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Harvest, A Fully Vertically Integrated Cannabis Company With One of the Largest Footprints in the US, Announces Latest License Win in North Dakota

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Harvest Enterprises Inc., a vertically integrated cannabis company with one of the largest footprints in the United States and growing at a robust pace, today announced that its North Dakota affiliate has been awarded a retail license for the Bismarck-Mandan region of North Dakota, the only license awarded by state regulators for the capitol region. Harvest was chosen because it received the highest score on its application based on its responses to the set of criteria developed by the North Dakota Department of Healths Medical Marijuana Program. The North Dakota state legislature approved regulations to govern its new medical cannabis program in March 2018, and sales are expected to begin by the end of the year. With this latest win, Harvest and its affiliates now have more than 40 licenses in states across the U.S.

Founded in 2011, Harvest now has the largest footprint in its home state of Arizona “ the third largest medical cannabis market in the U.S. and one of the oldest regulated cannabis markets in the world. With a truly comprehensive vertically integrated model, Harvest comprises industry-leading cultivation, manufacturing, retail facilities, construction, real estate, technological capabilities backed by an award-winning team of experts with a proven track record in writing and winning state-based cannabis licensing applications.

We are extremely pleased to be awarded the only retail license in the Bismarck-Mandan region and look forward to opening the first dispensary in North Dakotas capital city, said Steve White, founder and CEO of Harvest. Its an honor for us to have been selected and we are excited to offer the people of Bismarck the highest quality products and top-level service that are the hallmark of Harvest facilities, wherever they are located.

A national leader in the cannabis industry, Harvest holds itself to the most stringent health, safety and quality standards in the industry when it comes to the growth, production and sale of cannabis medicines, and products for consumers. Harvests offerings include a full line of cannabis products. Since Harvest was founded in 2011, the company has donated more than $500,000 to veterans, seniors, children, patients-in-need and other charitable recipients.

About Harvest Enterprises Inc.:

Harvest Enterprises Inc., is a consistently profitable, vertically integrated cannabis company with one of the largest footprints in the U.S. Harvests complete vertical solution includes industry-leading cultivation, manufacturing, and retail facilities, construction, real estate, technology and operational expertise — leveraging in-house legal, HR and marketing teams, along with proven experts in writing and winning state-based applications. The company has more than 250 employees with proven experience, expertise and knowledge of in-house best practices that are drawn upon whenever Harvest enters new markets. Harvests executive team is comprised of leaders in finance, compliance, real estate and operations. Since its founding in 2011, Harvest has grown its footprint every year and now has licenses in states across the country, with significant planned expansion by 2020. Harvest shares timely updates and releases as part of its regular course of business with the media and the interested public. For more information, visit: https://www.harvestinc.com/.

Forward-looking Statements

This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Harvest with respect to future business activities. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and include information regarding: (i) expectations regarding the size of the U.S. cannabis market (ii) the ability of the Company to successfully achieve its business objectives, (iii) plans for expansion of Harvest, and (iv) expectations for other economic, business, and/or competitive factors.

Investors are cautioned that forward-looking information is not based on historical facts but instead reflects Harvest management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Harvest believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the potential impact of an announcement of a going public transaction on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws, including those related to taxation; the inability to locate and acquire suitable companies, properties and assets necessary to execute on the Company’s business plans; and increasing costs of compliance with extensive government regulation. This forward-looking information may be affected by risks and uncertainties in the business of Harvest and market conditions.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Harvest has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Harvest does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

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Sierra Metals Reports 2020 Production Results and Announces Strong 2021 Production and EBITDA Growth Guidance

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Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (Sierra Metals or the Company) is pleased to report fourth quarter 2020 and full year 2020 production results, as well as 2021 guidance for production, cost, EBITDA and capex.

Results are from Sierra Metals three underground mines in Latin America: The Yauricocha polymetallic mine in Peru, and the Bolivar copper and Cusi silver mines in Mexico.

2020 Consolidated Production Highlights

  • Copper production of 44.3 million pounds; an 11% increase from 2019
  • Silver production of 3.5 million ounces; a 3% increase from 2019
  • Gold production of 13,771 ounces; an 18% increase from 2019
  • Zinc production of 81.9 million pounds; a 1% increase from 2019
  • Lead production of 33.0 million pounds; a 7% decrease from 2019
  • Total of 2.8 million ore tonnes processed; a 6% increase from 2019
  • Consolidated copper equivalent production of 118.2 million pounds; an increase of 6% from 2019, which is within the upper end of revised guidance

The Company achieved annual throughput that was 6% higher than the 2019 annual throughput despite the various COVID-19 related operational challenges including government-mandated shutdowns in the second quarter of the year. Annual 2020 consolidated production of silver, copper, zinc, and gold increased 3%, 11%, 1%, and 18% respectively, while lead production decreased by 7% compared to 2019.

Fourth Quarter 2020 Production Highlights

  • Copper production of 10.6 million pounds; a 6% decrease from Q4 2019
  • Silver production of 0.9 million ounces; a 6% increase from Q4 2019
  • Gold production of 3,363 ounces; a 7% decrease from Q4 2019
  • Zinc production of 21.6 million pounds; a 16% decrease from Q4 2019
  • Lead production of 7.6 million pounds; a 23% decrease from Q4 2019

Despite the continued COVID-19 related operational challenges Q4 2020, consolidated quarterly ore throughput of 778,236 tonnes increased by 6% over Q4 2019, as higher throughput from the Mexican operations was partially offset by a 3% decline in Q4 2020 throughput from the Yauricocha mine.

Copper equivalent production at Yauricocha declined 20% during Q4 2020 due to a 3% decrease in quarterly throughput combined with lower head grades and recoveries. At Bolivar, 10% higher ore throughput and higher recoveries were partially offset by lower head grades resulting in Q4 2020 copper equivalent pounds production that was in line with Q4 2019. Q4 2020 silver equivalent production at the Cusi mine was 83% higher than Q4 2019 due to 35% higher throughput realized, in addition to higher silver and gold head grades and 65% higher gold recoveries as compared to Q4 2019.

Luis Marchese, CEO of Sierra Metals, commented: We continue to put the health and safety of our employees and communities first. Despite the impacts of COVID-19 on our operations, I am very pleased with the Companys strong production results. The hard work and efficiency gains of our employees resulted in a solid year of production in 2020. The Company performed within the upper end of the range for its consolidated copper equivalent production guidance that was issued in a press release on August 13, 2020.

The Company has been able to continue ramping up production at the Bolivar Mine and Cusi Mines despite a high-level of COVID-19 case counts encountered during our safety screens in Q4 2020. Both the Bolivar and Cusi Mines saw increases in throughput as compared to the same quarter last year. Yauricochas throughput was slightly lower in Q4 2020 due to similar COVID-19 issues resulting from lower active employee headcount levels and backlog operational issues.

2020 wrapped up on a positive note for the Company despite the challenges faced. We saw mineral resource increases at all mines. We completed and issued preliminary economic assessments (PEA) for all three mines boasting positive economics and supportive of potential expansion plans at all three mines. The price environment improved significantly for all metals produced by the company, highlighting the strong positioning of Sierras expanded and diversified portfolio of mining assets for the future.

He concluded, “2021 will be an important year for the Company as we expect to receive the permits to increase Yauricochas production capacity by 20% in the second quarter. Furthermore, we expect to complete Pre-Feasibility Studies across all three mines which are expected to give us further insight into, and support, our growth plans. It is an exciting time for the Company as we continue with strong brownfield and greenfield exploration programs to support future mineral resource and production growth. We continue to focus on improving and modernizing our mine operations and increasing operating efficiencies with a focus on improving productivity and reducing costs.

Consolidated Production Results

 
Consolidated Production Quarter Ended Year Ended
December 31, 2020 December 31, 2019 % Var. December 31, 2020 December 31, 2019 % Var.
 
Tonnes processed

778,236

731,500

6%

2,828,877

2,671,853

6%

Daily throughput (1)

8,894

8,360

6%

8,083

7,634

6%

 

 

 

 

Silver production (000 oz)

922

871

6%

3,465

3,375

3%

Copper production (000 lb)

10,626

11,308

-6%

44,262

39,889

11%

Lead production (000 lb)

7,630

9,924

-23%

32,972

35,454

-7%

Zinc production (000 lb)

21,612

25,590

-16%

81,868

81,083

1%

Gold Production (oz)

3,363

3,615

-7%

13,771

11,632

18%

 

 

 

 

Silver equivalent ounces (000’s)(2)

3,996

5,016

-20%

16,097

18,721

-14%

Copper equivalent pounds (000’s)(2)

29,267

32,510

-10%

118,214

111,678

6%

Zinc equivalent pounds (000’s)(2)

79,521

81,919

-3%

321,638

267,658

20%

(1) Daily throughput calculated using 350 operating days for the year.

(2) Silver equivalent ounces and copper and zinc equivalent pounds for Q4 2020 were calculated using the following realized prices: $24.30/oz Ag, $3.32/lb Cu, $1.22/lb Zn, $0.89/lb Pb, $1,859/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q4 2019 were calculated using the following realized prices: $17.42/oz Ag, $2.69/lb Cu, $1.07/lb Zn, $0.92/lb Pb, $1,506/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for full year 2020 were calculated using the following realized prices: $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb, $1,771/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for full year 2019 were calculated using the following realized prices: $16.29/oz Ag, $2.73/lb Cu, $/1.14lb Zn, $0.91/lb Pb, $1,404/oz Au.

Yauricocha Mine, Peru

The Yauricocha mine production decreased by 3% during Q4 2020 as compared to Q4 2019, as a result of operational downtimes and minor production disruptions during the quarter. Copper and zinc equivalent metal production in Q4 2020 decreased by 20% and 14% respectively due to lower throughput and lower head grades, as availability of manpower continued to impact mine development, leading to lower ore contribution from the high-grade cuerpos chicos zones.

Annual throughput of 1,117,860 was in line with the 2019 annual production, despite the impact of COVID-19 related shutdowns faced in Q2 2020 and other COVID-19 related challenges throughout the year. Year over year copper equivalent production decreased 4% in 2020 compared to the prior year, while zinc equivalent production was 9% higher than the same period in 2019. During 2020, the annual production of zinc and gold increased 1% and 3% respectively, while copper and lead annual production decreased by 2% and 9%. Silver production for 2020 was in line with the 2019 annual silver production.

A summary of production from the Yauricocha Mine for Q4 2020 has been provided below:

 
Yauricocha Production Quarter Ended Year Ended
December 31, 2020 December 31, 2019 % Var. December 31, 2020 December 31, 2019 % Var.
 
Tonnes processed

311,946

321,701

-3%

1,117,860

1,116,919

0%

Daily throughput(1)

3,565

3,677

-3%

3,194

3,191

0%

 

 

 

 

Silver grade (g/t)

53.74

60.14

-11%

61.55

63.24

-3%

Copper grade

0.95%

1.05%

-10%

1.08%

1.06%

2%

Lead grade

1.15%

1.55%

-26%

1.45%

1.57%

-8%

Zinc grade

3.59%

4.05%

-11%

3.77%

3.72%

1%

Gold Grade (g/t)

0.57

0.60

-5%

0.61

0.59

3%

 

 

Silver recovery

79.80%

79.75%

0%

81.53%

79.20%

3%

Copper recovery

72.69%

75.49%

-4%

74.20%

77.05%

-4%

Lead recovery

88.82%

88.39%

0%

88.63%

89.33%

-1%

Zinc recovery

87.62%

89.11%

-2%

88.13%

88.52%

0%

Gold Recovery

19.34%

21.22%

-9%

19.72%

19.74%

0%

 

 

 

 

Silver production (000 oz)

430

496

-13%

1,803

1,799

0%

Copper production (000 lb)

4,759

5,648

-16%

19,726

20,059

-2%

Lead production (000 lb)

7,040

9,691

-27%

31,605

34,548

-9%

Zinc production (000 lb)

21,612

25,590

-16%

81,868

81,083

1%

Gold Production (oz)

1,112

1,322

-16%

4,292

4,165

3%

 

 

 

 

Copper equivalent pounds (000’s)(2)

18,373

23,058

-20%

75,079

78,242

-4%

Zinc equivalent pounds (000’s)(2)

49,922

58,102

-14%

204,274

187,672

9%

(1) Daily throughput calculated using 350 operating days for the year.

(2) Silver equivalent ounces and copper and zinc equivalent pounds for Q4 2020 were calculated using the following realized prices: $24.30/oz Ag, $3.32/lb Cu, $1.22/lb Zn, $0.89/lb Pb, $1,859/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q4 2019 were calculated using the following realized prices: $17.42/oz Ag, $2.69/lb Cu, $1.07/lb Zn, $0.92/lb Pb, $1,506/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for full year 2020 were calculated using the following realized prices: $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb, $1,771/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for full year 2019 were calculated using the following realized prices: $16.29/oz Ag, $2.73/lb Cu, $/1.14lb Zn, $0.91/lb Pb, $1,404/oz Au.

Bolivar Mine, Mexico

Q4 2020 throughput of 383,607 tonnes was 10% higher than Q4 2019 production, despite the lack of manpower resulting from positive cases of the COVID-19 virus at site identified during our health safety screens. Operational challenges, emanating from the COVID-19 pandemic, and technical difficulties at the mine, resulted in grades being negatively impacted during Q4 2020, as compared to the same quarter of the prior year.

The Bolivar mine achieved annual throughput of 1,480,588 tonnes, or a 17% increase over the 2019 annual throughput largely attributable to the plant expansion at the end of 2019. Copper equivalent production for Q4 2020 was in line with the same quarter of the prior year, but 31% higher for the full year 2020 as compared to full year 2019. Annual copper, silver and gold production were 24%, 21% and 27% higher respectively as compared to 2019 production.

A summary of production for the Bolivar Mine for Q4 2020 has been provided below:

 
Bolivar Production Quarter Ended Year Ended
December 31, 2020 December 31, 2019 % Var. December 31, 2020 December 31, 2019 % Var.
 
Tonnes processed (t)

383,607

348,434

10%

1,480,588

1,269,698

17%

Daily throughput (1)

4,384

3,982

10%

4,230

3,628

17%

 

 

 

 

Copper grade

0.79%

0.87%

-9%

0.87%

0.85%

2%

Silver grade (g/t)

14.50

20.98

-31%

19.61

19.81

-1%

Gold grade (g/t)

0.25

0.32

-22%

0.29

0.27

7%

 

 

Copper recovery

88.21%

84.76%

4%

86.76%

83.02%

5%

Silver recovery

83.44%

78.69%

6%

82.73%

79.18%

4%

Gold recovery

64.41%

62.28%

3%

64.07%

63.54%

1%

 

 

 

 

Copper production (000 lb)

5,867

5,660

4%

24,536

19,830

24%

Silver production (000 oz)

149

185

-19%

772

640

21%

Gold production (oz)

2,017

2,216

-9%

8,860

6,975

27%

 

 

 

 

Copper equivalent pounds (000’s)(2)

8,091

8,099

0%

35,804

27,236

31%

(1) Daily throughput calculated using 350 operating days for the year.

(2) Silver equivalent ounces and copper and zinc equivalent pounds for Q4 2020 were calculated using the following realized prices: $24.30/oz Ag, $3.32/lb Cu, $1.22/lb Zn, $0.89/lb Pb, $1,859/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q4 2019 were calculated using the following realized prices: $17.42/oz Ag, $2.69/lb Cu, $1.07/lb Zn, $0.92/lb Pb, $1,506/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for full year 2020 were calculated using the following realized prices: $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb, $1,771/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for full year 2019 were calculated using the following realized prices: $16.29/oz Ag, $2.73/lb Cu, $/1.14lb Zn, $0.91/lb Pb, $1,404/oz Au.

Cusi Mine, Mexico

Q4 2020 quarterly throughput at the Cusi mine was 82,683 tonnes or 35% higher than the Q4 2019 throughput. Higher silver and gold head grades during Q4 2020 resulted from mining the recently discovered high-grade Northeast Southwest vein system.

Annual production at the Cusi Mine was 230,429 tonnes in 2020, which was 19% lower than 2019, as the mine remained in care and maintenance throughout Q2 2020 and part of Q3 2020. Despite the 83% increase in silver equivalent production during Q4 2020, annual silver equivalent production remained 3% below the 2019 annual production, due to the afore-mentioned care and maintenance period. Compared to 2019, silver production decreased 5% to 0.9 million ounces, gold production increased 26% to 619 ounces and lead production increased 51% to 1.4 million pounds. Q4 2020 production for silver, gold and lead was 81%, 204% and 153% higher respectively than the Q4 2019 production.

A summary of production for the Cusi Mine for Q4 2020 has been provided below:

 
Cusi Production Quarter Ended Year Ended
December 31, 2020 December 31, 2019 % Var. December 31, 2020 December 31, 2019 % Var.
 
Tonnes processed (t)

82,683

61,365

35%

230,429

285,236

-19%

Daily throughput(1)

945

701

35%

658

815

-19%

 

 

 

 

Silver grade (g/t)

160.62

120.51

33%

149.62

129.05

16%

Gold grade (g/t)

0.19

0.14

36%

0.18

0.15

20%

Lead grade

0.28%

0.23%

22%

0.29%

19.00%

-98%

 

 

Silver recovery (flotation)

80.37%

79.82%

1%

80.32%

79.10%

2%

Gold recovery (lixiviation)

46.73%

28.36%

65%

45.75%

36.14%

27%

Lead recovery

82.79%

74.00%

12%

82.40%

75.40%

9%

 

 

 

 

Silver production (000 oz)

343

190

81%

890

936

-5%

Gold production (oz)

234

77

204%

619

492

26%

Lead production (000 lb)

590

233

153%

1,367

906

51%

 

 

 

 

Silver equivalent ounces (000’s)(2)

383

209

83%

998

1,029

-3%

(1) Daily throughput calculated using 350 operating days for the year. Considering the care and maintenance period, Cusi operated for 240 days during the year, resulting in actual daily throughput of 960 tonnes per day.

(2) Silver equivalent ounces and copper and zinc equivalent pounds for Q4 2020 were calculated using the following realized prices: $24.30/oz Ag, $3.32/lb Cu, $1.22/lb Zn, $0.89/lb Pb, $1,859/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q4 2019 were calculated using the following realized prices: $17.42/oz Ag, $2.69/lb Cu, $1.07/lb Zn, $0.92/lb Pb, $1,506/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for full year 2020 were calculated using the following realized prices: $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb, $1,771/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for full year 2019 were calculated using the following realized prices: $16.29/oz Ag, $2.73/lb Cu, $/1.14lb Zn, $0.91/lb Pb, $1,404/oz Au.

2021 Guidance

Luis Marchese, CEO of Sierra Metals commented, The company is providing a strong production, lower cost and substantial EBITDA growth guidance for 2021. Management forecasts higher throughput and metals production for the Company. More importantly we expect continued low cash costs and reduced all in costs as we ramp up production rates. This should continue to drive efficiency improvements, which should enhance even more our global cost competitive position in the copper industry, as we have been recently illustrating in our corporate presentations. Finally, with the combination of higher production, lower costs and higher metal prices expected by consensus analyst we are forecasting much stronger EBITDA and cash flows. This should allow us to complete our capital expenditures budget which supports improvement, strong further growth and value creation for all three mines.

Production Guidance

The Company anticipates that 2021 copper equivalent production will range between 130.0 to 141.0 million pounds; or silver equivalent production will range between 16.1 to 17.5 million ounces. The increase in 2021 guidance for copper pounds and silver ounces compared to the actual 2020 production is due to a 20% throughput and recovery increases planned at Yauricocha as well as increased daily throughput rates at Bolivar and Cusi.

A table summarizing 2021 production guidance has been provided below:

 
2021 Guidance

2020

Low High Actual
 
Silver (000 oz)

4,298

4,628

3,466

Copper (000 lbs)

44,090

48,380

44,262

Lead (000 lbs)

31,871

34,322

32,971

Zinc (000 lbs)

101,409

109,240

81,868

Gold (oz)

10,691

11,720

13,771

Copper equivalent pounds (000’s)

129,988

141,018

118,214

Silver equivalent ounces (000’s)

16,126

17,494

16,097

(1) 2021 metal equivalent guidance was calculated using the following prices: $25.15/oz Ag, $3.12/lb Cu, $1.09/lb Zn, $0.90/lb Pb, $1,936/oz Au. 2020 metal equivalent guidance was calculated using the following prices: $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb and $1,771/oz Au.

2021 Cost Guidance

A mine by mine breakdown of 2021 production guidance, cash costs and all-in sustaining costs (AISC) are included in the table below. All costs are in USD. Cash costs and AISC guidance is shown per copper equivalent payable pound at Yauricocha and Bolivar, and silver equivalent payable ounce at Cusi.

 
Equivalent Production Cash costs range AISC(2) range
Mine Range (1) per CuEqLb or AgEqOz per CuEqLb or AgEqOz
 
Yauricocha Copper Eq Lbs (‘000) 79,300 – 85,600 $0.96 – $1.03 $1.89 – $1.98
Bolivar Copper Eq Lbs (‘000) 37,500 – 41,500 $1.00 – $1.07 $1.92 – $2.05
Cusi Silver Eq Oz (‘000) 1,650 – 1,725 $13.37 – $14.08 $21.43 – $22.46

(1) 2021 metal equivalent guidance was calculated using the following prices: $25.15/oz Ag, $3.12/lb Cu, $1.09/lb Zn, $0.90/lb Pb and $1,936/oz Au.

(2) AISC includes treatment and refining charges, selling costs, G&A costs and sustaining capital expenditure.

The 2021 cost guidance includes expenditure related to the COVID-19 testing and other measures to control the spread of the pandemic such as quarantine accommodations for employees and contractors, and sanitization and cleaning supplies.

2021 EBITDA Guidance

Consolidated EBITDA Guidance including corporate expenses, at consensus prices(1), is expected to be between $155.0 million and $170.0 million, which is broken down as follows:

 

EBITDA Range ($’000)

Mine

Low

High

 

 

Yauricocha

93,400

100,200

Bolivar

47,200

54,500

Cusi

19,100

20,000

Corporate

(4,700)

(4,700)

Total

155,000

170,000

At prevalent spot prices(2), consolidated EBITDA is expected to range between $170.0 million and $185.0 million.

(1) Analyst consensus prices at the end of 2020 were: $25.15/oz Ag, $3.12/lb Cu, $1.09/lb Zn, $0.90/lb Pb, $1,936/oz Au.

(2) Spot prices used to estimate EBITDA: $25.15/oz Ag, $3.12/lb Cu, $1.09/lb Zn, $0.90/lb Pb, $1,936/oz Au.

2021 Capital Expenditures

In 2021, the Company plans to invest a total of up to $78.0 million on capital expenditures of which approximately $10.0 million has been carried over from the 2020 Capex Budget for carry forward projects. The $78.0 million capital expenditure budget includes $37.0 million for sustaining capital requirements and $41.0 million for expansion, growth projects and exploration expenses. These capital expenditures will allow Sierra Metals to continue to significantly grow our mineral reserves and resources, complete the development work required in operations to increase production in the future. These capital expenditure projects are expected to result in increased cash flows, and lower cash costs. We expect these capital expenditure programs will be funded through the generation of operating cash flows.

Management continues to review metal prices, and value enhancing opportunities, and retains the option to adjust the 2021 capital expenditure plan should metal prices experience any dramatic changes within the year.

A breakdown by mine of the throughput and planned capital investments is shown below:

 
Amounts in $M
Sustaining Growth Total
 
Yauricocha

18

21

39

Bolivar

13

9

22

Cusi

6

8

14

Greenfield Exploration

3

3

Total Capital Expenditure

37

41

78

Quality Control

All technical data contained in this news release has been reviewed and approved by:

Americo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning is a Qualified Person under National Instrument 43-101 “ Standards of Disclosure for Mineral Projects.

Augusto Chung, FAusIMM CP (Metallurgist) and Vice President of Metallurgy and Projects to Sierra Metals is a Qualified Person under National Instrument 43-101 “ Standards of Disclosure for Mineral Projects.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Companys Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock Exchange under the symbol SMT and on the NYSE American Exchange under the symbol SMTS.

For further information regarding Sierra Metals, please visit www.sierrametals.com.

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Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws (collectively, “forward-looking information“). Forward-looking information includes, but is not limited to, statements with respect to the date of the 2020 Shareholders’ Meeting and the anticipated filing of the Compensation Disclosure. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in the Company’s annual information form dated March 30, 2020 for its fiscal year ended December 31, 2019 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Mike McAllister

Vice President, Investor Relations

Sierra Metals Inc.

Tel: +1 (416) 366-7777

Email: [email protected]

Luis Marchese

CEO

Sierra Metals Inc.

Tel: +1 (416) 366-7777

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Orion Engineered Carbons Donates $10,000 to Memorial Health System of Ohio for COVID-19 Relief

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Orion Engineered Carbons S.A. (NYSE: OEC), a worldwide supplier of specialty and high-performance carbon black with a facility in Belpre, Ohio, today announced that it has donated $10,000 to the Memorial Health Foundation to support the fight against COVID-19 in a region that includes southeastern Ohio and northwestern West Virginia.

“This donation exemplifies our support of front-line community health care workers in the fight against COVID-19. We are proud that we can do our part to help provide much needed equipment and technology in the fight against the pandemic,” said Corning Painter, chief executive officer of Orion Engineered Carbons.

In commenting on the funding Jarrett Stull, Executive Director Memorial Health Foundation said, In three short weeks, our community has come together to raise more than $530,000 to help our local health care system continue the fight against COVID-19 and prepare for a vaccination clinic that will be significant in moving the Mid-Ohio Valley through this virus. Orions gift demonstrates the thoughtful leadership this company has to ensure the health and safety of our community.

The donation is a continuation of Orions commitment to supporting the global communities that the company serves as a responsible corporate citizen working towards a sustainable future for all of its stakeholders.

About Orion Engineered Carbons S.A.

Orion is a worldwide supplier of carbon black. We produce a broad range of carbon blacks that include high-performance specialty gas blacks, acetylene blacks, furnace blacks, lamp blacks, thermal blacks and other carbon blacks that tint, colorize and enhance the performance of polymers, plastics, paints and coatings, inks and toners, textile fibers, adhesives and sealants, tires, and mechanical rubber goods such as automotive belts and hoses. Orion operates 14 global production sites and has approximately 1,425 employees worldwide. For more information, please visit our website www.orioncarbons.com.

About Memorial Health System

Memorial Health System is a not-for-profit integrated health system lead by a volunteer board of community members committed to providing comprehensive care services that meet the needs of our region. We are comprised of a network of locations and specialties provided by over 3,000 employees that include three hospitals (Marietta Memorial Hospital, Selby General Hospital and Sistersville General Hospital), outpatient service sites, and provider clinics. Memorial Health System strives to deliver quality care and service with an additional focus on medical education and community service. We invest in the most advanced technologies and treatments today, giving our patients the care that they need, so they can stay close to home.

Orion Engineered Carbons S.A.

Wendy Wilson, Investor Relations +1 281-974-0155

[email protected]

Memorial Health System

Jennifer Offenberger, Associate Vice President of Service Excellence +1 740-374-1797

[email protected]

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Kofax Power PDF Wins 2021 TrustRadius Awards for Best Feature Set and Best Customer Support

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Kofax, a leading supplier of Intelligent Automation software for digital workflow transformation, today announces TrustRadius has recognized Kofax Power PDFTM with its 2021 Best Feature Set and Best Customer Support Awards. These awards highlight companies with outstanding feature sets and customer support that have gone above and beyond to delight their users. Kofax finished in first place in both categories.

To win the Feature Set and Customer Support Awards, winners had to rank in the top three positions of their category in terms of what percentage of positive responses they earned this year. Additional vetting via textual review analysis was also performed by the TrustRadius research team.

These honors are particularly meaningful because theyre based on reviews from users of Kofax Power PDF and its extensive capabilities every day. Giving customers the best set of features alongside world-class support has always been a top priority for Kofax, says Kathleen Delaney, Chief Marketing Officer at Kofax. Were committed to continued product innovation and will keep giving our customers the outstanding support they deserve.

Kofax Power PDF 4 provides powerful PDF capabilities built for business users. Its designed to meet simple-to-complex needs with a single tool integrating virtually any enterprise document management system for collaboration and faster workflows, including integrations with Kofax SignDoc for e-signature capabilities. Additionally, Kofax Power PDF users gain improved searching and redaction accuracy with Kofaxs award-winning optical character recognition (OCR) technology.

Lets face it: not all products are created equal, and neither are all technology buyers, says Vinay Bhagat, Chief Executive Officer at TrustRadius. Thats why at TrustRadius were always looking for new ways to help buyers make great decisions. By highlighting products that have first-class feature sets, we can help more buyers navigate to products that will meet their unique needs.

Especially during this difficult year, software companies and tech buyers alike are facing new challenges, says Megan Headley, Vice President of Research at TrustRadius. The Best Feature Set and Customer Support Awards help both parties address those challenges through the power of trusted reviews on TrustRadius.”

Last August, Kofax released Power PDF 4, the latest edition of the No. 1 global alternative to Adobe Acrobat with over two million users. Formerly Nuance Power PDF, Kofax Power PDF 4 increases worker productivity with improved digital accuracy and the integrated e-signature capabilities of Kofax SignDoc.

About TrustRadius

TrustRadius helps technology buyers make better decisions and helps vendors tell their unique story, improve conversion, engage high-intent buyers, and gain customer insights. Each month over 1 million B2B technology buyers, over 50% from large enterprises, use verified reviews and ratings on TrustRadius.com to make informed purchasing decisions. Headquartered in Austin, TX, TrustRadius was founded by successful entrepreneurs and is backed by Mayfield Fund, LiveOak Venture Partners and Next Coast Ventures.

About Kofax

Kofax enables organizations to Work Like Tomorrow„¢today. Kofaxs Intelligent Automation software platform and solutions digitally transform document-intensive workflows. Customers realize greater agility and resiliency by combining our process orchestration, cognitive capture, RPA, output management, analytics and mobile capabilities to speed time-to-value and increase competitiveness, growth and profitability while mitigating compliance risk. For more information, visit kofax.com.

2021 Kofax, Inc. Kofax is a registered trademark of Kofax Limited.

Amanda Ingalls

Public Relations Director

+1 (949) 783-1595

[email protected]

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Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

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