|By PR Newswire||
|March 26, 2014 06:00 AM EDT||
VANCOUVER, March 26, 2014 /PRNewswire/ - Sierra Metals Inc. (TSX:SMT) (BVL:SMT) ("Sierra Metals" or the "Company") is pleased to report the filing of its audited Financial Statements and Management Discussion and Analysis ("MD&A") for 2013. All amounts are presented in US dollars unless otherwise stated. For the full Financial Statements or MD&A please visit the Company's website www.sierrametals.com or SEDAR at www.sedar.com.
Daniel Tellechea, President and CEO of Sierra Metals, commented: "2013 was a year of the largest capex in our history focused on production expansion, mine development and exploration investments of $44 million in our three operating mines in Peru and Mexico. This has resulted in material reserve/resource growth and laid down the foundation for further metal output expansions, particularly for silver. The impact of higher operating rates in the latter part of 2013 in our two Mexican mines was more than offset by a decline in metal prices and lower ore grades in our Yauricocha Mine in Peru, which was mainly due to water management issues. We expect our results to improve in 2014 as we consolidate the production ramp up at our Bolivar copper mine and Cusi silver mine, implement measures to improve water management at Yauricocha and benefit from the measures undertaken to reduce operating costs, while continuing to execute the Company's investment pipeline to achieve continued growth in 2015 and beyond".
The following table sets out the selected quarterly and annual financial results:
|3 Months Ended||12 Months Ended|
|(In thousands of dollars, unless stated)||Dec 31, 2013||Dec 31, 2012||Dec 31, 2013||Dec 31, 2012|
|Revenue||$ 36,417||$ 43,738||$ 143,538||$ 179,795|
|Cash flow from continuing operations||12,418||22,678||26,749||62,999|
|Adjusted net income attributable to shareholders1||1,195||5,902||16,277||34,267|
|Non-cash depletion charge on Corona acquisition||(9,241)||(17,322)||(57,297)||(77,021)|
|Gross profit (loss)||4,498||2,192||(3,154)||16,494|
|Income Tax Recovery (Expense)||(2,879)||(2,888)||3,125||(10,311)|
|Net loss attributable to shareholders||(14,330)||(10,747)||(33,973)||(28,678)|
|Basic and diluted loss per share ($)|
|From continuing operations||(0.09)||(0.06)||(0.22)||(0.17)|
|From discontinued operations||-||(0.01)||-||(0.02)|
|Cash Cost per oz of Ag (Yauricocha)1||US$||(7.96)||(13.11)||(12.04)||(19.44)|
|Cash Cost per lb of Cu (Bolivar)1||US$||1.72||2.07||1.70||1.66|
|Cash Cost per oz of Ag (Cusi)1||US$||14.25||N.A.||15.61||N.A.|
|(In thousands of dollars)||Dec 31, 2013||Dec 31, 2012|
|Cash and cash equivalents||$ 44,930||$ 80,244|
|1 An explanatory note regarding non-GAAP measures is included in section 13 of the Company's MD&A.|
Adjusted net income attributable to shareholders of $16.3 million or
$0.10 per share for the twelve months ended December 31, 2013 compared
to $34.3 million or $0.23 per share for the same period in 2012.
Adjusted net income attributable to shareholders of $1.2 million or
$0.01 per share for the three months ended December 31, 2013 compared
to a net income of $5.9 million or $0.04 per share for the same period
Net loss attributable to shareholders of $34.0 million or $0.22 per
share for the twelve months ended December 31, 2013 compared to a loss
of $28.7 million ($0.19 per share) for the same period in 2012. The
increase in net losses attributable to shareholders is mainly due the
decrease in adjusted EBITDA year-over-year and an impairment charge of
$7.8 million in Mexico against certain exploration and evaluation
assets. Net loss attributable to shareholders of $14.3 million or $0.09
per share for the three months ended December 31, 2013 compared to a
loss of $10.7 million ($0.07 per share) for the same period in 2012.
A large component of the net loss every period is the non-cash effect of
the acquisition of Corona in Peru, which for the twelve months ended
December 31, 2013 was $57.3 million (2012- $77.0 million) and for the
three months ended December 31, 2013 was $9.2 million (2012- $17.3
million). The units of production non-cash depletion charge is based on
the aggregate fair value of the Yauricocha mineral property at the date
of acquisition of Corona of $371.0 million amortized over the total
proven and probable reserves of the mine. The Company has been
successful in reducing the depletion expense year-over-year as a result
of the increase in the mineral reserves at Yauricocha based on the NI
43-101 reports dated October 2012 and November 2013.
- Adjusted EBITDA of $54.5 million for the twelve months ended December 31, 2013 compared to $83.9 million for the same period in 2012. This decrease was mainly a result of lower commodity prices and lower metal production due ore grade dilution caused by water management problems at Yauricocha. Adjusted EBITDA of $12.9 million for the three months ended December 31, 2013 compared to $13.0 million for the same period in 2012.
Cash flow generated from continuing operations of $26.7 million for the
twelve months ended December 31, 2013 compared to $63.0 million for the
same period in 2012. This decrease was mainly driven by lower adjusted
EBITDA and higher uses of working capital. Cash flow generated from
continuing operations of $12.4 million for the three months ended
December 31, 2013 compared to $22.7 million for the same period in
Cash and cash equivalents of $44.9 million as at December 31, 2013
compared to $80.2 million at the end of 2012. Cash and cash equivalents
have decreased by $35.3 million during 2013 mainly due to the capital
expenditures incurred in Mexico and Peru of $44.0 million and $16.0
million of dividends paid to shareholders and non-controlling interest,
partially offset by $26.7 million of operating cash flow.
Revenues of $143.5 million for the twelve months ended December 31, 2013
compared to $179.8 million for the same period in 2012. Revenues of
$36.4 million for the three months ended December 31, 2013 compared to
$43.7 million for the same period in 2012.
- Negative by-product cash cost per ounce of silver of $12.04 at Yauricocha, by-product cash cost per ounce of silver of $15.61 at Cusi and by-product cash cost per pound of copper of $1.70 at Bolivar for the twelve months ended December 31, 2013 compared to negative by-product cash cost per ounce of silver of $19.44 at Yauricocha and by-product cash cost per pound of copper of $1.66 at Bolivar for the same period of 2012. Negative by-product cash cost per ounce of silver of $7.96 at Yauricocha, by-product cash cost per ounce of silver of $14.25 at Cusi and by-product cash cost of $1.72 per pound of copper at Bolivar for the three months ended December 31, 2013 compared to negative by-product cash cost per ounce of silver of $13.11 at Yauricocha and by-product cash cost per pound of $2.07 at Bolivar for the same period of 2012. Cash costs at Cusi for 2012 are not available because this property was not in commercial production at that time.
Total silver production of 2,560,467 ounces (''oz'') in 2013 compared to
2,620,774 oz in 2012. In-line with the previous year. In the fourth
quarter of 2013 a total of 653,705 oz was produced compared to 683,938
oz for the same period of 2012. A 4% decrease year-over-year.
Total copper production of 15.9 million pounds (''lb'') in 2013 compared
to 15.9 million lb in 2012. In-line with the previous year. In the
fourth quarter of 2013 a total of 4.8 million lb was produced compared
to 4.3 million lb for the same period of 2012. An 11% increase
year-over-year. The main driver for this increase is the ramp up from
1,000 tpd to 2,000 tpd at Bolivar.
Total lead production of 38.0 million lb in 2013 compared to 35.7
million lb in 2012. A 6% increase year-over-year. In the fourth quarter
of 2013 a total of 11.3 million lb was produced compared to 8.7 million
lb for the same period of 2012. A 30% increase year-over-year mainly
driven by higher head grades at Yauricocha in Peru.
Total zinc production of 51.7 million lb in 2013 compared to 59.0
million lb in 2012. A 12% decrease year-over-year. In the fourth
quarter of 2013 a total of 13.4 million lb was produced compared to
14.7 million lb for the same period of 2012. A 9% decrease
Total gold production at the Yauricocha Mine was 6,736 oz in 2013
compared to 10,491 oz in 2012. A 36% decrease year-over-year. In the
fourth quarter of 2013 a total of 1,665 oz was produced compared to
2,181 oz for the same period of 2012. A 24% decrease year-over-year.
- Production Guidance for 2014:
- Silver: 2,535,000 oz - 2.695,000 oz
- Copper: 22.6 million lb - 24.1 million lb
- Lead: 31.3 million lb - 33.0 million lb
- Zinc: 43.5 million lb - 45.8 million lb
- Gold: 7,700 oz - 8,200 oz.
On October 21, 2013, the Company announced that drilling at the Cusi
Mine expanded the Veta Del Contacto to 250 meters along strike and 700
meters of depth. The Veta del Contacto (Promontorio) body has now been
intercepted over a horizontal distance of 250 meters and a vertical
distance of 700 meters. Drill hole DC13B628 cut 9.6 meters core length
(3.0 meters true width) averaging 622 g/t silver. Drill hole DC13B634
cut 1.4 meters core length (1.4 meters true width) averaging 887 g/t
silver. Since 2011, 34 drill holes have identified and expanded the
known mineralized zones, which are open in both directions along strike
and to depth.
- On November 19, 2013, the Company announced that Yauricocha's mineral reserves had been increased by over 2,230,000 tonnes, representing an increase of 53.5% over the previously reported mineral reserves. The new report has an effective date of January 1, 2013. The mineral resource and mineral reserve estimate was completed by Yauricocha personnel and audited by Gustavson Associates LLC of Lakewood, Colorado.
On October 1, 2013, the Company announced its third quarterly cash
dividend of approximately CAD$2.5 million, or CAD$0.016 per common
share of the Company (each, a "Common Share"), payable on October 31,
2013 to the holders of the issued and outstanding Common Shares as of
the close of business on October 21, 2013.
On October 1, 2013, Sierra also announced the adoption of a dividend
reinvestment plan (the "Plan"). Eligible shareholders may elect to
participate in the Plan commencing with the third quarterly dividend.
The Plan provides a convenient and cost-effective way for eligible
shareholders to acquire additional Common Shares by reinvesting cash
dividends paid on their shareholdings. Highlights of the Plan include:
Common Shares issued under the Plan from treasury may be issued at a
discount not to exceed 5% of the weighted average market price of the
Common Shares over the ten-day period preceding the relevant dividend
payment date, as further described in the Plan. The current discount
has been set at 5% and shall apply until further notice by press
Brokerage commissions and administrative costs for the Common Shares
issued under the Plan will be borne by the Company rather than
shareholders participating in the Plan. However, participating
beneficial shareholders may incur fees in respect of services provided
by their respective nominees.
- During the fourth quarter of 2013, the Company recorded an impairment charge of $7.8 million in Mexico against certain exploration and evaluation assets. The impairment charge has been recorded mainly as a result of management's decision to cancel certain mining concessions as at December 31, 2013, as management has determined that the carrying value amount is unlikely to be recovered.
Declaration of First Quarter 2014 Dividend
The Company announces its quarterly cash dividend for the period ending March 31, 2014 of CAD$750,000 or CAD$0.005 per common share of the Company (each a "Common Share"), payable on April 30, 2014 to the holders of the issued and outstanding Common Shares as of the close of business on April 10, 2014.
The decision made by the Board of Directors to lower the dividend was driven by a potential more aggressive capital expenses program particularly at the Cusi silver mine which will be defined after the upcoming announcement of Cusi resource NI 43-101 report. Daniel Tellechea, President and CEO of Sierra Metals, commented: "In light of the strong geologic potential demonstrated at our three mines, Sierra is maintaining its aggressive capital expenditure and exploration programs despite continued metals market weakness. Consequently, we have decided to lower Sierra's cash dividend as we see more value creation in the investment of our capital resources on further high-quality growth in our silver assets."
The amount of future dividends to be declared, if any, shall be considered by the Board of Directors on a quarterly basis and will depend the Company's overall cash and operating position at the relevant time.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company focused on precious and base metals from its Yauricocha Mine in Peru, its Bolivar Mine and Cusi Mine in Mexico. In addition, Sierra Metals is exploring several precious and base metal targets in Peru and Mexico. Projects in Peru include Adrico (gold), Victoria (copper-silver) and Ipillo (polymetallic) at the Yauricocha Property in the province of Yauyos and the San Miguelito gold properties in Northern Peru. Projects in Mexico include Bacerac (silver) in the state of Sonora, La Verde (gold) at the Batopilas Property in the state of Chihuahua, and Las Coloradas (silver) at the Melchor Ocampo Property in the state of Zacatecas.
The Company's shares trade on the Bolsa de Valores de Lima and the Toronto Stock Exchange under the symbol "SMT".
Except for statements of historical fact contained herein, the information in this press release may constitute "forward-looking information" within the meaning of Canadian securities law. Other than statements of historical fact, all statements are "forward-looking statements", which involve various known and unknown risk and uncertainties and other factors, including market conditions that may affect the Company's ability to execute its current business plan. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.
SOURCE Sierra Metals Inc.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Aug. 26, 2016 04:00 PM EDT Reads: 3,916
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
Aug. 26, 2016 03:45 PM EDT Reads: 521
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Aug. 26, 2016 03:15 PM EDT Reads: 379
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Aug. 26, 2016 01:30 PM EDT Reads: 3,402
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Aug. 26, 2016 01:00 PM EDT Reads: 1,963
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Aug. 26, 2016 12:30 PM EDT Reads: 617
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Aug. 26, 2016 12:00 PM EDT Reads: 1,901
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
Aug. 26, 2016 11:45 AM EDT Reads: 650
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Aug. 26, 2016 11:45 AM EDT Reads: 575
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Aug. 26, 2016 11:30 AM EDT Reads: 557
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Aug. 26, 2016 11:20 AM EDT Reads: 332
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
Aug. 26, 2016 11:15 AM EDT Reads: 1,863
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Aug. 26, 2016 10:45 AM EDT Reads: 527
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Aug. 26, 2016 10:30 AM EDT Reads: 1,580
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Aug. 26, 2016 10:15 AM EDT Reads: 3,574