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Sierra Metals Mexico
Sierra Metals Peru

Investment Highlights

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Sierra Metals is a growing metals producer with core strengths in finding and operating high grade low cost mines

Investment Highlights

DIVERSIFIED

  • Metals: exposure to base AND precious metals producing stable operating cash flows
  • Geographically: operating mines in two stable mining jurisdictions

STRONG BALANCE SHEET

Solid Financial Position

  • Strong cash flow generating capacity with EBITDA of $59.25 million and cash flow from operations of $47.9 million for the nine months ending September30, 2014.
  • Solid balance sheet with cash and cash equivalents of $42.1 million and net debt2 of $ 48.1 million  for the nine months ending September 30, 2014

PROFITABLE

Low Cash Cost Operations

  • Yauricocha Mine, Peru: Acquired in 2011, this world-class asset is a highly profitable polymetallic mining operation due to its low cash cost and high head grades. Silver by-product cash cost is USD $(24.26)/oz.1
     
  • Bolivar Mine, Mexico: The Bolivar mine is a high-grade, low-cost copper mine with silver and zinc by-products that achieved commercial production in November 2011. In 2013, the Piedras Verdes mill doubled throughput to 60,000 tpm and has a copper by-product cash cost of USD $1.71/lb.1
     
  • Cusi Mine, Mexico: The Cusi silver mine achieved commercial production in January 2013 and is currently producing from the Santa Eduwiges Mine. The Malpaso Mill, located 35 km northwest of the Cusi Mine currently has a capacity of 19,500 tpm and has a silver by-product cash cost of $6.35. The Company released an updated NI 43-101 resource estimate in March 2014.

CORE ASSETS

Three operations offering exceptional exploration potential for long mine lifes

Well Positioned for Growth

 

  • Yauricocha Mine
    • Updated NI 43-101 report released in November 2013 has tripled proven and probable reserves.
    • Completing exploration and development program to expand resources at depth and test regional targets.
    • Developing new mining infrastructure at depth to increase production capacity and maximize operating efficiencies.
       
  • Bolivar Mine
    • Updated NI 43-101 report released in April 2013 identified 7.5 Mt of proven and probable reserves at Bolivar
    • Doubled production from 30,000 tpm to 60,000 tpm  in October 2013
    • On-going exploration to expand reserves and resources
  • Cusi Mine
    • Updated NI 43-101 compliant resource estimate released in March 2014 resulted in a 70% increase in silver ounces, 40% increase in silver grade and 20% increase in tonnes of Indicated Resources
    • On-going exploration to expand new disseminated silver discovery
    • Upgrading existing production infrastructures to allow higher throughput

 

LEADERSHIP

Proven Explorers, Mine Builders & Operators

Strong Team With Proven Track Record

 

  • Key Leadership
    • J. Alberto Arias, Founder & Chairman
      • Founder and President of Arias Resource Capital
      • Former Head of Equity Research at Goldman, Sachs & Co. for metals and mining in the U.S., Canada and Latin America
      • Engineering degree in mining and metallurgy from the Colorado School of Mines and MBA from Columbia University
    • Audra Walsh, P.E., President and CEO
      • B.Sc. in Mine Engineering from the South Dakota School of Mines
      • Extensive experience in strategic planning, mine optimization and management of large engineering teams.
      • Ex-CEO of Minera SA, a private mining company with assets located worldwide and controlling shareholder of Orvana Mineral
      • Held Senior positions at Newmont Mining and Barrick Gold
    • Ed Guimaraes, Chief Financial Officer
      • Chartered Professional Accountant (CPA, CA) and holds a Bachelor of Arts in Administrative and Commercial Studies from the University of Western Ontario.
      • Held progressive senior management positions with Aur Resources Inc. (Aur) between 1995 and 2007, ultimately serving as Executive Vice-President, Finance and Chief Financial Officer.Since 2007, has worked as a consultant in the resource industry and is currently a director of several publicly listed mining companies.
    • Thomas Robyn, Ph. D., Senior Vice President, Exploration
      • Ph.D., Geology in 1977 from the University of Oregon with a major in Igneous Petrology/Volcanology.
      • Ex-Anaconda Minerals regional exploration manager in Norway.
      • Held top-level positions with several junior companies, and in recent years has advised investment funds with respect to mineral companies.
      • International experience, oversaw projects in such countries as Australia, Ecuador, Greenland, Norway, Liberia, Equatorial Guinea, Guyana and Suriname, as well as several US states. He is director of Yorbeau Resources Inc.
  • Recent Achievements
    • Increased the Indicated Resources in silver ounces at Cusi by 70% and silver grade by 40%
    • Completed the doubling of capacity of the Piedras Verdes Mill
    • Increased measured and indicated resources at Bolivar
    • Increased proven and probable reserves at Yauricocha and discovered new target at depth

Footnotes
1For the three months ended September 30, 2014
2Consolidated debt minus total cash and cash equivalents.