Lahontan Gold Corp. press release
Sierra Metals announces third quarter 2014 financial results of its subsidiary Sociedad Minera Corona in Peru
TSXV - TSX Venture Exchange · Gold · Silver · Canada
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VANCOUVER, Oct. 30, 2014/CNW/ - Sierra Metals Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") announces the filing of Sociedad Minera Corona S.A.'s ("Corona") unaudited Financial Statements and Management Discussion and Analysis ("MD&A") for the third quarter of 2014 (Q3 2014). The Company holds an 81.8% interest in Corona. All amounts are presented in thousands of US dollars unless otherwise stated and have not been adjusted for the 18.2% non-controlling interest.
Corona'sFinancial Highlights For The Third Quarter of 2014:
Net Income of US$ 8.2 millionor US$ 0.228per share for Q3 2014; a 109% increase over Q3 2013; Adjusted EBITDA of US$ 18.6 millionfor Q3 2014; a 94% increase over Q3 2013; Operating cash flow of US$ 18.0 millionfor Q3 2014; a 214% increase over Q3 2013; Revenues of US$ 32.0 millionfor Q3 2014; a 46% increase over Q3 2013; and Negative by-product cash cost per ounce of silver of US$ 24.26at Yauricocha for Q3 2014; a 115% decrease over Q3 2013.
Audra Walsh, President and CEO stated: "For the third quarter of 2014 we delivered on our commitment to increase production while continuing to reduce costs and improve margins as we remain focused on maximizing cash flows. Consistent with this focus, Corona'steam achieved higher production levels and lower cash cost per ounce, which resulted in higher operating cash flows, adjusted EBITDA and profit levels for the third quarter of 2014. The main drivers for these positive results have been the measures that the Company has been implementing since the third quarter of 2013 to increase operational efficiencies and reduce costs. Coronais committed and on track to meet its production guidance for 2014 and continues its efforts to be a low cost producer."
The following table sets out select unaudited financial information for the three and nine months ended September 30, 2014and 2013:
| | | | | | | | | | | 3 Months Ended | 9 Months Ended | | | | | (In thousands of US dollars, except cash cost per ounce) | 30-Sep-14 | 30-Sep-13 | 30-Sep-14 | 30-Sep-13 | | | | | | | | | | | | Revenue | $ | 32,043 | 21,923 | 90,954 | 82,477 | | | Adjusted EBITDA1 | | 18,592 | 9,592 | 46,866 | 38,192 | | | Cash Flow from operations | | 17,982 | 5,730 | 37,319 | 9,218 | | | Gross profit | | 18,286 | 8,251 | 46,150 | 34,695 | | | Income Taxes | | (5,743) | (2,295) | (13,467) | (9,862) | | | Net Income | | 8,201 | 3,916 | 21,366 | 14,905 | | | | Cash Cost per oz of Ag (Yauricocha)2 | $ | (24.26) | (11.27) | (21.71) | (13.38) | | | | | | | | | | | | | | | | | | (In thousands of US dollars, unless otherwise stated) | 30-Sep-14 | 31-Dec-13 | | | | | | | | | | | | | | Cash and cash equivalents | $ | 40,331 | 36,242 | | | | | Assets | | 120,529 | 117,583 | | | | | Liabilities | | 61,232 | 58,831 | | | | | Equity | | 59,297 | 58,752 | | | | | | | | | | | | | 1Adjusted EBITDA is defined by management as EBITDA adjusted for non-cash and non-recurring items including foreign exchange gain (loss). | | | | | | | | 2Cash costs include cost of sales, treatment and refining charges, and selling expense, and exclude workers' profit sharing, depreciation and_other non-cash provisions. Cash costs are calculated based on the ounces of payable silver sold for each of the reporting periods._ | | | | | | | | | | | | | | |
Corona'sFinancial Highlights
Net income of US$ 8.2 millionor US$ 0.228per share for the third quarter of 2014 compared to US$ 3.9 millionor US$ 0.109per share for the same period in 2013. Net income of US$ 21.4 millionor US$ 0.594per share and US$ 14.9 millionor US$ 0.414per share for the nine months ended September 30, 2014and 2013, respectively. Adjusted EBITDA of US$ 18.6 millionfor the third quarter of 2014 compared to US$ 9.6 millionfor the same period in 2013. Adjusted EBITDA of US$ 46.9 millionand US$ 38.2 millionfor the nine months ended September 30, 2014and 2013, respectively. The increase in adjusted EBITDA for the third quarter and the nine month period ended September 30, 2014compared to 2013 is mainly due to the increase in revenues and higher gross margins recorded during the period. This has been the result of the measures taken by the Company to increase operating efficiencies and reduce costs that has been implementing since the third quarter of 2013. Operating cash flow of US$ 18.0 millionfor the third quarter of 2014 compared to US$ 5.7 millionfor the same period in 2013. Operating cash flow of US$ 37.3 millionand US$ 9.2 millionfor the nine month period ended September 30, 2014and 2013, respectively. The increase in operating cash flow is mainly the result of the higher revenues, higher gross margins and a US$ 12.0 millionpositive impact on working capital driven by workers' profit sharing and tax adjustments in 2014. Revenues of US$ 32.0 millionfor the third quarter of 2014 compared to US$ 21.9 millionfor the same period in 2013. Revenues of US$ 91.0 millionand US$ 82.5 millionfor the nine month period ended September 30, 2014and 2013, respectively. The increase in revenues for the third quarter and the nine month period ended September 30, 2014compared to 2013 is mainly as a result of higher lead grades, higher silver and lead recoveries and a higher volume of concentrate sold. This was partially offset by the decrease in silver and copper commodity prices compared to 2013. Cash and cash equivalents of US$ 40.3 millionas at September 30, 2014compared to US$ 36.2 millionas of December 31, 2013. Cash and cash equivalents increased by US$ 4.1 millionmainly driven by US$ 37.3 millionof operating cash flow, offset by US$ 20.8 millionof dividend payments, US$ 11.5 millionof capital expenditures and US$ 0.8 millionof financing activities. Negative by-product cash cost per ounce of silver of US$ 24.26at Yauricocha for the third quarter of 2014 compared to a negative by-product cash cost per ounce of silver of US$ 11.27for the same period of 2013. Negative by-product cash cost per ounce of silver of US$ 21.71and US$ 13.38at Yauricocha for the nine month period ended September 30, 2014and 2013, respectively. Lower cash cost per ounce of silver during the three and nine month period ended September 30, 2014compared to 2013 is driven by lower cash cost per tonne processed and higher by-product credits. This is the result of the cost reduction measures that the Company has been implementing since the third quarter of 2013 and which have resulted in operating efficiencies and cost savings. The largest reductions in the mining cost for 2014 have been achieved in the cost of supplies, contractor services and labor costs. The largest reductions in the plant costs have been achieved in the cost of supplies (reagents and ball mills) and maintenance costs. Also, the cost per tonne has decreased due to the higher production levels achieved in 2014 compared to 2013.
Corona'sOperational Highlights:
Total tonnes processed of 224,970; an 11% increase over Q3 2013 Silver production of 552,677 ounces; a 24% increase over Q3 2013 Copper production of 1.9 million pounds; a 30% increase over Q3 2013 Lead production of 12.2 million pounds; a 46% increase over Q3 2013 Zinc production of 14.7 million pounds; a 20% increase over Q3 2013 Gold production of 1,369 ounces; an 18% decrease over Q3 2013
The following table sets out production results for the three and nine months ended September 30, 2014and 2013:
| Yauricocha Production | 3 Months Ended | 9 Months Ended | | | | | | | | Sep 30, 2014 | Sep 30, 2013 | % Var. | Sep 30, 2014 | Sep 30, 2013 | % Var. | | | | | | | | | | | | Silver production (oz) | 552,677 | 447,145 | 24% | 1,526,225 | 1,402,805 | 9% | | | Copper production (000 lb) | 1,899 | 1,458 | 30% | 5,393 | 5,347 | 1% | | | Lead production (000 lb) | 12,194 | 8,338 | 46% | 35,082 | 26,099 | 34% | | | Zinc production (000 lb) | 14,668 | 12,268 | 20% | 40,857 | 37,435 | 9% | | | Gold Production (oz) | 1,369 | 1,673 | -18% | 4,323 | 5,071 | -15% | | | | | | | | | | |
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company focused on production of 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 Peruand Mexico. Projects in Peruinclude Adrico (gold), Victoria(copper-silver) and Ipillo (polymetallic) at the Yauricocha Property in the province of Yauyos and the San Miguelitogold properties in Northern Peru. Projects in Mexicoinclude Bacerac(silver) in the state of Sonoraand La Verde(gold) at the Batopilas Property in the state of Chihuahua.
The Company's shares trade on the Lima Stock Exchange (Bolsa de Valores de Lima) and on the TSX under the symbol "SMT".
Forward-Looking Statements
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. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events or results. These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. 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 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.
For further information regarding Sierra Metals, please visit www.sierrametals.com or contact: Audra Walsh, President & CEO, Sierra Metals Inc., 1 (866) 493?9646; Victoria Vargas, Vice President, Investor Relations, Sierra Metals Inc., 1 (866) 493?9646, info@sierrametals.comCopyright CNW Group 2014