(MENAFN- Investor Ideas) Investorideas ( ), a go-to platform for big investing ideas, reports on trading for Sierra Metals Inc. (TSX:SMT )| OTCQX:SMTSF), 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 miner is trading at 0.9200, up 0.0900, gaining 10.8434%.
Yesterday Sierra Metals reported consolidated financial results for the three months ending March 31, 2024 ("Q1 2024"). The information provided below are excerpts from the Company's Q1 2024 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.
Ernesto Balarezo, Sierra Metals' CEO, comments, "We are pleased to deliver another strong quarter of operating and financial performance. Operationally, Bolivar had a record quarter of metal production, while at Yauricocha the mine maximized production above the 1120 level as development at depth is progressing on track, which will allow us to reach full capacity in the fourth quarter of 2024. This was the Company's best financial quarter since early 2021 as both mines continue to produce positive cash flow from operations, and we continue to improve our balance sheet. Overall, 2024 has gotten off to a tremendous start."
Q1 2024 Consolidated Operating Highlights
Consolidated quarterly throughput during Q1 2024 was 638,916 tonnes, a 23% increase from the same quarter of 2023, as both mines registered increases in throughput during Q1 2024 compared to Q1 2023.
Grades from the Bolivar Mine during Q1 2024 were higher than Q1 2023 and Q4 2023, while Yauricocha experienced declines in copper grades during Q1 2024 compared to Q4 2023, as well as decreases in grades for precious metals compared to both Q1 2023 and Q4 2023. These lower grades from the Yauricocha Mine were primarily due to the limited available ore above the 1120 level. However, the Company expects that grades will improve as the development below 1120 level progresses.
Consolidated production for all metals increased in Q1 2024 compared to Q1 2023, excluding zinc. When compared to Q4 2023, consolidated production for copper, silver, and gold were lower by 7%, 9% and 4%, respectively.
Yauricocha's cash cost per copper equivalent payable pound was $3.27 (Q1 2023 - $3.00), and AISC per copper equivalent payable pound of $3.69 (Q1 2023 - $3.12). The increase in cash costs was higher treatment and refining costs, and lower grades, resulting in a 4% decline in copper equivalent payable pounds. Higher AISC was a combined result of higher cash costs and the increase in sustaining capital focused on developing below the 1120 level during Q1 2024.
Bolivar's cash cost per copper equivalent payable pound was $2.44 (Q1 2023 - $2.58), and AISC per copper equivalent payable pound was $3.12 (Q1 2023 - $3.10) for Q1 2024. Cash costs improved during Q1 2024 versus Q1 2023, mainly driven by the 59% increase in copper equivalent payable pounds. AISC for Q1 2024 was slightly higher than Q1 2023, driven by the increase in sustaining capital due to the intensive efforts in mine development meters.
Q1 2024 Consolidated Financial Highlights
Consolidated revenue from metals payable amounted to $63.1 million in Q1 2024, marking an 18% increase from the $53.5 million recorded in Q1 2023, mainly attributed to enhanced metal sales at Bolivar, driven by higher grades and increased production volumes when compared to Q1 2023.
Adjusted EBITDA(1) of $17.9 million for Q1 2024 increased 16% compared to $15.5 million in Q1 2023.
Adjusted net income attributable to shareholders(1) of $4.3, or $0.02 per share, for Q1 2024 as compared to the adjusted net income of $4.7 million, or $0.03 per share for Q1 2023.
Cash flow generated from operations before movements in working capital of $16.5 million for Q1 2024 increased compared to $12.9 million in Q1 2023; and
Cash and cash equivalents of $11.2 million as at March 31, 2024 compared to the $9.1 million and the $5.0 million, at the end of 2023 and March 31, 2023 respectively. Cash and cash equivalents increased during Q1 2024 as a result of cash generated from operating activities of $16.5 million offset by cash used in investing activities of $11.4 million and cash used in financing activities of $2.9 million.
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