Comstock Announces First Quarter 2021 Results; Strong Financial Position; Continued Climate Smart Mining and Valorization to Clean Energy Transition

Virginia City, NV (May 12, 2021) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) today announced selected unaudited financial results for the fiscal quarter ended March 31, 2021.

First Quarter 2021 Selected Strategic Highlights

• Launched the first MCU commercial mercury remediation and extraction system in the Philippines;
• Acquired direct majority equity stake rights in LINICO Corporation, a lithium-ion battery recycling company;
• Secured a State-of-the-Art battery recycling facility and commenced permitting;
• Selected Renewal Process Solutions (“RPS”) as manufacturer of our “Crushing to Black Mass” system;
• Strengthened our technical, mercury, hazardous waste, environmental and engineering organization; and
• Participated in the Adelaide Capital Battery Metals Charity Pitch Battle with fifteen other battery metals companies and was voted by investors and participants as the number one (winner!) presentation.

Unaudited First Quarter 2021 Selected Financial Highlights

• Total operating costs were a $0.3 million credit in Q1 2021, a $1.6 million, or 127%, decrease from the prior year quarter, due to lower mining and mine claim costs driven by a $0.8 million reduction in our reclamation liability estimate of and an accelerated $0.8 million Tonogold reimbursement benefit;
• Other income was $7.8 million in Q1 2021, a $6.8 million, or 676%, increase from the prior year quarter, principally resulting from a new derivative asset related to the investment in LINICO;
• Net income was $8.2 million, or $0.22 per common share, for the quarter ended March 31, 2021, as compared to a net loss of $0.3 million, or $(0.01) per common share, for the quarter ended March 31, 2020;
• Total assets increased to $70.0 million in Q1 2021, a 63% increase from year end 2020, driven by $17.0 million in equity raises, new investments in LINICO, and increases in notes receivable and advances;
• Total debt decreased to $0, a 100% decrease from year end 2020, as all debt obligations were extinguished;
• Cash and cash equivalents at March 31, 2021, were $10.3 million; and
• Common shares outstanding at March 31, 2021, were 42,455,515.

Mr. De Gasperis stated, “We have completed a remarkable transformation of our balance sheet, begun increasing our engineering and technical competencies, completely repositioned into growth assets, with more to come, and aligned compensation organizationally with our shareholders.  If we do not deliver, we do not vest, it’s that simple.”

 

Climate Smart Mining and Valorization to Clean Energy Transition

Comstock Secures Majority Stake in LiNiCo; Indirect Stake in
Green Li-ion

During the quarter, Comstock announced transactions securing majority equity stake rights in LINICO Corporation (“LiNiCo”), a lithium-ion battery (“LIB”) recycling company that recently acquired a state-of-the-art battery metal recycling facility located in the Tahoe Reno Industrial (“TRI”) Center in Storey County, Nevada. The Company will pay up to $4,500,000 in cash and delivered 3,000,000 restricted common shares during Q1 2021, representing up to $10,750,000 in consideration and other non-cash commitments for up to 64% ownership of LiNiCo.

LiNiCo has used a portion of these proceeds to increase its direct strategic investment in Green Li-ion Pte, Ltd. (“Green Li-ion”) to more than 20%, secure a state-of-the-art battery metal recycling facility, and purchase proprietary process equipment enabling the production of black mass and ultimately metal-based solutions, including but not limited to, lithium carbonate and cathodes in the U.S.  The new facility was designed and well situated to, receive, crush, and separate battery materials into black mass. LiNiCo plans to convert black mass into rejuvenated, high purity, battery grade metals and ultimately pure cathodes faster than conventional solutions.

LiNiCo has commenced securing permits, feedstock arrangements and engineering the crushing, separation and metal and cathode processing systems, with proprietary processes for producing battery grade metals and ultimately cathode materials. LiNiCo plans on commencing production early next year.

Mercury Clean Up, LLC (“MCU”) and the Launch of MCU Philippines,
Inc. (“MCU-P”) Operations

During 2019, the Company entered into a Mercury Remediation Pilot, Investment and Joint Venture Agreement (the “MCU Agreement”) with MCU. Pursuant to the MCU Agreement, the Company paid $2 million of capital contributions in exchange for 15% of the fully-diluted membership interests of MCU. The Company also has 50% fully-diluted share holdings in MCU-P, the first international mercury remediation joint venture in the Philippines that officially commenced processing during the first quarter of 2021, in the province of Davao D’ Oro, Philippines, with full political and regulatory support of the eco-system-wide mercury clean up.

The Company has exercised its rights to coordinate up to $3 million in secured financing for MCU-P, and recently completed the first $2 million of secured loans to MCU-P, simultaneously earning another 10% of MCU (for a total of 25%), resulting in the Company securing its rights to 62.5% of the economics for all projects.

Mr. De Gasperis continued, “We are facing the inevitabilities of the ‘perfect storm’ of demand from the world-wide transition to clean energy and increasing demand on these increasingly scarce natural resources, We are currently evaluating several very exciting ESG and nature-based, highly accretive, valorization projects and investments.”

Gold and Silver Developments

Dayton and Spring Valley Gold and Silver Mineral Property
Development

During the first quarter, the Company received the results from the Geotech Ltd. (“Geotech”) airborne geophysical survey of the Dayton resource area, Spring Valley exploration targets, and the rest of the Comstock properties. The survey included both magnetic and Geotech’s proprietary Versatile Time-Domain Electromagnetic (“VTEM”) surveys. The results have already greatly increased the Company’s understanding of the Dayton and Spring Valley resource expansion potential, along with the Company’s other exploration targets in Lyon and Storey Counties.

The Dayton is the Company’s top exploration and development target. Our geology team has now completed the updates of the interpretive model of the entire Dayton area. Our technical team has now commenced updating and generating a new gold and silver resource estimate based on a standalone, S-K 1300, technical report summary.  This technical report will include additional drilling recommendations and technical development plans and will deliver an updated resource estimate which represents a critical prerequisite step toward an economic feasibility report. The Company will profile its specific exploration drill programs for the Dayton-Spring Valley complex.

Occidental Lode Mineral Property Development

The Company has a growing portfolio of NSR Royalties on the northern Comstock mineral properties, including the Lucerne and Occidental claims.  Tonogold Resources, Inc. (“Tonogold”) is preparing a technical report with resource estimates for the Lucerne and ongoing developments for the Occidental.  On May 4, 2021, Tonogold announced the results of three, near surface, reverse circulation (RC) holes completed on the southern portion of the Occidental Lode trend, as summarized below:

Hole No.	From (m)	To (m)	Length (m)	Au (g/t)	Ag (g/t)
TC-006	35.05	38.10	3.05	0.485	1.0
and	65.53	80.77	15.24	1.596	14.0
including	73.15	77.72	4.57	3.012	25.9
and	92.97	96.01	3.05	1.009	7.6
TC-007	25.91	47.24	21.34	3.226	15.7
including	25.91	33.53	7.62	7.238	26.9
and	59.44	64.01	4.57	0.472	1.9
TC-008	0.00	18.29	18.29	1.458	4.4
including	3.05	7.62	4.57	2.770	3.5

 

Tonogold has publicly reported that it has completed five holes in the Occidental, two core and three RC holes.

Tonogold has also announced its intention to mobilize an additional RC drill rig to the southern Occidental target area and plans to have the RC drill in operation by mid-May 2021. The rig will support its proposed drill program for the target area that envisions an additional 23 holes, totaling approximately 2,400 meters. Six of the 23 holes will test the down dip extension of known mineralization below prior drilling levels.

Tonogold plans on using the results of the Occidental drill program to generate another preliminary resource estimate. In conjunction with the development of a resource estimate, exploration is planned to the north along the Occidental Lode, where Tonogold controls and the Company retains royalties on more than three uninterrupted kilometers of the Lode’s strike.

Outlook Moving Forward

The Company’s strategic plan is designed to deliver significant shareholder value during the next three years. The plan objectives include operating and growing existing and new Environmental, Social and Corporate Governance (“ESG”) driven projects, including MCU and LiNiCo, while monetizing more than $20 million in additional non-strategic assets, and funding this new growth. The specific objectives are shown below.

Specific Performance Objectives for Existing Projects

Commercialize a global, ESG-compliant, profitable, mercury
remediation and other critical mineral systems:

• Establish the technical efficacy of MCU’s Comstock Mercury System, and protect the intellectual property;
• Deploy and operate the first international mercury remediation project by deploying MCU’s first, second and at least third mercury remediation systems into the Philippines;
• Identify, evaluate and prioritize a pipeline of potential mercury remediation projects; then deploy the third and fourth mercury remediation projects, producing extended, superior cash flow returns; and,
• Assess and acquire accretive, ESG-based, strategic expansion opportunities.

Establish and grow the value of our mineral properties:

• Establish the Dayton Resource area’s maiden, stand-alone mineral resource estimate;
• Expand the Dayton-Spring Valley Complex through exploration drilling and geophysical modelling;
• Develop the expanded Dayton-SV Complex toward full economic feasibility, supporting a decision to mine;
• Entitle the Dayton-SV Complex with geotechnical, metallurgical, environmental studies and permitting; and,
• Validate the Comstock NSR Royalty portfolio (e.g., Lucerne Mine, Occidental Lode, Comstock Lode).

Monetize non-strategic assets and build a quality organization:

• Monetize our third-party, junior mining securities responsibly, for $12.5 million or more;
• Monetize our non-mining assets for $12.5 million, excluding the Gold Hill Hotel;
• Grow the value of our Opportunity Zone investments to over $30 million; and,
• Deploy a systemic organization, capable of accelerating growth and handling complexity.

Mr. De Gasperis emphasized, “We have directly linked these strategic performance objectives with our goal of delivering $500 million in shareholder value (or at least $12 per share), and then aligned all of our people with 100% performance-based, stock-based compensation based on both delivering these objectives and achieving at least that amount of value to our shareholders.  Again, when our shareholders are rewarded, so are we. We continue building the organizational competencies, especially in chemical engineering, in lithium-ion battery recycling, mercury remediation, and other solvent extraction and processing technologies for our valorization objectives.”

 

Systemic organization, capable of accelerating growth and
handling complexity

“We have expanded our team to build stakeholder value with transformative, high value, high impact, climate smart mining and valorization projects, in large part to meet rapidly escalating demand for the increasingly scarce metals and other raw materials needed to fuel the global transition to clean energy,” stated Corrado De Gasperis, Executive Chairman and CEO. “We have seasoned professionals, chemists, material scientists and engineers engaged and focused on one singular aligned goal, that is, growing per share value by commercializing environment-enhancing, natural-resource based processes and products that generate predictable cash flows (“Throughput”) that delivers $500 million of equity value (that is, at least $12 per share) from our Nevada-based platform.  This system and our professionals will all be on hand at the 2021 Annual General Meeting (AGM) on June 3, 2021. Please be there.”

On March 4, 2021, the Company closed on a $16 million registered direct sale of 4 million common shares at a price of $4.00 per share. Net proceeds were approximately $15 million, after commissions and expenses. On March 5, 2021, the Company extinguished all of its debt obligations totaling $3.6 million, immediately saving more than $0.3 million in annual interest expense. The Company now has 42,455,515 common shares outstanding, including the 4 million shares sold in the offering, and the 3 million restricted shares issued in the LiNiCo acquisition.

On April 1, 2021, the Company made a loan to Plain Sight Innovations LLC (“PSI”) pursuant to a secured promissory note with a face value of $750,000 (the “PSI Note”). The PSI Note principal, together with interest at the rate of 12% per annum, is due and payable on September 30, 2021, and is secured by substantially all of the assets of PSI. The Company is currently collaborating with PSI and RPS on a number of material science advancements associated with lithium-ion battery storing, crushing, and black mass processing, among others.

Conference Call
The Company will host a conference call today, May 12, 2021, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time.  The live call will include a moderated Q&A, after the prepared comments by the Company.  The Webinar will include a moderated Q&A, after the prepared remarks.  Please join the event 10 to 15 minutes prior to the scheduled start time. The link and/or dial-in telephone numbers for the live Webcast are as follows:

Join Our Zoom Webinar

When: May 12, 2021 08:00 AM Pacific Time (US and Canada)

Topic: Comstock Mining First Quarter 2021 Results

Please click the link below to join the webinar:

https://us02web.zoom.us/j/84038612204

Or One tap mobile:

    US: +12532158782,,84038612204#

Or Telephone:

        US: +1 669 900 9128 or +1 646 558 8656

Webinar ID: 840 3861 2204

    International numbers available: https://us02web.zoom.us/u/kQGUDK9Zg

The recording of the Webinar will be available, within 48 hours of the call, on the Company website:

http://www.comstockmining.com/investors/investor-library

 

About Comstock Mining Inc.

Comstock Mining Inc. (NYSE: LODE) (the “Company”) is an emerging leader in the sustainable extraction, valorization, and production of innovation-based, clean, renewable natural resources, with a focus on high-value, cash-generating, strategic materials that are essential to meeting the rapidly increasing global demand for clean energy, carbon-neutrality, and natural products. To learn more, please visit www.comstockmining.com.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact information:
Comstock Mining Inc. P.O. Box 1118 Virginia City, NV 89440 ComstockMining.com	Corrado De Gasperis Executive Chairman & CEO Tel (775) 847-4755 degasperis@comstockmining.com	Zach Spencer Director of External Relations Tel (775) 847-5272 Ext.151 questions@comstockmining.com

Great Bear to Host a Webinar on Monday, June 7 at 11:00am PDT/ 2:00pm EDT to Provide a Company Update on the Dixie Project Drill Program

May 10,
2021 – Vancouver, British Columbia, Canada – Great Bear Resources (the “Company” or “Great Bear”, TSX-V: GBR) would like to invite interested shareholders to join Mr. Chris Taylor, P.Geo, President and CEO and Mr. R. Bob Singh, P.Geo, Vice President, Exploration for a webinar detailing recent progress in the Company’s ongoing fully-funded drill program at its 100% owned Dixie property in the Red Lake district of Ontario. 

The Great Bear webinar will take place on Monday, June 7^th at 11:00 am PDT / 2:00 pm EDT.  Management will be available to answer questions following the presentation.  Online registration and participation details may be found at the following link:

https://us02web.zoom.us/webinar/register/WN_MJNWX5GERvKjZ63Jh89n_Q

For those unable to participate, a recording of the webinar will be posted to the Company’s web site following the live broadcast.

 

Annual Incentive Grant

The Company also reports that it has completed its annual incentive compensation grants.  A total of 61,236 Deferred Share Units (“DSUs”) have been granted to non-executive directors and 265,356 Restricted Share Units (“RSUs”)  have been granted to employees.  The DSUs and RSUs were granted in accordance with the Company’s DSU/RSU Plan adopted in December 2020.  The DSUs vest immediately and the RSUs vest on May 7^th, 2024.

In addition, the Company has granted incentive stock options to recently hired employees to purchase up to an aggregate of 205,000 common shares.  The incentive stock options have an exercise price of $14.97, vest over two years, and expire after five years.

 

About Great Bear

Great Bear Resources Ltd. is a well-financed gold exploration company managed by a team with a track record of success in mineral exploration.  Great Bear is focused in the prolific Red Lake gold district in northwest Ontario, where the company controls over 330 km
² of highly prospective tenure across 5 projects: the flagship Dixie Project (100% owned), the Pakwash Property (earning a 100% interest), the Dedee Property (earning a 100% interest), the Sobel Property (earning a 100% interest), and the Red Lake North Property (earning a 100% interest) all of which are accessible year-round through existing roads.

 

ON BEHALF OF THE BOARD

“Chris
Taylor”                                 

Chris Taylor, President and CEO

 

Investor Inquiries:

Mr. Knox Henderson

Tel: 604-646-8354

Direct: 604-551-2360

info@greatbearresources.ca

www.greatbearresources.ca

Wednesday, May 12, 2021

Palladium One Mining Inc. (NKORF)(PDM:CA)
Drilling Program Is Making a Strong Case for the LK Project

Palladium One Mining Inc is a palladium dominant, PGE, nickel, copper exploration and development company. Its assets consist of the Lantinen Koillismaa and Kostonjarvi PGE-Cu-Ni projects, located in north-central Finland and the Tyko Ni-Cu-PGE and Disraeli PGE-Ni-Cu properties in Ontario, Canada. LK is targeting disseminated sulphide along 38 kilometers of favorable basal contact. The KS project is targeting massive sulphide within a 20,000-hectare land package covering a regional scale gravity and magnetic geophysical anomaly. Tyko is a 13,000-hectare project targeting disseminated and massive sulphide in a highly metamorphosed Archean terrain. Disraeli is a 2,500-hectare project targeting PGE-rich disseminated and massive sulphide in a highly productive Proterozoic mid-continent rift.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

LK Project Phase II drilling program. To date, 46 holes, representing 9,469 meters of drilling have been completed at Kaukua South. Results for 34 drill holes have been released, while 12 are pending. Additionally, assay results are pending for 12 drill holes at the Haukiaho Zone where infill drilling was completed. Drilling has affirmed significant continuity of open pit grades and widths in both the upper and lower zone at Kaukua South. Drilling has been paused for the spring thaw and is scheduled to resume in late May.


Drilling expanded the strike length of the upper zone.  Kaukua South consists of two mineralized zones. The upper zone typically returns higher Cu-Ni values and lower PGE grades. While less continuous than the lower zone, it exhibits greater widths. The continuous lower zone, the focus of the drilling program, is like the Kaukua deposit with high PGE tenors. When drilling resumes, the intent is to …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Wednesday, May 12, 2021

Endeavour Silver (EXK)(EDR:CA)
Estimates Lowered Following First Quarter Financial Results

As of April 24, 2020, Noble Capital Markets research on Endeavour Silver is published under ticker symbols (EXK and EDR:CA). The price target is in USD and based on ticker symbol EXK. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

First quarter 2021 results. Endeavour reported first quarter 2021 net income of $12.2 million, or $0.07 per share, compared to a loss of $15.9 million, or $(0.11) per share during the prior year period. Excluding the impairment reversal of non-current assets, the company generated a loss of $4.5 million, or $(0.03) per share. We had projected net income of $2.5 million or $0.02 per share. The variance to our estimate was attributed to higher direct production and exploration and evaluation expense. Adjusted EBITDA were $8.3 million compared to $(6.0) million during the prior year period and our estimate of $13.1 million. The company ended the quarter with 523,235 ounces of silver and 1,123 ounces of gold in bullion inventory and 6,582 ounces of silver and 566 ounces of gold in concentrate inventory.


Commentary on costs.  All in sustaining costs per ounce increased 8.5%, while direct costs per tonne increased 24.2%, respectively. All-in sustaining costs were impacted by higher corporate general and administrative costs and greater capital expenditures at Guanacevi. Direct operating costs were impacted by increased labor costs and greater royalties and special mining duties compared to the prior …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Palladium One Intersects 2.1 g/t Pd_Eq over 38 Meters in the Lower Zone and Expands the Upper Zone at Kaukua South, Finland

May 11, 2021 – Toronto,
Ontario – Drilling continues to intersect impressive widths and grades of Platinum Group Elements (“PGE”) including 
38 meters at 2.1 g/t Palladium equivalent (“Pd_Eq”) (Hole LK21-062) in the Lower Zone at Kaukua South, on the Läntinen Koillismaa (“LK”) PGE-Ni-Cu project in Finland, said Palladium One Mining Inc. (“Palladium One” or the “Company”) (TSXV: PDM, FRA: 7N11, OTC: NKORF) today. Drilling has also expanded the strike length of the Upper Zone having intersected robust mineralization which returned 51 meters @ 0.9 g/t Pd_Eq (Hole LK21-064).

46 holes (9,469 metres) have been drilled as part of the 17,500-meter Phase II Resource Definition drill program at Kaukua South, including today’s results 34 have been released, while results for 12 holes await assays. Additionally, assay results are pending for 12 drill holes at the Haukiaho Zone, where the Company completed infill drilling in advance of a NI43-101 resource estimate. Drilling is currently in hiatus for the spring thaw and is schedule to resume in later May.

When drilling resumes the intent is to target open pit resource definition of the Lower mineralized zone (down to 300 meters) on the western side of Kaukua South, and to extend mineralization immediately south of the existing Kaukua NI43-101 Open Pit constrained resource estimate.

“Our understanding of an Upper Zone of mineralization continues to expand and so does our realization that it could add a significant amount of resources to the planned NI43-101 resource estimate.

The Upper Zone lies in the hanging wall of the high-grade Lower Zone which has been the primary focus of the Phase II drill program.

The Upper Zone’s position could have a significant positive economic influence on the any future open pit scenario; and as evidenced by hole LK21-064 it can locally carry substantial grades.” said Derrick Weyrauch, President and CEO.

Highlights

• Results to date are highly encouraging and show a clear path toward a
  maiden open pit resource at Kaukua South.

• Drilling demonstrates 
  significant continuity of open pit grades and widths
  in both the Upper and Lower Zones at Kaukua South.

• 2.06
  g/t Pd_Eq over 37.9 meters in hole LK21-062 (Lower Zone)

• 1.22
  g/t Pd_Eq over 70.5 meters in hole LK21-064 (Lower Zone)

• 0.92
  g/t Pd_Eq over 50.6 meters in hole LK21-064 (Upper Zone)

• Drilling in Kaukua south has consistently returned grades and widths, over 2 kilometers of strike length, similar to those in the Kaukua NI43-101 Open Pit constrained resource estimated immediately to the northwest.

Kaukua South Infill
Drilling
Kaukua South infill drilling continues to demonstrate consistent open
pit grades and widths. A total of 34 holes from the Phase II infill drill program on Kaukua South have now been released with intersections such as 47
meters at 2.6 g.t Pd_Eq in hole LK21-045 (see press release March 18, 2021) and 53 meters at 2.1
g/t Pd_Eq*, in hole LK20-028 (see press release January 18, 2021).

Kaukua South Upper
Mineralized Zone
Kaukua South consists of two subparallel mineralized zones, the very continuous Lower Zone near the base of the Intrusion, which is very similar to the Kaukua deposit with high PGE tenors, has been the main focus of the current drill program. The Upper Zone occurs in the hanging wall of the Lower Zone and is characterised by higher Cu-Ni values and lower PGEs (Table 1). The Upper Zone is typically more sporadic than the Lower Zone but can exhibit great widths such as seen in hole LK21-064 which returned 50.6
meters grading 0.92 g/t Pd-Eq (Figure 2). It’s position in the hanging wall relative to the Lower Zone is key and has significant positive
implications for the open pit potential of Kaukua South as it could 
reduce the strip ratio and allow the pit to
extend to greater depths than originally contemplated and thereby improve project economics. As such, the Company is planning to define the Lower Zone down to a 300-meters depth in areas with strong Upper Zone mineralization (Figure 1.).

Figure 1. Western Kaukua South plan map, showing current NI 43-101 Kaukua Deposit conceptual pit outline (dashed yellow), IP chargeability anomalies, and Palladium One drill hole locations. Holes labels in red form part of this release.

Figure 2. Cross Sections A, B, C and D showing in Figure 1. Illustrating the Upper and Lower Zones in Kaukua South. Holes from this release are labelled in red.

Table 1: Phase II infill
drill results on Kaukua South released herein

* Reported widths are “drilled widths” not true widths.

*Palladium Equivalent
Palladium equivalent is calculated using US$1,100 per ounce for palladium, US$950 per ounce for platinum, US$1,300 per ounce for gold, US$6,614 per tonne for copper, and US$15,4332 per tonne for nickel. This calculation is consistent with the calculation in the Company’s September 2019 NI 43-101 Kaukua resource estimate. Additionally, US$1,100 per ounce for palladium is consistent with the UBS January 2021 long-term consensus price forecast even though the current price of palladium is approximately US$3,000 per ounce.

QA/QC
The Phase I drilling program was carried out under the supervision of Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company.

Drill core samples were split using a rock saw by Company staff, with half retained in the core box and stored indoors in a secure facility, in Taivalkoski, Finland. The drill core samples were transported by courier from the Company’s core handling facility in Taivalkoski, Finland, to ALS Global (“ALS”) laboratory in Outokumpu, Finland. ALS, is an accredited lab and are ISO compliant (ISO 9001:2008, ISO/IEC 17025:2005). PGE analysis was performed using a 30 grams fire assay with an ICP-MS or ICP-AES finish. Multi-element analyses, including copper and nickel were analysed by four acid digestion using 0.25 grams with an ICP-AES finish.

Certified standards, blanks and crushed duplicates are placed in the sample stream at a rate of one QA/QC sample per 10 core samples. Results are analyzed for acceptance at the time of import. All standards associated with the results in this press release were determined to be acceptable within the defined limits of the standard used

Qualified Person
The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43-101.

About Palladium One
Palladium One Mining Inc. is an exploration company targeting district scale, platinum-group-element (PGE)-copper nickel deposits in Finland and Canada. Its flagship project is the Läntinen Koillismaa or LK Project, a palladium dominant platinum group element-copper-nickel project in north-central Finland, ranked by the Fraser Institute as one of the world’s top countries for mineral exploration and development. Exploration at LK is focused on targeting disseminated sulfides along 38 kilometers of favorable basal contact and building on an established NI 43-101 open pit resource.

ON BEHALF OF THE BOARD
“Derrick Weyrauch”
President & CEO, Director

For further information
contact: Derrick Weyrauch, President & CEO
Email: info@palladiumoneinc.com

Neither the TSX Venture
Exchange nor its Market Regulator (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.

This press release includes
“forward-looking information” that is subject to a few assumptions,
risks and uncertainties, many of which are beyond the control of the Company.
Statements regarding listing of the Company’s common shares on the TSXV are
subject to all of the risks and uncertainties normally incident to such events.
Investors are cautioned that any such statements are not guarantees of future
events and that actual events or developments may differ materially from those
projected in the forward-looking statements. Such forward-looking statements
represent management’s best judgment based on information currently available.
Factors that could cause the actual results to differ materially from those in
forward-looking statements include regulatory actions and general business
conditions. Such forward-looking information reflects the Company’s views with
respect to future events and is subject to risks, uncertainties and
assumptions, including those set out in the Company’s annual information form
dated April 29, 2020 and filed under the Company’s profile on SEDAR at
www.sedar.com. The Company does not undertake to update forward?looking statements or forward?looking information, except as required by law.
Investors are cautioned that any such statements are not guarantees of future
performance and actual results or developments may differ materially from those
projected in the forward-looking statements.

 

Endeavour Silver Reports Financial Results for the First Quarter 2021; Earnings Conference Call at 10am PDT (1pm EDT) Today

VANCOUVER,
British Columbia, May 11, 2021 (GLOBE NEWSWIRE) — Endeavour Silver Corp.
(NYSE: EXK; TSX: EDR) released its financial results today for the three months ended March 31, 2021. The Company operates three silver-gold mines in Mexico: the Guanacevi mine in Durango state, the Bolanitos mine in Guanajuato state and the El Compas mine in Zacatecas state.

Bradford Cooke, CEO, commented, “We are off to a good start in 2021, with the mining operations meeting our production plans notwithstanding the severe weather events that caused a slow down of production during the 1^st quarter. As a result, our operating costs were a bit higher than plan but we expect costs to be lower going forward.”

“Revenue, cash flow and earnings were all sharply higher in Q1, 2021 compared to Q1, 2020. The sale of El Cubo helped boost our earnings, offset by our decisions to hold back some metal inventory from sale near the end of the 1^st quarter as well as elevated general and administrative expenses.”

“The Terronera feasibility study is on track for completion in the 3^rd quarter and exploration is ongoing at each of our mines and projects to test highly prospective targets. We have a busy year ahead, as our attention turns to developing our next core asset at Terronera.”

2021 First
Quarter Highlights

• Metal Production: Produced 1,039,710 ounces (oz) silver, up 22% and 10,894 oz gold, up 31%, in line with guidance of 1.9 million oz silver equivalent (AgEq), up 26%, at an 80:1 silver:gold ratio, compared to Q1, 2020.
• Gross Sales: Total $35.1 million, up 58%, from the sale of 623,379 oz of silver and 10,663 oz gold at average realized prices of $27.17 per oz silver and $1,703 per oz gold.  Held 523,235 oz silver and 1,123 oz gold of bullion inventory and 6,582 oz silver and 566 oz gold in concentrate inventory. Management withheld metal from sale during the price correction over last two weeks of March.
• Operating Costs: Cash cost⁽¹⁾ $7.86 per oz payable silver, flat year-on-year and all-in sustaining cost (AISC)
  ⁽¹⁾ $19.94 per oz payable silver, up 8% year-on-year, both net of gold credits.
• Cash Flow: $5.2 million in cash flow from operations before working capital changes, up 205% compared to Q1, 2020 as the Company accumulated finished goods, invested in exploration activities and advanced the Terronera Feasibility Study.
• Net Earnings: Earnings of $12.2 million or $0.08 per share, up sharply compared to a loss of $15.9 million in Q1, 2020 due to the reversal of the historical impairment of the El Cubo asset sold in April, offset by increased exploration activities, evaluation activities, and higher tax expense. Excluding the impairment reversal, the adjusted earnings resulted in a loss of $4.5 million. At quarter end, the finished golds inventory was carried at a cost of $8.0 million compared to the fair market value of $15.9 million.
• Agreement to Sell the El Cubo Assets: Advanced the sale of the El Cubo assets in Guanajuato, Mexico to Vangold Mining Corp for $15 million in cash and share payments with up to $3 million in contingent payments, with the transaction closing April 9, 2021.
• Balance Sheet: Cash position $86.0 million, up 473% and working capital $113.1 million, up 316% compared to Q1, 2020. Raised $30.1 million in equity financing through an ATM facility. Only term liabilities are equipment loans of $8.7 million, entered into in previous years to upgrade the mobile fleet.

(1) Mine
operating cash flow, cash costs and all-in sustaining costs are non-IFRS
measures. Please refer to the definitions in the Company’s Management Discussion
& Analysis.

Financial
Overview

In Q1, 2021, net revenue increased 58% to $34.5 million as a result of higher metal prices and increased production. As a result, mine operating cash flows, operating cash flows and EBITDA all increased significantly compared to Q1, 2020. The Company recognized earnings of $12.2 million compared to a loss of $15.9 million in Q1, 2020. An impairment reversal of $16.8 million was recognized as a result of the classifying the El Cubo mine and related assets and liabilities, as held for sale in relation to the April 9^th sale.

Cost of sales for Q1, 2021 was $28.8 million, an increase of 16% over the cost of sales of $24.8 million for the same period of 2020. The increase in cost of sales was primarily related to significantly higher royalty costs and labour costs partially offset by improved productivity at the Guanacevi and Bolanitos operations. Royalties increased 187% to $2.5 million due to higher realized prices and the increased mining of the high grade Porvenir Cuatro extensions at the Guanacevi operation which is subject to the significantly higher royalty rates.

The Company increased its finished goods silver and gold inventory to 529,817 oz and 1,689 oz, respectively at March 31, 2021 compared to 116,484 oz silver and 1,459 oz gold at December 31, 2020. The cost allocated to these finished goods was $8.0 million at March 31, 2021, compared to $3.6 million at December 31, 2020. At March 31, 2021, the finished goods inventory fair market value was $15.9 million, compared to $5.8 million at December 31, 2020.

Financial
Results (Consolidated Statement of Operations Appended Below)

For the period ended March 31, 2021, the Company generated net revenue of $34.5 million an increase of 58% compared to $21.9 million. Gross sales of $35.1 million in Q1, 2021 represented a 57% increase over the $22.8 million for the same period in 2020. There was a 6% decrease in silver ounces sold and a 77% increase in the realized silver price resulting in a 66% increase to silver sales. There was a 43% increase in gold ounces sold with a 4% increase in realized gold prices resulting in a 49% increase in gold sales. During the period, the Company sold 623,379 oz silver and 10,663 oz gold, for realized prices of $27.17 and $1,703 per oz respectively, compared to sales of 665,500 oz silver and 7,454 oz gold, for realized prices of $15.33 and $1,633 per oz, respectively, in the same period of 2020. For the three months ended March 31, 2021, silver and gold spot prices averaged $26.26 and $1,794, respectively.  

After cost of sales of $28.8 million (Q1, 2020 – $24.8 million), mine operating earnings amounted to a $5.7 million (Q1, 2020 – loss of $2.9 million) from mining and milling operations in Mexico.

Excluding depreciation and depletion of $7.5 million (Q1, 2020 – $6.0 million), stock-based compensation of $0.1 million (Q1, 2020- $0.1 million) mine operating cash flow before taxes was $13.3 million in Q1, 2021 (Q1, 2020 – $4.3 million). Operating earnings were $14.3 million (Q1, 2020 – loss of $8.6 million) after exploration and evaluation expenditures of $4.1 million (Q1, 2020 – $2.4 million), general and administrative expense of $3.5 million (Q1, 2020 – $2.0 million) and El Cubo care and maintenance costs of $0.5 million (Q1, 2020 – $1.3 million). An impairment reversal of $16.8 million was recognized as a result of the classifying the El Cubo mine and related assets and liabilities as held for sale in relation to the April 9^th sale.

Net earnings amounted to $12.2 million ($0.08 per share) compared to a net loss of $15.9 million (loss of $0.11 per share) in Q1, 2020.

Current income tax expense increased to $0.7 million (Q1, 2020 – $0.3 million) related to an increase in special mining duty, while deferred income tax expense of $3.1 million was recognized due to the estimated use of loss carry forwards to reduce taxable income at Guanacevi and Bolanitos (Q1, 2020 – $1.9 million).

Direct operating costs per tonne in Q1, 2021 increased 16%, to $112.36 compared with Q1, 2020 due to higher operating costs at Guanacevi and Bolanitos, offset by lower costs at El Compas. Guanacevi and Bolanitos have seen increased labour costs and increased third party ore purchased at Guanacevi compared to prior year. Including royalties and special mining duty, direct costs per tonne increased 24% to $126.23. Royalties increase 187% to $2.5 million as increased production from the El Curso concession at Guanacevi and higher prices substantially increased the royalty expense. The higher prices and higher grades increased special mining duty expense to $0.4 million for Q1, 2021.

Consolidated cash costs per ounce, net of by-product credits (a non-IFRS measure and a standard of the Silver Institute) was flat at $7.86 as the higher grades and higher prices offset the higher direct costs per tonne. All-in sustaining costs (also a non-IFRS measure) increased 8% to $19.84 per ounce in Q1, 2021 as a result of higher corporate general and administrative costs and increased capital expenditures at Guanacevi to accelerate mine development within the El Curso ore body. In Q1, 2020 corporate general and administrative included a $1.1 million mark to market recovery of deferred share units expense whereas the mark to market recovery was $0.2 million in Q1, 2021.
  
The Condensed Consolidated Interim Financial Statements and Management’s Discussion & Analysis can be viewed on the Company’s website at www.edrsilver.com, on SEDAR at www.sedar.com and EDGAR at www.sec.gov. All amounts are reported in US$.

Conference
Call

A conference call to discuss these results will be held today, Tuesday, May 11 at 10am PDT (1pm EDT). To participate in the conference call, please dial the numbers below. No pass-code is necessary.

Toll-free in Canada and the US: 1-800-319-4610
Local Vancouver: 604-638-5340
Outside of Canada and the US: +-604-638-5340

A replay of the conference call will be available by dialing 1-800-319-6413 in Canada and the US (toll-free) or +604-638-9010 outside of Canada and the US. The required pass-code is 6594 #. The replay will also be available on the Company’s website at www.edrsilver.com.

About
Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that owns and operates three high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision and exploring its portfolio of exploration and development projects in Mexico and Chile to facilitate its goal to become a premier senior silver producer.  Our philosophy of corporate social integrity creates value for all stakeholders.

SOURCE Endeavour Silver Corp.

Contact Information:

Galina Meleger, Director Investor Relations
Toll free: (877) 685-9775
Tel: (604) 640-4804
Email: gmeleger@edrsilver.com  
Website: www.edrsilver.com

Follow Endeavour Silver on Facebook, Twitter, Instagram and LinkedIn

Cautionary
Note Regarding Forward-Looking Statements

This news
release contains “forward-looking statements” within the meaning of the United
States private securities litigation reform act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities legislation.
Such forward-looking statements and information herein include but are not
limited to statements regarding Endeavour’s anticipated performance in 2021
including changes in mining operations and production levels, the timing and
results of various activities and the impact of the COVID 19 pandemic on
operations. The Company does not intend to and does not assume any obligation
to update such forward-looking statements or information, other than as
required by applicable law.

Forward-looking
statements or information involve known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity, production
levels, performance or achievements of Endeavour and its operations to be
materially different from those expressed or implied by such statements. Such
factors include but are not limited to the ultimate impact of the COVID 19
pandemic on operations and results, changes in production and costs guidance,
national and local governments, legislation, taxation, controls, regulations
and political or economic developments in Canada and Mexico; financial risks
due to precious metals prices, operating or technical difficulties in mineral
exploration, development and mining activities; risks and hazards of mineral
exploration, development and mining; the speculative nature of mineral
exploration and development, risks in obtaining necessary licenses and permits,
and challenges to the Company’s title to properties; as well as those factors
described in the section “risk factors” contained in the Company’s most recent
form 40F/Annual Information Form filed with the S.E.C. and Canadian securities
regulatory authorities.

Forward-looking
statements are based on assumptions management believes to be reasonable,
including but not limited to: the continued operation of the Company’s mining
operations, no material adverse change in the market price of commodities,
mining operations will operate and the mining products will be completed in
accordance with management’s expectations and achieve their stated production
outcomes, and such other assumptions and factors as set out herein. Although
the Company has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-looking statements
or information, there may be other factors that cause results to be materially
different from those anticipated, described, estimated, assessed or intended.
There can be no assurance that any forward-looking statements or information
will prove to be accurate as actual results and future events could differ
materially from those anticipated in such statements or information.
Accordingly, readers should not place undue reliance on forward-looking
statements or information.

 

Monday, May 10, 2021

Sierra Metals (SMTS)(SMT:CA)
Growth Outlook Supported by Planned Expansions and Rising Metals Prices

As of April 24, 2020, Noble Capital Markets research on Sierra Metals is published under ticker symbols (SMTS and SMT:CA). The price target is in USD and based on ticker symbol SMTS. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

First quarter 2021 financial results. Sierra Metals reported first quarter 2021 adjusted net income attributable to shareholders of $4.4 million, or $0.03 per share, compared with $1.2 million, or $0.01 per share, during the prior year period. Adjusted EBITDA increased 57.1% to $25.3 million compared with $16.1 million in the prior year period. Our EPS and EBITDA estimates were $0.05 and $28.4 million. First quarter production results were impacted by some transitory operational issues that resulted in production from lower grades of ore mined at the Yauricocha and Bolivar mines.


Updating estimates.  We have trimmed our 2021 EPS and EBITDA estimates to $0.32 and $163.3 million from $0.36 and $166.1 million, respectively. Our estimates reflect modestly lower metal production, increased costs, and a higher tax rate. These impacts are partially offset by higher metals price assumptions. We forecast 2021 production of 4.4 million ounces of silver, 11.4 thousand ounces of gold …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Coeur Announces Investment in Victoria Gold Corp.

CHICAGO–(BUSINESS WIRE)–Coeur Mining, Inc. (“Coeur” or the
“Company”) (NYSE: CDE) announced today that it has entered into an agreement to acquire 11,067,714 (approximately 17.8%) of the outstanding undiluted common shares of Victoria Gold Corp. (“Victoria”) (TSX: VGCX) from Orion Co-VI Ltd. (“Orion”), at price of C$13.20 per share which reflects a 5% discount to the trailing 30-day volume weighted price for the period ending May 7, 2021. In connection with the transaction, Orion will receive 12,785,485 shares of Coeur common stock (approximately 4.9% of issued and outstanding shares), based on the trailing 30-day volume weighted price of $9.17 per share, for the period ended May 7, 2021, representing aggregate consideration of approximately $117.2 million. Orion’s sales of Coeur shares will be subject to certain restrictions. The transaction is expected to close on or about May 11, 2021, subject to closing conditions.

“We have long admired the quality of Victoria’s Eagle asset and its recent success in ramping up operations. This compelling opportunity to acquire 17.8% ownership interest in Victoria from Orion is consistent with our stated strategy and capital allocation framework, and complements our existing portfolio of precious metals assets in high-quality jurisdictions in North America,” commented Mitchell J. Krebs, Coeur’s President and Chief Executive Officer. “We are excited to become a shareholder of Victoria, and believe this transaction represents an attractive investment for our stockholders.”

Concurrently, the Company and Orion also entered into an agreement pursuant to which Orion has agreed, subject to certain terms and conditions, among other things, to certain transfer restrictions on its remaining shares in Victoria and to support, vote in favor of, or deposit all common shares it owns in favor of an offer, proposal or transaction that is supported by the board of directors of Victoria that would result in the acquisition by Coeur of more than 50% of the common shares of Victoria, or all or substantially all of the assets and properties of Victoria on a consolidated basis.

An early warning report will be filed by Coeur in accordance with applicable securities laws. As indicated in such report, in the future, Coeur may acquire or dispose of common shares or other securities of Victoria, either on the open market or in private transactions, depending on a number of factors. Coeur may engage in discussions with Victoria, and, if and when appropriate, its representatives, regarding the Company’s investment and possible strategic alternatives. While no present plans exist in this regard, Coeur may consider or develop plans and/or make proposals with respect to potential strategic transactions involving Victoria’s shares, business or assets.

 

About Coeur

Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with five wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the Silvertip silver-zinc-lead mine in British Columbia. In addition, Coeur has interests in several precious metals exploration projects throughout North America.

 

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this press release, including any information relating to the proposed investment in Victoria constitutes forward-looking statements or information within the meaning of securities legislation of the United States and Canada. In particular, this press release contains forward-looking statements including, without limitation, with respect to Coeur’s acquisition or disposition of securities of Victoria in the future and Coeur’s interest in Victoria on completion of the transaction with Orion. Forward-looking statements are necessarily based upon a number of assumptions, including material assumptions considered reasonable by Coeur as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, and are inherently subject to significant business, economic, and competitive uncertainties and contingencies.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur’s actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian Securities regulators, including, without limitation, Coeur’s most recent reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements or information. Coeur disclaims any intent or obligation to update publicly such forward-looking statements or information, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.

 

Contacts

Coeur Mining, Inc.
104 S. Michigan Avenue, Suite 900
Chicago, Illinois 60603
Attention: Paul DePartout, Director, Investor Relations
Phone: (312) 489-5800
www.coeur.com

Sierra Metals Reports Consolidated Financial Results For The First Quarter Of 2021

 

CONFERENCE CALL MAY 7, 2021 AT 10:30 AM (EDT)  

(All $ figures reported in USD)

• Revenue from metals payable of $69.6 million in Q1 2021, a 25% increase from $55.6 million in Q1 2020
• Operating cash flows before movements in working capital of $25.6 million in Q1 2021, a 63% increase from $15.7 million in Q1 2020
• Adjusted EBITDA of $25.3 million in Q1 2021, a 57% increase from $16.1 million in Q1 2021
• Q1 2021 consolidated production includes 7.9 million pounds of copper, a 33% decrease; 1.0 million ounces of silver, a 1% increase; 24.1 million pounds of zinc, an 11% increase; 9.0 million pounds of lead, a 1% decrease; and 2,636 ounces of gold, a 28% decrease respectively, compared to Q1 2020 due to reduced mining of higher grade areas primarily due to restrictions resulting from COVID-19
• Cash costs and AISC per copper equivalent payable pound compared to Q1 2020 increased at Yauricocha 26% and 18% respectively; at Bolivar cash costs and AISC per copper equivalent payable pound increased by 37% and 57%, respectively; and at Cusi cash costs per silver equivalent payable pound decreased by 17% while the AISC was flat
• Record quarterly throughput of 3,728 tonnes per day (“tpd”) at the Yauricocha Mine in Peru
• $74.3 million of cash and cash equivalents as at March 31, 2021
• A shareholder conference call to be held Friday, May 7, 2021, at 10:30 AM (EDT)

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) today reported revenue of $69.6 million and an adjusted EBITDA of $25.6 million on the throughput of 774,421 tonnes and metal production of 25.5 million copper equivalent pounds or 3.7 million silver equivalent ounces, or 79.8 million zinc equivalent pounds for the three-month period ended March 31, 2021.

Despite the decline in quantities of payable metals due to ongoing COVID-19 related operational challenges and external factors, the Company generated higher revenues, adjusted EBITDA and operating cash flows during Q1 2021.

The Yauricocha Mine achieved 14% higher throughput in Q1 2021 compared to Q1 2020, despite the various operational challenges posed by the COVID-19 pandemic. Zinc equivalent production dropped 9% as compared to Q1 2020. In terms of copper equivalent pound, the decline was 21% due to a higher increase in copper prices than the zinc prices compared to Q1 2020. Metal production declined (except zinc and silver) as ore grades fell due to a decline of tonnage contributions from the high-grade cuerpos chicos zones. The copper-rich Esperanza zone also had some operational issues that have since been resolved. Cash costs per copper equivalent payable pound increased 26%, whereas cash costs per zinc equivalent payable pound increased by 9% as compared to Q1 2020. AISC per copper equivalent payable pound increased by 14%, as the increase in cash cost was partially offset by lower treatment and refining charges and lower sustaining capital. AISC per zinc equivalent payable pound increased by 4% as compared to Q1 2020.

The Bolivar Mine processed 371,608 tonnes in Q1 2021, representing a mere 2% decrease from tonnes processed in Q1 2020, despite the ongoing challenges due to COVID-19 and bad weather at the beginning of the quarter. The decrease in throughput combined with lower grades resulted in a 20% decrease in copper equivalent pounds produced during Q1 2021 as compared to Q1 2020. Cash costs and AISC per copper equivalent payable pound increased by 37% and 57%, respectively, as compared to Q1 2020.

The Cusi Mine achieved 2% lower throughput at 30% higher silver grades during Q1 2021, resulting in 17% higher silver equivalent production as compared to Q1 2020. Cash costs per silver equivalent ounce decreased by 17%, but AISC per silver equivalent payable ounce was in line with Q1 2020, as higher sustaining capital offset the impact of the increase in silver equivalent payable ounces in Q1 2021.

Consolidated production of silver increased 1% to 1.0 million ounces, copper decreased 33% to 7.9 million pounds, lead decreased 1% to 9.0 million pounds, zinc increased 11% to 24.1 million pounds, and gold decreased 28% to 2,636 ounces compared to Q1 2020.

Luis Marchese, CEO of Sierra Metals, commented, “The safety of our workforce and the communities in which we operate is paramount. The COVID-19 pandemic has enacted various direct and indirect challenges which have affected our ability to operate as effectively as expected. Additionally, an extended power outage at Cusi affected our operations during the quarter. Despite these challenges, we still had solid revenue and adjusted EBITDA tempered by higher costs due to lower metal production and a decline in ore grades. We continue to work through the challenges and issues, and we expect to see improvement as we progress throughout the year.”

He continued, “Looking ahead, the year continues to be busy with many exciting developments such as the anticipated receipt of the Informe Tecnico Minero (“ITM”) permit at Yauricocha, which will allow us to increase throughput by 20%. We also continue advancing the completion of Preliminary Feasibility Studies for all mines, examining increases in throughput starting in 2024. We also expect to begin construction of an iron ore processing plant at Bolivar, expected to produce 500,000 tonnes per year of 62% iron ore fines. This is expected to enhance Bolivar’s profitability while also lowering our transportation and tailing development costs. Furthermore, we continue with our brownfield and greenfield exploration programs. We have had recent success in the area between the Esperanza and Cachi Cachi zones with the discovery of high-grade copper silver and zinc oxide material as reported in a press release dated April 13, 2020.”

He concluded, “The Company continues to have a strong balance sheet to support the Company’s capital expenditures and growth initiatives. While we are facing challenges from COVID-19 currently, the mid-term plans remain in place.”

The following table displays selected financial and operational information for the three months ended March 31, 2021:

The following table displays average realized metal prices information for the three months ended March 31, 2021, vs March 31, 2020:

Q1 2021 Financial Highlights

Revenue from metals payable of $69.6 million in Q1 2021 increased by 25% from $55.6 million in Q1 2020. The increase in revenues was largely driven by the increase in realized metal prices, which more than compensated for the decrease in metal payable, except zinc and lead.

Yauricocha’s cost of sales per zinc equivalent payable pound was $0.50 (Q1 2020 – $0.45), cash cost per zinc equivalent payable pound was $0.47 (Q1 2020 – $0.43), and AISC per zinc equivalent payable pound of $0.85 (Q1 2020 – $0.82). AISC per zinc equivalent payable pound for Q1 2021 increased as compared to Q1 2020 due to an 11% decline in zinc equivalent payable pounds during the quarter.

Yauricocha’s cost of sales per copper equivalent payable pound was $1.56 (Q1 2020 – $1.22), cash cost per copper equivalent payable pound was $1.48 (Q1 2020 – $1.17), and AISC per copper equivalent payable pound of $2.65 (Q1 2020 – $2.24). AISC per copper equivalent payable pound for Q1 2021 increased as compared to Q1 2020 due to a 22% decline in copper equivalent payable pounds during the quarter.

Bolivar’s cost of sales per copper equivalent payable pound was $1.64 (Q1 2020 – $1.19), cash cost per copper equivalent payable pound was $1.58 (Q1 2020 – $1.15), and AISC per copper equivalent payable pound was $2.91 (Q1 2020 – $1.85) for Q1 2021. Unit costs at Bolivar increased due to the 24% decline in the copper equivalent payable pound resulting from lower grades as compared to Q1 2020.

Cusi’s cost of sales per silver equivalent payable ounce was $18.92 (Q1 2020 – $27.48), cash cost per silver equivalent payable ounce was $18.72 (Q1 2020 – $22.62), and AISC per silver equivalent payable ounce was $30.28 (Q1 2020 – $30.00) for Q1 2021 as compared to Q1 2020. Cost of sales and cash costs per unit declined at Cusi due to the 23% increase in the silver equivalent payable ounces sold as compare to Q1 2020. AISC per silver equivalent payable pound at Cusi was in line with Q1 2020 as a 188% increase in sustaining capital, driven by higher development costs, offset the impact of higher silver equivalent ounces sold.

Adjusted EBITDA⁽¹⁾ of $25.3 million for Q1 2021 increased compared to $16.1 million in Q1 2020. The increase in adjusted EBITDA in Q1 2021 resulted from higher revenues and higher gross margins at all sites.

Net income attributable to shareholders for Q1 2021 was $3.1 million (Q1 2020: $(1.9) million) or $0.02 per share (basic and diluted) (Q1 2020: $(0.01).

Adjusted net income attributable to shareholders (1) of $4.4, or $0.03 per share, for Q1 2021 as compared to the adjusted net income of $1.2 million, or $0.01 per share for Q1 2020.

Cash flow generated from operations before movements in working capital of $25.6 million for Q1 2021 increased compared to $15.7 million in Q1 2020. The increase in operating cash flow is mainly the result of higher consolidated revenues generated, and higher gross margins realized.

Cash and cash equivalents of $74.3 million and working capital of $64.7 million as at March 31, 2021, compared to $71.5 million and $70.1 million, respectively, at the end of 2020. Cash and cash equivalents increased during Q1 2021 due to $18.2 million of operating cash flows after working capital adjustments and taxes offset by $14.6 of cash used in investing activities and interest payments of $0.8 million.

⁽¹⁾ This is a non-IFRS performance measure. See the Non-IFRS Performance Measures section of the MD&A.

Exploration Update

Peru:

During the first quarter, surface exploration continued in the Triada copper porphyry (446 meters) and Kilkasca zones (224 meters);

• Underground exploration continued during Q1 2021 with the aim to replace and increase mineral resources that were depleted during 2020. Approximately 5,028 meters of drilling was completed in Esperanza North, Central Mine, Cachi-cachi and the high-grade cuerpos chicos.

Mexico:

Bolivar

• At Bolivar during Q1 2021, 11,185 meters were drilled from the surface as well as diamond drilling within the mine. Surface exploration drilling included 2,071 meters drilled in the Bolivar West – Bolivar West extension and 3,697 meters in the “Gallo Inferior” (“La Montura” Area) encountering skarn intersections with mineralization. Additionally, infill drilling of 2,846 meters was completed in the Bolivar West zone and 2,571 meters in the Gallo Inferior (Fierro Mine).

Cusi

• During Q1 2021, the Company completed 2,775 meters of infill drilling to support the development of the Santa Rosa de Lima vein and NE Trend. In addition, 2,383 meters of surface drilling was completed to support the “San Juan Vein” exploration and the “Gallo vein.”

Covid-19 Update and Guidance

The COVID-19 pandemic has impacted the Company’s operations, and this is reflected in delays in mine development and preparation of areas for mining and consequent lower head grades. A lower volume of sales is a result of a decrease in concentrate production attributable to lower grades. Costs are also negatively impacted mainly due to indirect fixed costs which have to be incurred, despite lower production. The Company continues to take proactive and reactive mitigation measures to minimize any potential impacts COVID-19 may have on its employees, communities, operations, supply chain, and finances. These measures, including COVID testing and quarantining employees and contractors. Further, some exploration and capital expenditure projects have been deferred due to ongoing and residual difficulties.

On January 27, 2021, the Peruvian Government, in response to the “second wave” of COVID-19, declared a quarantine period in certain cities for two weeks ending on February 14, 2021. This period was extended on February 10, 2021, for an additional two weeks until February 28, 2021. The second wave in Perú is still ongoing, with the number of cases remaining at all-time highs.

In Mexico, the contagion was at its peak at the end of 2020. Hospitalization rates were higher than 80% of the capacity in the state of Chihuahua, where the Company operates. Although the number of new cases declined until mid-March 2021, these cases have gradually been increasing since then, possibly due to new strains of the virus. The Mexican Government announced a precautionary closure of non-essential businesses in the last weekend of April 2021, and greater restrictions have been imposed on businesses and the mobility of people.

Currently, although the operations have not been directly affected by these recent additional measures taken by the local governments, they are affected by the overall pandemic operational restrictions and inefficiencies. Management continues to assess the situation but is maintaining its production guidance of between 155 million to 170 million Cu Eq pounds issued on January 18, 2021.

Conference Call and Webcast

Sierra Metals’ senior management will host a conference call on Friday, May 7, 2021, at 10:30 AM (EDT) to discuss the Company’s financial and operating results for the three months ended March 31, 2021.

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s website:

https://event.on24.com/wcc/r/3081089/8CC784C584EEDC0F4B1375A13E2CE27A

The webcast, along with presentation slides, will be archived for 180 days on www.sierrametals.com.

Via phone:

To register for this conference call, please use the link provided below. After registering, a confirmation will be sent through email, including dial-in details and unique conference call codes for entry. As well, reminders will be sent to registered participants in advance of the call.

If you experience difficulty registering, please dial: (888) 869-1189 or (706) 643-5902 for extra assistance.

Registration is open throughout the live call. However, to ensure you are connected for the entire call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call.

Conference Call Registration Link for Phone:

http://www.directeventreg.com/registration/event/4189713

Qualified Persons

Américo 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, 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 Company’s Common Shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima 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.

Continue to Follow, Like and Watch our progress:

Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc | Instagram: sierrametals

Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws related to the Company (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the Company’s operations, including anticipated developments in the Company’s operations in future periods, the Company’s planned exploration activities, the adequacy of the Company’s financial resources, and other events or conditions that may occur in the future. Statements concerning mineral reserve and resource estimates may also be considered to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if and when the properties are developed or further developed. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. 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 our Annual Information Form dated March 30, 2021 in respect of the year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the U.S. Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above is not exhaustive of the factors that may affect any of the Company’s forward-looking information. Forward looking information includes statements about the future and are 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 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
V.P., Investor Relations
Sierra Metals Inc.
+1 (416) 366-7777
Email: info@sierrametals.com

Ed Guimaraes
CFO
Sierra Metals Inc.
+1(416) 366-7777

Luis Marchese
CEO
Sierra Metals Inc.
+1(416) 366-7777

Source: Sierra Metals Inc.

Sierra Metals Reports Consolidated Financial Results For The First Quarter Of 2021

 

CONFERENCE CALL MAY 7, 2021 AT 10:30 AM (EDT)  

(All $ figures reported in USD)

• Revenue from metals payable of $69.6 million in Q1 2021, a 25% increase from $55.6 million in Q1 2020
• Operating cash flows before movements in working capital of $25.6 million in Q1 2021, a 63% increase from $15.7 million in Q1 2020
• Adjusted EBITDA of $25.3 million in Q1 2021, a 57% increase from $16.1 million in Q1 2021
• Q1 2021 consolidated production includes 7.9 million pounds of copper, a 33% decrease; 1.0 million ounces of silver, a 1% increase; 24.1 million pounds of zinc, an 11% increase; 9.0 million pounds of lead, a 1% decrease; and 2,636 ounces of gold, a 28% decrease respectively, compared to Q1 2020 due to reduced mining of higher grade areas primarily due to restrictions resulting from COVID-19
• Cash costs and AISC per copper equivalent payable pound compared to Q1 2020 increased at Yauricocha 26% and 18% respectively; at Bolivar cash costs and AISC per copper equivalent payable pound increased by 37% and 57%, respectively; and at Cusi cash costs per silver equivalent payable pound decreased by 17% while the AISC was flat
• Record quarterly throughput of 3,728 tonnes per day (“tpd”) at the Yauricocha Mine in Peru
• $74.3 million of cash and cash equivalents as at March 31, 2021
• A shareholder conference call to be held Friday, May 7, 2021, at 10:30 AM (EDT)

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) today reported revenue of $69.6 million and an adjusted EBITDA of $25.6 million on the throughput of 774,421 tonnes and metal production of 25.5 million copper equivalent pounds or 3.7 million silver equivalent ounces, or 79.8 million zinc equivalent pounds for the three-month period ended March 31, 2021.

Despite the decline in quantities of payable metals due to ongoing COVID-19 related operational challenges and external factors, the Company generated higher revenues, adjusted EBITDA and operating cash flows during Q1 2021.

The Yauricocha Mine achieved 14% higher throughput in Q1 2021 compared to Q1 2020, despite the various operational challenges posed by the COVID-19 pandemic. Zinc equivalent production dropped 9% as compared to Q1 2020. In terms of copper equivalent pound, the decline was 21% due to a higher increase in copper prices than the zinc prices compared to Q1 2020. Metal production declined (except zinc and silver) as ore grades fell due to a decline of tonnage contributions from the high-grade cuerpos chicos zones. The copper-rich Esperanza zone also had some operational issues that have since been resolved. Cash costs per copper equivalent payable pound increased 26%, whereas cash costs per zinc equivalent payable pound increased by 9% as compared to Q1 2020. AISC per copper equivalent payable pound increased by 14%, as the increase in cash cost was partially offset by lower treatment and refining charges and lower sustaining capital. AISC per zinc equivalent payable pound increased by 4% as compared to Q1 2020.

The Bolivar Mine processed 371,608 tonnes in Q1 2021, representing a mere 2% decrease from tonnes processed in Q1 2020, despite the ongoing challenges due to COVID-19 and bad weather at the beginning of the quarter. The decrease in throughput combined with lower grades resulted in a 20% decrease in copper equivalent pounds produced during Q1 2021 as compared to Q1 2020. Cash costs and AISC per copper equivalent payable pound increased by 37% and 57%, respectively, as compared to Q1 2020.

The Cusi Mine achieved 2% lower throughput at 30% higher silver grades during Q1 2021, resulting in 17% higher silver equivalent production as compared to Q1 2020. Cash costs per silver equivalent ounce decreased by 17%, but AISC per silver equivalent payable ounce was in line with Q1 2020, as higher sustaining capital offset the impact of the increase in silver equivalent payable ounces in Q1 2021.

Consolidated production of silver increased 1% to 1.0 million ounces, copper decreased 33% to 7.9 million pounds, lead decreased 1% to 9.0 million pounds, zinc increased 11% to 24.1 million pounds, and gold decreased 28% to 2,636 ounces compared to Q1 2020.

Luis Marchese, CEO of Sierra Metals, commented, “The safety of our workforce and the communities in which we operate is paramount. The COVID-19 pandemic has enacted various direct and indirect challenges which have affected our ability to operate as effectively as expected. Additionally, an extended power outage at Cusi affected our operations during the quarter. Despite these challenges, we still had solid revenue and adjusted EBITDA tempered by higher costs due to lower metal production and a decline in ore grades. We continue to work through the challenges and issues, and we expect to see improvement as we progress throughout the year.”

He continued, “Looking ahead, the year continues to be busy with many exciting developments such as the anticipated receipt of the Informe Tecnico Minero (“ITM”) permit at Yauricocha, which will allow us to increase throughput by 20%. We also continue advancing the completion of Preliminary Feasibility Studies for all mines, examining increases in throughput starting in 2024. We also expect to begin construction of an iron ore processing plant at Bolivar, expected to produce 500,000 tonnes per year of 62% iron ore fines. This is expected to enhance Bolivar’s profitability while also lowering our transportation and tailing development costs. Furthermore, we continue with our brownfield and greenfield exploration programs. We have had recent success in the area between the Esperanza and Cachi Cachi zones with the discovery of high-grade copper silver and zinc oxide material as reported in a press release dated April 13, 2020.”

He concluded, “The Company continues to have a strong balance sheet to support the Company’s capital expenditures and growth initiatives. While we are facing challenges from COVID-19 currently, the mid-term plans remain in place.”

The following table displays selected financial and operational information for the three months ended March 31, 2021:

The following table displays average realized metal prices information for the three months ended March 31, 2021, vs March 31, 2020:

Q1 2021 Financial Highlights

Revenue from metals payable of $69.6 million in Q1 2021 increased by 25% from $55.6 million in Q1 2020. The increase in revenues was largely driven by the increase in realized metal prices, which more than compensated for the decrease in metal payable, except zinc and lead.

Yauricocha’s cost of sales per zinc equivalent payable pound was $0.50 (Q1 2020 – $0.45), cash cost per zinc equivalent payable pound was $0.47 (Q1 2020 – $0.43), and AISC per zinc equivalent payable pound of $0.85 (Q1 2020 – $0.82). AISC per zinc equivalent payable pound for Q1 2021 increased as compared to Q1 2020 due to an 11% decline in zinc equivalent payable pounds during the quarter.

Yauricocha’s cost of sales per copper equivalent payable pound was $1.56 (Q1 2020 – $1.22), cash cost per copper equivalent payable pound was $1.48 (Q1 2020 – $1.17), and AISC per copper equivalent payable pound of $2.65 (Q1 2020 – $2.24). AISC per copper equivalent payable pound for Q1 2021 increased as compared to Q1 2020 due to a 22% decline in copper equivalent payable pounds during the quarter.

Bolivar’s cost of sales per copper equivalent payable pound was $1.64 (Q1 2020 – $1.19), cash cost per copper equivalent payable pound was $1.58 (Q1 2020 – $1.15), and AISC per copper equivalent payable pound was $2.91 (Q1 2020 – $1.85) for Q1 2021. Unit costs at Bolivar increased due to the 24% decline in the copper equivalent payable pound resulting from lower grades as compared to Q1 2020.

Cusi’s cost of sales per silver equivalent payable ounce was $18.92 (Q1 2020 – $27.48), cash cost per silver equivalent payable ounce was $18.72 (Q1 2020 – $22.62), and AISC per silver equivalent payable ounce was $30.28 (Q1 2020 – $30.00) for Q1 2021 as compared to Q1 2020. Cost of sales and cash costs per unit declined at Cusi due to the 23% increase in the silver equivalent payable ounces sold as compare to Q1 2020. AISC per silver equivalent payable pound at Cusi was in line with Q1 2020 as a 188% increase in sustaining capital, driven by higher development costs, offset the impact of higher silver equivalent ounces sold.

Adjusted EBITDA⁽¹⁾ of $25.3 million for Q1 2021 increased compared to $16.1 million in Q1 2020. The increase in adjusted EBITDA in Q1 2021 resulted from higher revenues and higher gross margins at all sites.

Net income attributable to shareholders for Q1 2021 was $3.1 million (Q1 2020: $(1.9) million) or $0.02 per share (basic and diluted) (Q1 2020: $(0.01).

Adjusted net income attributable to shareholders (1) of $4.4, or $0.03 per share, for Q1 2021 as compared to the adjusted net income of $1.2 million, or $0.01 per share for Q1 2020.

Cash flow generated from operations before movements in working capital of $25.6 million for Q1 2021 increased compared to $15.7 million in Q1 2020. The increase in operating cash flow is mainly the result of higher consolidated revenues generated, and higher gross margins realized.

Cash and cash equivalents of $74.3 million and working capital of $64.7 million as at March 31, 2021, compared to $71.5 million and $70.1 million, respectively, at the end of 2020. Cash and cash equivalents increased during Q1 2021 due to $18.2 million of operating cash flows after working capital adjustments and taxes offset by $14.6 of cash used in investing activities and interest payments of $0.8 million.

⁽¹⁾ This is a non-IFRS performance measure. See the Non-IFRS Performance Measures section of the MD&A.

Exploration Update

Peru:

During the first quarter, surface exploration continued in the Triada copper porphyry (446 meters) and Kilkasca zones (224 meters);

• Underground exploration continued during Q1 2021 with the aim to replace and increase mineral resources that were depleted during 2020. Approximately 5,028 meters of drilling was completed in Esperanza North, Central Mine, Cachi-cachi and the high-grade cuerpos chicos.

Mexico:

Bolivar

• At Bolivar during Q1 2021, 11,185 meters were drilled from the surface as well as diamond drilling within the mine. Surface exploration drilling included 2,071 meters drilled in the Bolivar West – Bolivar West extension and 3,697 meters in the “Gallo Inferior” (“La Montura” Area) encountering skarn intersections with mineralization. Additionally, infill drilling of 2,846 meters was completed in the Bolivar West zone and 2,571 meters in the Gallo Inferior (Fierro Mine).

Cusi

• During Q1 2021, the Company completed 2,775 meters of infill drilling to support the development of the Santa Rosa de Lima vein and NE Trend. In addition, 2,383 meters of surface drilling was completed to support the “San Juan Vein” exploration and the “Gallo vein.”

Covid-19 Update and Guidance

The COVID-19 pandemic has impacted the Company’s operations, and this is reflected in delays in mine development and preparation of areas for mining and consequent lower head grades. A lower volume of sales is a result of a decrease in concentrate production attributable to lower grades. Costs are also negatively impacted mainly due to indirect fixed costs which have to be incurred, despite lower production. The Company continues to take proactive and reactive mitigation measures to minimize any potential impacts COVID-19 may have on its employees, communities, operations, supply chain, and finances. These measures, including COVID testing and quarantining employees and contractors. Further, some exploration and capital expenditure projects have been deferred due to ongoing and residual difficulties.

On January 27, 2021, the Peruvian Government, in response to the “second wave” of COVID-19, declared a quarantine period in certain cities for two weeks ending on February 14, 2021. This period was extended on February 10, 2021, for an additional two weeks until February 28, 2021. The second wave in Perú is still ongoing, with the number of cases remaining at all-time highs.

In Mexico, the contagion was at its peak at the end of 2020. Hospitalization rates were higher than 80% of the capacity in the state of Chihuahua, where the Company operates. Although the number of new cases declined until mid-March 2021, these cases have gradually been increasing since then, possibly due to new strains of the virus. The Mexican Government announced a precautionary closure of non-essential businesses in the last weekend of April 2021, and greater restrictions have been imposed on businesses and the mobility of people.

Currently, although the operations have not been directly affected by these recent additional measures taken by the local governments, they are affected by the overall pandemic operational restrictions and inefficiencies. Management continues to assess the situation but is maintaining its production guidance of between 155 million to 170 million Cu Eq pounds issued on January 18, 2021.

Conference Call and Webcast

Sierra Metals’ senior management will host a conference call on Friday, May 7, 2021, at 10:30 AM (EDT) to discuss the Company’s financial and operating results for the three months ended March 31, 2021.

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s website:

https://event.on24.com/wcc/r/3081089/8CC784C584EEDC0F4B1375A13E2CE27A

The webcast, along with presentation slides, will be archived for 180 days on www.sierrametals.com.

Via phone:

To register for this conference call, please use the link provided below. After registering, a confirmation will be sent through email, including dial-in details and unique conference call codes for entry. As well, reminders will be sent to registered participants in advance of the call.

If you experience difficulty registering, please dial: (888) 869-1189 or (706) 643-5902 for extra assistance.

Registration is open throughout the live call. However, to ensure you are connected for the entire call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call.

Conference Call Registration Link for Phone:

http://www.directeventreg.com/registration/event/4189713

Qualified Persons

Américo 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, 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 Company’s Common Shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima 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.

Continue to Follow, Like and Watch our progress:

Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc | Instagram: sierrametals

Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws related to the Company (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the Company’s operations, including anticipated developments in the Company’s operations in future periods, the Company’s planned exploration activities, the adequacy of the Company’s financial resources, and other events or conditions that may occur in the future. Statements concerning mineral reserve and resource estimates may also be considered to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if and when the properties are developed or further developed. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. 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 our Annual Information Form dated March 30, 2021 in respect of the year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the U.S. Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above is not exhaustive of the factors that may affect any of the Company’s forward-looking information. Forward looking information includes statements about the future and are 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 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
V.P., Investor Relations
Sierra Metals Inc.
+1 (416) 366-7777
Email: info@sierrametals.com

Ed Guimaraes
CFO
Sierra Metals Inc.
+1(416) 366-7777

Luis Marchese
CEO
Sierra Metals Inc.
+1(416) 366-7777

Source: Sierra Metals Inc.

Thursday, May 06, 2021

Great Bear Resources Ltd. (GTBAF)(GBR:CA)
A Tier One Gold Deposit in the Making?

Noble Capital Markets research on Great Bear Resources is published under ticker symbols GTBAF and GBR:CA. The price target is in USD and based on ticker symbol GTBAF. Great Bear Resources Ltd is a gold exploration company. It explores for mineral properties in the Red Lake District in Ontario, Canada. Its property portfolio includes Great Bear’s Red Lake Properties with the flagship Dixie project, Pakwash property, and Sobel property.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Initiating coverage. We are initiating coverage of Great Bear Resources Ltd. Great Bear’s Dixie Project, located in the prolific Red Lake Mining District in Ontario, Canada, offers the potential to become one of the world’s few Tier 1 gold mines. Tier 1 gold mines are generally defined as those that produce at least 500 thousand gold ounces per year, a mine life exceeding 10 years, and costs in the lower half of the industry cost curve. While the company has not published a maiden resource estimate, based on drilling results over the life of the project, we estimate mineral endowment potential of at least 10.0 million gold ounces with significant growth potential.


Exploration program yielding significant discoveries.  The Dixie project includes several gold-bearing zones, including the LP Fault, Hinge, and Dixie Limb zones. Currently, most of the company’s drilling activities have focused on the LP Fault. The company has released results for 283 LP Fault drill holes and anticipates at least 117 additional LP fault drill holes will be completed by the end of …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Aurania Finds New Epithermal Target: Gold Found In Streams

 

Toronto, Ontario, May 04, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) reports on a new epithermal target called Kuripan in its Lost Cities – Cutucu Project (“Project”) in southeastern Ecuador.  Gold has been panned from streams that drain the target area.

The streams where gold was panned drain an area in which silica veinlets that have typical epithermal characteristics, occur in volcanic tuff.  Results from stream sediment sampling show that, in addition to gold and silver, the area is enriched in pathfinder elements such as naturally occurring arsenic and antimony.

Aurania’s Chairman & CEO, Dr. Keith Barron commented, “After focusing on our silver-zinc discovery in the last few press releases, I’m very pleased to report that we have an exciting new target where we’ve been able to pan gold from streams draining an area that has an epithermal signature.  Furthermore, indications from the field are that this is an “intermediate-sulphidation” epithermal system – the same type of mineralization as Lundin Gold’s Fruta del Norte mine 100 kilometres to the south of us in the Cordillera del Condor.”

Geological Details of the Kuripan Target

Gold was panned from streams over an area of approximately 12 square kilometres (Figure 1).  Pan concentrates returned values of up to 1 gram per tonne (“g/t”) and the gold grains have an irregular shape consistent with a local source (Figure 2).  Stream sediment sample results have elevated concentrations of silver, arsenic and antimony (Figure 1), and mercury, molybdenum, selenium and thallium.

The target area lies within a sequence of black shales and siltstones of the Jurassic Santiago Formation.  These strata are extensively silicified in the target area and some chalcedonic silica contains casts of adularia (Figure 2), a key alteration mineral found in low- and intermediate- sulphidation epithermal systems.  Banded chalcedonic veinlets are located in volcanic tuff, which is not an ideal host for epithermal veins because the rock is not sufficiently brittle for intense veining to occur.  The target for well-developed epithermal veins is the thick lavas beneath the area in which gold occurs at surface.

A clay-altered diatreme breccia is located near the target area and near where the adularia casts were found (Figure 1). The diatreme is reminiscent of the lower parts of the maar-diatreme systems at Crunchy Hill and Yawi.

The occurrence of adularia with extensive manganese oxide staining suggests that the mineralized system is an intermediate-sulphidation epithermal.

Next Steps

Soil sampling teams are operating in the Kuripan area – the intention being to define the area from which the gold is being eroded into the streams.  More detailed geological mapping is underway to refine the target with emphasis on the distribution of brittle lavas that lie beneath the target area.

 

Figure 1.  a. Plan view of distribution of gold values in pan concentrate samples in the Kuripan target area.  Also shown is the location of silica with casts of adularia. b. Distribution of silver in stream sediment samples. c. Distribution of naturally occurring arsenic in stream sediment samples. d. Distribution of antimony in stream sediment samples.

 

Figure 2.  a. Field guide panning in the Kuripan target area.  b. Gold grains from one of the sample sites in a wooden pan. c. Chalcedonic silica from a banded vein. d. Casts of weathered-out adularia crystals evident in chalcedonic silica.

Sample Analysis & Quality Assurance / Quality Control (“QAQC”) 

Laboratories: The stream and pan concentrate samples were prepared for analysis at MS Analytical (“MSA”) in Cuenca, Ecuador, and the analyses were done in Vancouver, Canada.

Sample preparation: The pan concentrate samples were jaw-crushed to 10 mesh (crushed material passes through a mesh with apertures of 2 millimetres (“mm”)), from which a one-kilogram sub-sample was taken.  The sub-sample was crushed to a grain size of 0.075mm and a 200-gram (“g”) split was set aside for analysis.

The stream sediment samples were wet-sieved through a 20 mesh (0.84mm) screen in the field and placed in cloth bags so that excess water could drain.  The samples were transported from the field to Aurania’s field office in Macas, Ecuador and batched for delivery to at MSA in Cuenca, for drying and screening at 80 mesh (0.18mm sieve aperture).  The -80 mesh silt was packaged by MSA for analysis.

Analytical procedure:  Approximately 0.25g of pan concentrate pulp or -80# soil underwent four-acid digestion and analysis for 48 elements by ICP-MS.

Stream sediment: a 0.5g split of the -80 mesh fraction of the stream silt underwent digestion with aqua regia and the liquid was analyzed for 48 elements by ICP-MS.

Apart from being analyzed by ICP-MS, gold was also analyzed by fire assay with an ICP-AES finish.

QAQC: Aurania personnel inserted a certified standard pulp sample, alternating with a field blank, at approximate 20 sample intervals in all sample batches. Aurania’s analysis of results from its independent QAQC samples showed the batches reported on above, lie within acceptable limits.  In addition, the labs reported that the analyses had passed their internal QAQC tests.

Qualified Person

The geological information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc.  Mr. Pallier is a designated EurGeol by the European Federation of Geologists and a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir VP Investor Relations Aurania Resources Ltd. (416) 367-3200 carolyn.muir@aurania.com

Dr. Richard Spencer President Aurania Resources Ltd. (416) 367-3200 richard.spencer@aurania.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Aurania, Aurania provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, the effects of COVID-19 on the business of the Company including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.