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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.



Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
Alex Pitcher | Associate
 
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Sierra Metals Inc. - TSX:SMT, BVL:SMT, NYSE:SMTS - 2

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