Sierra Metals Announces Fourth Quarter 2013 Financial Results of its Subsidiary Sociedad Minera Corona in Peru - WDRB 41 Louisville News

Sierra Metals Announces Fourth Quarter 2013 Financial Results of its Subsidiary Sociedad Minera Corona in Peru

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Sierra Metals Inc.

VANCOUVER, Feb. 14, 2014 /PRNewswire/ - 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 fourth quarter of 2013. 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.

Daniel Tellechea, President and CEO of Sierra Metals, commented: "Corona's annual results reflect the Company's strong cashflow generation capacity despite a less favorable commodity price environment. For 2014, Corona will focus its efforts on maintaining existing cash costs, reducing grade dilution by a better control of water inflows, completing the current underground mine infrastructure project, and carrying out regional exploration along the Yauricocha fault."

The following table sets out select unaudited financial information for the three and twelve months ended December 31, 2013 and 2012:

           
    3 Months Ended 12 Months Ended
(In thousands of US dollars, unless otherwise stated) Dec 31, 2013 Dec 31, 2012 Dec 31, 2013 Dec 31, 2012
Revenue  $  23,698 35,989 106,175 149,566
Adjusted EBITDA 1   9,033 15,317 47,234 81,350
Cash Flow from continuing operations   9,953 14,570 17,703 50,551
Gross profit   9,677 19,172 44,372 85,263
Income Taxes   (2,097) (4,105) (11,959) (22,063)
Discontinued operations   - (1,550) - 3,372
Net Income attributable to shareholders   1,810 6,989 16,715 51,083
Cash Cost per oz of Ag (Yauricocha) 2  $  (7.96) (13.11) (12.04) (19.44)
           
(In thousands of US dollars, unless otherwise stated) Dec 31, 2013 Dec 31, 2012    
Cash and cash equivalents  $  36,242 72,071    
Assets   117,583 141,826    
Liabilities   58,831 52,231    
Equity   58,752 89,595    
1 Adjusted EBITDA is defined by management as EBITDA adjusted for non-cash and non-recurring items including share-based   
  compensation, foreign exchange gain (loss), gain (loss) from discontinued operations and unrealized gain (loss) on financial 
  instruments held at fair value through profit and loss.        
2 Cash costs are calculated to include cost of sales, treatment and refining charges, and selling expenses less depreciation, 
  workers profit sharing and other non-cash provisions included in cost of sales.      


Corona's Financial Highlights

  • Net income of US$1.8 million or US$0.050 per share for the fourth quarter of 2013 compared to US$7.0 million or US$0.194 per share for the same period in 2012. The net income in the fourth quarter includes a charge of US$1.8 million from negative settlements on provisionally priced concentrate revenues earlier in 2013 and a severance charge of US$0.3 million as part of the implementation of cost reduction programs. Net income of US$16.7 million or US$0.464 per share and US$51.1 million or US$1.420 per share for the twelve months ended December 31, 2013 and 2012, respectively. Note that the 2012 earnings include a US$3.4 million extraordinary gain from the sale of the Huanchor Hydroelectric assets.
  • Adjusted EBITDA of US$9.0 million for the fourth quarter of 2013 compared to US$15.3 million for the same period in 2012. Adjusted EBITDA of US$47.2 million and US$81.4 million for the twelve months ended December 31, 2013 and 2012, respectively. The adjusted EBITDA generated by Corona during 2013 was negatively impacted primarily by the decrease in the commodity prices and lower metal production driven by higher dilution in head grades at Yauricocha.
  • Operating cash flow of US$9.9 million for the fourth quarter of 2013 compared to US$14.6 million for the same period in 2012. Operating cash flow of US$17.7 million and US$50.6 million for the twelve month period ended December 31, 2013 and 2012, respectively. The difference between EBITDA and operating cash flow during 2013 is mainly explained by tax payments of US$19.7 million and working capital changes of US$11.1 million. The decrease in operating cash flow during 2013 compared to 2012 was mainly driven by lower adjusted EBITDA and a prepayment of current taxes for $3.3 million which will be used to offset tax payments during 2014.
  • Income taxes of US$2.1 million for the fourth quarter of 2013 compared to US$4.1 million in the same period of 2012. Income taxes of US$12.0 million and US$22.1 million for the twelve month period ended December 31, 2013 and 2012, respectively.
  • Revenues of US$23.7 million for the fourth quarter of 2013 compared to US$36.0 million for the same period in 2012. Revenues in the quarter were impacted by an increase in inventories caused by a stronger production rate than budget in December 2013. Revenues from this production should be reflected in the first quarter of 2014. Revenues of US$106.2 million and US$149.6 million for the twelve month period ended December 31, 2013 and 2012, respectively.
  • Cash and cash equivalents of US$36.2 million as at December 31, 2013 compared to US$72.1 million as of December 31, 2012. Cash and cash equivalents have decreased during 2013 mainly as a result of the dividend paid by Corona of US$47.6 million and capital expenditures of US$19.2 million. This decrease was partially offset by the $15.0 million draw down of the loan facility with the Banco de Credito del Peru during the fourth quarter.
  • A negative silver cash cost of US$7.96 per ounce ("oz") at Yauricocha in the fourth quarter of 2013 compared to a negative cash cost of US$13.11 in the same period of 2012. A negative silver cash cost of US$12.04 per oz at Yauricocha for 2013 compared to a negative cash cost of US$19.44 per oz for 2012. The main drivers for the increase in silver cash cost during 2013 were lower production of payable ounces of silver and lower by-product credits.

Corona's Operational Highlights

  • Silver production of 463,964 oz in the fourth quarter of 2013 compared to 547,114 oz for the same period in 2012. Silver production of 1,866,769 oz in 2013 compared to 2,143,972 oz for the same period in 2012.
  • Copper production of 1.2 million pounds ("lb") in the fourth quarter of 2013 compared to 2.2 million lb for the same period in 2012. Copper production of 6.5 million lb in 2013 compared to 9.0 million lb for the same period in 2012.
  • Lead production of 11.0 million lb in the fourth quarter of 2013 compared to 8.6 million lb for the same period in 2012. Lead production of 37.1 million lb in 2013 compared to 35.2 million lb for the same period in 2012.
  • Zinc production of 13.4 million lb in the fourth quarter of 2013 compared to 13.8 million lb for the same period in 2012. Zinc production of 50.8 million lb in 2013 compared to 49.9 million lb for the same period in 2012.
  • Gold production from the Yauricocha Mine was 1,665 oz in the fourth quarter of 2013 and 2,181 oz for the same period in 2012. Gold production from the Yauricocha Mine was 6,736 oz in 2013 and 10,491 oz for the same period in 2012.

The following table sets out production results as of December 31, 2013 and 2012:

                           
Yauricocha Production   3 Months Ended     12 Months Ended
    Dec 31, 2013   Dec 31, 2012   % Var.     Dec 31, 2013   Dec 31, 2012   % Var.
Silver production (oz)   463,964   547,114   -15%     1,866,769   2,143,972   -13%
Copper production (000 lb)   1,167   2,172   -46%     6,514   9,061   -28%
Lead production (000 lb)   10,956   8,571   28%     37,055   35,200   5%
Zinc production (000 lb)   13,382   13,803   -3%     50,817   49,888   2%
Gold Production (oz)   1,665   2,181   -24%     6,736   10,491   -36%
                           


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 Mine 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 the Toronto Stock Exchange 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. 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.

 

 

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WDRB. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.