Monday, March 22, 2021

Sierra Metals (SMTS)(SMT:CA)
Solid 2020 Performance; 2021 Estimates Largely Unchanged

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.

Full year financial results. Sierra Metals reported full year 2020 adjusted net income attributable to shareholders of $29.6 million, or $0.18 per share, compared with $13.9 million, or $0.08 per share, in 2019. Adjusted EBITDA increased 48.6% to $97.0 million compared with $65.3 million in the prior year. Our EPS and EBITDA estimates were $0.20 and $101.3 million. Variances to our estimates were attributed to modestly higher expense. Despite the impact of government-mandated shutdowns during the second quarter and work-flow adjustments due to COVID-19, the company posted strong earnings and cash flow growth in 2020.


Planned expansions.  Management anticipates receipt in the second quarter of the final permit to increase throughput at the Yauricocha mine by 20% to 3,600 tonnes per day. The company recently published preliminary economic assessments for all three mines which support planned expansions and is working toward completion of preliminary feasibility studies. Longer-term expansions could increase …

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. 

 

Digging Deeper Into Gold Investments – Understanding Royalty Companies

 

Investors have many options to gain exposure to gold. They may purchase gold bullion, gold coins, gold exchange-traded funds (ETF) and mutual funds, gold mining companies, or gold futures and options. Publicly traded equities of gold producers and royalty companies may offer an attractive way to invest given the disproportionate percentage impact higher commodity prices may have on a company’s bottom line and valuation for a given percentage increase in the commodity itself. While most investors are likely familiar with mining companies and how they operate, royalty companies may be less familiar.

Advantages of Owning Equity Shares of a Royalty
Company

Compared with investing in gold production companies, royalty businesses generally benefit from low overhead costs, geographically diversified asset portfolios, and exposure to multiple operators.  Additionally, they avoid costly exploration expense which is borne by operators while sharing the benefit and upside of exploration investment in properties where they retain a royalty interest.  Like mining companies, royalty businesses offer greater leverage to changes in gold prices than investing in bullion.  Lastly, royalty businesses generally seek to build portfolios of producing royalties that support dividend payments to shareholders.  It is important to keep in mind that revenues increase with rising gold prices, increasing production on its royalty properties, and a growing royalty portfolio, while costs remain relatively fixed and stable. This scenario positions royalty companies to thrive in good markets and weather more challenging sets of circumstances.

As a royalty company grows, it offers the potential for multiple expansion, dividend payments, and the ability to execute larger transactions which could accelerate its growth. Junior royalty companies generally perform well in their early years since they can grow rapidly based on an increasing capacity to transact larger deals. Additionally, junior royalty companies may become attractive acquisition candidates for a larger royalty company seeking to enlarge its royalty portfolio.

 

Allegiant Gold (AUXXF) Thursday March 25 @ 1:00pm EST Virtual Road Show (Learn More) Peter Gianulis – CEO Register Now

 

What is a Gold Royalty?

A gold royalty is a contract that gives the owner the right to a percentage of gold production or revenue. Since royalties typically cover the life of a mine, gold royalty companies benefit from the exploration upside that may extend the life of a mine and thus increase the amount of gold or revenue they receive from the mining company at no additional cost.

There are several ways to generate royalties. First, royalty businesses may help finance a development project in exchange for a royalty. Second, a royalty business may purchase existing royalties from third parties, and 3) a royalty company may take a property that they already own, sell it to a mining company, and retain a royalty on the property. 

There are several types of royalties. The two most common are NSR and NPI royalties. A net smelter returns (NSR) royalty is an agreement where the mining company agrees to pay the royalty owner a percentage of the revenue, less refining and smelting costs. A net profit interest (NPI) royalty entitles the royalty owner to a percentage of the profit from a mine.

A stream is a purchase agreement that provides the owner of the stream, in exchange for an upfront payment, the right to purchase all or a portion of one or more metals produced from a mine at a negotiated price for the life of the agreement. The negotiated price is generally at a significant discount to the spot price.

Investor Considerations:

It is important for investors to keep several factors in mind when conducting due diligence on prospective royalty company investments. These include: 1) management, 2) asset portfolio, 3) asset quality, 4) jurisdiction, and 5) valuation. 

Management. Should you bet on the horse or the jockey? It is important to evaluate management’s history and track record of creating value for shareholders. Does the management team reflect a balance of technical, financial, legal, and capital markets expertise? Is the board of directors comprised mostly of independent directors who provide a diversity of relevant experience and perspectives? Do they articulate clear objectives, and is their business model sound? Most importantly, do they focus on areas they know and employ a disciplined growth strategy, or are they seeking growth at any price?

Asset Portfolio. How is the company’s asset portfolio balanced between royalties that are producing cash flow streams versus royalties that are expected to produce cash flow within five years and/or longer? 

Asset Quality. Because royalty companies have little control over the decisions of the mining companies that control the properties on which the royalty interest is held, it is important for investors to evaluate the operators associated with the properties in the royalty portfolio. Are they well-capitalized major mining companies or small start-ups? Additionally, it is helpful to evaluate mineral resource estimates associated with properties in the portfolio and the operators’ plans for development.      

Jurisdiction. While geographic diversity is a selling point for most royalty companies, it is often helpful to consult the Fraser Institute’s Annual Survey of Mining Companies to check if royalty interests are in favorable mining jurisdictions versus high-risk areas.

Valuation. Royalty companies are often valued based on price to net asset value. Net asset value is the net present value (NPV) or discounted cash flow (DCF) of all future cash flow of a mining asset, less any debt plus cash. Price to net asset value is the company’s market capitalization divided by the net present value of all mining assets minus net debt. For those that pay a dividend, investors may also compare dividend growth rates and yield. Larger companies generally trade at higher valuation multiples which generally increase with scale due to lower perceived risk due to greater asset diversification and a proven track record of growth. As royalty companies grow, they may be able to establish and grow dividends to shareholders, offer greater liquidity due to listings on major exchanges, and benefit from broader research. Some may also benefit from their inclusion in stock indices. For those that pay a dividend, it is important to know whether the dividend is paid from operating cash flow or whether the company is borrowing to pay the dividend.

Company Spotlight: Ely Gold Royalties (ELY:CA)

Ely Gold Royalties Inc. is an emerging gold royalty company with a growing asset portfolio that includes 12 key assets with four producing royalties and eight that are expected to go into production by the end of 2025. Additionally, the company has 26 development assets, of which 15 are located at, or near, producing mines, and 7 are part of permitted projects or in the permitting process. With respect to the company’s 40 exploration projects, 12 are currently being drilled by junior exploration companies, and Ely is receiving option payments associated with 26 exploration properties. Option payments are generated through the company’s option/sales program, where properties are sold to third-party mining companies on a 100% basis, generally under four-year option payment agreements. Lastly, Ely Gold has a portfolio of 20 properties available for sale under its option/sale program. The company’s shares trade on the Toronto Venture Exchange under the ticker ELY, the OTCQX Best Market under the symbol ELYGF, and the Frankfurt Exchange under the ticker I4U.F.

The company’s asset portfolio is focused mainly on properties in the state of Nevada, a mining jurisdiction that ranked 1^st in terms of investment attractiveness among 77 mining jurisdictions in the 2020 Fraser Institute’s Annual Survey of Mining Companies and an area for which management is intimately familiar. Ely tends to increase its exposure to projects where it already owns royalty interests and is familiar with the project and operator. Ely Gold takes a focused asset-level approach. As they get to know a property, they may seek to increase exposure by trying to secure other royalty agreements linked to the same property. Additionally, the company has a portfolio of royalty interests that should support long-term growth.

Ely Gold differentiates itself among junior royalty companies with its royalty generation program. While many of its competitors focus on purchasing exploration and longer-term royalties, Ely Gold is developing projects to generate a revenue stream with its royalty sale portfolio. Properties are sold to third-party mining companies on a 100% basis, generally under four-year option payment agreements. Once payments are completed, and the property is sold, Ely retains a royalty interest. If payments are not completed, Ely gets the property back.  This approach has enabled Ely Gold to aggressively grow its portfolio with minimal dilution to shareholders.

Ely Gold’s management team has a unique combination of mining industry and capital markets experience.  They have a successful track record of generating projects, with a focus on and specialized knowledge of the Nevada market. While the company has largely focused its efforts on Nevada, it could consider other favorable mining jurisdictions, including in Latin America, where it has familiarity.

Take-Away

Investors have many options to gain exposure to gold. Royalty companies may be worth considering as a vehicle for exposure to gold. However, it is important for investors to understand their risk tolerance and return objective. The universe of royalty and streaming companies represents a broad range of market capitalizations, and many differences exist among their asset portfolios. Channelchek offers a starting point for investors to conduct due diligence and dig deeper.

 

Suggested Content:

Allegiant Gold C-Suite Interview (Video)

Aurania Resources NobleCon17 Presentation (Video)

Ely Gold Royalties NobleCon17 Presentation (Video)

Natural Resources Panel Discussion NobleCon17 (Video)

 

 

Sources:

4
Reasons Why We Believe in Royalty Companies, Slideshow, U.S. Global Investors, 2021

How
Precious Metals Royalty and Streaming Companies Create Value, Visual Capitalist, February 25, 2021.

Streaming
& Royalty Companies: Mutually Beneficial Arrangements for Everyone,
including Investors, ResourceWorld, Ellsworth Dickson, 2020

Photo Credit: Gold Nuggets, Dave
Bazaire, No Changes Made  

Sierra Metals Reports 2020 Consolidated Financial Results Including A 49% Increase In Adjusted Ebitda To $97.0 Million

 

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX:SMT) (BVL:SMT) (NYSE American:SMTS):

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210318005988/en/

Conference Call March 19, 2021 at 10:30 AM (EDT)

(All $ figures reported in USD)

• Revenue from metals payable of $246.9 million in 2020 increased by 8% from $229.0 million in 2019;
• Adjusted EBITDA of $97.0 million in 2020 increased 49% from $65.3 million in 2019 due to higher consolidated revenues and lower operating costs at Yauricocha and Bolivar;
• Operating cash flows before movements in working capital of $99.0 million in 2020 increased 49% from $66.4 million in 2019;
• 2020 consolidated copper production of 44.3 million pounds an 11% increase, consolidated silver production of 3.5 million ounces a 3% increase, consolidated zinc production of 81.9 million pounds a 1% increase, consolidated lead production of 33.0 million pounds a 7% decrease, and consolidated gold production of 13,771 ounces an 18% increase respectively compared to 2019;
• Consolidated All-In sustaining costs (“AISC”) ⁽¹⁾ per copper equivalent pound ⁽²⁾ sold of $2.12 in 2020, or 8% lower than AISC in 2019, driven by lower cash costs and the increase in copper equivalent pounds sold in 2020 compared to 2019;
• $71.5 million of cash and cash equivalents as at December 31, 2020;
• Net Income attributable to shareholders of $0.14 per share;
• Net Debt of $27.9 million as at December 31, 2020
• A shareholder conference call to be held Friday, March 19, 2021, at 10:30 AM (EDT)

(1) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.
(2) Silver equivalent ounces and copper and zinc equivalent pounds for Q4 2020 were calculated using the following realized prices: $24.30/oz Ag, $3.32/lb Cu, $1.22/lb Zn, $0.89/lb Pb, $1,859/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q4 2019 were calculated using the following realized prices: $17.42/oz Ag, $2.69/lb Cu, $1.07/lb Zn, $0.92/lb Pb, $1,506/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for full year 2020 were calculated using the following realized prices: $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb, $1,771/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for full year 2019 were calculated using the following realized prices: $16.29/oz Ag, $2.73/lb Cu, $/1.14lb Zn, $0.91/lb Pb, $1,404/oz Au.

Sierra Metals Inc. (TSX:SMT) (BVL:SMT) (NYSE American:SMTS) (“Sierra Metals” or the “Company”) today reported revenue of $246.9 million and an adjusted EBITDA of $97.0 million on the throughput of 2.8 million tonnes and metal production of 118.2 million copper equivalent pounds (or 16.1 million silver equivalent ounces or 321.6 million zinc equivalent pounds), for the year ended December 31, 2020.

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

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

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

Luis Marchese, CEO of Sierra Metals, stated:“Sierra Metals had a solid performance in 2020 with a marked increase in adjusted EBITDA as well as solid production despite the exceptionally challenging year we had while dealing with the COVID-19 pandemic. Overall, the Company did a great job of managing and improving operations while controlling and maintaining costs. I want to thank all of our employees for their significant efforts in helping the Company achieve these remarkable results.”

He continued, “Looking ahead, we expect this year to be an exciting one for the Company. We continue advancing important projects, completing operational improvements, and advancing exploration at all three mines. We hope to receive the final permit required to increase throughput by 20% to the 3,600 tonne per day level at Yauricocha in the second quarter of the year. Furthermore, we recently completed and published Preliminary Economic Assessments with favorable economics for expansions at all three mines, examining an increase in throughput starting in 2024. We continue to work toward the completion of Preliminary Feasibility Studies for all mines. COVID-19 is still challenging us, and case counts remain high in Mexico and Peru. However, policies and practices are in place to manage these issues while prioritizing the health of our employees and surrounding communities.”

He concluded, “The Company continues to have a strong balance sheet, and liquidity with metal prices expected to remain strong this year. These strengths should benefit the Company as we continue with our growth and improvement plans. Management also remains optimistic that we can find further operational efficiencies with the larger scale of the Company operations.”

The following table displays selected financial and operational information for the three months and year ended December 31, 2020:

Q4 and 12M 2020 Financial Highlights

		Three Months Ended						Twelve Months Ended
(In thousands of dollars, except per share and cash cost amounts, consolidated figures unless noted otherwise)		December 31, 2020			December 31, 2019			December 31, 2020			December 31, 2019
Operating
Ore Processed / Tonnes Milled			778,236			731,500			2,828,877			2,671,853
Silver Ounces Produced (000’s)			922			871			3,465			3,375
Copper Pounds Produced (000’s)			10,626			11,308			44,262			39,890
Lead Pounds Produced (000’s)			7,630			9,924			32,972			35,454
Zinc Pounds Produced (000’s)			21,612			25,590			81,868			81,083
Gold Ounces Produced			3,363			3,615			13,771			11,632
Copper Equivalent Pounds Produced (000’s) 1			29,267			32,510			118,214			111,678
Zinc Equivalent Pounds Produced (000’s) 1			79,521			81,919			321,638			267,658
Silver Equivalent Ounces Produced (000’s) 1			3,996			5,016			16,097			18,721
Cash Cost per Tonne Processed		$	44.42		$	53.91		$	40.81		$	50.37
Cost of sales per AgEqOz2		$	9.76		$	9.61		$	8.67		$	8.53
Cash Cost per AgEqOz2		$	9.56		$	9.94		$	8.29		$	8.33
AISC per AgEqOz2		$	18.72		$	16.18		$	15.59		$	13.82
Cost of sales per CuEqLb2		$	1.33		$	1.48		$	1.18		$	1.42
Cash Cost per CuEqLb2		$	1.31		$	1.54		$	1.13		$	1.39
AISC per CuEqLb2		$	2.56		$	2.50		$	2.12		$	2.30
Cost of sales per ZnEqLb2		$	0.49		$	0.59		$	0.43		$	0.59
Cash Cost per ZnEqLb2		$	0.48		$	0.61		$	0.41		$	0.58
AISC per ZnEqLb2		$	0.94		$	0.99		$	0.78		$	0.95
Cash Cost per ZnEqLb (Yauricocha)2		$	0.42		$	0.46		$	0.37		$	0.46
AISC per ZnEqLb (Yauricocha)2		$	0.91		$	0.83		$	0.78		$	0.79
Cash Cost per CuEqLb (Yauricocha)2		$	1.16		$	1.17		$	1.01		$	1.12
AISC per CuEqLb (Yauricocha)2		$	2.47		$	2.11		$	2.11		$	1.91
Cash Cost per CuEqLb (Bolivar)2		$	1.35		$	2.06		$	1.13		$	1.73
AISC per CuEqLb (Bolivar)2		$	2.34		$	2.92		$	1.88		$	2.86
Cash Cost per AgEqOz (Cusi)2		$	15.70		$	42.12		$	16.62		$	21.38
AISC per AgEqOz (Cusi)2		$	28.18		$	56.64		$	25.26		$	30.89
Financial
Revenues		$	76,218		$	64,634		$	246,888		$	229,038
Adjusted EBITDA2		$	31,127		$	19,104		$	96,982		$	65,257
Operating cash flows before movements in working capital		$	32,259		$	19,951		$	99,005		$	66,359
Adjusted net income attributable to shareholders2		$	8,638		$	7,228		$	29,569		$	13,874
Net income (loss) attributable to shareholders		$	7,603		$	4,534		$	23,419		$	4,431
Cash and cash equivalents		$	71,473		$	42,980		$	71,473		$	42,980
Working capital		$	70,885		$	49,922		$	70,885		$	49,922

Revenue from metals payable of $246.9 million in 2020 increased by 8% from $229.0 million in 2019. Higher revenue was primarily a result of higher copper sales from the Bolivar mine attributable to increased throughput and higher average realized prices for copper, gold and silver compared to 2019.

Yauricocha’s cash cost per copper equivalent payable pound was $1.01 (2019 – $1.12), and AISC per copper equivalent payable pound of $2.11 (2019 – $1.91). Lower cash costs resulted from a decrease in cost per tonne attributable to lower labour and contractor costs due to operational challenges related to COVID-19. Cash costs for the year were 10% lower despite the $4.8 million of charges related to the COVID-19, such as the cost of cleaning supplies, medical tests and costs related to quarantine employees and contractors. The increase in the AISC per copper equivalent payable pound for 2020 compared to 2019 was a result of lower copper equivalent pounds sold and higher treatment and refining costs. Other sustaining costs were in-line with these costs incurred in 2019.

Bolivar’s cash cost per copper equivalent payable pound was $1.13 (2019 – $1.73), and AISC per copper equivalent payable pound was $1.88 (2019 – $2.86). Lower unit costs at Bolivar were a result of the 48% increase in copper equivalent pounds sold during 2020 as compared to 2019.

Cusi’s cash cost per silver equivalent payable ounce was $16.62 (2019 – $21.38), and AISC per silver equivalent payable ounce was $25.26 (2019 – $30.89). Costs were lower during the year due to lower contractor costs related to underground development. Silver equivalent ounces sold during 2020 were 5% higher than 2019, despite the production lost due to the care and maintenance period, as silver and gold grades increased in Q4 2020.

Adjusted EBITDA⁽¹⁾ of $97.0 million for 2020 is a 49% increase from the adjusted EBITDA of $65.3 million for 2019. This increase was a combined result of the higher consolidated revenue and lower operating costs per tonne at Yauricocha and Bolivar.

Cash flow generated from operations before movements in working capital of $99.0 million for 2020 increased compared to $66.4 million in 2019. The increase in operating cash flow is mainly the result of higher revenues generated and lower operating costs, as mentioned earlier.

Net Income attributable to shareholders for 2020 was $23.4 million (2019: $4.4 million) or $0.14 per share (basic and diluted) (2019: $0.03).

Cash and cash equivalents of $71.5 million and working capital of $70.9 million as at December 31, 2020, compared to $43.0 million and $49.9 million, respectively, at the end of 2019. Cash and cash equivalents increased during 2020 due to $67.0 million of operating cash flows after taxes and changes in working capital, offset by cash used in investing activities in Mexico and Peru of $34.2 million and interest payment of $4.1 million on the senior secured credit facility.

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

Project Development

In October 2020, the Company reported positive results of a Preliminary Economic Assessment (“PEA”) for doubling its output at the Bolivar Mine to 10,000 tonnes per day (“tpd”). The PEA results indicated an incremental benefit of after-tax NPV (@8%) of $57.4 million and an IRR of 27.9%. A National Instrument 43-101 (“NI 43-101”) technical report was filed on SEDAR and with the U.S. Securities and Exchange Commission on November 5, 2020;

In November 2020, the Company announced an update on the Cusi Mineral Resource Estimate, which included an 18% increase in the Measured and Indicated Resources and a 200% increase in the Inferred Resources. This update was followed up by a NI 43-101 technical report on December 22, 2020;

In December 2020, the Company filed a NI 43-101 PEA technical report for the Yauricocha Mine with favourable economics including an incremental after-tax NPV (@8%) of $28.4 million and an IRR of 35.7% to increase the production to 5,500 tpd from 3,780 tpd. The technical report also contained an increase in the Mineral Resource estimate for the Yauricocha Mine. The update included a 26% increase in the Measured and Indicated Mineral Resources and a 79% increase in the Inferred Resource estimate; and;

In December 2020, the Company reported the results of a PEA for doubling its output at the Cusi Mine to 2,400 tpd, which indicated an after-tax incremental NPV (@8%) of $28.1 million and IRR of 46.8%. A 43-101 technical report for this PEA was filed on January 6, 2021.

Exploration Highlights

Peru:

• Exploration activities at the Yauricocha mine were suspended between March 16, 2020, to October 31, 2020, due to restrictions related to COVID-19; and

• Of the planned 25,000 meters of drilling planned for the year, only 10,120 meters could be completed, which included 5,088 meters of underground drilling and 5,032 meters of brownfield surface exploration.

Mexico:

Bolivar

• The Infill Drilling program was carried in the El Gallo and Bolivar West. 6,971 meters of drilling was completed, including 6,413 meters at Bolivar West and 558 meters at El Gallo; and

• Brownfield exploration drilling program was completed for 19,372 meters, which included mainly 11,184 meters at Bolivar West and 7,222 meters at La Montura (El Salto) zone, with the remaining meters drilled in the copper porphyry.

Cusi

• The Infill Drilling program was carried in the NorthEast System, with the objective to define the continuity and the grades of this system. 9,752 meters of drilling was completed, including 1,884 meters of definition drilling into this system; and

• Brownfield exploration drilling program started at Promontorio vein, and La Gloria Vein and 3,975 meters of drilling were completed during the year.

Annual SEC Filing completed by Sierra Metals

Sierra Metals has completed its annual SEC filing. Copies of these documents can be found at www.sierrametals.com on the Investors Page under Financial Information. Shareholders may request a hard copy of the complete audited financial statements free of charge upon request.

Conference Call Webcast

Sierra Metals’ senior management will host a conference call on Friday, March 19, 2021, at 10:30 AM (EDT) to discuss the Company’s financial and operating results for the three months and year ended December 31, 2020.

Via Webcast:

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

https://event.on24.com/wcc/r/2947459/6CFF80ECA94506BA22260486A6292C76

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. A confirmation will be sent through email, including dial-in details and unique conference call codes for entry after registering.

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

http://www.directeventreg.com/registration/event/4514269

Quality Control

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 Bolsa de Valores de Lima and on the Toronto Stock Exchange under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

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

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Forward-Looking Statements

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

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

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

Mike McAllister
Vice President, Investor Relations
Sierra Metals Inc.
Tel: +1 (416) 366-7777
Email: info@sierrametals.com

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

Source: Sierra Metals Inc.

Friday, March 19, 2021

Palladium One Mining Inc. (NKORF)(PDM:CA)
Methodical Approach to Exploration Yielding Positive Outcomes

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.

Phase II drilling program. In November 2020, the company began its 17,500-meter Phase II resource definition drilling program at its palladium-dominant Lantinen Koillismaa (LK) project in Finland. To date, 34 holes, representing 6,404 meters of drilling, have been completed at Kaukua South. Results for 22 drill holes have been released, while 12 are pending. Drilling has focused on defining mineralization to a depth of 200 meters and continues to affirm continuity of near surface open pit grades and widths at Kaukua South.


Defining Kaukua South’s expanding potential.  Induced polarization (IP) surveys have commenced to expand the 4-kilometer Kaukua South strike length by up to 3 kilometers. Based on the existing NI 43-101 pit constrained resource, favorable drill results to date, and the potential to increase the Kaukua South strike length to 7 kilometers, Palladium One has made significant progress toward advancing …

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. 

Golden Predator Mining Corp and Viva Gold Corp: Metal Investors Forum & Backstage Interview

 

On March 5th, 2021 Golden Predator Mining Corp.’s Chief Executive Officer, Janet Lee-Sheriff, and Viva Gold Corp’s Chief Executive Officer, James Hesketh, presented an update on the Agreement between Golden Predator and Viva Gold to merge development stage assets in Nevada and Yukon. In the event you missed the live version we have provided the link to the presentation:

Golden Predator Mining: Metal Investors Forum Presentation: https://youtu.be/DDHh-UYvNyo

Greg McCoach also talks to Janet Lee-Sheriff and James Hesketh on the business combination and the assets in Golden Predator in the below interview: https://youtu.be/2YiVWPTTZfc

About Golden Predator Mining Corp.

Golden Predator is advancing the past-producing Brewery Creek Mine towards a timely resumption of mining activities, under its Quartz Mining and Water Licenses, in Canada’s Yukon. With established resources grading over 1.0 g/t gold the Company is completing a Bankable Feasibility Study for the  restart of heap leach operations. The Brewery Creek Mine project operates with a Socio Economic Accord with the Tr’ondëk Hwëch’in First Nation.

About Viva Gold Corp.

Viva Gold is a gold exploration and project development company with a focus on Nevada. Viva Gold holds 100% of the advanced Tonopah Gold Project, a large land position of approximately 8,800 acres with demonstrated high-grade measured, indicated and inferred gold resources, located on the prolific Walker Lane gold trend in Nevada. Viva’s management team has extensive experience in mining exploration, development and production and is supported by a Board of Directors and advisors who are proven mine finders, deal makers and financiers.  

For additional information:

Janet Lee-Sheriff
Golden Predator Mining Corp.
Chief Executive Officer
(604) 260-8435
info@goldenpredator.com
www.goldenpredator.com

James Hesketh
Viva Gold Corp.
Chief Executive Officer
720-291-1775

jhesketh@vivagold.com
www.vivagold.com

Source: Golden Predator Mining

Palladium One Expands High-Grade at Kaukua South, Drills 47 Meters @ 2.6 g/t Pd_Eq, Including 12 Meters @ 4.2 g/t Pd_Eq

 

March 18, 2021 –
Toronto, Ontario – Drilling has returned significant PGE (Platinum Group Element) grades of 47 meters at 2.6 g/t Pd_Eq, including 12 meters at
4.2 g/t Pd_Eq. (Hole LK21-045), defining a high-grade core 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.

Thus far, 34 holes have been drilled as part of the 17,500-meter Phase II Resource Definition drill program at Kaukua South, including today’s results 22 have been released, while results for 12 holes are pending. Drilling has been strategically undertaken to define mineralization from surface to a depth of 200 metres, leaving mineralization open at depth, across the known 4-kilometer strike length of Kaukua South. In total 6,404-meters have been drilled to date as part of the Phase II program at Kaukua South, while an additional 860-meters (6 holes) of regional exploration has been undertaken.

Derrick Weyrauch, President and CEO of Palladium One said, “Drilling at Kaukua South continues to intersect impressive grades and widths, thereby proving up the known four-kilometer strike length of Kaukua South. Induced Polarization (IP) surveys have been started to expand the Kaukua South strike length by up to three kilometers. With robust drill results thus far and the potential to increase the Kaukua South strike length to seven kilometers we are optimistic that, in addition to our existing Kaukua National Instrument 43-101 pit constrained resource, a new multi-million ounce resource is well within our reach.”

“In addition to our Phase II Kaukua South drill program and to take advantage of winter drilling conditions, 2,000 meters (12 holes) were recently drilled on the Haukiaho zone. This drilling represents completion of the infill campaign that was launched in February 2020 and suspended in March 2020 due to Covid-19. The drill program was designed to provide additional data in advance of a NI43-101 resource estimate. Assay results are pending.” said Weyrauch.

Highlights

• Drilling continues to
  demonstrate continuity of near surface open pit grades and widths at
  Kaukua South.

• Core zone of 11.6 meters grading 4.21 g/t
  Palladium equivalent (“Pd_Eq”) within 47.4 meters grading 2.59 g/t
  Pd_Eq. in hole LK21-045, starting 123 meters down hole.

• Core zone of 16.5 meters grading 2.52 g/t
  Pd_Eq, within 52.7
  meters grading 1.53 g/t Pd_Eq in hole LK21-046, starting 66 meters down hole.

• 2,000 meters of drilling completed on the Haukiaho Zone to upgrade the historic resource to National Instrument 43-101 standards.

Kaukua South Infill Drilling

Kaukua South infill drilling continues to demonstrate consistent near surface open pit grades and widths. A total of 22 holes from the Phase II infill drill program on Kaukua South have now been released with intersections such as 53 meters at
2.1 g/t Pd_Eq, in hole LK20-028 (see press release January 18, 2021) and 33 metres grading
2.0 g/t Pd_Eq in hole LK20-034 (see news release March 11, 2021). These 22 holes cover approximately 1.3 kilometers of the Kaukua

IP Survey Underway

Induced Polarization (“IP”) surveys have proven to be highly successful at outlining palladium-rich disseminated copper-nickel sulphide mineralization on the LK Project. The discovery of Kaukua South in an overburden covered area with no previous drilling was a direct result of the Company’s 2020 IP survey.

The current IP survey is well advanced, with the western grid anticipated to be completed within the next week. The Company believes there is potential to extend the currently Kaukua South IP chargeability anomaly from the currently defined four to over seven kilometres of strike length (Figure 1).

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

Figure 2. Kaukua South long-section looking north, holes labelled in red form part of this release

Figure 3. Cross Section showing Kaukua South infill holes LK20-027, 028, 045, looking west.

Haukiaho Drill Program

The Haukiaho Zone is located 15 kilometers to the South of Kaukua. In late February and early March 2021, the Company completed 2,000 meters (12 holes) of infill drilling to enable the historic Haukiaho resource to be upgraded to NI43-101 compliant standards. The Haukiaho Zone which hosts the historic Haukiaho deposit, is part of a 17-kilometre-long trend (Figure 4.), and prior to the discovery of the Kaukua South Zone had a top priority for the Company and it remains a significant asset of the greater LK project.

In March 2020, before being forced to shut down due to the first wave of the Covid-19 pandemic, the Company completed 3 holes on the Haukiaho Zone returning a core zone of 34.2
metres grading 2.09 g/t Pd_Eq. within 83.3 metres grading 1.27 g/t Pd_Eq. in hole LK20-010 (see news release September 15, 2020).

In February 2020, the Company completed an IP survey covering five-kilometres of the Haukiaho Trend (see news release May 7, 2020). This survey identified three strong chargeability anomalies, one of which is associated with the core of the historic Haukiaho deposit, however the other two are in areas of sparse historic drilling. The eastern most of these three anomalies was prospected
by the Company in 2019, returning up to 3.3 g/t Pd_Eq. (0.51% Cu, 0.33% Ni, 0.56 g/t Pd, 0.18 g/t Pt, and 0.21 g/t Au), (see news release August 12, 2019).

Historic Haukiaho Resource Estimates
In 2013, Finore Mining Inc. completed a non-pit constrained NI43-101 historic resource with a 0.1 g/t Pd cut-off at Haukiaho comprising 23.2 million tonnes grading 1.51 g/t Pd_Eq (0.31 g/t Pd, 0.12g/t Pt, 0.10 g/t Au, 0.21% Cu, and 0.14% Ni) (See news release August 12, 2019 and May 7, 2020). This resource encompassed widely spaced drilling with a focus on maximizing tonnage, not grade. An earlier historic resource estimate completed by Outokumpu in the 1980’s covered a much larger part of the Haukiaho trend and was focused more on grade and used a 0.7% Cu_eq cut-off (defined as Cu% + 2 x Ni%) and returned 7 million tonnes grading 0.38% Cu and 0.24% Ni, however importantly, no PGE assays were conducted.

Figure 4. LK Project location map showing 43-101 compliant Kaukua deposit and historic Haukiaho resource along with 2020 IP grids (blue lines) and current 2021 IP grid areas (black boxes). Yellow lines represent Exploration Permits, red lines represent Exploration Reservations held by the Company.

Figure 5. Haukiaho IP chargeability and 2020 DDH location map

Table 1: Phase II infill drill results to date on Kaukua South

Zone	Hole	From (m)	To (m)	Width (m)	Pd_Eq g/t*	PGE g/t (Pd+Pt+Au)	Pd g/t	Pt g/t	Au g/t	Cu %	Ni %
Kaukua South	LK20-027	103.4	155.0	51.6	1.98	1.07	0.72	0.27	0.08	0.17	0.15
	Inc.	105.6	113.0	7.4	2.58	1.34	0.90	0.31	0.13	0.26	0.18
	And	149.5	155.0	5.5	3.12	1.96	1.34	0.52	0.10	0.27	0.17
	Inc.	153.5	155.0	1.5	6.14	4.09	2.79	1.15	0.15	0.56	0.28
Kaukua South	LK20-028	42.6	95.5	52.9	2.06	1.44	1.00	0.36	0.08	0.11	0.11
	Inc.	46.9	72.0	25.1	2.92	2.08	1.44	0.52	0.12	0.17	0.14
	Inc.	50.5	60.0	9.5	3.56	2.52	1.75	0.61	0.16	0.23	0.16
Kaukua South	LK20-029	37.5	62.9	25.4	2.57	1.87	1.30	0.46	0.11	0.15	0.11
	Inc.	47.0	62.0	15.0	3.16	2.36	1.65	0.58	0.13	0.17	0.13
	Inc.	56.5	62.0	5.5	4.34	3.36	2.36	0.82	0.18	0.20	0.16
	Inc	56.5	57.7	1.2	6.15	4.97	3.54	1.26	0.17	0.25	0.21
Kaukua South	LK20-030	26.4	86.5	60.1	1.88	1.00	0.68	0.24	0.07	0.17	0.14
	Inc.	47.0	68.0	21.0	2.44	1.43	0.98	0.35	0.10	0.21	0.16
	Inc.	53.0	54.5	1.5	3.94	2.69	1.78	0.78	0.12	0.28	0.20
Kaukua South	LK20-031	17.9	61.5	43.6	1.94	1.12	0.76	0.27	0.09	0.16	0.13
	Inc.	17.9	55.5	37.6	2.17	1.25	0.85	0.30	0.10	0.19	0.14
	Inc.	24.5	35.0	10.5	2.81	1.60	1.09	0.39	0.11	0.27	0.18
Kaukua South	LK20-032	60.3	108.3	48.0	1.81	0.84	0.57	0.21	0.06	0.16	0.16
	Inc.	61.4	75.0	13.7	2.12	0.90	0.58	0.23	0.09	0.22	0.20
Kaukua South	LK20-033	41.3	85.0	43.7	1.76	0.87	0.58	0.21	0.07	0.18	0.14
	Inc.	42.7	56.3	13.7	2.33	1.21	0.83	0.28	0.10	0.21	0.18
Kaukua South	LK20-034	86.9	119.5	32.7	2.05	1.16	0.81	0.26	0.09	0.16	0.15
	Inc.	88.5	112.5	24.0	2.26	1.32	0.93	0.29	0.10	0.17	0.15
	Inc.	88.5	97.5	9.0	3.06	1.98	1.41	0.45	0.12	0.20	0.17
	Inc.	94.5	96.0	1.5	4.20	2.94	2.15	0.66	0.14	0.25	0.20
Kaukua South	LK20-035	66.0	118.0	52.0	1.32	0.63	0.44	0.15	0.04	0.11	0.11
	Inc	67.5	69.0	1.5	3.49	2.44	2.10	0.27	0.07	0.23	0.15
	And	95.5	104.7	9.2	2.04	1.23	0.80	0.32	0.11	0.17	0.13
Kaukua South	LK20-036	245.3	280.0	34.6	1.05	0.39	0.25	0.11	0.03	0.10	0.11
	Inc.	259.0	260.5	1.5	1.72	0.86	0.62	0.16	0.07	0.15	0.14
Kaukua South	LK20-042	115.5	158.9	43.4	1.41	0.77	0.53	0.19	0.05	0.09	0.12
	Inc.	118.5	123.0	4.5	2.29	1.23	0.82	0.32	0.09	0.14	0.19
Kaukua South	LK20-043	131.5	162.3	30.8	1.24	0.55	0.36	0.15	0.04	0.11	0.12
	Inc.	133.0	136.0	3.0	2.05	1.16	0.82	0.32	0.02	0.05	0.20
Kaukua South	LK20-044	156.8	173.8	17.0	1.38	0.62	0.41	0.14	0.06	0.14	0.12
	Inc.	166.0	169.5	3.4	2.10	1.07	0.73	0.25	0.08	0.20	0.16
Kaukua South	LK20-045	122.8	170.2	47.4	2.59	1.74	1.20	0.42	0.11	0.17	0.14
	Inc.	152.0	170.2	18.2	3.64	2.55	1.77	0.62	0.15	0.23	0.17
	Inc.	155.0	166.6	11.6	4.21	2.92	2.03	0.72	0.18	0.27	0.20
	Inc.	156.0	160.6	4.6	5.09	3.67	2.57	0.89	0.21	0.33	0.21
	Inc.	156.0	157.5	1.5	7.18	5.18	3.67	1.23	0.28	0.44	0.31
Kaukua South	LK20-046	65.9	118.6	52.7	1.53	1.05	0.73	0.26	0.06	0.09	0.08
	Inc.	73.0	89.5	16.5	2.52	1.79	1.23	0.44	0.12	0.13	0.13
	Inc.	73.0	79.0	6.0	3.31	2.42	1.69	0.60	0.12	0.18	0.15
Kaukua South	LK20-047	36.0	58.0	22.0	1.77	1.11	0.75	0.29	0.07	0.12	0.11
	Inc.	40.5	43.5	3.0	3.15	1.85	1.23	0.49	0.13	0.27	0.20
	And	53.5	56.0	2.5	2.89	2.25	1.61	0.54	0.09	0.12	0.11
Kaukua South	LK20-048	80.0	93.0	13.0	1.08	0.55	0.35	0.15	0.05	0.09	0.09
	Inc.	89.0	91.3	2.3	1.91	1.13	0.73	0.31	0.09	0.18	0.12
Kaukua South	LK20-049	16.2	27.0	10.8	1.18	0.52	0.33	0.13	0.06	0.13	0.10
	Inc.	23.5	27.0	3.5	1.53	0.87	0.57	0.21	0.09	0.16	0.09
Kaukua Recon	LK20-050	no significant values
Kaukua South	LK21-051	118.8	145.0	26.2	1.46	0.55	0.36	0.13	0.06	0.16	0.15
	Inc.	133.2	145.0	11.8	1.87	0.77	0.49	0.18	0.10	0.21	0.17
Kaukua South	LK21-052	53.0	62.7	9.7	1.04	0.36	0.22	0.10	0.04	0.09	0.12
	Inc.	54.5	57.0	2.5	1.75	0.75	0.48	0.22	0.06	0.12	0.19
	Zone	147.5	172.0	24.5	1.67	0.79	0.55	0.17	0.07	0.18	0.13
	Inc.	147.5	152.0	4.5	2.17	0.91	0.65	0.20	0.06	0.38	0.14
	Inc.	147.5	148.0	0.5	6.44	1.03	0.79	0.20	0.05	2.45	0.24
	And	164.0	165.5	1.5	3.35	2.31	1.70	0.49	0.12	0.21	0.16
Kaukua South	LK21-053	60.0	63.0	3.0	1.20	0.51	0.33	0.13	0.06	0.11	0.11
	Zone	93.9	101.4	7.5	0.77	0.25	0.15	0.07	0.03	0.05	0.10

* Reported widths are “drilled widths” not true widths.
** Orange shaded values previously released (see press release January 18, 2021 and March 11, 2021)

*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.

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.

SOURCE: Palladium One Mining

Thursday, March 18, 2021

Endeavour Silver (EXK)(EDR:CA)
Sale of El Cubo Mine Expected to Close by Month-End

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.

Definitive agreement to sell the El Cubo mine. Recall that in December 2020, Endeavour Silver announced a binding letter agreement to sell its El Cubo mine to VanGold Mining Corp. (OTC, VGLDF, Not Rated) for US$15 million in cash and share payments plus up to an additional US$3.0 million in contingent payments. Endeavour announced the signing of a definitive agreement for which the terms are unchanged. While the transaction was originally expected to close on or before March 17, 2021, management expects the transaction to close by month-end.


Inclusion in stock indices.  Endeavour Silver common shares will be added to the S&P/TSX Composite and the NYSE Arca Gold Miners (GDX ETF) Indices after the market close on March 19, 2021. Inclusion in the indices should enhance the equity’s visibility among institutional investors whose funds are aligned with or benchmarked against these indices …

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. 

 

 

Endeavour Silver Signs Definitive Agreement to Sell the El Cubo Mine in Guanajuato, Mexico to VanGold Mining; Endeavour to be Added to the S&P/TSX Composite and NYSE Arca Gold Miners (GDX ETF) Indices

 

VANCOUVER, British Columbia, March 17, 2021 (GLOBE NEWSWIRE) — Endeavour
Silver Corp. (TSX: EDR, NYSE: EXK) (“Endeavour”) announces that it has signed a definitive agreement to sell the El Cubo mine in Guanajuato, Mexico to VanGold Mining Corp. (“VanGold”) for $15 million in cash and share payments plus up to $3 million in contingent payments (all dollar amounts in USD unless otherwise noted).

VanGold will pay $15,000,000 to Endeavour as follows:

• A non-refundable down-payment of $500,000 cash (received).
• $7.0 million cash payment on closing, anticipated by the end of March 2021.
• $5.0 million in VanGold common shares on closing, priced at $0.2344 (CAD$0.30) per share for a total of 21,331,058 VanGold shares representing approximately 11.3% of the issued shares.
• $2.5 million promissory note due 12 months from the closing date.

Endeavour has agreed to (a) abstain from voting its shares of VanGold, other than as recommended by VanGold’s management, for a period of two years from the closing date and (b) a 12-month restriction on the resale of any VanGold shares acquired in this transaction.

VanGold has also agreed to pay Endeavour up to an additional $3.0 million in contingent payments based on the following:

• $1.0 million upon VanGold producing 3,000,000 silver equivalent ounces at El Cubo mill, derived from either the El Cubo or El Pinguico project.
• $1.0 million if the price of gold closes at or above $2,000 per ounce for 20 consecutive days within two years after closing.
• $1.0 million if the price of gold closes at or above $2,200 per ounce for 20 consecutive days within three years after closing.

Endeavour also announces its common shares will be be added to the S&P/TSX Composite and the NYSE Arca Gold Miners (GDX ETF) Indices effective after market close on Friday March 19, 2021, as per their respective Q1, 2021 rebalances, as announced on Friday March 12, 2021.

Bradford Cooke, Endeavour CEO, commented, “Inclusion in these two major indices is a great milestone for the Company, validating our recent success and providing greater visibility to investors. Constituents of these indices receive both an increase in the company profile and inclusion in mutual and pension funds that use these indices as benchmarks.”

The S&P/TSX Composite Index is the benchmark index for the Canadian equity market. It is the broadest measure of the S&P/TSX family and tracks approximately 250 companies. For more information, visit: www.standardandpoors.com.

The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of approximately 50 publicly traded companies primarily involved in the mining of gold and silver globally, and it is the underlying index to the VanEck Vectors Gold Miners ETF (GDX). For more information, visit: www.nyse.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 closing of the sale of El Cubo, 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:closing of the sale of El Cubo 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.

Source: Endeavour Silver Corporation

Great Bear Drills New High-Grade Gold at Northwest LP Fault: 25.12 g/t Gold Over 4.25 m

 

March 16, 2021 –
Vancouver, British Columbia, Canada – Great Bear Resources Ltd. (the “Company” or “Great Bear”, TSX-V: GBR; OTCQX: GTBAF) today reported results from its ongoing fully funded $45 million 2021 exploration program at its 100% owned flagship Dixie Project in the Red Lake district of Ontario.

Chris Taylor, President and CEO of Great Bear said, “We returned to the northwestern kilometre of the LP Fault zone after more than a year drilling elsewhere along strike, and completed seven new drill holes, four of which are located within a 200 metre long previously undrilled segment of the zone. 
We encountered new
high-grade gold mineralization in addition to the expected bulk tonnage
intervals, and will undertake additional drilling in this area over the coming months.”

Note the drill holes in this release are located 1.93 – 2.40 kilometres northwest of the drill holes provided in the Company’s news release of March 11, 2021, within the same multi-kilometre
continuously mineralized gold zone, the LP Fault.

This news release provides results from 7
new LP Fault drill holes completed along 250 metres of strike length.  Great Bear has now published results from 267 LP Fault drill holes and anticipates at least 133 additional LP Fault drill holes will be completed by the end of 2021, for a total of at least 400 drill holes.

New LP Fault drill results from this release are provided in Table 1,  Figure 1, Figure 2 and Figure 3.  Table 2 contains highlighted drill results from initial drilling completed from May 2019 to March 2020.

New LP Fault Drill
Results – Northwest Area

• Several drill holes were planned for previously undrilled section 22200, testing a 200 metre long undrilled segment of the LP Fault zone.  The four deepest holes were completed first and are reported in this release, testing from approximately 180 to
  550 metres vertical depth.  All drill holes intersected the same geology with gold mineralization.  Near-surface drilling will follow.
• Drill hole BR-271 intersected several mineralized zones including:
• 25.12 g/t gold over 4.25
  metres from 406.25 to 410.50 metres
• This included a high-grade core of 197.00 g/t gold
  over 0.50 metres from 407.50 to 408.00 metres.
• 1.11 g/t gold over 23.65
  metres from 460.35 to 484.00 metres.
• 1.07 g/t gold over 53.60
  metres from 495.50 to 549.10 metres.
• Drill hole BR-239 also intersected several mineralized zones including:
• 19.00 g/t gold over 1.30
  metres from 268.50 to 269.80 metres.
• 1.01 g/t gold over 42.50
  metres from 377.20 to 419.70 metres.
• Drill hole BR-270 intersected 0.85 g/t gold over 81.70 metres from 397.50 to 479.20 metres.

The Company formerly referred to this area as the Bear-Rimini or Discovery zone, prior to determining the LP Fault comprises a multi-kilometre continuously mineralized gold zone.  The Company’s LP Fault discovery drill hole DNW-011 was completed here, intersecting 12.33 g/t gold over 14.00 metres, 194.21 g/t gold over 2.00 metres, and 0.74 g/t gold over 50.60 metres (May 28, 2019).  Also see Table 2.

The full release can be viewed at www.greatbearresources.ca

Sierra Metals Announces Receipt of Its Environmental Permit for a 20% Increase of Throughput to 3,600 TPD at Its Yauricocha Mine, Peru

 

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or the “Company”) has received an Informe Tecnico Sustentatorio (“ITS”) permit from the Peruvian Ministry of Environment through its Agency SENACE. The ITS is a key permitting milestone and the second to last step for the Company on receiving approval to increasing the permitted throughput of the Chumpe Plant, located at the Yauricocha Mine, to 3,600 tonnes per day (‘TPD’).

This press release features multimedia. View the full release here.

Luis Marchese, CEO of Sierra Metals, commented: “I am delighted with the
receipt of the ITS permit. The Company may now submit the required
documentation for an Informe Tecnico Minero (“ITM”) permit, which is the
final step in the process to permit an increased throughput at Yauricocha to
3,600 TPD. The Company expects to receive the ITM permit in the second quarter
of 2021. This permit would allow a 20% increase in throughput and assist the
Company in maintaining its annual production guidance.

Additionally,
we continue focusing on the completion of the Prefeasibility Study at
Yauricocha, which examines increasing throughput to 5,500 TPD starting in 2024,
as well as on the Prefeasibility Studies examining increases at Bolivar to
10,000 TPD and Cusi to 2,400 TPD.”

He Concluded: “2021 continues to be an exciting time for the Company as we
continue with organic growth plans including significant brownfield and
greenfield exploration programs to support future mineral resource and
production growth. Management also continues to focus on improving and
modernizing our mine operations, increasing operating efficiencies to improve
productivity and reduce costs.”

Quality Control

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

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

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

About Sierra Metals

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

The Company’s Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock Exchange under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

Sierra is currently in a quiet period as per the Company’s press release of January 8, 2021. As such, the Company is unable to engage directly with shareholders at this time. The Company does not intend to provide announcements or updates unless or until it determines that further disclosure is appropriate or necessary.

For further information regarding this press release, please visit www.sierrametals.com or email us at info@sierrametals.com.

Continue
to Follow, Like and Watch our progress:

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

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

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

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

Mike
McAllister
Vice President, Investor Relations
Sierra Metals Inc.
Email: info@sierrametals.com

Luis
Marchese
CEO
Sierra Metals Inc.

Source: Sierra Metals Inc.

Palladium One Strengthens Board of Directors

 

March 15, 2021 – Toronto,
Ontario – Palladium One Mining Inc. (“Palladium One” or the “Company”) (TSXV: PDM, FRA: 7N11, OTC: NKORF) is pleased to announce the appointment of Ms. Giovanna Bee Moscoso as an independent director to the board of directors of the Company, effective April 2, 2021.

“We are absolutely delighted to have Giovanna join as an independent director of the Company and we look forward to her many valuable contributions and oversight. Her extensive legal background, at a senior mining company, includes obtaining environmental permits and social licenses for the development of major open pit mines in the Americas and the design and implementation of the global ethics and compliance program on behalf of Barrick Gold Corporation, these experiences will undoubtedly benefit Palladium One Mining as we continue to evolve and advance our LK project on an expedited basis.” said Derrick Weyrauch, President and CEO.

Ms. Bee Moscoso is an experienced mining executive with over 28 years of experience, including progressive responsibilities over 25 years at Barrick Gold Corporation, where previously she was a partner, Vice President and Assistant General Counsel.

Giovanna has managed legal, regulatory, permitting and contractual matters for various mines in the Americas during exploration, development, operations and mine closures, and held responsibilities for coordinating government and public relations, and developing social outreach programs to foster positive relations with stakeholders, including long-term agreements with indigenous communities and private landowners. Her background also includes providing legal and governance oversight to major mining operations in the Americas and Africa.

Ms. Bee Moscoso graduated suma cum laude with the highest GPA of the Law School at the University of Lima, Peru (1992) and obtained her Masters in Law degree at Duke University, U.S.A. (2007). She has been a speaker at various international conferences, sharing her experiences in the resource sector.

Incentive Share Plan
The Board of Directors of the Company has approved the granting of stock options and restricted share units to consultants, employees, management and directors pursuant to the Company’s Incentive Share Plan. The stock options entitle the holders to purchase a total of 775,000 common shares in the capital stock of the Company at a price of $0.29 per common share. The stock options are exercisable for three years and 1/3rd vest immediately, thereafter 1/3rd annually. The restricted share units entitle the holders to receive the equivalent of 1,275,862 common shares of the Company or cash, at the discretion of the Company, upon exercise. The restricted share units have a 3-year vesting term.

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.

SOURCE: Palladium One Mining

Friday, March 12, 2021

Comstock Mining (LODE)
Taking Stock of 2020 and Looking Ahead

Comstock Mining Inc. is an emerging innovator and leader in the sustainable extraction, valorization, and production of scarce natural resources, with a focus on high value strategic materials that are essential to meeting the rapidly increasing global demand for clean energy, carbon-neutrality, and natural products.

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.

A year of accomplishment. Comstock Mining hosted a well-attended Zoom meeting to discuss 2020 operational activities and the outlook for 2021. While the accomplishments are almost too numerous to mention, the company set the stage for the completion of an SK-1300 compliant resource estimate for the Dayton-Spring Valley resource in 2021, advanced its mercury remediation and gold extraction operations in the United States and Philippines, and enhanced its financial flexibility with the sale of the Lucerne project while retaining royalty interests. All facets of the company’s operations were positioned to create value for shareholders in the years ahead.


Transforming the business model.  While Comstock is advancing its silver and gold resources in Nevada, the company’s investments in strategic metals recovery, including lithium-ion battery recycling and mercury remediation and gold extraction, could significantly accelerate revenue and cash flow growth …

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.