TORONTO, ON, May 1, 2013 /CNW/ - Sierra Metals Inc. (TSXV: SMT) (BVL: SMT) ("Sierra" or the "Company") is pleased to
announce that the Company has completed its first quarterly cash
dividend payment of $2.5 million, or $.016 per common share ("Common
Share"), to shareholders on April 30, 2013. The Company announced its
inaugural $10.0 million cash dividend policy on February 12, 2013 (see press release dated February 12, 2013 here) as a result of substantial production increases and significant cash
flows from operations realized in 2012.
Press Release Highlights:
Sierra paid its first quarterly cash dividend of $2.5 million, or $0.016
per Common Share, on April 30, 2013.
During 2012, Sierra achieved record production from all operations and
announced its strongest fiscal year to date with revenues of $179.7
million, earnings (EBITDA) of $83.8 million and cash flows from
operations of $60.5 million.
Sierra's strong cash flows during 2012 were used to pay down the
Company's working capital line in Mexico, complete the acquisition of
Plexmar and pay the 2013 first quarter cash dividend payment to
The Company is focused on a fiscally responsible growth strategy that
will increase shareholder value through increased production. The
proceeds of the $44.4 million private placement completed in June 2012
have been allocated to increasing the production profile of the
Company's mines in Peru and Mexico.
Sierra intends to pay a total cash dividend of approximately $10.0
million, or $0.064 per Common Share, for 2013 and anticipates the
announcement of its second quarter cash dividend will take place on or
after June 30, 2013.
Daniel Tellechea, President and CEO of Sierra Metals, commented "Sierra Metals is very pleased to announce its first cash dividend
payment to shareholders of $2.5 million. The acquisition of the
Yauricocha mine and announcement of commercial production at the
Bolivar mine have resulted in record production for the Company during
2012. Additionally, these low-cost, highly profitable mines have also
resulted in strong cash flows allowing Sierra to lower its net-debt and
enact the new 2013 $10.0 million cash dividend policy."
During 2012, Sierra Metals focused on maximizing operational
efficiencies at the Yauricocha mine in Peru and the Bolivar mine in
Mexico with 2012 marking the first full year of production at both
operations. This resulted in the Company achieving record production
with revenues of $179.7 million, earnings (EBITDA) of $83.8 million and
cash flow from operations of $60.5 million. Among other things, these
strong cash flows were used to pay down working capital loans in
Mexico, complete the acquisition of Plexmar and pay the Company's first
inaugural cash dividend. At the end of 2012, the Company had a cash
balance of $79.8 million and net-debt of $9.0 million.
The Company is committed to a fiscally responsible growth strategy of
increasing near mine reserves and resources while adding value through
production growth at all three producing mines. In June 2012, the
Company completed a $44.4 million private placement (see press release dated June 7, 2012) with proceeds dedicated to increasing the production profile of the
Accelerating mine development at the Cusi Mine, which announced
commercial production of 200 ("tpd") tpd on January 1, 2013;
Doubling throughput capacity at the Piedras Verdes mill (located 6 km
from the Bolivar mine) from 1,000 tonnes per day to 2,000 tpd, with an
anticipated completion date in the second quarter of 2013; and,
Developing a new internal shaft and haulage drift in the Central Mine
area of the Yauricocha property to access deeper levels of the mine and
increase production capacity, anticipated to be completed in late 2015.
Sierra Metals anticipates the announcement of its second quarter cash
dividend will take place on or after June 30, 2013.
The technical content of this news release has been approved by Thomas
L. Robyn, Ph.D., CPG, RPG, a Qualified Person as defined in NI 43-101
and Head of Exploration for Sierra Metals Inc.
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
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 TSXV
under the symbol "SMT".
This press release does not constitute an offer to sell or solicitation
of an offer to buy the securities in the United States or any other
jurisdiction. The Common Shares will not be and have not been
registered under the United States Securities Act of 1933, as amended,
and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements.
Neither the TSXV nor its Regulation Services Provider (as that term is
defined in policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this release.
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.
For further information:
on Sierra Metals, please visit www.sierrametals.com or contact:
President & CEO
Sierra Metals Inc.
1 (866) 493‐9646
Director, Investor Relations
Sierra Metals Inc.
1 (866) 493‐9646