Sierra Metals - SMTSF STOCK NEWS

Sierra Metals reported Q2 2024 consolidated financial results, showing a 2% revenue decrease to $57.5 million compared to Q2 2023. Adjusted EBITDA dropped 11% to $12.9 million due to increased G&A costs. However, operating cash flow improved to $14.9 million from $11.6 million in the previous year.

Despite lower grades at Yauricocha and Bolivar mines, the company expects production to ramp up in H2 2024. Cash and cash equivalents increased nearly 150% to $22.5 million. Additionally, Sierra Metals sold the Cusi Mine for $2.5 million, simplifying its focus to Yauricocha and Bolivar mines.

Q2 2024 saw operational challenges but Sierra remains on track to meet its 2024 guidance, supported by new equipment and higher throughput rates. Shares of Sierra Metals began trading on the Lima Stock Exchange, providing better exposure to Chilean, Colombian, and Peruvian markets.

Sierra Metals Inc. (TSX: SMT | OTCQX: SMTSF | BVL: SMT) has announced that its 81.8% owned subsidiary, Sociedad Minera Corona S.A., has filed its unaudited Financial Statements and Management's Discussion and Analysis for Q2 2024 at the Lima Stock Exchange. Sierra Metals will release its consolidated Q2 2024 financial results on Friday, August 9, 2024, followed by a conference call and webcast on Monday, August 12, 2024, at 11:00 AM EDT.

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 aims to increase production volume and grow mineral resources safely. Sierra Metals has made several new key discoveries and has numerous brownfield exploration opportunities near its existing mines in Peru and Mexico.

Sierra Metals Inc. (TSX:SMT | OTCQX:SMTSF | BVL: SMT) has completed the sale of its Cusi Mine in Mexico to Minera San Bernabé, a subsidiary of Silverco Mining Corp. The transaction, valued at US$2.5 million in cash, also includes a 2.0% net smelter royalty granted to Sierra Metals. Silverco Mining has the option to purchase half of the royalty for US$5.0 million. This strategic move allows Sierra Metals to focus on its core assets: the Yauricocha polymetallic mine in Peru and the Bolivar copper mine in Mexico. The sale aligns with the company's strategy to streamline operations and allocate resources more effectively.

Sierra Metals reports Q2 2024 production results for its Yauricocha polymetallic mine in Peru and Bolivar copper mine in Mexico. Key highlights include successful commissioning of a new crusher at Bolivar and progress towards full production below the 1120 level at Yauricocha. Consolidated throughput was 627,015 tonnes, a decrease of 2% from Q1 2024 and 4% from Q2 2023. Copper production dropped 24% quarter-over-quarter and 18% year-over-year. Zinc production rose 11% quarter-over-quarter but fell 8% year-over-year. The company reaffirmed its annual guidance based on H1 2024 performance and projected H2 2024 output. Financial results for Q2 2024 will be released on August 9, 2024, followed by a management conference call on August 12, 2024.

Sierra Metals announced that its common shares will commence trading on the Lima Stock Exchange (BVL) under the symbol BVL:SMT, effective June 28, 2024. The company's CEO, Ernesto Balarezo, emphasized that this listing will enhance investor exposure and liquidity. By accessing the Lima Stock Exchange, Sierra Metals aims to attract investment from Chilean, Colombian, and Peruvian markets, thereby fostering greater participation from investment funds, institutions, and retail investors in the company's growth.

Sierra Metals announced the appointment of Miguel Aramburu as the new Chair of its Board of Directors following its 2024 Annual General Meeting on June 25. Aramburu brings 35 years of experience, including significant tenure in the mining sector. The meeting also detailed voting results, with 75.66% of the company's shares represented. Key reappointments include PricewaterhouseCoopers LLP as auditors, and the election of several board members, including CEO Ernesto Balarezo. Notably, Douglas Cater did not secure re-election due to insufficient votes.

Sierra Metals has filed technical reports for its Yauricocha Mine in Peru and Bolivar Mine in Mexico. These reports, consistent with National Instrument 43-101 standards, reflect updated Mineral Resource and Reserve Estimates as of December 31, 2023. Both reports were prepared by AGP Mining Consultants and were filed on June 14, 2024. The Yauricocha and Bolivar reports confirm no material differences from the company's earlier press release on May 7, 2024.

Sierra Metals (TSX:SMT | OTCQX:SMTSF) has filed its management information circular for the annual meeting of shareholders. The virtual meeting is scheduled for June 25, 2024, at 10:00 a.m. ET. The Circular provides essential details about the meeting and is accessible on SEDAR+ and the company’s website. Shareholders are encouraged to vote and submit proxies in advance.

For voting procedures, refer to the Circular or contact Carson Proxy at 1-800-530-5189, 416-751-2066, or info@carsonproxy.com.

Sierra Metals has refinanced its $75 million long-term debt facility with a new $95 million facility, featuring revised covenants, payment terms, and a five-year term maturing in June 2029. The new facility includes $85 million bearing interest at 3-month SOFR plus 6.50% and $10 million at a fixed rate of 12%. The additional $20 million will fund high-return capital projects and transaction fees. Key projects include development at the Yauricocha mine in Peru and the Bolivar mine in Mexico. The new facility offers a 12-month grace period and provides covenant relief, enhancing financial flexibility and liquidity for the company.