TORONTO, July 16, 2018 /PRNewswire/ - Sierra Metals
Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) ("Sierra
Metals" or "the Company") is pleased to report second quarter 2018
production results featuring the highest level of consolidated
quarterly ore throughput to date.
Results are from Sierra Metals' three underground mines in
Latin America: The Yauricocha
polymetallic mine in Peru, and the
Bolivar copper and Cusi silver Mines in Mexico.
Second Quarter 2018 Production Highlights
- Silver production of 0.7 million ounces; a 12% increase from Q2
2017
- Copper production of 8.6 million pounds; a 62% increase from Q2
2017
- Zinc production of 20.3 million pounds; a 10% increase from Q2
2017
- Gold production of 1,814 ounces; a 38% increase from Q2
2017
- Total of 602,087 tonnes processed; a 32% increase from Q2
2017
- Record quarterly ore throughput at both the Yauricocha Mine and
Bolivar Mine
The Company achieved record quarterly ore throughput from both
the Yauricocha and Bolivar Mines, continuing the successful
production increases realized during the last five quarters.
Consolidated production of Copper increased 62% to 8.6 million
pounds, silver increased 12% to 0.7 million ounces, lead decreased
16% to 7.1 million pounds, zinc increased 11% to 20.3 million
pounds and gold increased 38% to 1,814 ounces compared to Q2
2017.
The Yauricocha mine achieved record quarterly ore throughput
during Q2 2018. Metal production in Q2 increased due to higher ore
throughput, higher copper and gold head grades, and higher copper,
lead and gold recoveries. Record ore throughput at Bolivar, along
with higher copper and silver head grades, and copper and gold
recoveries, resulted in an increase in equivalent metal production
compared to Q2 2017. At Cusi, the increase in ore throughput and
higher silver recoveries resulted in higher silver equivalent
production. The Company expects to continue to realize the benefits
of the efforts at Cusi focusing on production from the Santa Rosa de Lima zone during the rest of
2018.
Igor Gonzales, President, and CEO
of Sierra Metals commented: "I am very pleased with our Q2 2018
production results which include record consolidated ore
throughput, and notable increases to the consolidated payable
production of silver, copper, zinc, and gold. The Company
continued its strong performance and built upon the first quarter's
solid production results. Our strong performance this quarter is
attributed to sequential, record production at both the Yauricocha
and Bolivar mines where we continue to obtain the benefits of
successful operational improvement programs. Furthermore, a
strong increase in tonnage at Cusi was noted in the second quarter,
and the Company is reaping the rewards of a successful turnaround
program and the refocusing of the Mine's production to the
Santa Rosa de Lima zone, which
boasts higher grades and increased widths.
During the second quarter, the Company released encouraging
Preliminary Economic Assessments studies ("PEA's") for all three
Mines demonstrating positive economics and supporting future
operational production increases. The full reports for the
PEA's will be filed on Sedar and Edgar within 45 days
of the news releases. Development at all three Mines will continue
with an objective of progressing the resource increases at the Cusi
Mine, as well as the reserve and resource increases at the
Yauricocha and Bolivar Mines into the mine plans. Additionally,
continued exploration programs at all three Mines are expected to
further increase reserves and resources at all mines which benefit
future growth plans.
Yauricocha continues to perform with record tonnage ore
throughput in the second quarter. Final infrastructure for the
Yauricocha tunnel should be completed early in Q3 2018 allowing for
more capacity to handle larger volumes of waste and ore. The
Yauricocha shaft is also being sunk to the 1270 level this year
providing access to further reserves and resources at the Mine. The
Mine will see consistent levels of ore throughput in 2018 due to a
refurbishment of the lower part of the Mascota Shaft starting in Q3
2018 which could potentially cause a slowdown in production rates
during that time period. However, this has already been factored
into our 2018 production guidance.
At Bolivar, the company also had record tonnage ore
throughput in the second quarter and also continues to improve and
perform well. Production should increase incrementally in the
second half of the year and is expected to reach approximately
3,500 tonnes per day by the end of the year. Installation of an
additional mill in the second half of this year will help grind
size optionality and improve recoveries at the plant.
At Cusi, tonnage continued to improve in the second quarter,
and the Mine realized a 73% increase in ore throughput when
compared to Q1 2018. The Company continues to increase mill feed
from the Santa Rosa de Lima zone,
while mining selected structures in the older part of the mine.
Production has been increasing in the second quarter, and the
Company reached the existing mill's capacity of 650 tonnes per day
at the end of second quarter. The addition of another ball mill
will see the capacity increase to approximately 1,200 tonnes per
day in early 2019. Additionally, the company has recently defined a
significant high-grade silver zone, which remains open to depth
within the Santa Rosa de Lima
structure which will help contribute increased, higher grade mill
feed going forward."
Mr. Gonzales concluded, "Management is very optimistic for
the second half of 2018 and beyond as the groundwork has been set
for continued improvements, through the modernizing and
implementation of best operational practices. We continue to
realize positive returns on our capital investments, and the recent
PEA results demonstrate a path for continued growth at all our
Mines. Ongoing aggressive brownfield exploration programs at all
mines are expected to provide further growth in reserves and
resources adding to the value of our assets during the year
ahead."
Consolidated Production Results
|
|
|
|
Consolidated
Production
|
3 Months
Ended
|
6 Months
Ended
|
2018
Guidance
|
|
Q2
2018
|
Q2
2017
|
%
Var.
|
Q2
2018
|
Q2
2017
|
%
Var.
|
Low
|
High
|
|
|
|
|
|
|
|
|
|
Tonnes processed
(mt)
|
602,087
|
454,805
|
32%
|
1,159,797
|
984,500
|
18%
|
|
|
|
Daily
throughput
|
6,881
|
5,198
|
32%
|
6,627
|
5,626
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver ounces
(000's)
|
692
|
616
|
12%
|
1,287
|
1,314
|
-2%
|
2,474
|
2,886
|
Copper pounds
(000's)
|
8,621
|
5,315
|
62%
|
16,710
|
12,605
|
33%
|
32,700
|
38,100
|
Lead pounds
(000's)
|
7,096
|
8,467
|
-16%
|
13,408
|
17,610
|
-24%
|
19,100
|
22,300
|
Zinc pounds
(000's)
|
20,300
|
18,530
|
10%
|
38,514
|
36,666
|
5%
|
62,900
|
73,400
|
Gold
ounces
|
1,814
|
1,312
|
38%
|
3,765
|
3,089
|
22%
|
6,700
|
7,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver equivalent
ounces (000's)(1)
|
4,663
|
3,287
|
42%
|
9,071
|
7,034
|
29%
|
13,900
|
16,210
|
Copper equivalent
pounds (000's)(1)
|
24,452
|
21,937
|
11%
|
47,937
|
47,071
|
2%
|
89,184
|
104,005
|
Zinc equivalent
pounds (000's)(1)
|
55,279
|
47,165
|
17%
|
102,190
|
99,479
|
3%
|
183,830
|
214,468
|
|
|
|
|
|
|
|
|
|
(1) Silver equivalent
ounces and copper and zinc equivalent pounds for Q2 2018 were
calculated using the following realized prices: $16.36/oz Ag,
$3.12/lb Cu, $1.09/lb Pb, $1.38/lb Zn, $1,296/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for Q2 2017
were calculated using the following realized prices: $17.22/oz Ag,
$2.58/lb Cu, $0.99/lb Pb, $1.20/lb Zn, $1,265/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for 6M 2018
were calculated using the following realized prices: $16.56/oz Ag,
$3.13/lb Cu, $1.12/lb Pb, $1.47/lb Zn, $1,315/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for 6M 2017
were calculated using the following realized prices: $17.47/oz Ag,
$2.61/lb Cu, $/1.02lb Pb, $1.24/lb Zn, $1,248/oz
Au.
|
Yauricocha Mine, Peru
The Yauricocha Mine processed a quarterly record of 283,450
tonnes during Q2 2018, representing a 19% increase from Q2 2017.
Zinc equivalent metal production in Q2 2018 increased by 9% due to
higher ore throughput, higher copper and gold head grades, and
higher copper, lead and gold recoveries. Copper production was 77%
higher, zinc production was 11% higher, and gold production was 43%
higher than Q2 2017, while silver production was 12% lower, and
lead production was 15% lower than Q2 2017.
The Company continues to see positive improvements from the
restructuring at Yauricocha with increased ore throughput, and
higher zinc and copper production due to the inclusion of more
Cuerpos Chicos, which has higher zinc head grades, and Esperanza ore which is a copper-rich ore
zone.
The Company remains focused on capitalizing on the successful
drilling campaigns executed during 2017 which resulted in
significant increases to the reserves and resources at Yauricocha.
Continued production growth is expected to be realized from the
strategic allocation of operating cash flows towards growth
efficient capital, in order to provide the infrastructure, and
scoping studies necessary to monetize the reserve and resource
increases as quickly as possible.
A summary of production from the Yauricocha Mine for Q2 2018 is
provided below:
|
|
|
Yauricocha
Production
|
3 Months
Ended
|
6 Months
Ended
|
|
Q2
2018
|
Q2
2017
|
%
Var.
|
Q2
2018
|
Q2
2017
|
%
Var.
|
|
|
|
|
|
|
|
Tonnes processed
(mt)
|
283,450
|
237,912
|
19%
|
554,839
|
489,092
|
13%
|
|
Daily
throughput
|
3,239
|
2,719
|
19%
|
3,171
|
2,795
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver grade
(g/t)
|
59.19
|
76.08
|
-22%
|
59.35
|
78.80
|
-25%
|
|
Copper
grade
|
0.95%
|
0.69%
|
38%
|
0.92%
|
0.75%
|
22%
|
|
Lead
grade
|
1.28%
|
1.81%
|
-29%
|
1.27%
|
1.79%
|
-29%
|
|
Zinc
grade
|
3.66%
|
3.88%
|
-6%
|
3.56%
|
3.74%
|
-5%
|
|
Gold Grade
(g/t)
|
0.54
|
0.49
|
11%
|
0.57
|
0.52
|
9%
|
|
|
|
|
|
|
|
|
Silver
recovery
|
72.71%
|
76.97%
|
-6%
|
72.71%
|
76.43%
|
-5%
|
|
Copper
recovery
|
65.37%
|
60.65%
|
8%
|
65.37%
|
61.39%
|
6%
|
|
Lead
recovery
|
84.82%
|
84.32%
|
1%
|
84.82%
|
85.15%
|
0%
|
|
Zinc
recovery
|
88.73%
|
89.84%
|
-1%
|
88.73%
|
89.48%
|
-1%
|
|
Gold
Recovery
|
16.48%
|
15.21%
|
8%
|
16.48%
|
16.33%
|
1%
|
|
|
|
|
|
|
|
Silver ounces
(000's)
|
392
|
448
|
-12%
|
758
|
947
|
-20%
|
Copper pounds
(000's)
|
3,884
|
2,192
|
77%
|
7,611
|
4,975
|
53%
|
Lead pounds
(000's)
|
6,809
|
8,010
|
-15%
|
12,878
|
16,392
|
-21%
|
Zinc pounds
(000's)
|
20,300
|
18,268
|
11%
|
38,443
|
36,041
|
7%
|
Gold
ounces
|
807
|
566
|
43%
|
1,642
|
1,344
|
22%
|
|
|
|
|
|
|
|
Zinc equivalent
pounds (000's)(1)
|
39,841
|
36,612
|
9%
|
74,468
|
74,777
|
0%
|
(1) Silver equivalent
ounces and copper and zinc equivalent pounds for Q2 2018 were
calculated using the following realized prices: $16.36/oz Ag,
$3.12/lb Cu, $1.09/lb Pb, $1.38/lb Zn, $1,296/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for Q2 2017
were calculated using the following realized prices: $17.22/oz Ag,
$2.58/lb Cu, $0.99/lb Pb, $1.20/lb Zn, $1,265/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for 6M 2018
were calculated using the following realized prices: $16.56/oz Ag,
$3.13/lb Cu, $1.12/lb Pb, $1.47/lb Zn, $1,315/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for 6M 2017
were calculated using the following realized prices: $17.47/oz Ag,
$2.61/lb Cu, $/1.02lb Pb, $1.24/lb Zn, $1,248/oz
Au.
|
Bolivar Mine, Mexico
The Bolivar Mine processed a record 272,040 tonnes in Q2 2018,
representing a 41% increase over Q2 2017. The higher ore
throughput, copper and silver head grades, and copper and gold
recoveries resulted in a 45% increase in copper equivalent
production in Q2 2018 compared to Q2 2017. In Q2 2018, copper
production increased by 52% to 4,737,000 pounds, silver production
increased 50% to 110,000 ounces, and gold production increased 47%
to 911 ounces compared to Q2 2017. The Company has been successful
at increasing tonnage at Bolivar through the commissioning of new
equipment, increased development to access more minable stopes, and
plant improvements that have increased recoveries.
The Company continues to define higher grade ore sources at
Bolivar West and Bolivar Northwest which are expected to come into
the mine plan by the second half of 2019. However, as a
short-term planning strategy, the Bolivar Mine continues to focus
on developing and mining the El Gallo Inferior zone to centralize
operations, optimize equipment usage and to improve productivity.
The Company remains confident that ore throughput can be increased
to 3,500 tonnes per day during Q3 or Q4 2018.
A summary of production for the Bolivar Mine for Q2 2018 is
provided below:
|
|
|
Bolivar
Production
|
3 Months
Ended
|
6 Months
Ended
|
|
Q2
2018
|
Q2
2017
|
%
Var.
|
Q2
2018
|
Q2
2017
|
%
Var.
|
|
|
|
|
|
|
|
Tonnes processed
(mt)
|
272,040
|
192,937
|
41%
|
531,415
|
436,911
|
22%
|
|
Daily
throughput
|
3,109
|
2,205
|
41%
|
3,037
|
2,497
|
22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
grade
|
0.97%
|
0.97%
|
1%
|
0.96%
|
1.00%
|
-4%
|
|
Silver grade
(g/t)
|
16.61
|
15.65
|
6%
|
17.21
|
15.42
|
12%
|
|
Gold grade
(g/t)
|
0.15
|
0.17
|
-15%
|
0.16
|
0.19
|
-15%
|
|
|
|
|
|
|
|
|
|
Copper
recovery
|
81.33%
|
76.04%
|
7%
|
81.01%
|
79.17%
|
2%
|
|
Silver
recovery
|
75.53%
|
75.22%
|
0%
|
78.25%
|
77.28%
|
1%
|
|
Gold
recovery
|
71.81%
|
58.32%
|
23%
|
71.34%
|
54.81%
|
30%
|
|
|
|
|
|
|
|
Copper pounds
(000's)
|
4,737
|
3,123
|
52%
|
9,099
|
7,630
|
19%
|
Silver ounces
(000's)
|
110
|
73
|
50%
|
230
|
167
|
37%
|
Gold
ounces
|
911
|
620
|
47%
|
1,959
|
1,460
|
34%
|
|
|
|
|
|
|
|
Copper equivalent
pounds (000's)(1)
|
5,691
|
3,914
|
45%
|
11,138
|
9,449
|
18%
|
|
|
|
|
|
|
|
(1) Silver equivalent
ounces and copper and zinc equivalent pounds for Q2 2018 were
calculated using the following realized prices: $16.36/oz Ag,
$3.12/lb Cu, $1.09/lb Pb, $1.38/lb Zn, $1,296/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for Q2 2017
were calculated using the following realized prices: $17.22/oz Ag,
$2.58/lb Cu, $0.99/lb Pb, $1.20/lb Zn, $1,265/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for 6M 2018
were calculated using the following realized prices: $16.56/oz Ag,
$3.13/lb Cu, $1.12/lb Pb, $1.47/lb Zn, $1,315/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for 6M 2017
were calculated using the following realized prices: $17.47/oz Ag,
$2.61/lb Cu, $/1.02lb Pb, $1.24/lb Zn, $1,248/oz
Au.
|
Cusi Mine, Mexico
Total ore processed increased by 95% in Q2 to 46,597 tonnes when
compared to Q2 2017 and increased 73% when compared to Q1 2018.
Silver equivalent production increased 46% compared to Q2 2017.
Silver production of 190,000 ounces increased 100% in Q2 2017,
as the metallurgical work performed during 2017 increased silver
recoveries by 25%, and ore throughput was 100% higher than Q2 2017
as the Company has successfully transitioned to mining the recently
developed Santa Rosa de Lima zone.
This zone was being developed for the majority of 2017 as ramps
were being prepared to access the minable stopes within the
deposit.
The Company is currently mining selected higher-grade structures
at the old mine, the San Antonio
vein, as well as the Santa Rosa de
Lima structure containing improved head grades to the mill
at Cusi. The Company has successfully increased tonnage from
the Santa Rosa de Lima zone to
approximately 50% of the current mill feed, as well as other zones
in the areas previously developed with a different mandate to
produce from disseminated mineralized zones until the mill is
operating at its capacity of 650 tonnes per day. Additionally,
structural development at the Santa Rosa
de Lima zone will be completed using long hole mining versus
the existing cut and fill methodology which should result in lower
costs going forward.
A summary of production for the Cusi Mine for Q2 2018 is
provided below:
|
|
|
Cusi
Production
|
3 Months
Ended
|
6 Months
Ended
|
|
Q2
2018
|
Q2
2017
|
%
Var.
|
Q2
2018
|
Q2
2017
|
%
Var.
|
|
|
|
|
|
|
|
Tonnes processed
(mt)
|
46,597
|
23,956
|
95%
|
73,543
|
58,497
|
26%
|
Daily
throughput
|
|
533
|
274
|
95%
|
420
|
334
|
26%
|
|
|
|
|
|
|
|
Silver grade
(g/t)
|
|
155.60
|
188.95
|
-18%
|
151.16
|
163.66
|
-8%
|
Gold grade
(g/t)
|
|
0.16
|
0.27
|
-41%
|
0.17
|
0.26
|
-35%
|
Lead grade
|
|
0.36%
|
1.11%
|
-67%
|
0.41%
|
1.19%
|
-66%
|
Zinc grade
|
|
0.33%
|
1.08%
|
-69%
|
0.40%
|
1.19%
|
-67%
|
|
|
|
|
|
|
|
Silver
recovery
|
|
81.66%
|
65.42%
|
25%
|
83.41%
|
64.76%
|
29%
|
Gold
recovery
|
|
39.80%
|
60.72%
|
-34%
|
41.91%
|
59.10%
|
-29%
|
Lead
recovery
|
|
77.22%
|
78.02%
|
-1%
|
80.27%
|
79.38%
|
1%
|
Zinc
recovery
|
|
0.00%
|
45.80%
|
-100%
|
10.99%
|
40.86%
|
-73%
|
|
|
|
|
|
|
|
Silver ounces
(000's)
|
190
|
95
|
100%
|
298
|
199
|
50%
|
Gold
ounces
|
96
|
126
|
-24%
|
165
|
285
|
-42%
|
Lead pounds
(000's)
|
287
|
457
|
-37%
|
530
|
1,218
|
-57%
|
Zinc pounds
(000's)
|
0
|
262
|
-100%
|
71
|
625
|
-89%
|
|
|
|
|
|
|
|
Silver equivalent
ounces (000's)(1)
|
217
|
149
|
46%
|
353
|
335
|
6%
|
(1) Silver equivalent
ounces and copper and zinc equivalent pounds for Q2 2018 were
calculated using the following realized prices: $16.36/oz Ag,
$3.12/lb Cu, $1.09/lb Pb, $1.38/lb Zn, $1,296/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for Q2 2017
were calculated using the following realized prices: $17.22/oz Ag,
$2.58/lb Cu, $0.99/lb Pb, $1.20/lb Zn, $1,265/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for 6M 2018
were calculated using the following realized prices: $16.56/oz Ag,
$3.13/lb Cu, $1.12/lb Pb, $1.47/lb Zn, $1,315/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for 6M 2017
were calculated using the following realized prices: $17.47/oz Ag,
$2.61/lb Cu, $/1.02lb Pb, $1.24/lb Zn, $1,248/oz
Au.
|
Quality Control
All 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 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".
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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 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, 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 were
calculated in accordance with the Canadian National Instrument
43-101 and the Canadian Institute of Mining and Metallurgy
Classification system. These standards differ significantly from
the requirements of the U.S. Securities and Exchange Commission
("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.
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SOURCE Sierra Metals Inc.