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Friday, November 03, 2017 Derek Macpherson

Sierra Reports Strong Financials at Yauricocha

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Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported Q3 2017 financial results from its Yauricocha mine in Peru (Sociedad Minera Corona S.A. - 81.8% owned subsidiary). Unadjusted for ownership interest, revenue for the quarter was US$39.6 million, a slight increase of 5% QoQ and an increase of 34% YoY. Q3 marks the highest quarter of production in Yauricocha’s history, which reflects the success of the company’s operational improvement program. YoY cash cost per CuEq oz payable has increased slightly to $1.08 per CuEq payable pound QoQ and by 37% YoY, whereas AISC increased 9% QoQ and only 20% YoY to $1.71 per CuEq payable pound. The increase in costs was a result of increased Capex as well as exploration expenses and the cost of infrastructure improvements, all of which should have longer term value. The company also recently increased reserves at Yauricocha by 134%, which was reported by the company in October. Yauricocha remains a key aspect of the company’s operations, ongoing exploration success is important to enhancing the company’s value.  read more


Sunday, October 29, 2017 Derek Macpherson

Sierra Increases Mineral Reserves at Yauricocha

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Sierra Metals Inc. (TSX:SMT, BVL:SMT, NYSE:SMTS) announced an update to its mineral reserves at Yauricocha to 8.9Mt averaging 48.3 g/t Ag, 1.2% Cu, 0.8% Pb, 2.4% Zn and 0.5 g/t Au, which represents a 134% increase to the previous Reserve Estimate in August 2016 (Figure 1). This update follows the September press release announcing significant increases to Yauricocha’s mineral resources. Yauricocha is the company’s flagship project located in Peru, which represented approximately 78% of the company’s total CuEq production in Q3 2018. This increase in reserves is significant because it represents a doubling of mine-life based on current throughput levels. The company will continue to carry out brownfield exploration on the property to further increase its mineral resources. We note that to achieve 2017 production guidance, the company will require a strong Q4. In our view, the ongoing operational improvements at Cusi and Bolivar, the reserve update and potential production increase at Yauricocha and ongoing exploration are key to enhancing the company’s value and liquidity.  read more


Tuesday, October 24, 2017 Derek Macpherson

Sierra Provides Update on Mexican Operations

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Sierra Metals Inc. (TSX:SMT, BVL:SMT, NYSE:SMTS) announced an update regarding its operational improvement program at the Mexican operations, Bolivar and Cusi. The operational improvement plan is expected to improve production, modernize operations and lower costs at both Cusi and Bolivar by early 2018. The company’s recent update includes the strengthening of the corporate team, increases in metallurgical recoveries at both operations, new equipment at Bolivar to maximize ore delivery and drift development in the Santa de Rosa structure at Cusi. Management is expecting to complete the improvements by the end of Q1 2018 and see higher cash flow from its Mexico operations starting in Q2 2018. We note that to achieve 2017 production guidance, the company will require a strong Q4. In our view, the ongoing operational improvements in addition to ongoing exploration are key to enhancing the company’s value and liquidity.  read more


Tuesday, October 17, 2017 Derek Macpherson

Sierra Reports Higher Q3 2017 Results

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Sierra Metals Inc. (TSX:SMT, BVL:SMT, NYSE:SMTS) reported modestly improved production results for Q3 2017 with an increase in CuEq production of 2% versus Q2 2017. However, metal production remains weaker than Q3 2016 due to lower production from its projects in Mexico. The QoQ decrease in metal production at Cusi is a result of shifting resources to develop recently discovered higher grade zones. An operational improvement program, which has already been successful at Yauricocha, is currently underway at Bolivar and Cusi and is expected to improve production, modernize operations and lower costs by early 2018. We note the company is likely to need a strong Q4, to achieve 2017 production guidance. In our view, the ongoing operational improvements in addition to ongoing exploration are key to enhancing the company’s value and liquidity. read more


Wednesday, October 04, 2017 Derek Macpherson

Sierra Drill Tests Near-Mine Targets at Bolivar

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Sierra Metals Inc. (TSX:SMT, BVL:SMT, NYSE:SMTS) reported initial drill results following up on targets identified from the Titan 24 geophysical survey completed at Bolivar in Mexico. 22 high priority targets were identified during the survey, of which 8 are currently being drill tested. Results from the four holes intercepted high-grade copper structures in three zones, returning 31 g/t Ag, 1.55% Cu, 1.95% Zn 0.38 g/t Au over 25m (averaged-DB17B602), 34 g/t Ag, 1.97% Cu, 0.91% Zn 0.34 g/t Au over 29m (averaged-DB17B613), 32 g/t Ag, 1.04% Cu, 0.20% Zn 0.10 g/t Au over 33m (DB17B583) and 37 g/t Ag, 2.05% Cu, 0.03% Zn 1.79 g/t Au over 13m (DB17B585). Results from additional drilling of these structures, which were previously thought not to be mineralized, will further help to understand its potential impact on Bolivar for Sierra. We continue to anticipate a strong 2017 from Sierra as operations continue to improve and exploration advances, all of which should further enhance the company’s value. read more


Monday, October 02, 2017 Derek Macpherson

Sierra Intersects High Grades at Cuye

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Sierra Metals Inc. (TSX:SMT, BVL:SMT, NYSE:SMTS) reported high grade zinc and copper results from drilling targeting the Cuye zone within the Central Mine area of the Yauricocha Mine. Result were highlighted by holes CUY 17-17-01 and CUY 17-17-04 grading 39 g/t Ag, 0.18% Pb, 0.35% Cu, 21.66% Zn and 0.33 g/t Au over 6m and 47 g/t Ag, 1.63% Pb, 0.49% Cu, 10.12% Zn and 0.62 g/t Au over 9.5m, respectively. Importantly, the company notes results suggest the Cuye and Catas zones (Figure 1) connect at depth, which with further exploration could expand the zone as it remains open at depth. These results were not included in the recent resource update for Yauricocha. We anticipate a strong 2017 from Sierra as operations continue to improve and exploration advances, all of which should further enhance the company’s value.  read more


Friday, September 29, 2017 Derek Macpherson

Sierra Reports Increased Resources at Yauricocha

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Sierra Metals Inc. (TSX:SMT, BVL:SMT,NYSE:SMTS) reported an updated resource estimate for Yauricocha, which included 80,000m of drilling and 10,000m of mine exploration development from Mina Central, Esperanza, Cachi-Cachi, Escondida and Cuye-Mascota. The update resulted in a significant increase in tonnage 71% (Measured and Indicated plus Inferred). Grades were roughly unchanged, with the exception of an 18% increase in overall copper grade. As a result contained metal increased significantly for all metals, notably copper, driven by recent discoveries of copper rich zones. Importantly, results benefitted from increased zinc and copper prices, up 33% and 14% as compared to the last update in 2016. Head grades for both metals increased, 18% for copper and 7% for zinc including although decreased for lead (7%), silver (2%) and gold (9%) (Figure 1). We anticipate a strong 2017 from Sierra as operations continue to improve and exploration advances, all of which should further enhance the company’s value.  read more


Wednesday, September 06, 2017 Derek Macpherson

Sierra Results Add Higher Grades Near Bolivar

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Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported results from drilling completed at the Bolivar West zone, adjacent to current operations at the Bolivar mine. Results on average graded 2.55% Cu, which should help increase head grades at the mine in the near-term. The 12,300m (28 holes) program is expected to be included in an updated resource for the mine (Q4 2017), which focused on increasing grades and defining additional resources. The company expects to continue drilling into 2018 at all of its operations. We anticipate a strong 2017 from Sierra as operations continue to improve and exploration advances, all of which should further enhance the company’s value. read more


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