Sierra Metals Subsidiary Enjoys Strong Q4

Sierra Metals Inc. (TSX:SMT) announced that Sociedad Minera Corona SA’s unaudited Q4 financial statements and MD&A have been filed. Sierra holds an 81.8-percent stake in Corona.

Corona’s Q4 financial highlights include:

• Net Income of US$ 9.4 million or US$ 0.262 per share for Q4 2014; a 421% increase over Q4 2013;
• Adjusted EBITDA of US$ 12.7 million for Q4 2014; a 40% increase over  Q4 2013;
• Operating cash flow of US$ 10.5 million for Q4 2014; a 5% increase over Q4 2013;
• Revenues of US$ 28.1 million for Q4 2014; a 19% increase over Q4 2013; and
• Cash cost (recovery) per silver payable ounce of US$ (16.20) at the Yauricocha Mine for Q4 2014; a decrease of 131% over Q4 2013.

Audra Walsh, president and CEO of Sierra, commented:

We are pleased to report another strong quarter at Corona, achieving higher production levels and realizing continued success with our cost reduction efforts at the Yauricocha Mine, which more than offset the decline in silver and copper prices. An increase in ore throughput of 6%, as well as higher head grades and recoveries for silver, lead and copper contributed to an increase in revenues for the fourth quarter of 2014. The reduction in costs and increase in revenues resulted in higher adjusted EBITDA and net income. Corona is committed to meet its production guidance for 2015 to continue its efforts to remain a low cost producer and to uncover the Yauricocha Mine’s full economic potential.

Click here to read the full Sierra Metals Inc. (TSX:SMT) press release.