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Tuesday, September 13, 2016 Derek Macpherson

Record August Throughput Bodes Well for SMT's Q3

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Sierra Metals Inc. (TSX:SMT,BVL:SMT) announced record throughput from its Yauricocha mine in August along with setting in motion plans for a U.S. listing. Production in August was 2,733 tpd which is a new monthly record, and compares favourably to the Q2 throughput of 2,463 tpd. This supports our view that Sierra is posed for a strong Q3, as they begin mining the higher grade Esperanza zone as discussed in our previous post. As well the company plans to pursue a U.S. listing which should increase access to the stock for U.S. investors and has the potential to improve liquidity. We would expect Q3 production and financial results to be a positive catalyst for Sierra’s share price.  read more

Monday, August 15, 2016 Derek Macpherson

Esperanza Zone + Q2 Results Should = a Strong Q3

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Last week, Sierra Metals Inc. (TSX:SMT,BVL:SMT) released an updated reserve and resource estimate for its Yauricocha Mine in Peru and this morning released Q2 financial results. The update includes a maiden resource for the Esperanza zone, which was discovered a little over a year ago, and went into production earlier this month, as discussed in our previous post. While reserves and resources declined (tonnes and metal basis), reflective of depletion; M&I and reserve grades improved, reflecting the introduction of the higher grade Esperanza zone. We consider Q2 financial results to be mixed and not necessarily reflective of the improving operations seen in the quarter. With Sierra now processing the higher grade Esperanza Zone material, we expect Q3 to be a strong quarter for Sierra.
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Thursday, August 04, 2016 Derek Macpherson

Esperanza Zone Ore Hits the Mill; Bodes Well for SMT's Q3

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Sierra Metals Inc. (TSX:SMT,BVL:SMT) has reported that the first ore from the Esperanza zone is being processed at its Yauricocha mine in Peru.‎ Impressively, this zone was brought into production less than a year after being discovered. This news highlights the value Sierra's team can quickly add with near mine exploration success. However, in the near-term we believe the addition of this zone, which appears to be higher grade than current reserves, may result in better than expected Q3 results from Yauricocha which represented 62% of Sierra's production during a record Q2.
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Wednesday, July 20, 2016 Derek Macpherson

Sierra’s Operations Continue to Improve in Q2

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Sierra Metals Inc. (TSX:SMT,BVL:SMT) released second quarter production results which continue to demonstrate improving operations after a weak H2 2015. Overall copper equivalent production was 9% lower than Q2 2015 but a 15% improvement Q1 2016 and a 21% improvement over Q4 2015 (Figure 1). Production benefited from increased throughput at all three operations and improved grades at the company’s flagship Yauricocha mine in Peru. In our view, these results demonstrate progress in management’s ongoing turnaround of operations at Yauricocha. In our view, the expectation for continued operating improvements from Yauricocha and Bolivar, along with the release of a maiden resource from the Esperanza zone should benefit Sierra’s share price in the second half of this year.
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