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

STRONG BALANCE SHEET

Solid Financial Position

  • Strong cash flow generating capacity with 2016 EBITDA of $41.9 million1,2.
  • Solid balance sheet with cash and cash equivalents of $42.11 million and net debt of $ 36.5 million1,3.

PROFITABLE

Historic Low Cash Cost Operations

  • Yauricocha Mine, Peru: Acquired in 2011, this world-class asset is a highly profitable polymetallic mining operation due to its historic low cash cost and high head grades. Cash cost per silver equivalent ounce produced in 2016 was US $7.77/oz, AISC4 was US $13.11/oz2. The Chumpe Mill has a processing capacity of 2,800 tpd moving to 3,000 tpd by the end of 2017.
  • Bolivar Mine, Mexico: The Bolivar Mine is a low-cost copper mine with silver and zinc by-products that achieved commercial production in November 2011. Cash cost per copper equivalent pound produced in 2016 was US$1.15/lb, AISC4 was US $2.28/lb2. Expansion of the Piedras Verdes Mill to 3,000 tpd achieved in 2016 moving to 3,500 tpd by the end of 2017.
  • Cusi Mine, Mexico: The Cusi Mine is a silver producer with zinc, lead and gold by-products that achieved commercial production in January 2013. In 2015, ore processing at the off-site Malpaso Mill increased throughput from 444 tpd to 577 tpd and reached 600 tpd in 2016.

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.
    • Gordon Babcock, P. Eng., Chief Operating Officer
      • Over 34 years experience in the mine production management, project development, engineering, exploration and mine consulting in precious, base metals and aggregate operations in the Americas
      • Most recently COO at Jaguar Mining and has previously worked for Nyrstar, Breakwater Resources, Coeur Mining Inc., Milpo, The Hochschild group in Peru, Muscocho Explorations and The Noranda Group

DIVERSIFIED

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

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, 2015 (Central Mine, Cachi Cachi, Masscota and Cuerpos Pequenos) and June 30, 2016 (Esperanza) identified 3.8 Mt of Proven and Probable Reserves & 7.9 Mt of Measured an Indicated Resources .
    • Developing new mining infrastructure at depth and to the North to increase production capacity and maximize operating efficiencies.
    • Drilling planned in 2017 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 400 tpd in 2011 to 3,000 tpd in 2016; expansion planned to increase to approximately 3,500 tpd planned 2017.
    • Drilling planned in 2017 for resource expansion, increasing grade for mill feed.
  • 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; reached 600 tpd in 2016.
    • Drilling planned in 2017 for resource expansion, upgrading and exploration.

Footnotes
1As of December 31, 2016.
2For the 12 month period ended December 31, 2016.
3Consolidated debt minus total cash and cash equivalents.
4All-in Sustaining Costs include treatment and refining charges, selling costs, G&A costs and sustaining capex.