Sierra Metals Inc T.SMT

Financial Results for the Second Quarter of 2021

[Betteryear2]

Conference Call August 10, 2021, at 10:30 AM (EDT)

(All $ figures reported in USD)

• Revenue from metals payable of $79.4 million in Q2 2021, a 90% increase from $41.9 million in Q2 2020
• Operating cash flows before movements in working capital of $35.8 million in Q2 2021, a 171% increase from $13.2 million in Q2 2020
• Adjusted EBITDA of $37.7 million in Q2 2021, a 173% increase from $12.6 million in Q2 2021
• Record quarterly throughput at the Yauricocha Mine in Peru
• Q2 2021 consolidated production includes 9.5 million pounds of copper, a 2% decrease; 1.0 million ounces of silver, a 67% increase; 21.1 million pounds of zinc, a 54% increase; 8.0 million pounds of lead, a 24% increase; and 2,812 ounces of gold, a 2% increase respectively, compared to Q2 2020. Copper production decreased due to mining of lower-grade zones in Yauricocha and Bolivar
• Cash costs and All-in Sustaining Costs ("AISC") per copper equivalent payable pound of $1.41 and $1.57 respectively compared to Q2 2020 cash costs of $0.91 and AISC of $1.80 at the Yauricocha Mine; cash costs and AISC per copper equivalent payable pound of $1.17 and $3.27 respectively compared to Q2 2020 cash costs of $1.02 and AISC of $1.60 at the Bolivar Mine; cash costs and AISC per silver equivalent payable ounce of $21.67 and $35.73 respectively compared to Q2 2020 cash costs of $18.66 and AISC of $26.25 at the Cusi Mine; cash costs increased during Q2 2021 due to the ongoing COVID-19 related impact on operations, while AISC was driven higher by the increase in sustaining capital expenditure, as the mines tried to catch up on the capital expenditure deferred during the recent quarters.
• $76.1 million of cash and cash equivalents as at June 30, 2021
• A shareholder conference call to be held Tuesday, August 10, 2021, at 10:30 AM (EDT)

 

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