Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) ('Sierra Metals' or 'the Company') announces the filing of Sociedad Minera Corona S.A.'s ('Corona') unaudited Financial Statements and the Management Discussion and Analysis ('MD&A') for the third quarter of 2020 ('Q3 2020').
The Company holds an 81.8% interest in Corona. All amounts are presented in US dollars unless otherwise stated, and have not been adjusted for the 18.2% non-controlling interest.
Corona's Highlights for the Three Months Ended September 30, 2020
Revenues of US$44.6 million vs. US$44.4 million in Q3 2019
Adjusted EBITDA of US$26.2 million vs. US$20.5 million in Q3 2019
Total tonnes processed of 318,155 vs. 307,239 in Q3 2019
Net production revenue per tonne of ore milled increased to US$147.59 from US$145.64 in Q3 2019
Cash cost per copper equivalent payable pound decreased by 13% to US$0.82; Cash cost per zinc equivalent payable pound decreased by 21% to US$0.30
All in sustaining cost ('AISC') per copper equivalent payable pound increased to US$1.93; All in sustaining cost ('AISC') per zinc equivalent payable pound increased to US$0.70
Copper equivalent production of 22.2 million pounds vs. 23.0 million pounds in Q3 2019
Zinc equivalent production of 61.3 million pounds vs. 57.2 million pounds in Q3 2019
US$52.3 million of cash and cash equivalents as at September 30, 2020
US$77.3 million of working capital as at September 30, 2020
The Yauricocha Mine processed 318,155 tonnes during Q3 2020, representing a 4% increase compared to Q3 2019. Daily ore throughput averaged 3,636 tpd during the quarter, as the mine continued its efforts to recover some of its annual production lost due to the COVID-19 related shutdown in Peru. Grades for all metals except zinc were lower for the quarter due to a lower proportion of ore coming from the high-grade small ore bodies, compared to the third quarter of 2019. Zinc grades were higher during the third quarter of 2020 due to mining in the Cachi Cachi area. However, recoveries were negatively affected by lower head grades and slightly reduced residence capacity in the flotation cells, as a result of higher throughput performance. With the commissioning of the new DR-180 floatation cells and the related automated controls of the flotation process, the Company anticipates an improvement in recoveries for the rest of the year.
Luis Marchese, CEO of Sierra Metals commented, 'The Yauricocha Mine had a strong third quarter and we continued to recover annual production tonnage lost due to the COVID-19 pandemic. The robust production in the third quarter coupled with improved metal prices resulted in significant improvements to EBITDA, cashflow and net income. Yauricocha's performance in 2020 continues to excel for the Company and its shareholders.'
He continued, 'The COVID-19 situation in Peru is still very serious and remains an important factor in our daily operations at the Yauricocha mine. Protecting our employees, the communities in which we operate, and our operations is very important, as such we continue adhering to strict health protocols. Testing and quarantining has helped us to identify and keep active cases from the mines but as a result we are operating with a lower head count than optimal. I appreciate all our employee's hard work in helping the mines to run safely, efficiently, thereby ensuring the strong third quarter results that we are reporting today for Yauricocha.'
He concluded, 'We have also been able to reinitiate on the backlog of exploration and infrastructure projects at the mine, expected to help us to improve mine operations, operating efficiencies and continue to discover and develop mineral resources. Precluding any further COVID-19 work interruptions, the fourth quarter should help us to realize a strong finish for the year.'
About Sierra Metals
Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on 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 at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.
The Company's Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock Exchange under the symbol 'SMT' and on the NYSE American Exchange under the symbol 'SMTS'.
Forward-Looking Statements
This press release contains 'forward-looking information' and 'forward-looking statements' within the meaning of Canadian and U.S. securities laws (collectively, 'forward-looking information'). Forward-looking information includes, but is not limited to, statements with respect to the date of the 2020 Shareholders' Meeting and the anticipated filing of the Compensation Disclosure. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as 'expects', 'anticipates', 'plans', 'projects', 'estimates', 'assumes', 'intends', 'strategy', 'goals', 'objectives', 'potential' or variations thereof, or stating that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be 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 30, 2020 for its fiscal year ended December 31, 2019 and other risks identified in the Company's filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.
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.
Contact:
Mike McAllister
Tel: +1 (416) 366-7777
Email: info@sierrametals.com
SIERRA METALS INC. 
