Sierra Metals Reports Third Quarter 2024 Consolidated Financial Results

Rhea-AI Summary

Sierra Metals reported its Q3 2024 financial results, highlighting significant improvements. Revenue reached $70.9 million, a 23% increase from Q2 2024 and a 25% rise from Q3 2023. Adjusted EBITDA was $20.4 million, up 57% from Q2 2024 and 152% from Q3 2023. Cash flow from operations before working capital movements was $22.1 million, up 48% from Q2 2024 and 268% from Q3 2023. Yauricocha Mine averaged 3,050 tonnes per day in Q3 2024 and is on track to achieve 3,600 tonnes per day in Q4 2024. The company expects to exceed its consolidated annual production guidance for 2024. Net income from continuing operations was $6.5 million, while discontinued operations posted a loss of $2.7 million. Cash and equivalents stood at $18.6 million as of September 30, 2024. The sale of the Cusi Mine was completed in July 2024. Management will discuss these results in a webcast on November 7, 2024.

Positive

• Revenue increased by 23% QoQ and 25% YoY to $70.9 million.
• Adjusted EBITDA rose by 57% QoQ and 152% YoY to $20.4 million.
• Cash flow from operations before working capital movements increased by 48% QoQ and 268% YoY to $22.1 million.
• Yauricocha Mine is on track to achieve full capacity production of 3,600 tpd in Q4 2024.
• Net income from continuing operations was $6.5 million.
• Cash and equivalents increased to $18.6 million as of September 30, 2024.

Negative

• Discontinued operations posted a loss of $2.7 million.

Q3 2024 Highlights:

• Based on operating performance to date and anticipated production for the remainder of 2024, Sierra Metals expects to exceed its consolidated annual production guidance.
• Yauricocha averaged throughput of 3,050 tonnes per day in Q3 2024, as development below the 1120 Level at Yauricocha remains on schedule to achieve full production of 3,600 tonnes per day in Q4 2024.
• Revenues of $70.9 million in Q3 2024 were 23% and 25% higher than in Q2 2024 and Q3 2023, respectively.
• Adjusted EBITDA⁽¹⁾ of $20.4 million in Q3 2024 was 57% and 152% higher than in Q2 2024 and Q3 2023, respectively.
• Cash flow generated from operating activities before movements in working capital of $22.1 million for Q3 2024 was 48% and 268% higher than in Q2 2024 and Q3 2023, respectively.

Management will host a conference call and webcast at 12:00 pm ET on November 7, 2024.

All dollar figures are in USD.

(1) This is a non-IFRS performance measure, see non-IFRS Performance Measures section of this press release

TORONTO--(BUSINESS WIRE)-- Sierra Metals Inc. (TSX: SMT | OTCQX: SMTSF | BVL: SMT) (“Sierra Metals” or the “Company”) reports consolidated financial results for the three-month (“Q3”) and nine-month (“9M”) periods ending September 30, 2024. The information provided below are excerpts from the Company’s Q3 2024 financial statements and Management’s Discussion and Analysis (“MD&A”), which are available on the Company's website (www.SierraMetals.com) and on SEDAR+ (www.sedarplus.ca) under the Company’s profile. Consolidated results include results from the Company’s Yauricocha Mine (“Yauricocha”) in Peru and the Bolivar Mine (“Bolivar”) in Mexico.

Ernesto Balarezo, Sierra Metals’ CEO, comments, “Sierra Metals continues to deliver strong operating and financial results. Yauricocha remains on track to reach its full capacity in Q4 2024, which would be an increase of more than 20% from a year ago. Meanwhile, Bolivar continues to deliver consistent operating results in each quarter. Given these strong operating results and growing expectations for Q4, we are pleased to announce that we expect to exceed our consolidated production guidance for 2024.”

Mr. Balarezo continued, “The improved operating performance has already started to show lower costs, and during this period of rising metal prices, we are generating higher operating cash flows and improving our financial position. We continue to deliver on our plan to create value for all our stakeholders.”

Conference Call & Webcast
Management will host a conference call and webcast at 12:00 pm ET on November 7, 2024 to discuss Q3 2024 consolidated operating and financial results. Participate on the telephone at 1-844-763-8274 (North America) or +1-647-484-8814 (rest of world) or register for the English webcast HERE or the Spanish webcast HERE.

Q3 2024 CONSOLIDATED OPERATING AND FINANCIAL HIGHLIGHTS

(In thousands of dollars, except per share and cash cost amounts, consolidated figures unless noted otherwise)										Nine months ended September 30,
	Q3 2024			Q2 2024			Q3 2023			2024			2023
Operating
Ore Processed / Tonnes Milled		668,647			627,015			622,622			1,934,578			1,791,086
Copper Pounds Produced (000's)		11,009			8,531			9,477			30,787			28,221
Zinc Pounds Produced (000's)		11,184			11,272			11,176			32,588			33,983
Silver Ounces Produced (000's)		503			387			458			1,317			1,370
Gold Ounces Produced		3,973			3,438			3,651			11,916			11,753
Lead Pounds Produced (000's)		2,537			3,053			4,084			8,639			10,792
Cash Cost per CuEqLb (Yauricocha)1,2	$	3.25		$	3.44		$	3.05		$	3.28		$	3.11
AISC per CuEqLb (Yauricocha)1,2	$	3.75		$	3.79		$	3.58		$	3.67		$	3.49
Cash Cost per CuEqLb (Bolivar)1,2	$	2.42		$	2.76		$	2.93		$	2.56		$	2.56
AISC per CuEqLb (Bolivar)1,2	$	3.23		$	3.53		$	3.51		$	3.30		$	3.18
Financial
Revenues	$	70,934		$	57,524		$	56,963		$	191,598		$	168,911
Net income (loss)
- Continuing operations	$	6,544		$	4,912		$	(2,758	)	$	13,086		$	4,699
- Discontinued Operations	$	(2,679	)	$	(810	)	$	(6,608	)	$	(4,354	)	$	(10,853	)
Net income (loss) attributable to shareholders, including discontinued operations	$	3,766		$	4,115		$	(9,301	)	$	9,040		$	(5,610	)
Adjusted EBITDA1 from continuing operations	$	20,391		$	12,949		$	8,080		$	51,253		$	38,056
Operating cash flows before movements in working capital	$	22,129		$	14,923		$	6,013		$	53,537		$	30,452
Adjusted net income (loss) attributable to shareholders1
- Continuing operations	$	4,546		$	5,022		$	(2,137	)	$	14,742		$	9,388
- Discontinued Operations	$	(2,679	)	$	(810	)	$	(1,774	)	$	(4,354	)	$	(4,245	)
Cash and cash equivalents	$	18,599		$	22,477		$	18,165		$	18,599		$	18,165
(1) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.
(2) Copper equivalent payable pounds for the purpose of cash cost and AISC were calculated using the following realized prices:
Copper equivalent payable pounds were calculated using the following realized prices:
Q3 2024: $4.19/lb Cu, $1.27/lb Zn, $29.64/oz Ag, $2,470/oz Au, $0.94/lb Pb.
Q2 2024: $4.43/lb Cu, $1.28/lb Zn, $28.61/oz Ag, $2,334/oz Au, $0.99/lb Pb.
Q3 2023: $3.78/lb Cu, $1.10/lb Zn, $23.56/oz Ag, $1,927/oz Au, $0.98/lb Pb.
9M 2024: $4.12/lb Cu, $1.23/lb Zn, $27.29/oz Ag, $2,277/oz Au, $0.96/lb Pb.
9M 2023: $3.94/lb Cu, $1.23/lb Zn, $23.44/oz Ag, $1,932/oz Au, $0.97/lb Pb.

Q3 2024 Highlights

Revenue from payable metals of $70.9 million in Q3 2024 was an increase of 25% over the revenue of $57.0 million in Q3 2023, and a 23% increase over the revenue of $57.5 million in Q2 2024. Revenue increased during Q3 2024 as the Company sold 19% more copper pounds at higher metal prices as compared to Q3 2024.

Adjusted EBITDA⁽¹⁾ increased to $20.4 million for Q3 2024 from $8.1 million in the same quarter of 2023, driven mainly by the increase in revenues attributable to higher throughput combined with higher copper grades. Adjusted EBITDA⁽¹⁾ increased to $51.3 million for 9M 2024 from $38.1 million in the same period of 2023.

Yauricocha throughput averaged more than 3,000 tpd in Q3 2024; the mine is on track to achieve full capacity production of 3,600 tpd in Q4 2024.

Yauricocha doubled its copper production in Q3 2024 versus Q2 2024 due to the consistent increased throughput throughout the quarter and higher grades realized from the ramp up of production below the 1120 level.

Cash flow generated from operating activities before movements in working capital of $22.1 million for Q3 2024 as compared to $6.0 million of cash generated from operating activities in Q3 2023 were mainly due to higher revenues during Q3 2024.

Cash and cash equivalents of $18.6 million as at September 30, 2024 compared to $9.1 million at the end of 2023. Cash and cash equivalents as at September 30, 2024 increased to 18.6 million during the nine-month period as cash generated from operating activities of $40.2 million as well as cash from the loan refinancing of $18.2 million were partially offset by net cash used for investing activities of $40.4 million and loan interest payments of $7.0 million.

Sale of the Cusi Mine and its surrounding concessions was completed in July 2024, allowing the Company to direct its full efforts and resources to grow its two operating assets, Yauricocha and Bolivar.

COMPARISON TO 2024 GUIDANCE

Given operating performance for the first nine months of the year and expected performance in Q4 2024, the Company expects to exceed metal production guidance for the year 2024.

The tables below compare the 9M 2024 production versus 2024 annual production guidance from the Yauricocha and the Bolivar mines.

Production Guidance

Consolidated		2024 Guidance				9M 2024
		Low		High		Actual
Copper (000 lbs)		37,500		43,300		30,787
Zinc (000 lbs)		38,600		44,500		32,588
Silver (000 oz)		1,500		1,750		1,317
Gold (oz)		10,100		11,600		11,916
Lead (000 lbs)		10,200		11,800		8,639

By Mine

Yauricocha		2024 Guidance				9M 2024
		Low		High		Actual
Copper (000 lbs)		13,600		15,700		10,366
Zinc (000 lbs)		38,600		44,500		32,588
Silver (000 oz)		850		1,000		701
Gold (oz)		2,100		2,400		1,548
Lead (000 lbs)		10,200		11,800		8,639

Bolivar		2024 Guidance				9M 2024
		Low		High		Actual
Copper (000 lbs)		23,900		27,600		20,421
Silver (000 oz)		650		750		616
Gold (oz)		8,000		9,200		10,368

2024 Cost Guidance

Based on operating performance for the first nine months of the year and expected performance in Q4 2024, the Company expects to meet cost guidance for the year 2024.

				2024 Guidance				9M 2024 Actual
				Cash costs range		AISC range		Cash costs		AISC
Mine				per CuEqLb		per CuEqLb		per CuEqLb		per CuEqLb
Yauricocha		Per Copper Payable Eq Lbs ('000)		$3.31 - $3.41		$3.75 - $3.86		$3.29		$3.68
Bolivar		Per Copper Payable Eq Lbs ('000)		$2.56 - $2.72		$3.28 - $3.36		$2.64		$3.41
(1) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A. Cash Cost comprise of: operating costs, selling expenses, administrative expenses, commercial terms and discounts. AISC is comprised of cash costs and sustaining capex.
(2) Copper equivalent payable pounds for guidance AISC were calculated using the following metal prices: $3.91/lb Cu, $1.20/lb Zn, $23.66/oz Ag, $0.94/lb Pb, $1,921/oz Au. 9M 2024 actual cash costs and AISC have been recalculated for comparison purposes.

NON-IFRS PERFORMANCE MEASURES

The non-IFRS performance measures presented do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be directly comparable to similar measures presented by other issuers.

Non-IFRS reconciliation of adjusted EBITDA

EBITDA is a non-IFRS measure that represents an indication of the Company’s continuing capacity to generate earnings from operations before taking into account management’s financing decisions and costs of consuming capital assets, which vary according to their vintage, technological currency, and management’s estimate of their useful life. EBITDA comprises revenue less operating expenses before interest expense (income), property, plant and equipment amortization and depletion, and income taxes. Adjusted EBITDA has been included in this document. Under IFRS, entities must reflect in compensation expense the cost of share-based payments. In the Company’s circumstances, share-based payments involve a significant accrual of amounts that will not be settled in cash but are settled by the issuance of shares in exchange for cash. As such, the Company has made an entity specific adjustment to EBITDA for these expenses. The Company has also made an entity-specific adjustment to the foreign currency exchange (gain)/loss. The Company considers cash flow before movements in working capital to be the IFRS performance measure that is most closely comparable to adjusted EBITDA.

The following table provides a reconciliation of adjusted EBITDA to the condensed interim consolidated financial statements for the three months and nine months ended September 30, 2024 and 2023:

		Three months ended September 30,								Nine months ended September 30,
		2024				2023				2024				2023
Net income		$	3,865			$	(9,366	)		$	8,732			$	(6,154	)
Adjusted for:
Depletion and depreciation			10,206				9,580				28,034				26,390
Interest expense and other finance costs			3,868				2,641				9,015				7,628
NRV adjustments on inventory			-				2,647				-				4,202
Share-based compensation			635				460				2,069				648
Foreign currency exchange and other provisions			(3,126	)			(1,164	)			(2,271	)			897
Impairment charges			-				2,500				-				2,500
Income taxes			2,264				(484	)			1,320				(566	)
Adjusted EBITDA		$	17,712			$	6,814			$	46,899			$	35,545
Less: Adjusted EBITDA from discontinued operations			(2,679	)			(1,266	)			(4,354	)			(2,511	)
Adjusted EBITDA from continuing operations			20,391				8,080				51,253				38,056

Non-IFRS reconciliation of adjusted net income
The Company has included the non-IFRS financial performance measure of adjusted net income, defined by management as the net income attributable to shareholders shown in the statement of earnings plus the non-cash depletion charge due to the acquisition of Corona and the corresponding deferred tax recovery and certain non-recurring or non-cash items such as share-based compensation and foreign currency exchange (gains) losses. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors may want to use this information to evaluate the Company’s performance and ability to generate cash flows. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance in accordance with IFRS.

The following table provides a reconciliation of adjusted net income to the condensed interim consolidated financial statements for the three months and nine months ended September 30, 2024 and 2023:

		Three months ended September 30,								Nine months ended September 30,
(In thousands of United States dollars)		2024				2023				2024				2023
Net income attributable to shareholders		$	3,766			$	(9,301	)		$	9,040			$	(5,610	)
Non-cash depletion charge on Corona's acquisition			893			$	1,362				2,393				3,607
Deferred tax recovery on Corona's acquisition depletion charge			(301	)		$	(415	)			(843	)			(1,101	)
NRV adjustments on inventory			-			$	2,647				-				4,202
Share-based compensation			635			$	460				2,069				648
Foreign currency exchange loss (gain)			(3,126	)		$	(1,164	)			(2,271	)			897
Impairment charges			-			$	2,500				-				2,500
Adjusted net income (loss) attributable to shareholders		$	1,867			$	(3,911	)		$	10,388			$	5,143
Less: Adjusted net loss from discontinued operations			(2,679	)			(1,774	)			(4,354	)			(4,245	)
Adjusted net income (loss) from continuing operations			4,546				(2,137	)			14,742				9,388

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
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 expense 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 cash costs to cost of sales, as reported in the Company’s condensed interim consolidated statement of income for the three months and nine months ended September 30, 2024 and 2023:

				Three months ended						Three months ended
(In thousand of US dollars, unless stated)				September 30, 2024						September 30, 2023
				Yauricocha			Bolivar			Yauricocha			Bolivar
Cash Cost per Tonne of Processed Ore
Cost of Sales				28,199			19,746			25,754			22,860
Reverse: Workers Profit Sharing				-			513			-			(906	)
Reverse: D&A/Other adjustments				(5,900	)		(3,554	)		(5,958	)		(3,414	)
Reverse: Variation in Inventory				(858	)		172			(84	)		(1,295	)
Total Cash Cost				21,441			16,877			19,712			17,245
Tonnes Processed				266,917			401,731			259,732			362,890
Cash Cost per Tonne Processed		US$		80.33			42.01			75.89			47.52

				Nine months ended						Nine months ended
(In thousand of US dollars, unless stated)				September 30, 2024						September 30, 2023
				Yauricocha			Bolivar			Yauricocha		Bolivar
Cash Cost per Tonne of Processed Ore
Cost of Sales				73,463			62,780			72,276		57,232
Reverse: Workers Profit Sharing				-			16			-		(906	)
Reverse: D&A/Other adjustments				(17,579	)		(10,158	)		(16,729	)	(9,109	)
Reverse: Variation in Inventory				4,766			(175	)		1,042		79
Total Cash Cost				60,650			52,463			56,589		47,296
Tonnes Processed				760,751			1,173,828			723,192		1,067,894
Cash Cost per Tonne Processed		US$		79.72			44.69			78.25		44.29

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 nine months ended September 30, 2024 and 2023:

YAURICOCHA				Three months ended				Nine months ended
(In thousand of US dollars, unless stated)				September 30, 2024		September 30, 2023		September 30, 2024			September 30, 2023
Cash Cost per Copper equivalent payable pound
Total Cash Cost				21,441		19,712		60,650			56,589
Variation in Finished inventory				858		84		(4,766	)		(1,042	)
Treatment and Refining Charges				7,868		6,661		17,502			18,099
Selling Costs				924		816		2,274			2,235
G&A Costs(1)				2,820		1,787		5,956			4,914
Total Cash Cost of Sales				33,911		29,060		81,616			80,795
Sustaining Capital Expenditures				5,301		5,005		9,492			9,946
All-In Sustaining Cash Costs				39,212		34,065		91,108			90,741
Copper Equivalent Payable Pounds (000's)(2)				10,448		9,520		24,857			25,994
Cash Cost per Copper Equivalent Payable Pound		(US$)		3.25		3.05		3.28			3.11
All-In Sustaining Cash Cost per Copper Equivalent Payable Pound		(US$)		3.75		3.58		3.67			3.49
(1) G&A Costs for the three months and nine months ended September 30, 2023 have been adjusted to include site G&A only. Allocation of corporate G&A costs have been excluded for consistency with the G&A costs for the three months and nine months ended September 30, 2024 and those used in the 2024 guidance cash costs and AISC.
(2) Copper equivalent payable pounds were calculated using the following realized prices:
Q3 2024: $4.19/lb Cu, $1.27/lb Zn, $29.64/oz Ag, $2,470/oz Au, $0.94/lb Pb.
Q3 2023: $3.78/lb Cu, $1.10/lb Zn, $23.56/oz Ag, $1,927/oz Au, $0.98/lb Pb.
9M 2024: $4.12/lb Cu, $1.23/lb Zn, $27.29/oz Ag, $2,277/oz Au, $0.96/lb Pb.
9M 2023: $3.94/lb Cu, $1.23/lb Zn, $23.44/oz Ag, $1,932/oz Au, $0.97/lb Pb.

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 nine months ended September 30, 2024 and 2023:

BOLIVAR		Three months ended			Nine months ended
(In thousand of US dollars, unless stated)		September 30, 2024		September 30, 2023	September 30, 2024	September 30, 2023
Cash Cost per copper equivalent payable pound
Total Cash Cost		16,877		17,245	52,463	47,296
Variation in Finished inventory		(172	)	1,295	175	(79	)
Treatment and Refining Charges		2,512		3,064	7,222	8,048
Selling Costs		2,627		2,067	7,242	5,938
G&A Costs(1)		1,564		1,706	5,509	3,579
Total Cash Cost of Sales		23,408		25,377	72,611	64,782
Sustaining Capital Expenditures		7,764		5,025	21,137	15,923
All-In Sustaining Cash Costs		31,172		30,402	93,748	80,705
Copper Equivalent Payable Pounds (000's)(2)		9,666		8,650	28,418	25,350
Cash Cost per Copper Equivalent Payable Pound	(US$)	2.42		2.93	2.56	2.56
All-In Sustaining Cash Cost per Copper Equivalent Payable Pound	(US$)	3.23		3.51	3.30	3.18
(1) G&A Costs for the three months and nine months ended September 30, 2023 have been adjusted to include site G&A only. Allocation of corporate G&A costs have been excluded for consistency with the G&A costs for the three months and nine months ended September 30, 2024 and those used in the 2024 guidance cash costs and AISC.
(2) Copper equivalent payable pounds were calculated using the following realized prices:
Q3 2024: $4.19/lb Cu, $1.27/lb Zn, $29.64/oz Ag, $2,470/oz Au, $0.94/lb Pb.
Q3 2023: $3.78/lb Cu, $1.10/lb Zn, $23.56/oz Ag, $1,927/oz Au, $0.98/lb Pb.
9M 2024: $4.12/lb Cu, $1.23/lb Zn, $27.29/oz Ag, $2,277/oz Au, $0.96/lb Pb.
9M 2023: $3.94/lb Cu, $1.23/lb Zn, $23.44/oz Ag, $1,932/oz Au, $0.97/lb Pb.

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.

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.

For further information regarding Sierra Metals, please visit www.sierrametals.com.

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 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 15, 2024 for its fiscal year ended December 31, 2023 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.

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Investor Relations

Sierra Metals Inc.

+1 (866) 721-7437

info@sierrametals.com

Source: Sierra Metals Inc.

FAQ

What were Sierra Metals' revenues for Q3 2024?

Sierra Metals reported revenues of $70.9 million for Q3 2024.

How much did Sierra Metals' adjusted EBITDA increase in Q3 2024?

Adjusted EBITDA increased by 57% QoQ and 152% YoY to $20.4 million in Q3 2024.

What is the expected production capacity for Yauricocha Mine in Q4 2024?

Yauricocha Mine is expected to achieve a production capacity of 3,600 tonnes per day in Q4 2024.

What was Sierra Metals' net income from continuing operations in Q3 2024?

Net income from continuing operations was $6.5 million in Q3 2024.

What is the cash and cash equivalents position of Sierra Metals as of September 30, 2024?

Sierra Metals had cash and cash equivalents of $18.6 million as of September 30, 2024.

What was the financial impact from Sierra Metals' discontinued operations in Q3 2024?

Discontinued operations posted a loss of $2.7 million in Q3 2024.