Sierra Metals Inc
Sierra Metals Inc
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A $US21.5M profit-to-loss turn around has seen 3-mine Canada-based polymetallic miner Sierra Metals plunge to a $US103,000 net loss for the 9-months Sept 2019 YTD (YTD19) from YTD18's $21.4M profit.
The bottom line was hit by cost of sales up to $124.3M from $107.6M, taking the adjusted net income down to $6.6M from $28.2M on revenue down to $164.4M from $177.3M.
Sierra Metals eyes more capital expenditure cuts for the rest of FY/CY19 after falling from profit to a YTD19 $103,000 loss
While Sierra Metals’ 81.8%-owned Sociedad Minera Corona SA (Corona) has seen production from the Yauricocha precious/base metals operation in Peru rise, its 9-months Sept 2019 YTD (YTD19) net income has plunged 37% to $US24.3M on revenue down 12% $113.75M.
Despite the loss of 12-days production at the Yauricocha polymetallic mine in Peru due to an illegal, subsequently resolved, strike, Sierra Metals’ 81.8%-owned Peru/Mexico miner Sociedad Minera Corona has managed an $US8M+ turnaround to June 2019 qtr (Q2 19) net income of $6.45M from Q1 19’s $1.7M loss.
The bottom line was on zinc-equivalent production from Yauricocha and 2 other operations in Mexico down to 38.4Mlbs from 50.56Mlbs.
A strike at Sierra Metal’s Peru mine has been a major contributor to a big production fall, but not stopping the company rebounding to a $6.45M Q2 19 profit
Resolved illegal strike action at Sierra Metals’ Yauricocha polymetallic mine in Peru and lower commodity prices have contributed to Mar 2019 qtr (Q1 19) revenues falling to $US49M from Q4 18’s $55M, but cutting net loss after tax to $1.7M from a $2.65M loss.
The adjusted net income rose a little to $886,000 from $783,000, but adjusted EBITDA eased to $12M from $15.2M, with operating cash flows before movements in working capital down to $11.8M from $15.1M.
While partially offsetting a production-hampering illegal strike at Sierra Metals’ Yauricocha polymetallic mine in Peru, record Mar 2019 qtr (Q1 19) throughput at the Cusi silver mine in Mexico has failed to avert lower production of all commodities apart from one.
Despite record Cusi Q1 19 throughput taking some of the pain out of the now concluded Yauricocha mine strike, it couldn’t keep Sierra Metals’ production levels above Q4 18.
Sierra Metals has had a very successful June 2018 qtr (Q2 18) with silver, copper and zinc production all up on Q1 18 and highly encouraging PEAs for all its 3 mines – the Yauricocha polymetallic mine in Peru, and the Bolivar copper and Cusi silver mines in Mexico.
The success was on record qtrly throughput up to 602,087t from 557,710t, with record processing at both Yauricocha and Bolivar, their 6th straight qtrs of increases.
Sierra Metals’ PEA has flagged a 67% output expansion for its producing Bolivar Mine in Mexico’s Chihuahua State producing 252.5Mlbs payable copper (114,537t), 86,472oz gold and 7Moz silver over an 11-year LoM.