Anstieg von 19% gegenüber dem 3. Quartal entspricht. Das Unternehmen schloss das Jahr mit liquiden Mitteln und Äquivalenten von 19,8 Millionen Dollar ab, ein Anstieg von 9,1 Millionen Dollar im Jahr 2023.
Sowohl die Minen Yauricocha als auch Bolivar übertrafen die Produktionsprognosen für 2024, wobei die konsolidierte Produktion von Kupfer, Zink und Silber im Vergleich zu 2023 um 10%, 3% und 1% zunahm. Das Unternehmen erwartet, für 2025 ein EBITDA von etwa 130 Millionen Dollar zu erzielen, wobei der Fokus auf Produktionssteigerungen und Kostensenkungen liegt.
- Record annual revenue of $272M, up 19% YoY
- Adjusted EBITDA increased 40% to $74.2M
- Record Q4 revenue of $81M with highest-ever throughput
- Cash position improved to $19.8M from $9.1M YoY
- Both mines exceeded 2024 production guidance
- Strong EBITDA guidance of $130M for 2025
- Slight decrease in gold and lead production
- Yauricocha's cash cost per copper equivalent increased to $3.39 from $3.02 in 2023
Full Year 2024 Highlights
-
Record revenue of
$272 million 19% over 2023 -
Adjusted EBITDA of
$74.2 million 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 $9.1 million
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
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
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 -
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 - |
||||||||||||||||||
Q3 2024 - |
||||||||||||||||||
Q4 2023 - |
||||||||||||||||||
FY 2024 - |
||||||||||||||||||
FY 2023 - |
||||||||||||||||||
FY 2022 - |
||||||||||||||||||
(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
Throughput in Q4 2024 was a record 798 thousand tonnes,
For FY 2024, Bolivar’s cash cost per copper equivalent payable pound(1) was
Yauricocha’s cash cost per copper equivalent payable pound(1) of
(1) Copper equivalent (CuEq) pounds were calculated using the following metal prices: |
FY 2024 - |
FY 2023 - |
FY 2024 Financial Highlights
Revenue from metals payable of
Adjusted EBITDA, excluding discontinued operations, was
Cash flow generated from operations before movements in working capital of
Cash and cash equivalents of
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
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) |
|
|
|
|
| Bolivar | $/CuEq (2) |
|
|
|
|
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
|
|||||
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 |
|
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 |
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 - |
||||||||
Q4 2023 - |
||||||||
FY 2024 - |
||||||||
FY 2023 - |
||||||||
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 |
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 - |
|||||||
Q4 2023 - |
|||||||
FY 2024 - |
|||||||
FY 2023 - |
|||||||
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
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.
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