CONFERENCE CALL MARCH
26, 2018 AT 10:30 AM
(EDT)
____________________________________________________________________
(All $ figures reported in USD)
- Adjusted EBITDA of $81.0
million in 2017 increased 93% from $41.9 million in 2016
- Operating cash flows before movements in working capital of
$79.8 million in 2017 increased 80%
from $44.3 million in 2016
- Revenue from metals payable of $205.1
million in 2017 increased by 43% from $143.2 million in 2016
- 2017 silver equivalent production of 14.9 million ounces or
copper equivalent production of 90.4 million pounds or zinc
equivalent production of 193.2 million pounds; a 26% increase, 1%
decrease, and 9% decrease, respectively, from 2016, and close to
production guidance(1)
- Record throughput at Yauricocha in 2017 with 1,023,491
tonnes processed, representing a 14% increase over 2016
- Completion of key aspects of operational improvements and
turnaround plan in Mexico
- $23.9 million of cash and cash
equivalents as at December 31,
2017
- Net Debt of $41.0 million as
at December 31, 2017
- Shareholder conference call to be held Monday March 26, 2018 at 10:30 AM (EST)
- (1) Silver equivalent ounces and copper and zinc equivalent
pounds for Q4 2017 were calculated using the following realized
prices: $16.77/oz Ag, $3.13/lb Cu, $1.11/lb Pb, $1.45/lb Zn, $1,282/oz Au. Silver equivalent ounces and copper
and zinc equivalent pounds for Q4 2016 were calculated using the
following realized prices: $16.82/oz
Ag, $2.38/lb Cu, $0.95/lb Pb, $1.16/lb Zn, $1,210/oz Au. Silver equivalent ounces and copper
and zinc equivalent pounds for 12M
2017 were calculated using the following realized prices:
$17.14/oz Ag, $2.82/lb Cu, $1.06/lb Pb, $1.32/lb Zn, $1,265/oz Au. Silver equivalent ounces and copper
and zinc equivalent pounds for 12M
2016 were calculated using the following realized prices:
$17.08/oz Ag, $2.21/lb Cu, $/0.85lb Pb, $0.95/lb Zn, $1,254/oz Au.
TORONTO, March 22, 2018 /PRNewswire/ - Sierra Metals
Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the "Company")
today reported revenue of $205.1
million and adjusted EBITDA of $81.0
million on throughput of 1,988,738 tonnes and metal
production of 14.9 million silver equivalent ounces, 90.4 million
copper equivalent pounds, and 193.2 million zinc equivalent pounds
for the year ended December 31,
2017.
During 2017, silver equivalent production increased by 26%,
copper equivalent production decreased 1%, and zinc equivalent
production decreased by 9% compared to 2016. During Q4 2017, silver
equivalent production increased by 15%, copper equivalent
production decreased 12%, and zinc equivalent production decreased
by 8% compared to Q4 2016. The decrease in metal production was due
to lower production in Mexico,
partially offset by record throughput, which led to an increase in
production, in Peru. The temporary decrease in metal
production in Q4 2017 compared to Q4 2016 was primarily due to
lower throughput, head grades, and recoveries at the Bolivar Mine,
and decreases in throughput and recoveries at the Cusi
Mine.
Similar to the successful program at Yauricocha in Peru, which began in 2015, the Company has
engaged in an operation turnaround program in Mexico to modernize operations, improve
production, and lower costs. The Company has already realized
a 2% increase in throughput at Bolivar and a 23% increase at Cusi
in Q4 2017 compared to Q3 2017, and further throughput increases
are expected to continue during the first half of 2018. Equivalent
metal production variances are partially the result of differences
in realized metal prices used in the equivalent metal calculations
for both periods.
Mexican operations have seen quarterly improvements over the
last two quarters. At Bolivar, there have been increases in tonnage
as a result of new equipment purchases, which have allowed more
minable stopes to be incorporated into the mine plan. At Cusi, the
Company has changed its focus from mining the existing narrow vein
structures to the recently discovered Santa Rosa de Lima zone, which has
significantly larger widths and higher grades. Cusi reported a
significant improvement in metal recoveries, and the 2018 guidance
is based on projections which reflect the potential for record
silver production and lower costs, as a result of the restructuring
program performed during the second half of 2017, which focused on
the mining of the Santa Rosa de
Lima structure. Both mines have also benefitted from
successful improvement efforts in metallurgical recoveries, which
have increased during Q4 2017 compared to previous quarters.
Igor Gonzales, President and CEO
of Sierra Metals stated: "The Company remains focused on
improving operating performance through the production of higher
value ore, strengthening its asset base, and continuing to increase
its mineral reserves and resources at each of its mines."
"At Yauricocha the company had record throughput leading to
increases in production in 2017. The Mine continues to deliver and
is poised for further improved productivity in 2018 with completion
of the Yauricocha tunnel expected to be up and running at the
beginning of Q3 2018. The new tunnel will provide a direct
run to the mill from the mine, which will result in a faster
turn-around in the cycle time of the trolley locomotives. In
the long run this means more capacity to handle larger volumes of
waste and ore. Also, in 2018 the Yauricocha shaft will be
sunk to the 1270 level, with a loading pocket added below the 1170
working level. The Company will also commence the addition of three
loading points with independent discharge points for haulage on the
1170 level with expected completion in 2020. Last but certainly not
least, exploration continued to play a very important for the
Company in 2017 and the Yauricocha Mine saw a significant increase
in its reserves and resources with the mine life more than
doubling."
He continued "At Bolivar the Company saw a temporary decrease
in metal production primarily due to lower throughput, head grades,
and recoveries. Improvements were made through the
implementation of new equipment purchases, metallurgical recoveries
were improved at the mill, and the hiring of additional staff and
technical expertise helped to improve production in Q4 2017 over Q3
2017 with continued improvements being seen in Q1 2018. Also,
an additional, refurbished ball mill was recently purchased which
will provide flexibility pertaining to grind size and tonnage at
the Bolivar operations. Production is expected to reach 3,000
tonnes per day in Q1 2018 and grow to 3,500 tonnes per day in the
second half of 2018. Exploration also continued in 2017 and
an update on reserves and resources for the Bolivar mine in
Mexico in expected in the coming
month."
"At Cusi, the Company remained focused on 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. This resulted in lower than planned production,
however, similar to Bolivar we have seen improved throughput in Q4
2017 over Q3 2017 as the Company continues to ramp up production at
the Mal Paso mill expecting to reach mill capacity of 650 tonnes
per day in Q2 2018. The Company also saw remarkable improvements to
the metallurgical recoveries at the mill. Future production growth
is important to Sierra Metals and the Company has recently
purchased a refurbished ball mill to be installed which will allow
production to be ramped up to 1,200 tonnes per day by January 2019. Exploration continues to play an
important role in the growth strategy at Cusi and the Company saw a
significant increase in resources at Cusi from a successful
exploration program completed in 2017."
He Concluded: "Sierra Metals continues to have a very strong
balance sheet, thanks in part to a stronger metal price environment
which provides us with the liquidity needed for continued
operational successes, growth opportunities and development that
has been planned for this year. Brownfield exploration programs
remain a growth component at all three of our mines in 2018 and we
are very optimistic that these programs will continue to add high
value tonnage going forward. 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 months and year ended December 31, 2017:
|
|
|
|
Three Months
Ended
|
Year
Ended
|
(In thousands of
dollars, except per share and cash cost amounts,
consolidated figures unless noted otherwise)
|
|
December 31,
2017
|
December 31,
2016
|
December 31,
2017
|
December 31,
2016
|
Operating
|
|
|
|
|
|
|
Ore Processed /
Tonnes
Milled
|
|
509,488
|
517,705
|
1,988,738
|
2,034,465
|
|
Silver Ounces
Produced (000's)
|
|
496
|
789
|
2,317
|
2,979
|
|
Copper Pounds
Produced (000's)
|
|
7,471
|
6,153
|
26,775
|
23,390
|
|
Lead Pounds Produced
(000's)
|
|
5,736
|
9,990
|
29,704
|
40,551
|
|
Zinc Pounds Produced
(000's)
|
|
19,545
|
17,039
|
76,088
|
56,610
|
|
Gold Ounces
Produced
|
|
1,591
|
1,867
|
6,197
|
8,604
|
|
Copper Equivalent
Pounds Produced (000's)1
|
|
21,856
|
24,969
|
90,354
|
91,398
|
|
Zinc Equivalent
Pounds Produced (000's)1
|
|
47,287
|
51,229
|
193,152
|
211,583
|
|
Silver Equivalent
Ounces Produced (000's)1
|
|
4,078
|
3,533
|
14,865
|
11,798
|
|
|
|
|
|
|
|
|
Cash Cost per Tonne
Processed
|
|
$
|
50.57
|
$
|
40.05
|
$
|
46.87
|
$
|
40.47
|
|
Cost of sales per
AgEqOz
|
|
$
|
7.91
|
$
|
7.17
|
$
|
7.75
|
$
|
8.72
|
|
Cash Cost per
AgEqOz2
|
|
$
|
7.54
|
$
|
6.84
|
$
|
7.41
|
$
|
8.58
|
|
AISC per
AgEqOz2
|
|
$
|
12.42
|
$
|
12.92
|
$
|
12.34
|
$
|
15.11
|
|
Cost of sales per
CuEqLb2
|
|
$
|
1.48
|
$
|
1.01
|
$
|
1.27
|
$
|
1.02
|
|
Cash Cost per
CuEqLb2
|
|
$
|
1.41
|
$
|
0.97
|
$
|
1.22
|
$
|
1.00
|
|
AISC per
CuEqLb2
|
|
$
|
2.32
|
$
|
1.83
|
$
|
2.03
|
$
|
1.77
|
|
Cost of sales per
ZnEqLb2
|
|
$
|
0.68
|
$
|
0.49
|
$
|
0.60
|
$
|
0.45
|
|
Cash Cost per
ZnEqLb2
|
|
$
|
0.65
|
$
|
0.47
|
$
|
0.57
|
$
|
0.44
|
|
AISC per
ZnEqLb2
|
|
$
|
1.07
|
$
|
0.89
|
$
|
0.95
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
Cash Cost per ZnEqLb
(Yauricocha)2
|
|
$
|
0.57
|
$
|
0.43
|
$
|
0.50
|
$
|
0.42
|
|
AISC per ZnEqLb
(Yauricocha)2
|
|
$
|
0.90
|
$
|
0.74
|
$
|
0.78
|
$
|
0.71
|
|
Cash Cost per CuEqLb
(Bolivar)2
|
|
$
|
1.72
|
$
|
1.00
|
$
|
1.49
|
$
|
1.12
|
|
AISC per CuEqLb
(Bolivar)2
|
|
$
|
3.03
|
$
|
2.59
|
$
|
2.68
|
$
|
2.21
|
|
Cash Cost per AgEqOz
(Cusi)2
|
|
$
|
18.67
|
$
|
12.88
|
$
|
15.38
|
$
|
9.37
|
|
AISC per AgEqOz
(Cusi)2
|
|
$
|
36.33
|
$
|
24.42
|
$
|
33.90
|
$
|
18.60
|
Financial
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
51,170
|
$
|
41,825
|
$
|
205,118
|
$
|
143,180
|
|
Adjusted
EBITDA2
|
|
$
|
19,208
|
$
|
15,985
|
$
|
81,034
|
$
|
41,887
|
|
Operating cash flows
before movements in working capital
|
|
$
|
17,812
|
$
|
16,197
|
$
|
79,785
|
$
|
44,303
|
|
Adjusted net income
attributable to shareholders2
|
|
$
|
3,241
|
$
|
3,516
|
$
|
23,482
|
$
|
7,006
|
|
Net income (loss)
attributable to shareholders
|
|
$
|
2,118
|
$
|
(5,076)
|
$
|
(4,645)
|
$
|
(12,265)
|
|
Cash and cash
equivalents
|
|
$
|
23,878
|
$
|
42,145
|
$
|
23,878
|
$
|
42,145
|
|
Working
capital
|
|
$
|
(6,784)
|
$
|
9,576
|
$
|
(6,784)
|
$
|
9,576
|
(1) Silver
equivalent ounces and copper and zinc equivalent pounds for Q4 2017
were calculated using the following realized prices: $16.77/oz Ag,
$3.13/lb Cu, $1.11/lb Pb, $1.45/lb Zn, $1,282/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for Q4 2016
were calculated using the following realized prices: $16.82/oz Ag,
$2.38/lb Cu, $0.95/lb Pb, $1.16/lb Zn, $1,210/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for 12M
2017 were calculated using the following realized prices: $17.14/oz
Ag, $2.82/lb Cu, $1.06/lb Pb, $1.32/lb Zn, $1,265/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for 12M
2016 were calculated using the following realized prices: $17.08/oz
Ag, $2.21/lb Cu, $/0.85lb Pb, $0.95/lb Zn, $1,254/oz
Au.
|
(2)This
is a non-IFRS performance measure, see Non-IFRS Performance
Measures section of the MD&A.
|
|
|
|
2017 Financial Highlights
Revenue from metals payable of $205.1
million in 2017 increased by 43% from $143.2 million in 2016. Higher revenues are
primarily attributable to the 14% 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 (26%), lead (26%), and zinc (35%) in 2017 compared
to 2016; this was partially offset by a 7% decrease in throughput
and lower head grades and recoveries for all metals, except gold
recoveries, at Bolivar; and a 53% decrease in throughput and lower
head grades for all metals, except gold, and lower recoveries of
all metals, except zinc, at Cusi.
Yauricocha's cash cost per zinc equivalent payable pound was
$0.50 (2016 - $0.42), and all-in sustaining cash cost ("AISC")
per zinc equivalent payable pound was $0.78 (2016 - $0.71) for 2017 compared to 2016. The increase in
the AISC per zinc equivalent payable pound for 2017 compared to
2016 were the result of increased sustaining capital expenditures,
which included a substantial amount of infill drilling, ventilation
improvements, equipment purchases, and plant improvements. The
increase was also a result of temporary increases to the mining
costs, partially due to timing; as well as slight increases related
to infill drilling and drift development costs that will be
utilized within one year, and thus are included in operating costs.
This was partially offset by lower treatment and refining costs
incurred during 2017 compared to 2016, resulting from improved
terms on re-negotiated sales contracts with our off-takers, which
helped offset higher sustaining capital expenditures.
Bolivar's cash cost per copper equivalent payable pound was
$1.49 (2016 - $1.12), and AISC per copper equivalent payable
pound was $2.68 (2016 - $2.21) for 2017 compared to 2016. The increase in
the AISC per copper equivalent payable pound during 2017 was due to
a decrease in copper equivalent payable pounds as a result of 7%
lower throughput, as well as an increase in sustaining capital
expenditures related to the various equipment purchases made by the
Company during the year in an effort to improve equipment
availability and increase tonnage. With the expected increase in
tonnage at Bolivar in 2018, the Company expects the all-in
sustaining cost per copper equivalent pound sold to be
approximately $1.96 versus
$2.68 in 2017.
Cusi's cash cost per silver equivalent payable ounce was
$15.38 (2016 - $9.37), and AISC per silver equivalent payable
ounce was $33.90 (2016 - $18.60) for 2017 compared to 2016. AISC per
silver equivalent payable ounce increased due to the 53% 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. With the expected increase
in tonnage at Cusi in 2018, the Company expects the all-in
sustaining cost per silver equivalent ounce sold to be
approximately $14.28 versus
$33.90 in 2017.
Adjusted EBITDA (1) of $81.0
million for 2017 increased compared to $41.9 million in 2016. The increase in adjusted
EBITDA in 2017 was primarily due to the $56.9 million increase in revenues at Yauricocha,
discussed previously.
Cash flow generated from operations before movements in working
capital of $79.8 million for 2017
increased compared to $44.3 million
in 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 $23.9
million and working capital of $(6.8)
million as at December 31,
2017 compared to $42.1 million
and $9.6 million, respectively, at
the end of 2016. Cash and cash equivalents have decreased by
$18.3 million during 2017 due to
$54.5 million of operating cash flows
being offset by capital expenditures incurred in Mexico and Peru of $(51.6)
million, repayment of loans, credit facilities and interest
of $(47.5) million, dividends paid to
non-controlling interest shareholders of $(3.4) million, and proceeds from issuances of
loans and credit facilities of $29.8
million. Included in the $54.5
million of operating cash flows were negative changes in
non-cash working capital items of $7.9
million due to the increase accounts receivable and decrease
in deferred revenue as at December
31,
2017.
(1)
|
This is a non-IFRS
performance measure, see Non-IFRS Performance Measures section of
the
MD&A.
|
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). The NI 43-101 Technical
Report was filed on SEDAR and was prepared by SRK Consulting (U.S.)
Inc.
The Company provided an updated NI 43-101 Technical Report on
the Cusi Mine (press release dated February
12, 2018). Previously, the Company had also provided an
updated Mineral Resource Estimate at the Cusi Mine (press release
dated December 29, 2017). The NI
43-101 Technical Report was filed on SEDAR and was prepared by SRK
Consulting (U.S.) Inc.
Mine development at Bolivar during Q4 2017 totaled 963 meters.
Most of these meters (663) were developed to prepare stopes for
mine production. The remainder of the meters (232) were related to
the deepening of ramps and developing service ramps to be used for
ventilation and pumping, and 68 meters of raises.
During Q4 2017, at the Cusi property, mine development totaled
1,172 meters, and 846 meters of infill drilling was carried out
inside the Mine.
Exploration Update
Exploration Highlights
Peru:
During Q4 2017, the Company drilled 204 holes totaling 9,424
meters at Yauricocha. The drilling included the following:
Exploration Drilling:
- Cuye (Levels 1320 & 1370): 5 holes totaling 1,748 meters
have intercepted the mineralized structure and economic
mineral;
- Contacto Sur Medio II (Level 1070 Central Mine Zone): 3 holes
totaling 525 meters to explore the area on levels 1120 & 170,
has intercepted mineralized sections with high grade
mineralization;
- Huamanrripa (Level 720 Central Mine Zone): 1 hole of 1,149
meters with the objective of exploring and verifying geological
anomalies based on the Titan 24 geophysical study;
- Escondida West (870 level Cachi Cachi): 1 hole totaling 759
meters with the objective of exploring and verifying geological
anomalies based on the Titan 24 geophysical study;
Definition Drilling:
- Antacaca (Level 970): 15 holes totaling 1,329 meters to define
the orebody on the 970 level, floors 16 and 8;
- Esperanza (920 levels): 8 holes totaling 992 meters to define
and provide higher certainty on the size and quality of the
orebody;
- Esperanza North (920 level): 7
holes totaling 685 meters to determine the continuity of the
orebody from the 920 level to floor 8 on the 870 level;
- Antacaca Sur (970 level): 11 holes totaling 1,002 meters which
have intercepted lead and silver oxides, and structures with
polymetallic mineral;
- Mascota (1120 level, piso 8):
3 holes totaling 292 meters to further define the orebody;
- Catas (Levels 970 & 1020): 10 holes totaling 943 meters to
further define the orebody;
- Karlita (870 Level): 5 holes totaling 535 meters to further
define the orebody.
Mexico:
Bolivar
- At Bolivar during Q4 2017, 10,402 meters were drilled from
surface as well as diamond drilling within the mine. 1,766 meters
were drilled within the mine, 328 meters within Bolivar Northwest
and 1,438 meters from Chimney 2. Diamond drilling from surface
totaled 8,636 in the Bolivar Northwest area, exploring the
extension of the orebody to the North and West, exploring the skarn
orebody with semi-massive magnetite, and disseminated nodules of
chalcopyrite. This area will continue to be explored during
2018.
Cusi:
- The Company drilled 846 meters inside the mines to verify the
continuity of the orebodies and support development work on the
various veins and 153 meters on surface.
Conference Call Webcast
Sierra Metals' senior management will host a conference call on
Monday March 26, 2018 at 10:30 AM (EDT) to discuss the Company's financial
and operating results for the three months and year ended
December 31, 2017.
Via Webcast:
A live audio webcast of the meeting will be available on via
link the Company's website or at:
https://event.on24.com/wcc/r/1552432/8D7A6F4BCE78910C4346ED4A1276EBED
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): (866) 393-4306
Participant Number (International): (734) 385-2616
Conference ID: 1186925
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:
Web: www.sierrametals.com | Twitter: sierrametals
| Facebook: SierraMetalsInc | LinkedIn: Sierra Metals
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.