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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 2014 EBITDA of $72.6 million1 and cash flow from operations of $60.0 million2.
  • Solid balance sheet with cash and cash equivalents of $41.31 million and net debt of $ 40.6 million1,3.

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 in 2014 was US $(21.25)/oz2. The Chumpe Mill has a processing capacity of 2,500 tpd.
     
  • 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. Copper by-product cash cost in 2014 was US$1.65/lb2. Expansion of the Piedras Verdes Mill to 2,500 tpd planned for H2 2015.
     
  • Cusi Mine, Mexico: The Cusi Mine is a silver producer with lead and gold by-products that achieved commercial production in January 2013. Silver by-product cash cost in 2014 was $8.92/oz2. In 2014, ore processing at the off-site Malpaso Mill increased throughput from 325 tpd to 510 tpd and is on track to reach 600 tpd in 2015.

CORE ASSETS

Three operations offering exceptional exploration potential for long mine life

Well Positioned for Growth

 

  • Yauricocha Mine
    • Updated NI 43-101 reserve and resource estimate dated Dec 31, 2014 increased Measured & Indicated Resources by 86% from previous estimate.
    • Developing new mining infrastructure at depth to increase production capacity and maximize operating efficiencies.
    • Over 16,000 meters of drilling planned in 2015 for resource expansion, upgrading and exploration.

  • Bolivar Mine
    • Updated NI 43-101 reserve and resource estimate dated Dec 31, 2012 identified 7.5 Mt of proven and probable reserves at Bolivar.
    • Doubled production from 1,000 tpd to 2,000 tpd in 2013; expansion to 2,500 tpd planned for H2 2015.
    • Over 21,000 meters of drilling planned in 2015 for resource expansion, upgrading and exploration.
  • Cusi Mine
    • Updated NI 43-101 compliant resource estimate dated Dec 11, 2013 resulted in a 70% increase in silver ounces, 40% increase in silver grade and 20% increase in tonnes of Indicated Resources.
    • Increased mill throughput from 325 to 510 tpd in 2014; on track to reach 600 tpd in 2015.
    • Over 37,000 meters of drilling planned in 2015 for resource expansion, upgrading and exploration.

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
    • Mark Brennan, President and CEO
      • 30 years of financing and operating experience in North America and Europe
      • Most recently served as President and CEO of Largo Resources where he played an integral role in advancing Largo´s Maraca Vanadium Project through feasibility, construction and commencement of production in 2014
      • Held various senior management positions for resource companies including Desert Sun Mining, Brasoil Corporation, James Bay Resources, Morumbi Oil and Gas and Admiral Bay Resources
    • 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.

Footnotes
1As of December 31, 2014.
2For the 12 month period ended December 31, 2014.
3Consolidated debt minus total cash and cash equivalents.