CONFERENCE CALL NOVEMBER 13, 2017 AT 10:30
AM (EDT)
__________________________________________________________________
(All $ figures reported in USD)
- Adjusted EBITDA of $18.8
million in Q3 2017 increased from $16.3 million in Q3 2016
- Operating cash flows before movements in working capital of
$21.8 million in Q3 2017 increased
from $16.9 million in Q3 2016
- Revenue from metals payable of $50.9
million in Q3 2017 increased by 25% from $40.8 million in Q3 2016
- Q3 2017 silver equivalent production of 3.7 million ounces
or copper equivalent production of 21.9 million pounds; a 29%
increase and 17% decrease, respectively, from Q3 2016 and close to
production guidance(1)
- Change in Metal Prices Used to Calculate Silver Equivalent
Ounces and Copper Equivalent Pounds from Budgeted Prices to
Realized Quarterly Prices
- $28.6 million of cash and cash
equivalents as at September 30,
2017
- Net Debt of $39.9 million as
at September 30, 2017
- Shareholder conference call to be held Monday November 13, 2017 at 10:30 AM (EST)
(1) Silver equivalent
ounces and copper equivalent pounds for Q3 2017 were calculated
using the following realized metal prices: $16.86/oz Ag, $2.93/lb
Cu, $1.08/lb Pb, $1.36/lb Zn, $1,280/oz Au. Silver equivalent
ounces and copper equivalent pounds for Q3 2016 were calculated
using the following realized metal prices: $19.17/oz Ag, $2.16/lb
Cu, $0.85/lb Pb, $1.02/lb Zn, $1,347/oz Au. Silver equivalent
ounces and copper equivalent pounds for 9M 2017 were calculated
using the following realized metal prices: $17.31/oz Ag, $2.70/lb
Cu, $1.03/lb Pb, $1.28/lb Zn, $1,253/oz Au. Silver equivalent
ounces and copper equivalent pounds for 9M 2016 were calculated
using the following realized metal prices: $17.61/oz Ag, $2.15/lb
Cu, $0.82/lb Pb, $0.90/lb Zn, $1,276/oz Au.
|
TORONTO, Nov. 10, 2017 /CNW/ - Sierra Metals Inc.
(TSX:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") today
reported revenue of $50.9 million and
adjusted EBITDA of $18.8 million on
throughput of 504,751 tonnes and metal production of 3.8 million
silver equivalent ounces or 21.9 million copper equivalent pounds
for the three month period ended September
30, 2017.
During the third quarter of 2017, silver equivalent production
increased 29%, and copper equivalent production decreased 17%
compared to Q3 2016. This was partially a result of differences in
realized metal prices during both periods. Normalizing the metal
pricing used in the equivalent metal calculations, there was a
decrease in metal production which was due to lower production in
Mexico which was partially offset
by record throughput in Peru. The
temporary decline in production in Mexico was mainly due to the implementation of
a new plan to improve operational performance and produce
profitable silver ounces at Cusi and improve efficiencies at our
Bolivar copper mine. Similar to the successful program at
Yauricocha in Peru, which began at
the start of Q2 2015, the Company has engaged in an operation
turnaround program in Mexico to
modernize operations, improve production and lower costs. We
expect to see the results from this program become more apparent in
the latter part of 2017 and early 2018.
Igor Gonzales, President and CEO
of Sierra Metals stated, "The Company continues to see solid
metal production and tonnage processed at the Yauricocha Mine,
reporting a 44% increase in silver equivalent production, and a 13%
increase in throughput during Q3 versus Q3 2016. Work continues to
increase tonnage at Bolivar through the commissioning of newly
acquired equipment, which has arrived and been commissioned, and we
expect the remaining three underground loaders to arrive and be
commissioned in Q4 2017. We continue to define higher grade ore
sources through further development which are expected to come into
the mine plan next year."
He continued "At Cusi, lower than planned production
continued as the Company remained focused on its efforts of
completing ramp access, development, and production from the
Santa Rosa de Lima zone which
contains structures that are more than two times the width, and
nearly twice the silver head grades than what has been previously
mined closer to surface. The Company has reached the structure and
is currently developing drifts to mine this area. We are currently
campaigning development ore and expect to gradually increase the
tonnage from this area until we are operating the mill at capacity
using ore exclusively from Santa Rosa de
Lima zone. The Company has successfully completed two
sequential drill campaigns totaling 29,500 meters at the
Santa Rosa de Lima zone which saw
average silver equivalent grades of 372 grams per tonne and average
widths of 3.8 meters. These results will be included in a mineral
resource update for the Cusi Mine expected in the fourth quarter of
2017."
He added: "Sierra Metals continues to have a very strong
balance sheet with the liquidity that allows for continued
operational successes, growth opportunities and development that
has been planned for this year. Brownfield exploration programs
remains a key aspect at all three of our mines and we are very
optimistic that they will continue to add high value tonnage going
forward. Examples of this can be seen at Yauricocha with the
Esperanza, Cuye-Mascota zones, at Bolivar with the Bolivar West and
Northwest zones as well as at Cusi with the recently announced
Santa Rosa de Lima Zone. When
combined with our continued production optimization program, it
should result in substantial growth, not only in production with
lower costs, but most importantly in shareholder value."
The following table displays selected financial and operational
information for the three and nine months ended September 30, 2017:
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|
|
|
|
|
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(In thousands of
dollars, except per share and cash cost amounts,consolidated
figures unless noted otherwise)
|
Three Months
Ended
|
Nine Months
Ended
|
September 30,
2017
|
September 30,
2016
|
September 30,
2017
|
September
30,
2016
|
Operating
|
|
|
|
|
|
|
Ore Processed /
Tonnes Milled
|
|
504,751
|
536,553
|
1,489,251
|
1,516,760
|
|
Silver Ounces
Produced (000's)
|
|
507
|
812
|
1,821
|
2,179
|
|
Copper Pounds
Produced (000's)
|
|
6,700
|
6,156
|
19,305
|
17,238
|
|
Lead Pounds Produced
(000's)
|
|
6,358
|
11,650
|
23,968
|
30,561
|
|
Zinc Pounds Produced
(000's)
|
|
19,877
|
14,435
|
56,543
|
39,571
|
|
Gold Ounces
Produced
|
|
1,517
|
2,305
|
4,606
|
6,737
|
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Copper Equivalent
Pounds Produced (000's)1
|
|
21,851
|
26,198
|
69,065
|
67,309
|
|
Silver Equivalent
Ounces Produced (000's)1
|
|
3,797
|
2,951
|
10,862
|
8,218
|
|
|
|
|
|
|
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Cash Cost per Tonne
Processed
|
|
$
|
48.01
|
$
|
39.87
|
$
|
45.60
|
$
|
40.61
|
|
Cost of sales per
AgEqOz
|
|
$
|
7.88
|
$
|
7.73
|
$
|
7.72
|
$
|
8.59
|
|
Cash Cost per
AgEqOz2
|
|
$
|
7.56
|
$
|
7.43
|
$
|
7.39
|
$
|
8.45
|
|
AISC per
AgEqOz2
|
|
$
|
13.11
|
$
|
13.90
|
$
|
12.36
|
$
|
14.87
|
|
Cost of sales per
CuEqLb2
|
|
$
|
1.37
|
$
|
0.88
|
$
|
1.20
|
$
|
1.06
|
|
Cash Cost per
CuEqLb2
|
|
$
|
1.31
|
$
|
0.84
|
$
|
1.15
|
$
|
1.05
|
|
AISC per
CuEqLb2
|
|
$
|
2.28
|
$
|
1.58
|
$
|
1.93
|
$
|
1.84
|
|
|
|
|
|
|
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Cash Cost per AgEqOz
(Yauricocha)2
|
|
$
|
6.55
|
$
|
7.02
|
$
|
6.49
|
$
|
8.21
|
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AISC per AgEqOz
(Yauricocha)2
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|
$
|
10.35
|
$
|
12.64
|
$
|
9.99
|
$
|
13.76
|
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Cash Cost per CuEqLb
(Bolivar)2
|
|
$
|
1.69
|
$
|
0.89
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$
|
1.41
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$
|
1.13
|
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AISC per CuEqLb
(Bolivar)2
|
|
$
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3.32
|
$
|
1.81
|
$
|
2.56
|
$
|
2.09
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Cash Cost per AgEqOz
(Cusi)2
|
|
$
|
21.95
|
$
|
9.86
|
$
|
14.72
|
$
|
8.51
|
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AISC per AgEqOz
(Cusi)2
|
|
$
|
51.93
|
$
|
19.59
|
$
|
33.59
|
$
|
17.21
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Financial
|
|
|
|
|
|
|
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Revenues
|
|
$
|
50,859
|
$
|
40,757
|
$
|
153,948
|
$
|
101,355
|
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Adjusted
EBITDA2
|
|
$
|
18,845
|
$
|
16,264
|
$
|
61,826
|
$
|
25,902
|
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Operating cash flows
before movements in working capital
|
|
$
|
21,818
|
$
|
16,870
|
$
|
61,973
|
$
|
28,106
|
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Adjusted net income
attributable to shareholders2
|
|
$
|
4,993
|
$
|
5,003
|
$
|
20,241
|
$
|
3,490
|
|
Net income (loss)
attributable to shareholders
|
|
$
|
(6,523)
|
$
|
1,367
|
$
|
(6,763)
|
$
|
(7,189)
|
|
Cash and cash
equivalents
|
|
$
|
28,607
|
$
|
27,166
|
$
|
28,607
|
$
|
27,166
|
|
Restricted
cash
|
|
$
|
-
|
$
|
3,069
|
$
|
-
|
$
|
3,069
|
|
Working
capital
|
|
$
|
(233)
|
$
|
9,064
|
$
|
(233)
|
$
|
9,064
|
(1)Silver equivalent ounces and copper
equivalent pounds for Q3 2017 were calculated using the following
realized metal prices: $16.86/oz Ag, $2.93/lb Cu, $1.08/lb Pb,
$1.36/lb Zn, $1,280/oz Au. Silver equivalent ounces and copper
equivalent pounds for Q3 2016 were calculated using the following
realized metal prices: $19.17/oz Ag, $2.16/lb Cu, $0.85/lb Pb,
$1.02/lb Zn, $1,347/oz Au. Silver equivalent ounces and copper
equivalent pounds for 9M 2017 were calculated using the following
realized metal prices: $17.31/oz Ag, $2.70/lb Cu, $1.03/lb Pb,
$1.28/lb Zn, $1,253/oz Au. Silver equivalent ounces and copper
equivalent pounds for 9M 2016 were calculated using the following
realized metal prices: $17.61/oz Ag, $2.15/lb Cu, $0.82/lb Pb,
$0.90/lb Zn, $1,276/oz Au.
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(2)This
is a non-IFRS performance measure, see Non-IFRS Performance
Measures section of the MD&A.
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Q3 2017 Financial Highlights
Revenue from metals payable of $50.9
million in Q3 2017 increased by 25% from $40.8 million in Q3 2016. Higher revenues are
primarily attributable to the 13% increase in throughput, the
increase in copper, and zinc head grades, and higher recoveries for
all metals, except gold, at Yauricocha; and the increase in the
prices of copper (36%), lead (27%), and zinc (33%) in Q3 2017
compared to Q3 2016; this was partially offset by an 11% decrease
in throughput and lower head grades and recoveries for all metals,
except gold head grades and recoveries, at Bolivar; and a 73%
decrease in throughput and lower head grades for all metals, except
zinc, and gold recoveries at Cusi.
Yauricocha's cash cost per silver equivalent payable ounce was
$6.55 (Q3 2016 - $7.02), and all-in sustaining cash cost ("AISC")
per silver equivalent payable ounce was $10.35 (Q3 2016 - $12.64) for Q3 2017 compared to the same period
in 2016. The increase in realized metal prices used to calculate
silver equivalent payable ounces in Q3 2017 vs Q3 2016 was the
reason for the decrease in the AISC per silver equivalent ounce for
these periods. Using consistent realized metal prices results in a
14% increase in the AISC per silver equivalent ounce relative to Q3
2016 is a result of increased Capex, including a substantial amount
of infill drilling, infrastructure improvements including ramp and
shaft development, ventilation improvements, equipment, as well as
plant improvements that were completed. The increase was also
a result of Opex including infill drilling and drift development
that will be utilized within one year.
Bolivar's cash cost per copper equivalent payable pound was
$1.69 (Q3 2016 - $0.89), and AISC per copper equivalent payable
pound was $3.32 (Q3 2016 -
$1.81) for Q3 2017 compared to the
same period in 2016. The increase in the AISC per copper equivalent
payable pound during Q3 2017 was due to a decrease in copper
equivalent payable pounds as a result of 11% lower throughput, as
well as an increase in sustaining capital expenditures related to
the various equipment purchases made by the Company during the
quarter in an effort to improve equipment availability and increase
tonnage.
Cusi's cash cost per silver equivalent payable ounce was
$21.95 (Q3 2016 - $9.86), and AISC per silver equivalent payable
ounce was $51.93 (Q3 2016 -
$19.59) for Q3 2017 compared to the
same period in 2016. AISC per silver equivalent payable ounce
increased due to the decline in throughput which resulted in fewer
silver equivalent payable ounces as the Company continued
its refocused efforts on completing access, development and
production from the Santa Rosa de
Lima zone which contains wider structures and higher silver
grades.
Adjusted EBITDA (1) of $18.8
million for Q3 2017 increased compared to $16.2 million in Q3 2016. The increase in
adjusted EBITDA in Q3 2017 was primarily due to the $10.1 million increase in revenues at Yauricocha,
discussed previously.
Cash flow generated from operations before movements in working
capital of $21.8 million for Q3 2017
increased compared to $16.9 million
in Q3 2016. The increase in operating cash flow is mainly the
result of higher revenues generated and higher gross margins
realized.
Cash and cash equivalents of $28.6
million and working capital of $(0.2)
million as at September 30,
2017 compared to $42.1 million
and $9.6 million, respectively, at
the end of 2016. Cash and cash equivalents have decreased by
$13.5 million during 9M 2017 due to
$39.4 million of operating cash flows
being offset by capital expenditures incurred in Mexico and Peru of $(38.3)
million, repayment of loans, credit facilities and interest
of $(42.9) million, dividends paid to
non-controlling interest shareholders of $(1.7) million, and proceeds from issuances of
loans and credit facilities of $29.8
million. Included in the $39.4
million of operating cash flows were negative changes in
non-cash working capital items of $10.2
million due to the increase accounts receivable and decrease
in deferred revenue as at September 30,
2017.
(1) This is a
non-IFRS performance measure, see Non-IFRS Performance Measures
section of the
MD&A.
|
Change in Metal Prices Used to Calculate Silver Equivalent
Ounces and Copper Equivalent Pounds
During Q3 2017 the Company decided to change the method for
calculating silver equivalent ounces ("AgEqOz") and copper
equivalent pounds ("CuEqLb") due to the continued upswing in base
metal prices which resulted in the generation of cost performance
outputs that were not representative of actual performance. For the
past three years the Company has calculated AgEqOz and CuEqOz based
on budgeted prices and has used these prices consistently for each
quarter during the year in order to provide clarity and reduce the
complexity within the calculations. However, due to the continued
increase in the prices of copper, lead, and zinc, the Company has
decided to start using quarterly realized metal prices to calculate
these metrics as the budgeted prices used for the first two
quarters of 2017 were not providing accuracy and clarity to our
equivalent metal, cash cost, and all-in sustaining cost ("AISC")
metrics. The Company has revised all previous quarters AgEqOz and
CuEqLb calculations, which in turn have affected all of the cash
cost and AISC metrics. In the table above, the Company has used
realized metal prices for 9M 2017 and 9M 2016 to calculate the
AgEqOz and CuEqLb, cash cost, and AISC metrics which differ from
the metal prices used to calculate the quarterly metrics for the
Company's MD&A in respect of the three months ended
March 31, 2017 and the six months
ended June 30, 2017 previously
disclosed by the Company. The Company will continue to update these
metrics each quarter based on the realized metal prices for each
quarter going forward. See the Company's MD&A section entitled
"Non-IFRS Performance Measures - Change in Metal Prices Used to
Calculate Silver Equivalent Ounces and Copper Equivalent Pounds" in
this MD&A for details on the impact of this change for each of
the three month periods ended March 31,
2017, June 30, 2017 and
September 30, 2017 as well as the
nine month period ended September 30,
2017.
Project Development
The Company provided an updated Mineral Reserve Estimate at the
Company's Yauricocha Mine (press release dated October 26, 2017). Previously the Company had
also provided an updated Mineral Resource Estimate at the Company's
Yauricocha Mine (press release dated September 28, 2017). An NI 43-101 Technical
Report will be filed within 45 days of the September 28, 2017 news release, which will be
prepared by SRK Consulting (U.S.) Inc.
Mine development at Bolívar during Q3 2017 totaled 942 meters.
Most of these meters (797) were developed to prepare stopes for
mine production. The remainder of the meters (145) were related to
the deepening of ramps and developing service ramps to be used for
ventilation and pumping.
During Q3 2017, at the Cusi property, mine development totaled
1,033 meters, and 1,164 meters of infill drilling was carried out
inside the Mine.
Exploration Update
Exploration Highlights
Peru:
During Q3 2017, the Company drilled 106 holes totaling 13,918
meters at Yauricocha. The drilling included the following:
Exploration Drilling:
- Cuye (Levels 1270, 1370 & 1170): 10 holes totaling 2,805
meters have intercepted the mineralized structure and economic
mineral;
- Yauricocha South Fault (Level 920 Mina Central): 4 holes
totaling 1,181 meters to explore new mineralized zones;
- Antacaca (Level 970): 12 holes totaling 1,532 meters to explore
the continuity of the mineralization of the Antacaca orebody. Gap
zones have been defined with polymetallic mineralization in the
central mine zone;
- Karlita (870 level): 1 hole totaling 139 meters to explore the
orebody below the 870 level;
- Elissa (Level 870): 14 holes totaling 2,041 meters which have
intercepted economic polymetallic mineral in the sectors from the
920 level;
- During Q3 2017 the Titan 24 geophysical survey was completed
with 20 lines totaling 54 kilometers being surveyed;
Definition Drilling:
- Antacaca (Level 970): 2 holes totaling 167 meters to define
level 1020 of the orebody;
- Butz (1070 level): 9 horizontal holes with a length of 692
meters of definition drilling to define the orebody;
- Esperanza (920 & 970 levels): 30 horizontal holes totaling
3,454 meters to determine the continuity of the orebody;
- Esperanza North (920 level): 6
holes totaling 443 meters to determine the continuity of the
orebody from the 920 level to floor 8 on the 870 level;
- Mascota (1120 level): 6 holes
totaling 675 meters which have intercepted copper oxides, lead and
silver and small structures with polymetallic mineral.
Mexico:
Bolivar
- At Bolívar during Q3 2017, 14,082 meters were drilled in the
following areas: 992 meters in the El
Gallo area with the objective of finding the continuation of
the El Gallo Inferior orebody between the Mina de Fierro and the
Bolivar Mine; 7,168 meters were drilled at Bolivar Northwest; 418
meters were drilled in Chimney 2; and 5,504 meters were drilled at
Bolivar West.
Cusi:
- The Company drilled 1,164 meters inside the mines to verify the
continuity of the orebodies and support development work on the
various veins;
- 9,682 meters were drilled on the Santa Rosa de Lima orebody during Q3
2017.
Conference Call Webcast
Sierra Metals' senior management will host a conference call on
Monday November 13, 2017 at
10:30 AM (EST) to discuss the
Company's financial and operating results for the three-month
period ended September 30, 2017.
Via Webcast:
A live audio webcast of the meeting will be available on the
Company's website at:
https://event.on24.com/wcc/r/1472066/0BA7512FE35C5A3A2F4AC01DA53FD731
The webcast along with presentation slides will be archived for
180 days on www.sierrametals.com
Via phone:
For those who prefer to listen by phone, dial-in instructions
are below. To ensure your participation, please call approximately
five minutes prior to the scheduled start time of the call.
Participant Number (Toll Free Peru): 0800-71-470
Participant Number (Toll Free North America): (844)
579-6824
Participant Number (International): (763) 488-9145
Conference ID: 7199439
Quality Control
All production technical data contained in this news release has
been reviewed and approved by Gordon
Babcock, P.Eng., Chief Operating Officer and a Qualified
Person under National Instrument 43-101 – Standards of Disclosure
for Mineral Projects.
Americo Zuzunaga, MAusIMM CP
(Mining Engineer) and Vice President of Corporate Planning is a
Qualified Person and chartered professional qualifying as a
Competent Person under the Joint Ore Reserves Committee (JORC)
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves.
Augusto Chung, FAusIMM CP
(Metallurgist) and Consultant to Sierra Metals is a Qualified
Person and chartered professional qualifying as a competent person
on metallurgical processes.
About Sierra Metals
Sierra Metals Inc. is Canadian based growing polymetallic mining
company with production from its Yauricocha Mine in Peru, and its 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 discoveries and still has additional
brownfield exploration opportunities at all three mines in
Peru and Mexico that are within or close proximity to
the existing mines. Additionally, the Company 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".
Continue to Follow, Like and Watch our progress:
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Inc
Forward-Looking Statements
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of Canadian and
U.S. securities laws related to the Company (collectively,
"forward-looking information"). Forward-looking information
includes, but is not limited to, statements with respect to the
Company's operations, including the anticipated developments in the
Company's operations in future periods, the Company's planned
exploration activities, the adequacy of the Company's financial
resources, and other events or conditions that may occur in the
future. Statements concerning mineral reserve and resource
estimates may also be considered to constitute forward-looking
statements to the extent that they involve estimates of the
mineralization that will be encountered if and when the properties
are developed or further developed. These statements relate to
analyses and other information that are based on forecasts of
future results, estimates of amounts not yet determinable and
assumptions of management. 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, risks inherent in the mining industry including
environmental hazards, industrial accidents, unusual or unexpected
geological formations, floods, labour disruptions, explosions,
cave-ins, weather conditions and criminal activity; commodity price
fluctuations; higher operating and/or capital costs; lack of
available infrastructure; the possibility that future exploration,
development or mining results will not be consistent with the
Company's expectations; risks associated with the estimation of
mineral resources and the geology, grade and continuity of mineral
deposits and the inability to replace reserves; fluctuations in the
price of commodities used in the Company's operations; risks
related to foreign operations; changes in laws or policies, foreign
taxation, delays or the inability to obtain necessary governmental
permits; risks relating to outstanding borrowings; issues regarding
title to the Company's properties; risks related to environmental
regulation; litigation risks; risks related to uninsured hazards;
the impact of competition; volatility in the price of the Company's
securities; global financial risks; inability to attract or retain
qualified employees; potential conflicts of interest; risks related
to a controlling group of shareholders; dependence on third
parties; differences in U.S. and Canadian reporting of mineral
reserves and resources; potential dilutive transactions; foreign
currency risks; risks related to business cycles; liquidity risks;
reliance on internal control systems; credit risks, including risks
related to the Company's compliance with covenants with respect to
its BCP Facility; uncertainty of production and cost estimates for
the Yauricocha Mine, the Bolivar Mine and the Cusi Mine; and other
risks identified in the Company's filings with Canadian securities
regulators and the U.S. Securities and Exchange Commission ("SEC"),
which filings are available at www.sedar.com and www.sec.gov,
respectively.
This list is not exhaustive of the factors that may affect any
of the Company's forward-looking information. Forward-looking
information includes statements about the future and are 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
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.
Note Regarding Reserve and Resource Estimates
All reserve and resource estimates reported by the Company are
calculated in accordance with the Canadian National Instrument
43-101 - Standards of Disclosure for Mineral Projects and the
Canadian Institute of Mining and Metallurgy Classification system.
These standards differ significantly from the requirements of the
SEC. The differences between these standards are discussed in our
SEC filings. Mineral resources which are not mineral reserves do
not have demonstrated economic viability.
SOURCE Sierra Metals Inc.