CONFERENCE CALL AUGUST
14, 2018 AT 10:30 AM
(EDT)
(All $ figures reported in USD)
- Adjusted EBITDA of $28.9
million in Q2 2018 increased 64% from $17.6 million in Q2 2017
- Operating cash flows before movements in working capital of
$29.5 million in Q2 2018 increased
70% from $17.4 million in Q2
2017
- Revenue from metals payable of $62.7
million in Q2 2018 increased by 29% from $48.6 million in Q2 2017
- Q2 2018 consolidated copper production of 8.6 million
pounds, consolidated silver production of 0.7 million ounces,
consolidated zinc production of 20.3 million pounds, and
consolidated gold production of 1,814 ounces; a 62% increase, 12%
increase, 10% increase, and 38% increase respectively, from Q2
2017, and within production guidance(1)
- Record quarterly throughput at Yauricocha and Bolivar
Mines
- $21.8 million of cash and cash
equivalents as at June 30,
2018
- Net Debt of $41.5 million as
at June 30, 2018
- Shareholder conference call to be held Tuesday August 14, 2018 at 10:30 AM (EDT)
(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.
|
TORONTO, Aug. 13, 2018 /PRNewswire/ - Sierra Metals
Inc. (TSX:SMT)(BVL:SMT)(NYSE American:SMTS) ("Sierra Metals" or
the "Company") today reported revenue of $62.7 million and adjusted EBITDA of $28.9 million on throughput of 602,087 tonnes and
metal production of 4.7 million silver equivalent ounces, 24.5
million copper equivalent pounds, and 55.3 million zinc equivalent
pounds for the three month period ended June
30, 2018.
During Q2 2018 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.
During Q2 2018, the Company released encouraging Preliminary
Economic Assessments studies ("PEA's") for all three Mines,
demonstrating positive economics and supporting potential future
operational production increases. 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.
Igor Gonzales, President and CEO
of Sierra Metals stated: "I am very pleased with our strong Q2
2018 results which builds upon our solid first quarter
results. The Company is realizing positive returns on our
capital investments and our operational improvement efforts.
This can be noted through improving operating performance and
strengthening of our asset base in addition to improved cash flow
and increases to mineral reserves and resources at each of our
mines.
Yauricocha continues to perform well with sequential record
throughput in the second quarter. Additionally, despite lower
realized metal prices in the second quarter, Yauricocha still
contributed to higher revenue and improved net production revenue
per tonne representative of the successful capital investments
made. At Bolivar, the effects of the Mexico turn-around program are very
noticeable, we achieved record throughput with a 5% increase over
Q1-2018 and continue to work towards our goal of 3,500 tonnes per
day by year end. We have again achieved lower all-in sustaining
costs in the second quarter, which remain below guidance. At Cusi,
we are progressing on the ramp up of tonnage and realized quarter
over quarter improvements. We continue to campaign development ore
from the Santa Rosa de Lima zone
with increasing throughput rates, while selectively mining
structures in the older part of the mine. We are pleased to
report that the Company reached the existing mill's production
capacity of 650 tonnes per day in late Q2-2018. The addition of
another ball mill in the second half of 2018 will see the capacity
increase to approximately 1,200 tonnes per day in early
2019."
He concluded, "Sierra Metals balance sheet remains strong
with solid liquidity to meet its operational and growth expenditure
requirements. Management maintains its optimism for the
remainder of the year as the groundwork for further improvements
has been laid through the implementation of best operational
practices. Our recently completed, positive PEA's at all three
Mines demonstrate the robust growth opportunities for the Company.
Additionally, aggressive, brownfield exploration programs focused
on high value targets are being executed which could lead to
further significant growth in mineral reserves and resources at all
of our Mines, which will add to the value of our assets now and in
the years ahead."
The following table displays selected financial and operational
information for the three and six months ended June 30, 2018:
Q2 and H1 2018 Financial Highlights
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
(In thousands of
dollars, except per share and cash cost amounts, consolidated
figures unless noted otherwise)
|
|
June 30,
2018
|
June 30,
2017
|
June 30,
2018
|
June 30,
2017
|
Operating
|
|
|
|
|
|
|
Ore Processed /
Tonnes
Milled
|
|
602,087
|
454,805
|
1,159,797
|
984,500
|
|
Silver Ounces
Produced (000's)
|
|
692
|
616
|
1,287
|
1,314
|
|
Copper Pounds
Produced (000's)
|
|
8,621
|
5,315
|
16,710
|
12,605
|
|
Lead Pounds Produced
(000's)
|
|
7,096
|
8,467
|
13,408
|
17,610
|
|
Zinc Pounds Produced
(000's)
|
|
20,300
|
18,530
|
38,514
|
36,666
|
|
Gold Ounces
Produced
|
|
1,814
|
1,312
|
3,765
|
3,089
|
|
Copper Equivalent
Pounds Produced (000's)1
|
|
24,452
|
21,937
|
47,937
|
47,071
|
|
Zinc Equivalent
Pounds Produced (000's)1
|
|
55,279
|
47,165
|
102,190
|
99,479
|
|
Silver Equivalent
Ounces Produced (000's)1
|
|
4,663
|
3,287
|
9,071
|
7,034
|
|
|
|
|
|
|
|
Cash Cost per Tonne
Processed
|
|
$
|
44.62
|
$
|
49.64
|
$
|
45.60
|
$
|
44.37
|
|
Cost of sales per
AgEqOz
|
|
$
|
6.68
|
$
|
8.10
|
$
|
6.91
|
$
|
7.61
|
|
Cash Cost per
AgEqOz2
|
|
$
|
6.34
|
$
|
7.83
|
$
|
6.55
|
$
|
7.23
|
|
AISC per
AgEqOz2
|
|
$
|
9.56
|
$
|
13.43
|
$
|
9.70
|
$
|
11.87
|
|
Cost of sales per
CuEqLb2
|
|
$
|
1.27
|
$
|
1.21
|
$
|
1.31
|
$
|
1.14
|
|
Cash Cost per
CuEqLb2
|
|
$
|
1.21
|
$
|
1.17
|
$
|
1.24
|
$
|
1.08
|
|
AISC per
CuEqLb2
|
|
$
|
1.82
|
$
|
2.01
|
$
|
1.83
|
$
|
1.77
|
|
Cost of sales per
ZnEqLb2
|
|
$
|
0.56
|
$
|
0.56
|
$
|
0.61
|
$
|
0.54
|
|
Cash Cost per
ZnEqLb2
|
|
$
|
0.53
|
$
|
0.55
|
$
|
0.58
|
$
|
0.51
|
|
AISC per
ZnEqLb2
|
|
$
|
0.81
|
$
|
0.94
|
$
|
0.86
|
$
|
0.84
|
|
|
|
|
|
|
|
Cash Cost per ZnEqLb
(Yauricocha)2
|
|
$
|
0.50
|
$
|
0.48
|
$
|
0.54
|
$
|
0.45
|
|
AISC per ZnEqLb
(Yauricocha)2
|
|
$
|
0.72
|
$
|
0.76
|
$
|
0.77
|
$
|
0.69
|
|
Cash Cost per CuEqLb
(Bolivar)2
|
|
$
|
1.14
|
$
|
1.42
|
$
|
1.21
|
$
|
1.29
|
|
AISC per CuEqLb
(Bolivar)2
|
|
$
|
1.90
|
$
|
2.60
|
$
|
1.92
|
$
|
2.24
|
|
Cash Cost per AgEqOz
(Cusi)2
|
|
$
|
12.78
|
$
|
18.90
|
$
|
14.96
|
$
|
13.01
|
|
AISC per AgEqOz
(Cusi)2
|
|
$
|
19.98
|
$
|
45.06
|
$
|
23.25
|
$
|
29.22
|
Financial
|
|
|
|
|
|
|
Revenues
|
|
$
|
62,721
|
$
|
48,571
|
$
|
124,396
|
$
|
103,089
|
|
Adjusted
EBITDA2
|
|
$
|
28,878
|
$
|
17,620
|
$
|
56,281
|
$
|
42,981
|
|
Operating cash flows
before movements in working capital
|
|
$
|
29,525
|
$
|
17,355
|
$
|
56,873
|
$
|
40,155
|
|
Adjusted net income
attributable to shareholders2
|
|
$
|
12,557
|
$
|
4,258
|
$
|
23,744
|
$
|
15,248
|
|
Net income (loss)
attributable to shareholders
|
|
$
|
10,843
|
$
|
(2,798)
|
$
|
19,546
|
$
|
(240)
|
|
Cash and cash
equivalents
|
|
$
|
21,804
|
$
|
31,121
|
$
|
21,804
|
$
|
31,121
|
|
Working
capital
|
|
$
|
2,896
|
$
|
5,163
|
$
|
2,896
|
$
|
5,163
|
|
|
|
|
|
|
(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.
|
(2)
|
This is a non-IFRS
performance measure, see Non-IFRS Performance Measures section of
the MD&A.
|
Revenue from metals payable of $62.7
million in Q2 2018 increased by 29% from $48.6 million in Q2 2017. Higher revenues are
primarily attributable to the 19% increase in throughput, the
increase in copper, and gold head grades, and higher recoveries for
copper, lead, and gold at Yauricocha; and the increase in the
prices of copper (21%), lead (10%), zinc (15%), and gold (2%) in Q2
2018 compared to Q2 2017; the 41% increase in throughput, higher
copper and silver head grades, copper and gold recoveries, and the
higher copper price resulted in Bolivar's revenues being 61% higher
than Q2 2017; and the 95% increase in throughput, and higher silver
recoveries resulted in Cusi's revenues being 102% higher than Q2
2017.
Yauricocha's cash cost per zinc equivalent payable pound was
$0.50 (Q2 2017 - $0.48), and AISC per zinc equivalent payable
pound of $0.72 (Q2 2017 -
$0.76). The decrease in the AISC per
zinc equivalent payable pound for Q2 2018 compared to Q2 2017 was a
result of lower sustaining capital expenditures, while zinc
equivalent payable pounds and cash costs remained consistent; this
was partially offset by slight increases in general and
administrative costs.
Bolivar's cash cost per copper equivalent payable pound was
$1.14 (Q2 2017 - $1.42), and AISC per copper equivalent payable
pound was $1.90 (Q2 2017 -
$2.60) for Q2 2018 compared to Q2
2017. The decrease in the AISC per copper equivalent payable pound
during Q2 2018 was due to the increase in copper equivalent payable
pounds resulting from higher throughput, copper and silver head
grades, and copper and gold recoveries; as well as a decrease in
sustaining capital expenditures, as there were additional mine
development costs, and various equipment purchases made by the
Company during the Q2 2017 in an effort to improve equipment
availability and increase tonnage.
Cusi's cash cost per silver equivalent payable ounce was
$12.78 (Q2 2017 - $18.90), and AISC per silver equivalent payable
ounce was $19.98 (Q2 2017 -
$45.06) for Q2 2018 compared to Q2
2017. AISC per silver equivalent payable ounce decreased due to
higher silver equivalent payable ounces resulting from higher
throughput and higher silver recoveries.
Adjusted EBITDA(1) of $28.9
million for Q2 2018 increased 64% compared to $17.6 million in Q2 2017. The increase in
adjusted EBITDA in Q2 2018 was primarily due to the $14.1 million increase in revenues discussed
previously.
Cash flow generated from operations before movements in working
capital of $29.5 million for Q2 2018
increased 70% compared to $17.4
million in Q2 2017. The increase in operating cash flow is
mainly the result of higher revenues generated and higher gross
margins realized.
Net income (loss) attributable to shareholders for Q2 2018 was
$10.8 million (Q2 2017: $(2.8) million) or $0.07 per share (basic and diluted) (Q2 2017:
$(0.02)).
Cash and cash equivalents of $21.8
million and working capital of $2.9
million as at June 30, 2018
compared to $23.9 million and
$(6.8) million, respectively, at the
end of 2017. Cash and cash equivalents have decreased by
$2.1 million during H1 2018 due to
$27.0 million of operating cash
flows, and $5.0 million drawn down
from a short term revolving line of credit, being offset by capital
expenditures incurred in Mexico
and Peru of $(24.0) million, repayment of loans, credit
facilities and interest of $(8.3)
million, dividends paid to non-controlling interest
shareholders of $(1.6) million.
Included in the $27.0 million of
operating cash flows were negative changes in non-cash working
capital items of $11.1 million due to
the increase in trade receivables as at June
30,
2018.
(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 and Resource
Estimate at the Bolivar Mine (press release dated July 5, 2018). The NI 43-101 Technical Report was
filed on SEDAR and was prepared by SRK Consulting (U.S.) Inc.
The Company reported the results of a Preliminary Economic
Assessment ("PEA") for the Bolivar Mine (press release dated
July 9, 2018) yielding a 550% return
on investment and after-tax net present value ("NPV") of
US$214 million at an 8% discount
rate. The PEA was compiled under NI 43-101 standards by Mining Plus
Peru SAC.
The Company reported the results of a PEA for the Yauricocha
Mine (press release dated June 27,
2018) yielding a 486% return on investment and after-tax NPV
of US$393 million at an 8% discount
rate. The PEA was compiled under NI 43-101 standards by Mining Plus
Peru SAC.
The Company reported the results of a PEA for the Cusi Mine
(press release dated June 18, 2018)
yielding a 75% internal rate of return ("IRR") and after-tax NPV of
US$92 million at an 8% discount rate.
The PEA was compiled under NI 43-101 standards by Mining Plus Peru
SAC.
Mine development at Bolívar during Q2 2018 totaled 1,025 meters.
Most of these meters (550m) were
developed to prepare stopes for mine production. The remainder of
the meters (475) were related to the deepening of ramps and
developing service ramps to be used for ventilation and
pumping.
During Q2 2018, at the Cusi property, mine development totaled
1,652 meters, and 960 meters of infill drilling was carried out
inside the Mine, and 9,455 meters drilled from surface.
Exploration Update
Peru:
During Q2
2018, the Company drilled 45 holes totaling 8,366 meters at
Yauricocha. The drilling included the following:
Exploration Drilling:
- Contacto Oriental (Level 1070): 4 holes totaling 588 meters
have intercepted positive results regarding the continuity of the
orebody at depth;
- Contacto Sur Medio Oeste (Level 1070 Central Mine Zone): 2
horizontal holes totaling 316 meters to explore possible mineralize
orebodies;
- Esperanza (Level 1070 Central
Mine Zone): 2 holes totaling 1,507 meters with the objective of
verifying the continuity of the orebody dimensions to the 1570
level;
- Esperanza - Cuye (Level 1070
Central Mine Zone): 1 hole totaling 859 meters (246 meters during
Q2 2018) with the objective of exploring the area between Cuye and
Esperanza, an area which has
provided evidence of a potential porphyry system;
- Cuye (Level 1070 Central Mine Zone) – 2 long holes totaling
1,113 meters with the objective of exploring the continuation of
the orebody at depth, which project the dimensions of the orebody
to extend to the 1570 level;
- Escondida Norte (870 Level Cachi Cachi) – 1 hole totaling 243
meters which intercepted mineralized oxide zones down to the 1120
level; we are continuing to drill this area;
Definition Drilling:
- Antacaca (Level 1070): 4 holes totaling 210 meters to provide
more certainty and definition of the orebody;
- Esperanza (Level 970): 10
holes totaling 1,410 meters to define the continuity of
mineralization of the orebody; which were executed from the 970
level;
- Catas (Levels 1020 & 1070): 8 holes totaling 799 meters to
further define the orebody;
- Butz (1070 Level): 9 holes totaling 862 meters to further
define the orebody, which intercepted polymetallic mineral;
- Mascota (1170 Level): 2 holes
totaling 459 meters in the polymetallic area of the orebody to
further define it; these holes intercepted stretches of economic
mineral;
- During Q2 2018, surface exploration was continued in the
southern end of the Central Mine Zone, mainly in the areas of the
Chonta Fault (Yauricocha II), where diamond drilling will be
carried out.
Bolivar
- At Bolívar during Q2 2018, 7,403 meters were drilled from
surface as well as diamond drilling within the mine. 2,026 meters
were drilled within the mine in the El
Gallo zone, and 5,377 meters of surface diamond drilling
divided between Bolivar Northwest, Bolivar West and Cieneguita. This drilling was performed to
explore the extension of the orebody to the North and West,
exploring the skarn orebody with semi-massive magnetite, and
disseminated nodules of chalcopyrite. There are also greenfield
exploration targets being explored to analyze geological anomalies
and the continuity of the orebody Americanos to the west.
Cusi:
- During Q2 2018 the Company drilled 960 meters inside the mines
to verify the continuity of the orebodies and support development
work on the various veins and 10,416 meters on surface.
- On June 29, 2018 the Company
announced the definition of a 40-metre wide, high grade silver
stockwork area which remained open to depth and width within the
Santa Rose de Lima zone. Subsequent drilling has since extended the
width of that zone to 50-meters from 40-meters with the area still
remaining open to depth and along strike.
Conference Call Webcast
Sierra Metals' senior management will host a conference call on
Tuesday August 14, 2018 at
10:30 AM (EDT) to discuss the
Company's financial and operating results for the three and six
months ended June 30, 2018.
Via Webcast:
A live audio webcast of the meeting will be available on the
Company's website:
https://event.on24.com/wcc/r/1772236/A192A076A6DB5C6B167C46D0E3FB1505
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 North America): (833) 245-9659
Participant Number (Toll Free Peru): 0800-71-476
Participant Number (International): +1 (647) 689-4231
Conference ID: 3657779
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".
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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.
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SOURCE Sierra Metals Inc.