Sierra Metals Reports Consolidated Results for the Second Quarter 2016

Sierra Metals (TSX:SMT) has reported revenue of $36.9 million and an adjusted EBITDA of $5.4 million on throughput of 503,988 tonnes and metal production of 3 million silver equivalent announces and 197.7 million copper equivalent pounds for Q2 2016.
As quoted in the press release:

The Company continues to successfully work through the operational improvement process at its Yauricocha Mine, and has seen metal production improve dramatically, quarter over quarter from Q1 2016 and Q4 2015.  The Company has increased silver equivalent ounce and copper equivalent pound production by 24% despite only a 4% increase in throughput in Q2 2016 compared to Q1 2016. The Company has successfully focused on producing higher value ore which, along with the upturn in metal prices, has contributed to a significant increase in revenues and adjusted EBITDA in Q2 2016 compared to the previous two quarters.
The Company continues to focus on the operational improvement and modernization of its Mines.  The benefits of these implementations are already being realized but will be most visible in the second half of the year. These efforts are also expected to help improve the Company’s operating margins and cash flow generation while benefiting from a recently improved metals price environment.
At the Bolivar Mine in Mexico, the Company had another quarter of record plant throughput in Q2 2016 with a 13% increase compared to Q2 2015. Despite the record throughput, lower head grades for all metals and lower recoveries for all metals, except gold, were encountered which resulted in a 5% decrease in copper equivalent production in Q2 2016 compared to Q2 2015. Head grades are expected follow throughput and improve in the second half of the year.
The Cusi project, also in Mexico, realized a 23% increase in silver equivalent production in Q2 2016 over Q2 2015.  Additionally, the AISC per silver equivalent payable ounce decreased to $18.55 in Q2 2016 compared to $30.64 in Q2 2015, mainly due to lower sustaining capital expenditures and higher silver equivalent production.  Cusi also began zinc production in H1 2016 with production of 1,147,000 lbs. which helped contribute to the increase in silver equivalent production compared to the same period in 2015.

Click here to read the full press release.