Q3 2024 Sierra Metals Inc Earnings Call Transcript
Key Points
- 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.
- The company achieved a 48% increase in cash flow from operations, reaching over $22 million, compared to the second quarter of 2024.
- 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.
- Adjusted EBITDA from continuing operations reached $20.4 million, the highest in the last two years, showing a significant improvement from the previous year.
- 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.
- Lead production decreased, and zinc production remained flat compared to the previous quarter.
- Despite improvements, cash costs and all-in sustaining costs per pound remain relatively high at $2.42 and $3.23, respectively, for Bolivar.
- Yauricocha's cash cost per pound was $3.25, with all-in sustaining costs at $3.75, indicating room for cost efficiency improvements.
- The company incurred significant capital investments, including $40.4 million used for investing activities, impacting cash reserves.
- Net income attributable to shareholders was $3.8 million, which, while positive, reflects a modest profit margin relative to revenue growth.
Thank you for standing by. This is the conference operator. Welcome to the Sierra Metals Inc. Third Quarter 2024 Financial and Operating Results Conference Call. (Operator Instructions) And the conference is being recorded. (Operator Instructions)
I now hand the call over to Alia Benavides, the company's new Corporate Finance Manager. Please go ahead.
Good afternoon, everyone. Thank you for joining our call today. Some housekeeping items before I pass the call to Ernesto Balarezo, our CEO; and Jean Pierre Fort, our CFO. The accompanying presentation for today's call is available for download from the company's website at sierrametals.com. Today's press release, the financial statements and the MD&A are all posted on our website and on SEDAR+.
I'd like to note that this earnings call contains forward-looking information that is based on the company's current expectations, estimates and beliefs and will also use terms that are non-IFRS performance measures. Please review our Q3
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