In This Article:
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Net Revenues: $70.9 million, a 23% increase from Q2 2024 and 25% higher than Q3 2023.
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Adjusted EBITDA: $20.4 million, up from $8.1 million in Q3 2023.
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Cash Flow from Operations: $22.1 million in Q3 2024, compared to $6 million in Q3 2023.
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Net Income: $3.8 million, compared to a net loss of $9.3 million in Q3 2023.
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Net Debt to EBITDA Ratio: 1.2x as of the end of Q3 2024.
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Cash and Cash Equivalents: $18.6 million as of September 30, 2024.
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Copper Production: 11 million pounds, 29% higher than Q2 2024.
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Silver Production: 503,000 ounces, 30% higher than Q2 2024.
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Gold Production: Nearly 4,000 ounces, 16% higher than Q2 2024.
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Cash Costs (Bolivar): $2.42 per pound.
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All-in Sustaining Costs (Bolivar): $3.23 per pound.
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Cash Costs (Yauricocha): $3.25 per pound.
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All-in Sustaining Costs (Yauricocha): $3.75 per pound.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sierra Metals Inc (SMTSF) reported a 7% increase in ore processing compared to the previous quarter, with significant increases in copper, silver, and gold production.
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The company achieved a 48% increase in cash flow from operations, reaching over $22 million, compared to the second quarter of 2024.
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Net revenues for Q3 2024 were $70.9 million, marking the highest quarterly revenue in over three years and a 23% increase from Q2 2024.
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Adjusted EBITDA from continuing operations reached $20.4 million, the highest in the last two years, showing a significant improvement from the previous year.
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Sierra Metals Inc (SMTSF) successfully sold the Cusi mine, generating $2.1 million in net proceeds and reducing maintenance expenses by nearly $300,000 per month.
Negative Points
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Lead production decreased, and zinc production remained flat compared to the previous quarter.
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Despite improvements, cash costs and all-in sustaining costs per pound remain relatively high at $2.42 and $3.23, respectively, for Bolivar.
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Yauricocha's cash cost per pound was $3.25, with all-in sustaining costs at $3.75, indicating room for cost efficiency improvements.
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The company incurred significant capital investments, including $40.4 million used for investing activities, impacting cash reserves.
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Net income attributable to shareholders was $3.8 million, which, while positive, reflects a modest profit margin relative to revenue growth.
Q & A Highlights
Q: When Yauricocha is operating at full capacity, what can we expect costs to be? A: We expect cash cost levels to be lower than what they are now. We'll provide that guidance in our 2025 outlook. So I would ask whoever the person is that asked the question to wait for our 2025 guidance, but I think they are going to be good. - Ernesto Balarezo, CEO & Director