Sierra Metals (TSX:SMT, Stock Forum) reported that its South American subsidiary, Sociedad Minera Corona SA, released unaudited financial results and analysis for Q2 2014.
According to the news release, Corona, which the company owns an 81.8% interest in, reported that it had brought in a net income of US$7.0 million or US$0.194 per share during the quarter versus a net income of US$1.8 million or US$0.051 per share reported in the matching 2013 period.
Quarterly operating cash flow totaled out at US$10.5 million compared to US$2.7 million filed in the matching 2013 quarter with six-month operating cash flow hitting US$19.3 million versus US$3.5 million in 2013. The increase in cash flow was attributed to higher revenues and gross margins and a positive impact of US$8.5 million on working capital due to lower payments of workers' profit sharing and taxes in 2014.
Corona produced 479,254 ounces of silver during the quarter and 973,548 ounces silver over the first six months of 2014 while copper production totaled 1.8 million pounds, lead production hit 3.5 million pounds, zinc produced totaled 13.5 million pounds and gold produced at Yauricocha mine totaled 1,480 ounces for the quarter.
The company's newly appointed president and CEO, Audra Walsh, commented on the results, “Corona has achieved higher production levels and lower cash cost per ounce, which resulted in higher operating cash flows, adjusted EBITDA and profit levels for the second quarter of 2014.”
She went on to explain, “The main drivers for these positive results have been the measures that the Company has been implementing since the second half of 2013 to increase operational efficiencies and reduce costs.”
Then she concluded, “Corona is committed to meet its production guidance for 2014. I look forward to working with the team at Corona in their continual efforts to be a low cost producer.”
Sierra Metals was in the news recently when the company announced the appointment of Audra Walsh as president and CEO six days ago.
Currently there are 159.5m outstanding shares with a market cap of $303.1 million.
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