Sierra Metals Fact Sheet


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Sierra Metals Fact Sheet

  1. 1. TSX-V: SMT BVL: SMT Share Capital At March 1st, 2013 Total issued and outstanding shares 157,737,476 Total fully diluted shares 161,753,848 TradingNewest Latin American Mid-Tier Metal Producer At March 1st, 2013 52 week High: CDN $3.10 CUSI PROJECT MEXICO 52 Week Low: CDN $2.22 BOLIVAR MINE MEXICO Market Capitalization US $394 MillionInvestor HighlightsSolid Financial PositionNew $10M annual dividendThree Low-Cash-Cost Producing Assets70% of production revenue from copper, silver and goldStrong Track Record of Delivering GrowthApplying to graduate to TSX main board YAURICOCHA MINE PERUAggressive Program to Increase Resources and Production$28 million exploration budget 2013-2016 HEAD OFFICESierra Metals Inc. is a growing mid-tier precious and base metals 595 Burrard St. Suite 3083 P.O.Box 49298producer in Latin America. The Company owns two low-cost mines in commercial Vancouver, British Columbia V7X 1L3production: the Yauricocha mine in Peru and the Bolivar mine in Mexico. T 866.493.9646 F 604.566.9050Formerly known as Dia Bras Exploration Inc., the company is focused onexpanding production at its Yauricocha and Bolivar mines and advancing its Cusi LIMA OFFICEProperty into commercial production. The Company is currently completing an Av. Pedro de Osmaaggressive exploration and development program to expand global reserves and 450 Barranco Lima, Peruresources and advance its projects towards production. T +51.1.710.2400 F +51.1.467.0590Selected Financial Highlights MEXICO OFFICE Fernando de Borja No.100 Col. San Felipe Figures in C$000 2010 2011 YTD-20121 Chihuahua, Chihuahua Revenue 19,744 100,664 136,369 CP. 31203 Mexico EBITDA 922 44,611 70,878 T +52.614.426.0212 F +52.614.426.6877 Operating Cash Flow (2,620) 38,788 37,295 Capex (13,575) (23,704) (16,812) AUDITORS Op. Cash Flow after Capex (16,195) 15,084 20,483 PricewaterhouseCoopers LLP Cash & Equivalents 14,957 20,156 92,5651 For the nine month period ending Sept.30, 2012 TRANSFER AGENT & REGISTRAR Computershare Investor Service INVESTOR RELATIONS T 866.493.9646 F 604.566.9050 E-mail:
  2. 2. Overview Yauricocha Bolivar Cusi Ownership 81.8% 100% 100% Stage Production Production Advanced Development Yauricocha Mine, Peru Metals Ag-Cu-Pb-Zn-Au Cu-Zn-Ag Ag-Pb Mill Capacity (tpm) 75,000 expanding to 100,000 30,000 expanding to 60,000 19,500 By-product cash costs1 Ag $(22.63)/oz Cu $1.25/lb N/A 1 For the 9 months ended September 30, 2012 Production Summary Bolivar Mine, Mexico Metal 2010 2011 2012 2013 (projected) Zinc 17% Lead Low High Copper 13% Silver (oz) 234,901 1,517,179 2,620,735 2,582,000 2,922,000 25% Copper (000 lb) 2,926 10,493 15,851 20,400 23,100 Silver Gold 37% Lead (000 lb) 248 19,636 35,720 53,700 60,700 8% Zinc (000 lb) 17,705 36,435 59,012 42,400 48,000 Gold (oz) N/A N/A 10,491 6,000 7,000 Cusi Project, Mexico Reserves and Resources1,2 Contained Metal Property & Classification Tonnes Ag Au Cu Pb Zn Ag Eq. Cu Eq. Ag Cu Pb Zn Au Ag Eq. Cu Eq. (000) (g/t) (g/t) (%) (%) (%) (g/t) (%) (M oz) (M lbs) (M lbs) (M lbs) (oz) (M oz) (M lbs) Proven & Probable Reserves Yauricocha 4,163 119.70 0.93 0.70 2.81 2.58 414.56 N/A 16.0 64.3 257.2 235.4 123,156 55.5 N/A Measured & Indicated Yauricocha 4,181 121.28 0.93 0.72 2.91 2.54 420.78 N/A 16.3 66.6 268.0 233.3 125,026 56.6 N/A Bolivar 15,404 19.40 N/A 0.79 N/A 1.01 N/A 1.26 9.6 266.7 N/A 342.2 N/A N/A 428.9 Inferred Yauricocha 1,794 58.62 1.10 0.64 1.57 1.07 276.38 N/A 3.4 25.1 61.9 42.4 63,678 15.9 N/A Bolivar 6,164 18.1 N/A 0.73 N/A 0.93 N/A 1.17 3.6 99.8 N/A 106.4 N/A N/A 158.4 1 NI 43-101 compliant mineral reserves and resources estimate announced September 6, 2012 and August 30, 2012 Please refer to the website for more information on Reserves and Resources 2 Increasing Reserves and Resources Well Positioned for Growth Project Capex Expected Benefits 25 1.6 2013-2016 1.4 Peru $60M 1.3 20 New underground $27M Have access to mineralized ore 1.2 mine infrastructure bodies at depth 4.2 (million tonnes per year) 1.0 1.0 Oxides tailings lixiviation plant $10M Increase gold and silver production(million tonnes) 15 0.8 Expansion and improvements $14M Increase production, recoveries, at Chumpe Mill revenue and EBITDA 10 0.6 15.4 Exploration $9M Advance high-priority regional exploration targets 1.1 0.4 5 Mexico $30M 0.1 1.4 4.2 0.2 Increase production x 2 at $11M Increase production, revenue 0 0.0 Piedras Verdes Mill and EBITDA 2010 20111 20121 Exploration $19M Advance high-priority regional M&I Resources P&P Reserves Annual Production exploration targets1 Measured & Indicated includes Proven & Probable Reserves, based on Gustavson Associates’ NI 43-101 Technical Reports Main Projects Capex $90M Cautionary Statements: This document includes certain "Forward-Looking Statements” as that term is used in applicable securities law. All statements included herein, other than statements of historical fact, including, without limitation, statements regarding potential mineralization and resources and future plans and objectives of Sierra Metals Inc. (“Sierra Metals”, or the “Company”), are forward-looking statements that involve various risks and uncertainties. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "scheduled", "believes", or variations of such words and phrases or statements that certain actions, events or results “potentially”, "may", "could", "would", "might" or "will" be taken, occur or be achieved. There can be no assurance that such statements will prove to be accurate, and actual results could differ materially from those expressed or implied by such statements. Forward-looking statements are based on certain assumptions that management believes are reasonable at the time they are made. In making the forward-looking statements in this document, the Company has applied several material assumptions, including, but not limited to, the assumption that: (1) there being no significant disruptions affecting operations, whether due to labour/supply disruptions, damage to equipment or otherwise; (2) permitting, development, expansion and power proceeding on a basis consistent with the Companys current expectations; (3) certain price assumptions for silver, gold, copper, lead and zinc; (4) prices for availability of fuel oil, electricity, parts and equipment and other key supplies remaining consistent with current levels; (5) the accuracy of current mineral resource estimates on the Companys property; and (6) labour and material costs increasing on a basis consistent with the Companys current expectations. Important factors that could cause actual results to differ materially from the Companys expectations are disclosed under the heading "Risk Factors" in the Company’s Filing Statement dated April 27, 2012 (a copy of which is publicly available on SEDAR at under the Companys profile) and elsewhere in documents filed from time to time, including MD&A, with the TSX Venture Exchange and other regulatory authorities. Such factors include, among others, risks related to the ability of the Company to obtain necessary financing and adequate insurance; the economy generally; fluctuations in the currency markets; fluctuations in the spot and forward price of silver, gold, copper, lead and zinc or certain other commodities (e.g., diesel fuel and electricity); changes in interest rates; disruption to the credit markets and delays in obtaining financing; the possibility of cost overruns or unanticipated expenses; employee relations. Accordingly, readers are advised not to place undue reliance on Forward-Looking Statements. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward Looking Statements, whether as a result of new information, future events or otherwise. References herein to "$" are to the United States dollar and ”C$" are to Canadian dollars. Thomas L. Robyn, Ph.D., CPG, RPG, is the ‘’Qualified Person’’ as defined in NI 43-101 and Head of Exploration for Sierra Metals Dia Bras Exploration who supervised the preparation of the scientific and technical information of Sierra Metals included in this preparation. For more information on Sierra Metal’s projects, readers should refer to Sierra Metal’s Annual Information Form and its technical TSX-V: SMT BVL: SMT reports, each of which is available on SEDAR at and at