TORONTO, ON,
May 1, 2013 /PRNewswire/ - Sierra
Metals Inc. (TSXV: SMT) (BVL: SMT) ("Sierra" or the "Company")
is pleased to announce that the Company has completed its first
quarterly cash dividend payment of $2.5
million, or $.016 per common
share ("Common Share"), to shareholders on April 30, 2013. The Company announced its
inaugural $10.0 million cash dividend
policy on February 12, 2013 (see
press release dated February 12, 2013 here) as a result of
substantial production increases and significant cash flows from
operations realized in 2012.
Press Release Highlights:
- Sierra paid its first quarterly cash dividend of $2.5 million,
or $0.016 per Common Share, on April 30, 2013.
- During 2012, Sierra achieved record production from all
operations and announced its strongest fiscal year to date with
revenues of $179.7 million, earnings (EBITDA) of $83.8 million and
cash flows from operations of $60.5 million.
- Sierra's strong cash flows during 2012 were used to pay down
the Company's working capital line in Mexico, complete the
acquisition of Plexmar and pay the 2013 first quarter cash dividend
payment to shareholders.
- The Company is focused on a fiscally responsible growth
strategy that will increase shareholder value through increased
production. The proceeds of the $44.4 million private placement
completed in June 2012 have been allocated to increasing the
production profile of the Company's mines in Peru and
Mexico.
- Sierra intends to pay a total cash dividend of approximately
$10.0 million, or $0.064 per Common Share, for 2013 and anticipates
the announcement of its second quarter cash dividend will take
place on or after June 30, 2013.
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Daniel Tellechea,
President and CEO of Sierra Metals, commented "Sierra Metals is
very pleased to announce its first cash dividend payment to
shareholders of $2.5 million. The
acquisition of the Yauricocha mine and announcement of commercial
production at the Bolivar mine have resulted in record production
for the Company during 2012. Additionally, these low-cost, highly
profitable mines have also resulted in strong cash flows allowing
Sierra to lower its net-debt and enact the new 2013 $10.0 million cash dividend policy."
During 2012, Sierra Metals focused on maximizing
operational efficiencies at the Yauricocha mine in Peru and the Bolivar mine in Mexico with 2012 marking the first full year
of production at both operations. This resulted in the Company
achieving record production with revenues of $179.7 million, earnings (EBITDA) of $83.8 million and cash flow from operations of
$60.5 million. Among other things,
these strong cash flows were used to pay down working capital loans
in Mexico, complete the
acquisition of Plexmar and pay the Company's first inaugural cash
dividend. At the end of 2012, the Company had a cash balance of
$79.8 million and net-debt of
$9.0 million.
The Company is committed to a fiscally
responsible growth strategy of increasing near mine reserves and
resources while adding value through production growth at all three
producing mines. In June 2012, the
Company completed a $44.4 million
private placement (see press release dated June 7, 2012) with
proceeds dedicated to increasing the production profile of the
Company by:
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1) |
Accelerating mine development at the Cusi Mine, which announced
commercial production of 200 ("tpd") tpd on January 1, 2013; |
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2) |
Doubling throughput capacity at the Piedras Verdes mill
(located 6 km from the Bolivar mine) from 1,000 tonnes per day to
2,000 tpd, with an anticipated completion date in the second
quarter of 2013; and, |
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3) |
Developing a new internal shaft and haulage drift in the
Central Mine area of the Yauricocha property to access deeper
levels of the mine and increase production capacity, anticipated to
be completed in late 2015. |
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Sierra Metals anticipates the announcement of
its second quarter cash dividend will take place on or after
June 30, 2013.
Quality Assurance
The technical content of this news release has
been approved by Thomas L. Robyn,
Ph.D., CPG, RPG, a Qualified Person as defined in NI 43-101 and
Head of Exploration for Sierra Metals Inc.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company
focused on precious and base metals from its Yauricocha mine in
Peru, its Bolivar mine and Cusi in
Mexico. In addition, Sierra Metals
is exploring several precious and base metal targets in
Peru and Mexico. Projects in Peru include Adrico (gold), Victoria (copper-silver) and Ipillo
(polymetallic) at the Yauricocha Property in the province of Yauyos
and the San Miguelito gold
properties in Northern Peru.
Projects in Mexico include
Bacerac (silver) in the
state of Sonora, La Verde (gold) at the Batopilas Property in the state of Chihuahua, and Las Coloradas (silver) at the Melchor Ocampo
Property in the state of Zacatecas.
The Company's shares trade on the Bolsa de
Valores de Lima and TSXV under the
symbol "SMT".
This press release does not constitute an
offer to sell or solicitation of an offer to buy the securities in
the United States or any other
jurisdiction. The Common Shares will not be and have not been
registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements.
Neither the TSXV nor its Regulation Services
Provider (as that term is defined in policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
Forward-Looking Statements
Except for statements of historical fact
contained herein, the information in this press release may
constitute "forward-looking information" within the meaning of
Canadian securities law. Other than statements of historical fact,
all statements are "forward-looking statements", which involve
various known and unknown risk and uncertainties and other factors,
including market conditions that may affect the Company's ability
to execute its current business plan. Actual results might
differ materially from results suggested in any forward-looking
statements. The Company assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward-looking
statements unless and until required by securities laws applicable
to the Company. Additional information identifying risks and
uncertainties is contained in filings by the Company with the
Canadian securities regulators, which filings are available at
www.sedar.com.
SOURCE Sierra Metals Inc.