TORONTO, Feb. 15, 2013 /CNW/ - Sierra Metals Inc. (TSX-V:SMT) (BVL:SMT) ("Sierra") ("the Company") is pleased to announce the filing of Sociedad Minera Corona S.A.'s ("Corona") 2012 fourth quarter and annual unaudited financial statements and management's discussion and analysis. The Company holds an ownership interest of 81.8% 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.
Daniel Tellechea, President and CEO of Sierra Metals, commented "Sierra is pleased with the continued success of the Corona acquisition. Corona is a low-cost producer with strong cash flow generating capacity that has added substantial value to the Company since May 2011. The Yauricocha Mine will continue to be an integral part of the Company's operations as the development of the new shaft at depth will lead to increases in production over the coming years".
The following table sets out select unaudited financial information for the fourth quarter and year ended December 31, 2012 and 2011:
(In thousands of US dollars, unless stated) | 3 months ended | Year ended | ||||||
Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2012 | Dec 31, 2011 | |||||
Revenue | US$ | 35,989 | $ | 31,363 | $ | 149,566 | $ | 144,603 |
EBITDA | 15,013 | 19,667 | 81,392 | 93,569 | ||||
Operating cash flows | 14,248 | 15,351 | 56,273 | 68,275 | ||||
Income Taxes | 4,650 | 8,252 | 30,385 | 27,836 | ||||
Net Income | 7,455 | 15,883 | 47,660 | 63,444 | ||||
Cash Cost per oz of Ag (Yauricocha) | (15.46) | (15.78) | (20.46) | (30.99) |
Corona's Financial Highlights (US$000)
Corona's Operational Highlights
The following table sets out production results for the fourth quarter and year ended December 31, 2012 and 2011:
Yauricocha Production1 | 3 Months Ended | Year Ended | ||||
Dec 31,2012 | Dec 31, 2011 | % Var. | Dec 31, 2012 | Dec 31, 2011 | % Var. | |
Silver production (oz) | 547,114 | 530,449 | 3% | 2,143,971 | 2,071,208 | 4% |
Copper production (000 lb) | 2,172 | 2,525 | -14% | 9,061 | 13,506 | -33% |
Lead production (000 lb) | 8,571 | 7,871 | 9% | 35,200 | 32,572 | 8% |
Zinc production (000 lb) | 13,803 | 8,579 | 61% | 49,888 | 34,294 | 45% |
Gold Production (oz) | 2,181 | N.A. | N.R. | 10,491 | N.A. | N.R. |
Corona's Exploration Highlights
Quality Assurance
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 and its Bolivar mine in
Mexico. The Company is also advancing its Cusi silver project in Mexico
from advanced development into commercial production. 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. 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.
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. 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:
For further information on Sierra Metals, please visit www.sierrametals.com or contact:
Daniel Tellechea
President & CEO
Sierra Metals Inc.
1 (866) 493‐9646
Matt Morrish
Director, Investor Relations
Sierra Metals Inc.
1 (866) 493‐9646
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