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Tuesday, August 29, 2017 Derek Macpherson

SMT Exploration Adds Near-Term Value at Cusi

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Sierra Metals Inc. (TSX:SMT, BVL:SMT, NYSE:SMTS) has reported additional results from drilling at the Santa Rosa de Lima zone adjacent to current operations at its Cusi mine, in Mexico. The phase two expanded program covered 14,000m in 22 holes, which along with other recent drilling (a total of 29,500m) will be used in an updated mineral resource estimate for the mine by year end. Drilling has intersected high grade silver as highlighted by hole DC17B743 grading 401 g/t Ag, 0.13% Pb, 0.19% Zn, 0.20 g/t Au over 4.5m and hole DC17B750 grading 465 g/t Ag, 0.54% Pb, 0.33% Zn over 13.8m. The zone’s proximity to current operations suggests this zone could benefit the mine in the near term. To note, additional exploration opportunity still exists at the Santa Rosa de Lima zone and further potential for growth exists at other zones on the property. Sierra continues to achieve exploration success and deliver improvements at its operating mines, we anticipate a strong 2017 from Sierra which should further enhance the company’s value. read more


Sunday, August 27, 2017 Derek Macpherson

Sierra Identifies Near-Term Potential at Cachi-Cachi

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Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported results from brownfield exploration targeting the Escondida zone within the Cachi-Cachi Mine and the northern extension of the Esperanza orebody. Results identified a new discovery intersecting high grade silver, zinc and lead over good widths, as demonstrated by hole ESC-17-01 returning 94 g/t Ag, 3.41% Pb, 0.01% Cu, 7.91% Zn and 0.23 g/t Au over 7.6m as well as hole ESC-17-05 returning 104 g/t Ag, 5.83% Pb, 0.09% Cu, 10.59% Zn and 0.71 g/t Au over 3.8m. The new discovery (+300m in strike) highlights the possibility for further discoveries between Esperanza and Cachi-Cachi that could be added to production. The company expects to mine the Escondida zone in 2018 and remains focused on exploration. 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, August 16, 2017 Derek Macpherson

Sierra Maintains Positive Financials in Q2

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Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported Q2 consolidated financials results, which have shown improvements YoY, however as compared to the previous quarter (Q1 2017) have been affected by reduced Q2 production. Revenue increased YoY by 30% however, due to weaker production results QoQ revenues decreased by 11%. In addition, costs increased; cash costs by 17% and AISC by 29% during the quarter as compared to Q1 2017; however, ongoing optimization should see these costs decrease as improvements are realized. Although decreased on a QoQ basis (31%), adjusted EBITDA remains positive for the quarter at US$17.6 million, especially compared to Q2 2016 of US$5.3 million. Importantly, exploration remains a priority for the company’s three operations which has the opportunity to add to the production profile in the near term, results are expected to be reflected in updated technical reports in Q4 2017. 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


Tuesday, August 01, 2017 Derek Macpherson

Sierra Reports Strong Back to Back Quarters from Yauricocha

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Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported Q2 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$38.5 million and although a slight decrease QoQ (1.7%), a 62% increase YoY. Q2 marks the second highest quarter of production in Yauricocha’s history, the first being Q1 2017. YoY cash cost per AgEq oz payable decreased by 12%, while AISC per AgEq payable oz decreased by 9%, however compared to Q1 2017 costs increased; cash cost per AgEq oz payable by 15% and AISC per AgEq payable oz by 27%. 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 is expecting to complete updated technical report in Q4 2017. Yauricocha remains a key aspect of the company’s operations, ongoing exploration success is important to enhancing the company’s value. read more


Tuesday, July 18, 2017 Derek Macpherson

Sierra Reports Weaker Q2 2017 Results

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After consecutive record quarters, Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported weaker production results for Q2 2017; however, the company’s flagship Yauricocha mine continues to perform well (Figure 1). The main reasons for the weaker QoQ performance, were poor equipment availability, lack of water (dry summer) and lower grades. In our view, upside exists as ongoing exploration and operational improvements at Sierra’s operating mines are key to enhancing the company’s value and liquidity. We highlight that company recently received a U.S. listing (NYSEMKT:SMTS) which has the potential to help with liquidity. read more


Monday, June 05, 2017 Derek Macpherson

SMT Confirms Structure at Cusi

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Sierra Metals Inc. (TSX:SMT, BVL:SMT) released initial drill results from 36 holes averaging 371 g/t AgEq over 4.1m, from an exploration program targeting the Santa Rosa de Lima zone adjacent to current operations at its Cusi mine, in Mexico (Figure 1). All results intersected mineralization at the previously identified structure, which remains open along strike to the northwest and southeast. To further define the structure, the company is undertaking a 13,200m (24 holes) program, to be completed this month. Results will then be used in an updated resource estimate for Cusi expected in early Q4 2017. Sierra continues to achieve exploration success and deliver improvements at its operating mines, we anticipate a strong 2017 from Sierra which should further enhance the company’s value.  read more


Friday, May 12, 2017 Derek Macpherson

Q1 Financials Reflective of SMT's Improvements

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Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported strong Q1 2017 financial results, reflecting successful production improvements from its Yauricocha mine and favourable metal prices. Consequently, revenues increased by 130% YoY and 30% QoQ, while adjusted EBITDA increased 59% QoQ (480% YoY) to US$25.4 million. Despite a weak quarter at Cusi, company-wide CuEq production increased by 28% YoY and 23% QoQ. Cash costs decreased 17% QoQ (10% YoY) to US$0.96 lb CuEq and AISC decreased by 32% QoQ (21% YoY) to US$1.50 lb CuEq, highlighting continued success of the optimization program. The company remains focused on brownfield exploration at all operating mines, expecting to add more high-value tonnage in the future. 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


Tuesday, May 02, 2017 Derek Macpherson

SMT Continues to Execute at Yauricocha

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Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported strong Q1 2017 financial results from its Yauricocha mine in Peru (Sociedad Minera Corona S.A. - 81.8% owned subsidiary). The results reflect operational improvements carried out at Yauricocha over the course of the year as revenue increased by ~21% QoQ (~208% YoY). On a YoY basis, all costs were substantially improved. QoQ, AISC were reduced by ~34.0% on a copper equivalent basis. We view the results positively as Sierra continues to experience operational improvements. In addition, we believe further exploration success at Yauricocha is key to enhancing the company’s value. read more


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