Latest news with #SierraMetalsInc
National Post
21-05-2025
- Business
- National Post
Sierra Metals Reminds Shareholders of Impending Deadline to Tender Shares to Alpayana Offer
Article content TORONTO — Sierra Metals Inc. (TSX: SMT | OTCQX: SMTSF | BVL: SMT) (' Sierra Metals ' or the ' Company ') wishes to remind shareholders that, following the initial expiry time for Alpayana's (as defined herein) all-cash offer of $1.15 (the ' Offer ') per common share of the Company (' Common Shares '), Alpayana has extended the period during which shareholders of Sierra Metals may tender their Common Shares to the Offer until 5:00 p.m. (Toronto time) on May 23, 2025 (the ' Deadline '), as required by applicable Canadian securities laws. Article content Article content As of the expiry of the initial deposit period for the Offer at 5:00 p.m. (Toronto time) on May 12, 2025, Alpayana announced that 152,904,401 Common Shares, representing approximately 70.7% of the issued and outstanding Common Shares, were tendered to the Offer and taken-up by Alpayana Canada Ltd., a wholly owned subsidiary of Alpayana S.A.C. (collectively ' Alpayana '). Subsequently, on May 19, 2025, Alpayana announced that an additional 34,413,923 Common Shares, representing approximately 15.9% of the issued and outstanding Common Shares, were tendered to the Offer and taken-up by Alpayana. Accordingly, Alpayana will, upon take-up of these Common Shares, own an aggregate of 187,318,324 Common Shares, representing approximately 86.7% of the issued and outstanding Common Shares. Article content Despite Sierra's ongoing efforts to work constructively with Alpayana toward a negotiated transaction, and an orderly transition of the Company's business, such efforts have been rebuffed by Alpayana. Among other things, the Company's Board of Directors has sought confirmation from Alpayana that it would undertake to pursue a second-step transaction to acquire 100% of Sierra Metals at the Offer price. Alpayana has refused to provide the requested confirmation, including in its news release of May 19, 2025, that it would complete a second-step transaction to acquire 100% of Sierra Metals at the Offer price. Article content Shareholders are cautioned that Alpayana is not required under applicable laws to pursue a second-step transaction to acquire 100% of Sierra Metals at the Offer price even if it acquires 90% or more of the issued and outstanding Common Shares under the Offer. Article content Shareholders who wish to tender their Common Shares to the Offer are encouraged to do so as soon as possible as there is no guarantee that Alpayana will further extend the Offer after the Deadline, nor is there any guarantee that Alpayana will pursue a second-step transaction to acquire 100% of the Common Shares at the Offer price. Article content If Alpayana does not pursue a second-step transaction, shareholders of Sierra who do not tender their Common Shares prior to the Deadline will remain minority shareholders of a public company under Alpayana's control. As a controlling shareholder, Alpayana has the ability to exercise control over all matters requiring approval of the shareholders of the Company, including the election of directors, determination of significant corporate actions and amendments to the Company's constating documents. In some cases, the interests of Alpayana may not be the same as the remaining public shareholders, and conflicts may arise from time to time that may be resolved in a manner detrimental to the Company's remaining public shareholders. Article content Additionally, Alpayana owning a significant majority of the Common Shares reduces the number of Common Shares that might otherwise trade publicly, which could materially adversely affect the liquidity and market value of any Common Shares held by the minority public shareholders who remain as shareholders of the Company following the Deadline. Article content Accordingly, shareholders who wish to tender their Common Shares to the Offer are encouraged to do so as soon as possible. The Board will continue to operate the business in accordance with its fiduciary duties and remains available to engage with Alpayana on a transition plan that is in the best interest of Sierra's stakeholders. Article content Shareholders of Sierra Metals who have questions or require assistance in tendering their Common Shares to the Offer may contact the Depositary and Information Agent for the Offer: Shorecrest Group, at telephone at 1-888-637-5789 (North American Toll-Free Number), +1-647-931-7454 (outside North America), or by email at contact@ Article content About Sierra Metals Article content Sierra Metals is a Canadian mining company focused on copper production with additional base and precious metals by-product credits at its Yauricocha Mine in Peru and Bolivar Mine in Mexico. The Company is intent on safely increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company has large land packages at each of its mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential. Article content Forward-Looking Statements Article content This news release contains forward-looking information within the meaning of Canadian securities legislation. Forward-looking information relates to future events or the anticipated performance of Sierra Metals and reflect management's expectations or beliefs regarding such future events and anticipated performance based on an assumed set of economic conditions and courses of action. In certain cases, statements that contain forward-looking information can be identified by the use of words such as 'plans', 'expects', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', 'believes' or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might', or 'will be taken', 'occur' or 'be achieved' or the negative of these words or comparable terminology. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual performance of Sierra Metals to be materially different from any anticipated performance expressed or implied by such forward-looking information. Forward-looking statements in this news release include, but are not limited to, statements regarding the Offer, a potential second step transaction, the intentions of Alpayana, potential conflicts between shareholders and Alpayana, and the future market price and liquidity of the Common Shares. Article content Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading 'Risk Factors' in the Company's annual information form dated March 26, 2025 for its fiscal year ended December 31, 2024 and other risks identified in the Company's filings with Canadian securities regulators, which are available at Article content The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company's forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company's actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company's statements containing forward-looking information are based on the beliefs, expectations, and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management's beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information. Article content Article content Article content Article content For further information regarding Sierra Metals, please visit or contact: Article content Article content
Business Wire
07-05-2025
- Business
- Business Wire
Sierra Metals Reports First Quarter 2025 Consolidated Financial Results
TORONTO--(BUSINESS WIRE)-- Sierra Metals Inc. (TSX: SMT | OTCQX: SMTSF | BVL: SMT) ('Sierra Metals' or the 'Company') reports consolidated financial results for the three months ending March 31, 2025 ('Q1 2025'). The information provided below are excerpts from the Company's Q1 2025 financial statements and Management's Discussion and Analysis ('MD&A'), which are available on the Company's website ( and on SEDAR+ ( under the Company's profile. Consolidated results include results from the Company's Yauricocha Mine ('Yauricocha') in Peru and the Bolivar Mine ('Bolivar') in Mexico. Q1 2025 Consolidated Operating and Financial Highlights (In thousands of dollars, except per share and cash cost amounts, consolidated figures unless noted otherwise) Q1 2025 Q4 2024 Q1 2024 Operating Ore Processed / Tonnes Milled 752,771 797,774 638,916 Copper Pounds Produced (000's) 12,783 13,533 11,247 Zinc Pounds Produced (000's) 10,831 12,301 10,132 Silver Ounces Produced (000's) 548 544 427 Gold Ounces Produced 4,014 4,009 4,505 Lead Pounds Produced (000's) 2,787 2,381 3,049 Cash Cost per CuEqLb (Yauricocha) 1,2,3 $ 2.32 $ 3.17 $ 3.55 AISC per CuEqLb (Yauricocha) 1,2,3 $ 2.82 $ 3.57 $ 3.97 Cash Cost per CuEqLb (Bolivar) 1,2 $ 2.51 $ 2.43 $ 2.34 AISC per CuEqLb (Bolivar) 1,2 $ 3.16 $ 3.06 $ 3.02 Financial Revenues $ 86,078 $ 81,036 $ 63,140 Net income (loss) - Continuing operations 3 $ 10,370 $ 8,153 $ 82 - Discontinued Operations $ - $ 1,351 $ (865 ) Net income (loss) attributable to shareholders, including discontinued operations 3 $ 7,942 $ 6,740 $ (389 ) Adjusted EBITDA 1,2 from continuing operations $ 33,911 $ 26,563 $ 15,826 Operating cash flows before movements in working capital $ 31,655 $ 16,004 $ 14,275 Adjusted net income (loss) attributable to shareholders 1 - Continuing operations 3 $ 10,808 $ 23,537 $ 3,750 - Discontinued Operations $ - $ 1,351 $ (865 ) Cash and cash equivalents $ 22,363 $ 19,826 $ 11,220 (1) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of this press release (2) Copper equivalent payable pounds used for the cash cost and AISC calculations were calculated at the following prices: Q1 2025 - $4.25/lb Cu, $1.29/lb Zn, $31.86/oz Ag, $0.90/lb Pb, $2,868/oz Au. Q4 2024 - $4.14/lb Cu, $1.38/lb Zn, $31.32/oz Ag, $0.91/lb Pb, $2,654/oz Au. Q1 2024 - $3.84/lb Cu, $1.12/lb Zn, $23.41/oz Ag, $0.94/lb Pb, $2,069/oz Au. (3) During Q4 2024, management identified certain inventory transactions that were incorrectly recorded starting in Q4 2023 and the previous quarters of 2024. Previously reported Q1 2024 results have been adjusted accordingly to correct these errors. The revised inventory balances impacted the related cost of sales and net income. Adjusted EBITDA and Adjusted net income (loss) attributable to shareholders are also revised to reflect the corresponding impacts. Expand Q1 2025 Consolidated Operating Highlights Consolidated ore throughput increased by 18% in Q1 2025 compared to Q1 2024, reflecting stronger performance at both Yauricocha and Bolivar. When compared to Q4 2024, consolidated throughput was lower due to adverse weather conditions and a planned two-day mill shutdown, which impacted Q1 2025 production at Bolivar. Consolidated copper production rose by 14% year-over-year, driven primarily by higher output at Yauricocha. Q1 2025 Consolidated Financial Highlights Consolidated revenue from metals payable amounted to $86.1 million in Q1 2025, which is a 36% increase from the $63.1 million recorded in Q1 2024, mainly driven by the increased metal production in Yauricocha and higher metal prices. Adjusted EBITDA(1) of $33.9 million for Q1 2025 was a 114% increase over Q1 2024 and a 28% increase over Q4 2024, mainly driven by the higher revenue and increased gross margins. Adjusted net income attributable to shareholders (1) of $10.8 million, or $0.05 per share, for Q1 2025 as compared to the adjusted net income of $3.8 million, or $0.01 per share for Q1 2024. Adjusted net income attributable to shareholders was lower than Q4 2024, as there was recognition of a deferred tax recovery of $22.5 million related to the loss of sale of discontinued operations in Q4 2024. Cash flow generated from operations before movements in working capital of $31.7 million for Q1 2025 increased compared to $14.3 million in Q1 2024. Cash and cash equivalents of $22.4 million as at March 31, 2025 compared to $19.8 million at the end of 2024. Cash and cash equivalents increased during Q1 2025 as a result of cash generated from operating activities of $27.2 million offset by cash used in investing activities of $20.1 million and cash used in financing activities of $4.6 million. NON-IFRS PERFORMANCE MEASURES The non-IFRS performance measures presented do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be directly comparable to similar measures presented by other issuers. Non-IFRS reconciliation of adjusted EBITDA EBITDA is a non-IFRS measure that represents an indication of the Company's continuing capacity to generate earnings from operations before taking into account management's financing decisions and costs of consuming capital assets, which vary according to their vintage, technological currency, and management's estimate of their useful life. EBITDA comprises revenue less operating expenses before interest expense (income), property, plant and equipment amortization and depletion, and income taxes. Adjusted EBITDA has been included in this document. Under IFRS, entities must reflect in compensation expense the cost of share-based payments. In the Company's circumstances, share-based payments involve a significant accrual of amounts that will not be settled in cash but are settled by the issuance of shares in exchange for cash. As such, the Company has made an entity specific adjustment to EBITDA for these expenses. The Company has also made an entity-specific adjustment to the foreign currency exchange (gain)/loss. The Company considers cash flow before movements in working capital to be the IFRS performance measure that is most closely comparable to adjusted EBITDA. The following table provides a reconciliation of adjusted EBITDA to the condensed interim consolidated financial statements for the three months ended March 31, 2025 and 2024: Non-IFRS reconciliation of adjusted net income The Company has included the non-IFRS financial performance measure of adjusted net income, defined by management as the net income attributable to shareholders shown in the statement of earnings plus the non-cash depletion charge due to the acquisition of Corona and the corresponding deferred tax recovery and certain non-recurring or non-cash items such as share-based compensation and foreign currency exchange (gains) losses. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors may want to use this information to evaluate the Company's performance and ability to generate cash flows. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance in accordance with IFRS. The following table provides a reconciliation of adjusted net income to the condensed interim consolidated financial statements for the three months ended March 31, 2025 and 2024: Three months ended March 31, (In thousands of United States dollars) 2025 2024 (revised) (1) Net income (loss) attributable to shareholders $ 7,942 $ (389 ) Non-cash depletion charge on Corona's acquisition 804 1,045 Deferred tax recovery on Corona's acquisition depletion charge (282 ) (693 ) Reorganizational and other non-recurring expenses 355 124 Share-based compensation 158 634 Foreign currency exchange loss (gain) 1,831 2,164 Adjusted net income attributable to shareholders $ 10,808 $ 2,885 Less: Adjusted net loss from discontinued operations - (865 ) Adjusted net income from continuing operations 10,808 3,750 (1) During Q4 2024, management identified certain inventory transactions that were incorrectly recorded starting in Q4 2023 and the previous quarters of 2024. Previously reported Q1 2024 Adjusted net income has been adjusted accordingly to correct this error. Expand Cash cost per copper equivalent payable pound The Company uses the non-IFRS measure of cash cost per copper equivalent payable pound to manage and evaluate operating performance. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flows. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The Company considers cost of sales per copper equivalent payable pound to be the most comparable IFRS measure to cash cost per copper equivalent payable pound and has included calculations of this metric in the reconciliations within the applicable tables to follow. All-in sustaining cost per copper equivalent payable pound All‐In Sustaining Cost ('AISC') is a non‐IFRS measure and is calculated based on guidance provided by the World Gold Council ('WGC'). WGC is not a regulatory industry organization and does not have the authority to develop accounting standards for disclosure requirements. Other mining companies may calculate AISC differently as a result of differences in underlying accounting principles and policies applied, as well as differences in definitions of sustaining versus development capital expenditures. AISC is a more comprehensive measure than cash cost per pound for the Company's consolidated operating performance by providing greater visibility, comparability and representation of the total costs associated with producing copper from its current operations. The Company defines sustaining capital expenditures as, 'costs incurred to sustain and maintain existing assets at current productive capacity and constant planned levels of productive output without resulting in an increase in the life of assets, future earnings, or improvements in recovery or grade. Sustaining capital includes costs required to improve/enhance assets to minimum standards for reliability, environmental or safety requirements. Sustaining capital expenditures excludes all expenditures at the Company's new projects and certain expenditures at current operations which are deemed expansionary in nature.' Consolidated AISC includes total production cash costs incurred at the Company's mining operations, including treatment and refining charges and selling costs, which forms the basis of the Company's total cash costs. Additionally, the Company includes sustaining capital expenditures and corporate general and administrative expenses. AISC by mine does not include certain corporate and non‐cash items such as general and administrative expense and share-based payments. The Company believes that this measure represents the total sustainable costs of producing silver and copper from current operations and provides the Company and other stakeholders of the Company with additional information of the Company's operational performance and ability to generate cash flows. As the measure seeks to reflect the full cost of silver and copper production from current operations, new project capital and expansionary capital at current operations are not included. Certain other cash expenditures, including tax payments, dividends and financing costs are also not included. The following table provides a reconciliation of cash costs to cost of sales, as reported in the Company's condensed interim consolidated statement of income for the three months ended March 31, 2025 and 2024: The following table provides detailed information on Yauricocha's cash cost and all-in sustaining cost per copper equivalent payable pound for the three months ended March 31, 2025 and 2024: YAURICOCHA Three months ended (In thousand of US dollars, unless stated) March 31, 2025 March 31, 2024 (revised) (2) Cash Cost per copper equivalent payable pound Total Cash Cost 22,618 18,178 Variation in Finished inventory 1,041 1,906 Treatment and Refining Charges 2,831 5,625 Selling Costs 930 640 G&A Costs 2,049 1,520 Total Cash Cost of Sales 29,469 27,869 Sustaining Capital Expenditures 6,365 3,318 All-In Sustaining Cash Costs 35,834 31,187 Copper Equivalent Payable Pounds (000's) (1) 12,701 7,856 Cash Cost per Copper Equivalent Payable Pound (US$) 2.32 3.55 All-In Sustaining Cash Cost per Copper Equivalent Payable Pound (US$) 2.82 3.97 (1) Copper equivalent payable pounds were calculated at the following prices: Q1 2025 - $4.25/lb Cu, $1.29/lb Zn, $31.86/oz Ag, $0.90/lb Pb, $2,868/oz Au. Q1 2024 - $3.84/lb Cu, $1.12/lb Zn, $23.41/oz Ag, $0.94/lb Pb, $2,069/oz Au. (2) During Q4 2024, management identified certain inventory transactions that were incorrectly recorded starting in Q4 2023 and the previous quarters of 2024. Previously reported Q1 2024 cost of sales has been adjusted accordingly to correct this error. Expand The following table provides detailed information on Bolivar's cash cost, and all-in sustaining cost per copper equivalent payable pound for the three months ended March 31, 2025 and 2024: BOLIVAR Three months ended (In thousand of US dollars, unless stated) March 31, 2025 March 31, 2024 (revised) (2) Cash Cost per copper equivalent payable pound Total Cash Cost 17,335 18,765 Variation in Finished inventory (661 ) (326 ) Treatment and Refining Charges 1,925 2,854 Selling Costs 2,180 2,639 G&A Costs 1,538 1,557 Total Cash Cost of Sales 22,317 25,489 Sustaining Capital Expenditures 5,855 7,383 All-In Sustaining Cash Costs 28,172 32,872 Copper Equivalent Payable Pounds (000's) (1) 8,908 10,880 Cash Cost per Copper Equivalent Payable Pound (US$) 2.51 2.34 All-In Sustaining Cash Cost per Copper Equivalent Payable Pound (US$) 3.16 3.02 (1) Copper equivalent payable pounds were calculated at the following prices: Q1 2025 - $4.25/lb Cu, $1.29/lb Zn, $31.86/oz Ag, $0.90/lb Pb, $2,868/oz Au. Q1 2024 - $3.84/lb Cu, $1.12/lb Zn, $23.41/oz Ag, $0.94/lb Pb, $2,069/oz Au. (2) G&A costs updated to exclude corporate allocations for consistency with Yauricocha calculations. Expand Additional non-IFRS measures The Company uses other financial measures, the presentation of which is not meant to be a substitute for other subtotals or totals presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. The following other financial measures are used: Operating cash flows before movements in working capital - excludes the movement from period-to-period in working capital items including trade and other receivables, prepaid expenses, deposits, inventories, trade and other payables and the effects of foreign exchange rates on these items. The terms described above do not have a standardized meaning prescribed by IFRS, and therefore the Company's definitions are unlikely to be comparable to similar measures presented by other companies. The Company's management believes that their presentation provides useful information to investors because cash flows generated from operations before changes in working capital excludes the movement in working capital items. This, in management's view, provides useful information of the Company's cash flows from operations and are considered to be meaningful in evaluating the Company's past financial performance or its future prospects. The most comparable IFRS measure is cash flows from operating activities. About Sierra Metals Sierra Metals is a Canadian mining company focused on copper production with additional base and precious metals by-product credits at its Yauricocha Mine in Peru and Bolivar Mine in Mexico. The Company is intent on safely increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company has large land packages at each of its mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential. For further information regarding Sierra Metals, please visit Forward-Looking Statements This press release contains forward-looking information within the meaning of Canadian securities legislation. Forward-looking information relates to future events or the anticipated performance of Sierra and reflect management's expectations or beliefs regarding such future events and anticipated performance based on an assumed set of economic conditions and courses of action. In certain cases, statements that contain forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur" or "be achieved" or the negative of these words or comparable terminology. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual performance of Sierra to be materially different from any anticipated performance expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading "Risk Factors" in the Company's annual information form dated March 26, 2025 for its fiscal year ended December 31, 2024 and other risks identified in the Company's filings with Canadian securities regulators, which are available at The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company's forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company's actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company's statements containing forward-looking information are based on the beliefs, expectations, and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management's beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.
National Post
01-05-2025
- Business
- National Post
Sierra Metals Subsidiary in Peru, Sociedad Minera Corona Reports Q1 2025 Financial Results
Article content TORONTO — Sierra Metals Inc. (TSX: SMT | OTCQX: SMTSF | BVL: SMT) ('Sierra Metals' or 'the Company') announces the filing at the Lima Stock Exchange ('BVL') by its subsidiary, Sociedad Minera Corona S.A. ('Corona') of its unaudited Financial Statements and the Management's Discussion and Analysis ('MD&A') for the first quarter of 2025 ('Q1 2025'). Article content Article content The Company holds an 81.84% interest in Corona. The unaudited Financial Statements and MD&A can be viewed at: Article content To search for the Company's financial statements, enter the following parameters in the empty fields: Article content About Sierra Metals Article content Sierra Metals is a Canadian mining company focused on copper production with additional base and precious metals by-product credits at its Yauricocha Mine in Peru and Bolivar Mine in Mexico. The Company is intent on safely increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company has large land packages at each of its mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential. Article content Article content Article content Article content Article content Article content
