Sierra Metals Reports Consolidated Financial Results for the Second Quarter of 2021 and Provides Revised Guidance for 2021

 

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

(All $ figures reported in USD)

• Revenue from metals payable of $79.4 million in Q2 2021, a 90% increase from $41.9 million in Q2 2020
• Operating cash flows before movements in working capital of $35.8 million in Q2 2021, a 171% increase from $13.2 million in Q2 2020
• Adjusted EBITDA of $37.7 million in Q2 2021, a 173% increase from $12.6 million in Q2 2021
• Record quarterly throughput at the Yauricocha Mine in Peru
• Q2 2021 consolidated production includes 9.5 million pounds of copper, a 2% decrease; 1.0 million ounces of silver, a 67% increase; 21.1 million pounds of zinc, a 54% increase; 8.0 million pounds of lead, a 24% increase; and 2,812 ounces of gold, a 2% increase respectively, compared to Q2 2020. Copper production decreased due to mining of lower-grade zones in Yauricocha and Bolivar
• Cash costs and All-in Sustaining Costs (“AISC”) per copper equivalent payable pound of $1.41 and $1.57 respectively compared to Q2 2020 cash costs of $0.91 and AISC of $1.80 at the Yauricocha Mine; cash costs and AISC per copper equivalent payable pound of $1.17 and $3.27 respectively compared to Q2 2020 cash costs of $1.02 and AISC of $1.60 at the Bolivar Mine; cash costs and AISC per silver equivalent payable ounce of $21.67 and $35.73 respectively compared to Q2 2020 cash costs of $18.66 and AISC of $26.25 at the Cusi Mine; cash costs increased during Q2 2021 due to the ongoing COVID-19 related impact on operations, while AISC was driven higher by the increase in sustaining capital expenditure, as the mines tried to catch up on the capital expenditure deferred during the recent quarters.
• $76.1 million of cash and cash equivalents as at June 30, 2021
• A shareholder conference call to be held Tuesday, August 10, 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 $79.4 million and an adjusted EBITDA of $37.7 million on the throughput of 787,534 tonnes and metal production of 24.8 million copper equivalent pounds for the three-month period ended June 30, 2021. The Company saw increased metals production of all individual metals except copper in Q2 2021. However, using the formula below to calculate copper equivalent, the increased copper price lowers the total copper equivalent pounds produced.

Copper Equivalent Pounds produced = (Ag ounces Produced * Ag$) + (Pb pounds produced * Pb$) + (Zn Pounds Produced *Zn$) + (Au ounces produced *Au$) + (Cu Pounds Produced*Cu$) / Cu$

At the Yauricocha Mine, the higher throughput was partially offset by lower head grades for all metals, resulting in a 7% higher copper equivalent production as compared to Q2 2020. In terms of zinc equivalents, this was a 29% increase over the same quarter of 2020. Copper production for the quarter was 11% lower, while silver, lead, zinc and gold production increased by 35%, 22%, 54% and 23%, respectively, compared to Q2 2020. Due to COVID-19 operating restrictions, the focus has been on larger, but low-grade ore bodies to meet tonnages with a reduced workforce. As a result, mining of certain high-grade, but smaller ore bodies have been delayed while the Company continues to manage operations during the pandemic.

The Bolivar Mine processed 385,331 tonnes in Q2 2021, which is a 25% increase from the Q2 2020 throughput. The average daily throughput realized during the quarter was 4,404 tpd. Head grades for copper, silver, and gold were 8%, 27%, and 30% lower, respectively, compared to Q2 2020. Grades were negatively impacted by the inability to continue mining in the Bolivar West zone due to the COVID-19 residual delays in development and infrastructure. Production continues to be focused more on the Mina de Fierro zone in Q2 2021. Mina de Fierro is a larger ore body with greater tonnages; however, the head grades and recoveries are lower than the Bolivar West zone. Copper equivalent production for Q2 2021 decreased 8% compared to Q2 2020 because of lower silver (6%) and gold (15%) production offset by 5% higher copper production.

The Cusi Mine throughput for Q2 2021 was 73,294 tonnes or 838 tpd. There was no production during the same quarter of 2020, as Cusi remained in care and maintenance throughout that quarter due to the government-mandated shutdown to contain the advancement of COVID-19. The silver head grade for Q2 2021 was 138.94 g/t resulting in silver production of 269,000 ounces. Mined tonnage and grade were impacted by the problems related to underground water and high temperatures deemed unsafe to work in the planned mining zones. Additionally, gold production was 142 ounces, and lead production was 129,000 pounds respectively during the quarter.

Consolidated production of silver increased 67% to 1.0 million ounces, copper decreased 2% to 9.5 million pounds, lead increased 24% to 8.0 million pounds, zinc increased 54% to 21.1 million pounds, and gold increased 2% to 2,812 ounces compared to Q2 2020.

Luis Marchese, CEO of Sierra Metals, commented, “Despite the challenges we faced in relation to the COVID-19 pandemic in the second quarter, the Company continues to see improvements in consolidated throughput, revenue, EBITDA and net income over the same period in 2020 and over the previous quarter in 2021. Our teams are using best practices to manage the impact of the pandemic. However, in reflecting the ongoing challenges of the COVID-19 pandemic and the impact on operations in the first half of 2021, we saw the need to revise our production, cost, and EBITDA guidance to align with the outlook for the year. While Peru and Mexico are making important improvements on their vaccination efforts, COVID-19 remains an ongoing challenge, adding to our cost base and challenging some of our processes. Overall, our goal continues to be to avoid any mine closures while ensuring that strict protocols remain in place to protect the wellbeing of our employees and the local communities.”

He continued, “During the second quarter, we received the final permit required to expand the throughput at Yauricocha to 3,600 tonnes per day. Looking ahead to the remainder of 2021, we are also expanding and diversifying operations at Bolivar with the construction of a 500,000 tonne per year magnetite plant, expected to be fully operational early next year. Furthermore, we continue to work on the completion of a Preliminary Feasibility Study to evaluate a 53% throughput expansion at the Yauricocha Mine in Peru and a potential doubling of production at the Bolivar and Cusi Mines in Mexico. Finally, turning to exploration, we continue with our brownfield programs while reactivating our greenfield explorations programs, and we continue to work to improve operations and manage costs in this challenging environment.”

He concluded, “The Company continues to have a strong balance sheet and strong EBITDA to support the Company’s capital expenditures and growth initiatives at all mines, and we continue to work to improve per-share value for all shareholders. Based on our current budgeting process, and current strong metals price environment, this scenario could provide support for an attractive dividend policy.”

The following table displays selected financial and operational information for the three months ended June 30, 2021:

The following table displays average realized metal prices information for the three months ended June 30, 2021, vs June 30, 2020:

Q2 2021 Financial Highlights

Revenue from metals payable of $69.6 million in Q2 2021 increased by 25% from $55.6 million in Q2 2020. The increase in revenues was primarily 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 copper equivalent payable pound was $1.53 (Q2 2020 – $0.94), cash cost per copper equivalent payable pound was $1.41 (Q2 2020 – $0.91), and AISC per copper equivalent payable pound of $2.57 (Q2 2020 – $1.80). Unit costs increased during Q2 2021 as the 5% increase in copper equivalent payable pounds could not compensate for the higher production costs during Q2 2021. It may be noted here that costs for Q2 2020 were also suppressed due to a lack of underground development activities resulting from the COVID-19 related lack of workforce at the site. AISC per copper equivalent payable pounds for Q2 2021 was also driven higher by a sharp increase in sustaining capital expenditure during the quarter compared to Q2 2020 when the Company had to curtail or defer its capital projects for cash preservation.

Bolivar’s cost of sales per copper equivalent payable pound was $1.33 (Q2 2020 – $1.01), cash cost per copper equivalent payable pound was $1.17 (Q2 2020 – $1.02), and AISC per copper equivalent payable pound was $3.27 (Q2 2020 – $1.60) for Q2 2021. Costs increased as the mine ramped up development activities. Unit costs were also impacted by the 15% decrease in the copper equivalent payable pounds during Q2 2021 compared to Q2 2020. AISC per copper equivalent payable pound was also negatively impacted by the increase in treatment and refining costs and higher sustaining capital during the quarter.

Cusi’s cost of sales per silver equivalent payable ounce was $21.90 (Q2 2020 – $16.33), cash cost per silver equivalent payable ounce was $21.67 (Q2 2020 – $18.66), and AISC per silver equivalent payable ounce was $35.73 (Q2 2020 – $26.25) for Q2 2021.

Adjusted EBITDA⁽¹⁾ increased 173% to $37.7 million for Q2 2021 from $12.6 million in the same quarter of 2020.

Net income attributable to shareholders for Q2 2021 was $9.1 million (Q2 2020: $0.2 million) or $0.06 per share (basic and diluted) (Q2 2020: $0.00).

Adjusted net income attributable to shareholders⁽¹⁾ of $12.7 million, or $0.08 per share, for Q2 2021 compared to the adjusted net income of $1.3 million, or $0.01 per share for Q2 2020.

Cash flow generated from operations before movements in working capital of $35.8 million for Q2 2021 increased compared to $13.2 million in Q2 2020. The increase resulted from higher revenue during the quarter resulting from higher realized metal prices; and

Cash and cash equivalents of $76.1 million and working capital of $62.3 million as at June 30, 2021, compared to $71.5 million and $70.9 million, respectively, at the end of 2020. Cash and cash equivalents increased as $46.6 million of cash generated from operating activities were partially used to finance capital expenditure of $34.1 million, repayment of debt installment of $6.2 million and interest payment of $1.7 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 second quarter, 1,033 meters of surface exploration drilling was completed in the Triada copper porphyry target, reaching a total of 1,479 meters for the year. Additionally, 697 meters of drilling was completed in the Kilkasca zones, for a total of 921 meters for the year 2021.

• Underground exploration drilling continued during Q2 2021 with the aim to replace and increase mineral resources that were depleted during 2020 and the first half of 2021. Approximately 4,976 meters of drilling was completed in Esperanza North, Central Mine, Cachi-cachi and the high-grade cuerpos chicos.

Mexico:

Bolivar

• At Bolivar during Q2 2021, 11,377 meters were drilled in the Bolivar West, Bolivar North-West, La Montura and the Cieneguita zones encountering skarn intersections with mineralization. Additionally, infill drilling of 2,490 meters was completed in the Bolivar West zone and 2,852 meters in El Gallo Inferior.

Cusi

• During Q2 2021, the Company completed 6,518 meters of infill drilling to support the development of the Santa Rosa de Lima vein and NE Trend. In addition, 2,020 meters of surface drilling was completed to support the “San Nicolas Vein” exploration and the “Gallo vein.”

Covid-19 Update

Protecting our employees and the communities in which we operate is extremely important to us. The COVID-19 situation in Peru and Mexico remains serious and is an important factor in the daily operations. The Company continues to take proactive and reactive mitigation measures adhering to strict health protocols to minimize the potential impacts from COVID-19.

The pandemic has impacted operations as we adhere to the public health restrictions. Testing and quarantining have helped identify and keep active cases from occurring in the mines, but as a result, we are operating with a reduced workforce. This results in ongoing and residual operational issues on the Company’s ability to function effectively. These issues include delayed capital expenditures, mine development and preparation of areas for mining, maintenance and replacement of equipment, staffing, specialized technical oversight, and exploration drilling, among others.

The Peruvian and Mexican governments vaccination efforts are bringing vaccines to the population in our areas of influence, starting with the most at risk in the communities. The situation is not yet under control yet and remains a significant risk for our personnel, communities, and our business. The Company has engaged proactively with the local authorities to support their efforts and to facilitate vaccination efforts nearby our operations.

Revised Guidance

The production and financial results of the Company in the first half of 2021 were impacted by COVID-19 and operational challenges. Some of the COVID-19 issues are still ongoing or are a residual effect from previous quarters on current operations. Direct impact issues have included lower workforce availability and additional costs related to management and prevention of COVID-19. Residual effect includes delays on Mine development, which has forced production to come from lower grade, higher tonnage areas in order to reach throughput targets.

Operational challenges include Permitting delays in Yauricocha, higher treatment charges due to price participation escalators from off takers, larger than normal high temperature water flows in planned mining area at Cusi, among others. Unit costs have been negatively impacted by indirect fixed costs, which must be incurred, despite lower production.

Management believes that these issues are temporary and will not affect the Company’s results in the medium to longer term time frame. Appropriate actions are being taken to return to full operational efficiency, while continuing to manage the outstanding risks related to COVID-19.

The Company has reviewed the impact of these setbacks and has lowered its production, cost, and EBITDA guidance for 2021, as per the charts below. Copper equivalent production is now expected to fall between 110 to 115 million pounds, as summarized in the table below:

The table below summarizes the equivalent production, cash costs and AISC ranges for each of the sites:

Based on the new production and cost guidance ranges, Management has also revised its EBITDA guidance, which is now expected to range between $130 to $140 million, as per the table below:

Revised capital expenditure guidance

In April 2021, the Company announced its plan to invest in constructing an iron-ore processing plant at its Bolivar Mine to produce an iron ore concentrate. With the inclusion of this project, management are now revising capital expenditure guidance for the year from $78 million to $100 million. This additional growth capital is expected to return immediate benefits in the form of additional revenues and reduce tailings deposition and related costs.

Management will continue to monitor the COVID-19 situation and its impact on the production and metal prices and will provide any further updates as required.

Strategic Review Process Update

The company has strong foundations for a solid valuation in the market and return for its shareholders. Despite current challenges, the company benefits from a strong EBITDA performance at current metal prices and a solid financial position to build additional value into the future. It has a current number of exciting actionable organic growth opportunities, particularly at Bolivar and Yauricocha, and a large land package for growth in the future, both near mine and further afield.

The process is still ongoing and considering all options. We expect to be able to provide a more detailed report on the process in the coming weeks.

Conference Call and Webcast

Sierra Metals’ Senior Management will host a conference call on Tuesday, August 10, 2021, at 10:30 AM (EDT) to discuss the Company’s financial and operating results for the three months ended June 30, 2021.

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s website:
https://event.on24.com/wcc/r/3193745/DC7EA7F3C83E666235B780E1DAD14D0A

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 full 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/7308198

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.

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.

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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 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.

Comstock Announces Second Quarter 2021 Results and Business Update

 

Nears Completion of Transformational Green Shift to Tactical Decarbonization

VIRGINIA CITY, Nev., Aug. 10, 2021 (GLOBE NEWSWIRE) — Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”), an emerging innovator and leader in the sustainable extraction, valorization, and production of high value strategic materials that are essential to meeting the rapidly increasing global demand for clean energy, carbon-neutrality, and natural products, today announced its unaudited financial results for the periods ended June 30, 2021:

Selected Strategic Highlights

• Net income of $1.9 million for the six months ended June 30, 2021, or $0.05 per basic and diluted share, inclusive of $2.6 million in net gains related to the change in fair value of certain assets.
• Net increase in shareholders’ equity of $38.5 million for the six months ended June 30, 2021, resulting from restructuring, financing, and investment activities, including total debt elimination and $34.2 million increase in total assets from $43.1 million as of December 31, 2020, to $77.3 million as of June 30, 2021.
• Solid liquidity, with cash, cash equivalents and restricted cash of $5.3 million, over $20.0 million available under committed investment facilities as of June 30, 2021, and non-dilutive sales efforts underway for non-strategic assets with an expected aggregate cash value of over $25.0 million.
• Transformational plans are nearing completion, after successfully liquidating non-core assets, eliminating debt, acquiring new technologies, strengthening management, and launching new strategic lines of business.
• Recently announced lithium-ion battery, industrial hemp, and mercury remediation lines of business are expected to put the Company on track for consolidated annualized revenues exceeding $100,000,000, $300,000,000, and $900,000,000 in 2023, 2024, and 2025, respectively, during the first three full years of operations, not counting the impact of additional pending acquisitions.
  

“Our transformational efforts have quickened and have been especially impactful during the first half of this year,” said Corrado DeGasperis, Comstock’s Executive Chairman and Chief Executive Officer. “As a result, we have no debt, significant assets and book equity, material non-dilutive sources of cash, a portfolio of cutting-edge clean technologies, and an expanded management team that is laser focused on building an ecosystem of strategic businesses with the capacity for exponential growth and extraordinary financial, natural, and social impacts.”

Focus on Value Creation from Throughput, Revenue, Cash, and Decarbonization

“We are systemically strengthening our organization in ways that sustainably contribute to humanity’s rapidly-escalating demand for increasingly scarce natural resources, including the strategic resources needed to fuel the worldwide surge in, and transition to, clean energy and carbon-neutrality,” added DeGasperis. “To that end, we are targeting a few more commercially viable clean technology transactions that position us for extraordinary growth.”

“Throughput, revenue, cash and decarbonization are the lowest common denominators in each of our existing businesses,” continued DeGasperis. “Our team is focused on that math and the tactical activities that will be necessary to enable rapid and exponential financial, natural and social gains in markets that affect millions, but we are also keenly aware of the costs. We’ve structured each of our acquisitions to minimize dilution, by seeding each line of business with protected uses of our cash and equity, while positioning each line of business with its own cash, equity, and balance sheets, at the project and facility level. We believe that doing so will be an extremely cost-effective way to accelerate and dramatically exceed our pledge to sustainably deliver more than $500 million in shareholder value by 2023. Frankly, we believe our existing platform is already worth multiples of that target based on comparable valuations currently exceeding billions for similar lines of business. Our plans for exceeding those values come down to speed, scale, and leverage, with carbon as the common thread.”

Breakthrough Lithium-Ion Battery Recycling Technologies Enable Extraordinary Increase in Throughput

Comstock previously announced the filing of a Written Determination of Hazardous Waste Recycling (“Application”) by LINICO Corporation (“LiNiCo”), and its state-of-the-art lithium-ion battery (“LIB”) recycling facility (“LIB Recycling Facility”) that has now been designed for increased capacity and yields at a fraction of the capital of the known alternatives. Construction of the first phase of LiNiCo’s new processes will commence at the LIB Recycling Facility upon approval of the Application, with anticipated completion and start-up during the first half of 2022.

About 500,000 tons of expired LIBs containing over $900 million in strategic metals are being landfilled annually. A recent industry report estimated annual growth to more than $26 billion over the next two decades. Once complete, LiNiCo’s first LIB Recycling Facility is expected to scale up to its initial nameplate capacity, exceeding 100,000 tons per year of LIBs over three years, with revenues exceeding $500,000,000, in its third full year.

Renewable Process Solutions, An Engineering Powerhouse

LiNiCo’s capacity breakthroughs are the direct result of our recently acquired engineering, procurement, and construction (“EPC”) company, Renewable Process Solutions, Inc. (“RPS”), and its founder, Mr. Rahul Bobbili.

“Almost instantaneously, RPS and its network of engineering and advanced manufacturing experts integrated themselves into the LiNiCo team, enhancing designs, ensuring quality, reducing capital requirements and shortening lead times,” stated Mr. DeGasperis. “When the RPS engineers began developing breakthrough lithium extraction processes for us in real time, with their existing know-how, we also recognized other compelling synergies.”

RPS and Mr. Bobbili have designed and built 21 advanced renewable fuels production facilities since 2006, and RPS currently provides EPC services for the metals, mining, and renewable fuels industries. RPS also provides advanced equipment manufacturing services through its affiliated manufacturing facilities in the United States and India, at consistently superior qualities and rates. RPS brings Comstock an extraordinary competitive advantage.

Industry Leading, Industrial Scale Hemp Systems

Comstock’s investment in recycling lithium, nickel, and cobalt for cathodes led the Company to identify sources of carbon for use in the production of the graphite needed for LIB anodes, including the possibility of extracting and valorizing carbon from various alternative sources of biomass, such as forestry wastes and industrial hemp.

Industrial hemp is an extraordinary natural resource with tens of thousands of known applications, including food, feed, fuel, and fiber, and an array of emerging applications in batteries, bioplastics, and other renewable alternatives to fossil fuel derived products. Hemp’s ability to produce over 400 natural phytochemicals, such as cannabidiol (“CBD”) and cannabigerol (“CBG”), has also garnered growing attention for the compelling potential of these phytochemicals in health and wellness applications. The corresponding green rush is propelling global demand and sales of industrial hemp products to grow to $6.9 billion worldwide by 2025, according to Hemp Industry Daily.

Comstock and MANA Corporation (“MANA”), acquired a 50% stake in a pre-existing large-scale solvent extraction facility (“Biosciences Facility”) from Lakeview Energy LLC, an experienced agriproducts management company (“Lakeview”), and formed a joint venture with Lakeview to build, operate, and grow the Biosciences Facility.

“We’re proud to have assembled a world class team of industry veterans to rapidly retrofit and commence large scale solvent extraction operations and set a new standard in the industrial hemp industry for quality, compliance, consistency, flexibility and speed at a remarkable scale,” stated Mr. DeGasperis. “Once retrofits are complete in mid-2022, our facility will generate significant free cash flow by servicing a rapidly growing customer base with wholesale hemp products through a suite of custom-tailored hemp extraction, remediation, and refining solutions.”

The Biosciences Facility is expected to scale up to its initial nameplate capacity exceeding 200,000 pounds per day over its first three years, as it extracts, remediates, and refines oil from industrial hemp to generate annualized revenues of over $400,000,000 in its third full year of operations based solely on the small oil fraction of hemp. The remaining biomass is mostly cellulose, with many known co-products that the Company is evaluating for decarbonization synergies, including electrification applications that Company believes have been hiding in plain sight.

Plain Sight Innovations

Comstock has been working closely this year with its research and development partner, Plain Sight Innovations LLC (“PSI”), on several new technologies, including existing and extremely exciting processes for the efficient extraction and valorization of carbon from ubiquitous low-cost sources of feedstock.

“We’re building an ecosystem of strategic extraction and valorization facilities with complimentary feedstocks and products,” continued DeGasperis. “The consumption of any product is powered by its feedstock and, as vast as some feedstock supplies may seem, they are all finite. The world is watching that story unfold in electrification products, with a current focus on the scarcity of lithium and other cathode constituents, and a shared goal of reducing global carbon emissions. However, every cathode in every LIB needs an anode, and the vast majority of anodes are comprised of synthetic graphite, the global supplies of which are nearly all met with carbon intensive fossil fuel derivatives. We see that to be counterproductive, and its exactly the sort of inevitable need that we intend to address with our innovations. We believe that we are positioned ahead of that curve with our carbon and graphite technology developments, and my own extensive experience in building and running carbon and graphite production facilities.”

Comstock believes that the global transition to clean energy, escalating population growth, and accelerating natural resource scarcities are converging into a “perfect storm” of global demand in a broad array of strategic materials, including carbon, metals, and energy – without the corresponding capacity to sustainably meet even a fraction of the demand. The Company is planning and building the capacity to make a material contribution to meeting that demand.

Accelerating Innovation

“Shifting human consumption practices from wasteful and carbon intensive to more profitable, yet sustainable, and carbon neutral or negative requires innovation at unprecedented scales and rates,” added DeGasperis. “Exponential growth requires exponential capacity. We’re designing and deploying our systems for that capacity with our systemic management approach and extensive existing technology portfolio, but we’re still going to need more breakthroughs, speed, and capacity. We strongly believe that breakthrough speed has arrived in the form of quantum computing.”

Classical computing relies on binary states in order to complete logical operations that are either on or off. True or false. One or zero. In contrast, quantum computing is based on physical systems that can be in multiple states simultaneously, with each state having a probability of occurring after measurement. For quantum, that state can simultaneously be black, white, and every shade of grey in between. The distinction is powerful, and it gives quantum computers the potential to process exponentially more operations far more efficiently than classical computers.

The Company invested in Quantum Generative Materials LLC (“GenMat”) to support its development of a proprietary quantum operating system that harnesses emerging quantum computing technologies to accelerate the innovation of breakthrough new materials for use in high-impact applications, including batteries, mining, and decarbonization.

“Quantum computing has the profound potential to resolve urgent challenges of our time, such as global resource scarcity and climate change,” said Mr. DeGasperis. “We’re proud to collaborate with GenMat’s rapidly growing world class team and strategic network of quantum computing professionals and material scientists as they develop exceptional technologies, including specific technologies for direct use in each of our lines of business.”

Comstock and GenMat are focused on applications that accelerate the development of new materials and processes that address resource scarcity by facilitating climate smart mining, electrification, and decarbonization. Consequently, in addition to its investment, Comstock also secured exclusive rights to use GenMat’s quantum technologies in each of those fields of use to complement and enhance its existing operations and planned new business developments.

Triple Bottom Line

DeGasperis concluded: “We are now building a self-sustaining system that develops, builds, scales, and operates systemically-managed, rapidly-scalable, throughput-generating businesses that serve very large, fast-growing markets that enable exponential revenue growth while making globally-meaningful contributions to atmospheric carbon reduction and positive social outcomes. Our plan to do so from here begins with rounding out and deploying our core systems, starting with the completion of some complementary acquisitions and other transactions during the second half of 2021, the completion of construction and the commencement of operations in our lithium-ion battery recycling and industrial hemp extraction facilities in 2022, and the rapid satisfaction of our performance objectives that exceeds our $500,000,000 market value goal well before 2023.”

Conference Call
The Company will host a conference call today, August 10, 2021 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report Second Quarter results and provide a business update. The Webcast 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 to register in advance for this live Webcast is as follows:

Register in Advance for Our Zoom Webinar
When: August 10, 2021 08:00 AM Pacific Time (US and Canada)
Topic: Comstock Mining Second Quarter 2021 Results and Business Update

Please click the link below to register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_AEfv_xN7RoiYEYpzl55gUw

The recording of the Webcast 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 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. 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 operating margins; available resources; environmental conservation outcomes; 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.

Friday, August 06, 2021

Allegiant Gold (AUXXF)(AUAU:CA)
Methodical Approach Leads to Favorable Outcomes

Allegiant Gold Ltd is a gold exploration company. Its project profile consists of Bolo, Browns Canyon, Clara Moro, Four Metals, Monitor Hills, Red Hills, Silver Dome, West Goldfield, White Horse Flats, Mogollon, Eastside, Dutch Flat, and others.

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.

Equity financing provides financial flexibility. Allegiant Gold raised gross proceeds of C$5.0 million with the issuance of 12,500,000 units in a bought deal that is expected to close on August 17. Net proceeds amount to C$4.7 million after deducting the underwriters’ fee but before deducting expenses of the offering which are estimated to be C$300 thousand and will be paid from proceeds of the offering. The underwriters have an option to purchase an additional 1,875,000 units up to 30 days following the closing of the offering. Each unit consists of one common share and one-half of one common share purchase warrant.


Inferred gold resources increase 41%.  Allegiant released an updated resource estimate and NI 43-101 technical report for the Eastside and Castle properties in Nevada. Eastside inferred gold resources total 1,090,000 gold ounces and 8,700,000 silver ounces, while Castle inferred resources total 314,000 gold ounces. Inferred gold resources increased 41% compared to the previous NI 43-101 which …

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. 

Friday, August 06, 2021

Newrange Gold (NRGOF)(NRG:CA)
Increasing the Opportunity Set Within the Red Lake Area

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

Newrange Gold Corp is an exploration stage company focused on acquiring and exploring exploration and evaluation assets in Colombia and the United States. The Company operates in a single reportable operating segment-the acquisition, exploration, and development of mineral properties. Some of the projects acquired by the company are Pamlico gold project in Nevada and Rocky mountain project in Colorado. The company also holds an interest in the Yarumalito property, El Dovio property and Anori property in Colombia.

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.

Acquiring the Argosy Mine. Newrange Gold agreed to acquire the past-producing, high-grade Argosy Mine in the Red Lake Mining Division in northwestern Ontario. Newrange will purchase Cangold Limited, a subsidiary of Great Panther Mining Ltd. and the owner of Argosy, for C$100 thousand in cash and the issuance of C$650 thousand in Newrange shares to Great Panther at closing, which is expected within 90 days. On the first anniversary of closing, Newrange will issue C$250 thousand in Newrange shares to Great Panther.


Unrealized potential.  The Argosy Mine closed in 1952 and has experienced little exploration below the old mine workings. It offers significant potential to extend the mineralization to depth and to discover new vein systems. The property is comprised of 43 patented claims and 17 mining licenses encompassing 604 hectares. While 12 vein systems are known, past production focused on four to a depth 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 Announces Proposed Amendments to Certain Outstanding Unlisted Warrants

 

Toronto, Ontario, August 6, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) announces that it is proposing to amend the terms of 1,043,567 common share purchase warrants (the “Warrants”) issued by the Company in connection with a private placement financing that closed in three tranches on February 28, March 5 and March 13, 2020.  The Warrants were issued during the early days of the COVID-19 global pandemic and carry an exercise price per share of C$4.25. The Warrants issued in each tranche of the private placement are scheduled to expire on August 28, September 5 and September 13, 2021, respectively.  The proposed amendments will include the following (the “Proposed Amendments”): (a) a reduction of the exercise price to C$3.40 per share issuable upon exercise of a Warrant; (b) an extension to the expiry date to March 13, 2022; and (c) an accelerated expiry provision, such that the Warrants will expire on the earlier of the extended expiry date and 30 days following the 10^th consecutive trading day on which the closing price of Aurania’s shares exceeds the amended exercise price of the Warrants by 15% or more.

The Proposed Amendments are subject to the approval of the TSX Venture Exchange (the “TSXV”).  Subject to the approval of the TSXV, the Proposed Amendments will become effective automatically as of the original date and time of expiry of the Warrants. Prior to the original date and time of expiry of the Warrants, the Warrants will remain in force, unamended, per their original terms and conditions.  None of the Warrants are beneficially owned, directly or indirectly, by related parties of Aurania and none of the Warrants are listed on the TSXV. The Proposed Amendments do not apply to any Warrants issued to finders or agents as compensation.

Holders of the Warrants may contact the Company at ir@aurania.com or DSA Corporate Services, the administrator of the Warrants, should they have any questions or wish to exercise their Warrants.  Subject to the amendments becoming effective, the original certificate representing the Warrants, together with a duly completed exercise form, will be accepted together with payment made to Aurania Resources Ltd., in accordance with the instructions provided on the certificate representing the Warrants.

DSA Contact Details:

DSA Corporate Services Inc.

82 Richmond Street East, 4th Floor

Toronto, M5C 1P1

Phone: (416) 848-7744

info@dsacorp.ca

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

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 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, the Company 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, statements regarding the Proposed Amendments and the approval of TSXV in respect of same. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure by the TSXV to approve the Proposed Amendments. 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.

 

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.

Aurania Announces Proposed Amendments to Certain Outstanding Unlisted Warrants

 

Toronto, Ontario, August 6, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) announces that it is proposing to amend the terms of 1,043,567 common share purchase warrants (the “Warrants”) issued by the Company in connection with a private placement financing that closed in three tranches on February 28, March 5 and March 13, 2020.  The Warrants were issued during the early days of the COVID-19 global pandemic and carry an exercise price per share of C$4.25. The Warrants issued in each tranche of the private placement are scheduled to expire on August 28, September 5 and September 13, 2021, respectively.  The proposed amendments will include the following (the “Proposed Amendments”): (a) a reduction of the exercise price to C$3.40 per share issuable upon exercise of a Warrant; (b) an extension to the expiry date to March 13, 2022; and (c) an accelerated expiry provision, such that the Warrants will expire on the earlier of the extended expiry date and 30 days following the 10^th consecutive trading day on which the closing price of Aurania’s shares exceeds the amended exercise price of the Warrants by 15% or more.

The Proposed Amendments are subject to the approval of the TSX Venture Exchange (the “TSXV”).  Subject to the approval of the TSXV, the Proposed Amendments will become effective automatically as of the original date and time of expiry of the Warrants. Prior to the original date and time of expiry of the Warrants, the Warrants will remain in force, unamended, per their original terms and conditions.  None of the Warrants are beneficially owned, directly or indirectly, by related parties of Aurania and none of the Warrants are listed on the TSXV. The Proposed Amendments do not apply to any Warrants issued to finders or agents as compensation.

Holders of the Warrants may contact the Company at ir@aurania.com or DSA Corporate Services, the administrator of the Warrants, should they have any questions or wish to exercise their Warrants.  Subject to the amendments becoming effective, the original certificate representing the Warrants, together with a duly completed exercise form, will be accepted together with payment made to Aurania Resources Ltd., in accordance with the instructions provided on the certificate representing the Warrants.

DSA Contact Details:

DSA Corporate Services Inc.

82 Richmond Street East, 4th Floor

Toronto, M5C 1P1

Phone: (416) 848-7744

info@dsacorp.ca

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

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 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, the Company 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, statements regarding the Proposed Amendments and the approval of TSXV in respect of same. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure by the TSXV to approve the Proposed Amendments. 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.

 

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.

Comstock Mining Announces Notice of Second Quarter 2021 Results, Business Update Webcast Via Zoom

 

Virginia City, NV (August 4, 2021) Comstock Mining Inc. (the “Company”) (NYSE American: LODE), an emerging leader in climate-smart, sustainable mineral development and production, will host a conference call on Tuesday, August 10, 2021 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report Second Quarter results and provide a business update. The Webcast 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 to register in advance for this live Webcast is as follows:

Register in Advance for Our Zoom Webinar

When: August 10, 2021 08:00 AM Pacific Time (US and Canada)

Topic: Comstock Mining Second Quarter 2021 Results and Business Update

Please click the link below to register in advance for this webinar:

https://us02web.zoom.us/webinar/register/WN_AEfv_xN7RoiYEYpzl55gUw

The recording of the Webcast 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 (NYSE: LODE) 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.

Comstock was selected to join the Russell Microcap^® Index at the conclusion of the 2021 Russell indexes annual reconstitution, effective after the US market opened on June 4, 2021. Membership in the Russell Microcap^® Index, which remains in place for one year, means automatic inclusion in the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes.

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

Comstock Mining Announces Notice of Second Quarter 2021 Results, Business Update Webcast Via Zoom

 

Virginia City, NV (August 4, 2021) Comstock Mining Inc. (the “Company”) (NYSE American: LODE), an emerging leader in climate-smart, sustainable mineral development and production, will host a conference call on Tuesday, August 10, 2021 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report Second Quarter results and provide a business update. The Webcast 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 to register in advance for this live Webcast is as follows:

Register in Advance for Our Zoom Webinar

When: August 10, 2021 08:00 AM Pacific Time (US and Canada)

Topic: Comstock Mining Second Quarter 2021 Results and Business Update

Please click the link below to register in advance for this webinar:

https://us02web.zoom.us/webinar/register/WN_AEfv_xN7RoiYEYpzl55gUw

The recording of the Webcast 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 (NYSE: LODE) 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.

Comstock was selected to join the Russell Microcap^® Index at the conclusion of the 2021 Russell indexes annual reconstitution, effective after the US market opened on June 4, 2021. Membership in the Russell Microcap^® Index, which remains in place for one year, means automatic inclusion in the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes.

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

Wednesday, August 04, 2021

Sierra Metals (SMTS)(SMT:CA)
Peruvian Operations Turn in Better than Expected 2Q Financial Results

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.

Sociedad Minera Corona financial results. Sierra Metals reported financial results for its 81.8%-owned Peruvian subsidiary that owns the Yauricocha mine. Second quarter adjusted EBITDA amounted to $25.9 million which represented a 59.8% increase compared to $16.2 million earned in the first quarter of 2021 and was above our estimate. Compared to the first quarter of 2021, revenue, gross profit, and net income increased 21.2%, 59.6%, and 142.6% to $50.8 million, $25.9 million, and $12.6 million, respectively. Second quarter financial results benefited from higher average realized metals prices and the application of new commercial copper terms since April 2021 that included a decrease in treatment and refining charges.


Updating estimates.  We are increasing our 2021 EPS and EBITDA estimates to $0.27 and $147.1 million from $0.25 and $140.5 million, respectively. Our second quarter 2021 EPS and EBITDA estimates have been increased to $0.06 and $34.5 million from $0.05 and $31.0 million, respectively. We think there could be further upside to our second half estimates. Sierra received the final permit to 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. 

Sierra Metals Subsidiary in Peru, Sociedad Minera Corona Reports Q2-2021 Financial Results

 

Sierra Metals’ Consolidated Financial Results Will Be Released on August 9, 2021

(All metal prices reported in USD)

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX:SMT) (BVL:SMT) (NYSE AMERICAN:SMTS) (“Sierra Metals” or “the Company”) announces the filing of Sociedad Minera Corona S.A.’s (“Corona”) unaudited Financial Statements and the Management Discussion and Analysis (“MD&A”) for the second quarter of 2021 (“Q2 2021”).

The Company holds an 81.8% interest in Corona. All amounts are presented in US dollars unless otherwise stated and have not been adjusted for the 18.2% non-controlling interest.

Corona’s Highlights for the Three Months Ended June 30, 2021

• Revenues of US$50.8 million, a 117% increase from Q2 2020.
• Adjusted EBITDA of US$25.9 million, a 231% increase from Q2 2020.
• Total tonnes processed of 328,909, a 62% increase from Q2 2020.
• Net production revenue per tonne of ore milled increased by 42% to US$151.51.
• Copper equivalent pounds production increased 7% to 15.3 million pounds.
  Cash Cost per copper equivalent payable pound higher by 55% to US$1.41. All-in sustaining cost (“AISC”) per copper equivalent payable pound higher by 42% to US$2.57.
• Zinc equivalent pounds production increased 29% to 49.9 million pounds.
  Cash cost per zinc equivalent payable pound higher by 28% to US$0.43. All-in sustaining cost (“AISC”) per zinc equivalent payable pound higher by 18% to US$0.79.
• $72.5 million of cash and cash equivalents as at June 30, 2021.
• $102.2 million of working capital as at June 30, 2021.

The Yauricocha mine processed 328,909 tonnes during the second quarter Q2 2021, representing an increase of 62% over the Q2 2020, despite continuing to face several operational challenges related to COVID-19. During the quarter, the treatment capacity in the concentrator plant was increased, obtaining improvements in efficiency and utilization.

Metal grades were negatively impacted during Q2 2021 due to the delays in the contribution from the Esperanza zone due to ground conditions, which have since been addressed and controlled.

Metal production for Q2 2021 was 54%, 35%, 23% and 22% higher for zinc, silver, gold and lead, respectively, while copper production was 11% lower compared to the same quarter of 2020.

Luis Marchese, CEO of Sierra Metals, commented, “The Yauricocha Mine had a relatively strong quarter with increases in throughput, revenue and net income over the same period in 2020 and over the previous quarter in 2021. The Mine continues to deal with operational difficulties related to COVID-19, however, we are managing the impact using best practices. Our goal continues to be avoiding any mine closure while ensuring that strict protocols remain in place to protect the wellbeing of our employees and the local communities.”

He continued,“Looking ahead at the remainder of 2021 we have received the final permit required to expand the throughput at Yauricocha to 3,600 tonnes per day. We continue to work on the completion of a Preliminary Feasibility Study to support the planned expansion to 5,500 tonnes per day at the Yauricocha Mine. Brownfield and greenfield explorations programs are ongoing, and we continue to work to improve operations and manage costs in this challenging environment.”

He concluded, “Minera Corona and the Yauricocha Mine continues to have a strong balance sheet to support the Company’s capital expenditures and growth initiatives, and we continue to work to improve per share value for all shareholders.”

The following table displays selected unaudited financial information for the three and six months ended June 30, 2021:

The following table displays average realized metal prices information for the three and six months ended June 20, 2021, vs June 30, 2020:

Corona’s Financial Highlights for the Three and Six Months Ended June 30, 2021

• Q2 2021 revenue of $50.8 million compared to $23.4 million for the same quarter of 2020. Sales for the quarter increased mainly due to higher metal prices and the application of new commercial copper terms since April 2021 that more than offset the lower amounts of metals sold compared to the second quarter of 2020. Revenue for H1 2021 was $92.8 million, which is an increase of 62% from the $57.1 million of revenues in H1 2020. The increase in revenues was driven mainly by higher average realized metal prices and decrease in treatment and refining charges as compared to H1 2020.
• Cash Cost per copper equivalent payable pound was $1.41 compared to $0.91 for the same quarter of 2020 ($1.45 for H1 2021 versus $1.06 in H1 2020). Cash Cost per zinc equivalent payable pound was $0.43 compared to $0.34 for the same quarter of 2020 ($0.45 for H1 2021 versus $0.39 in H1 2020).
• AISC per copper equivalent payable pound was $ 2.57 for the second quarter of 2021 compared to $ 1.80 for the same period of 2020. AISC per zinc equivalent payable pound was $0.79 compared to $0.67 for the same period of 2020. AISC increased during Q2 2021 as the increase in the equivalent payable metals could not offset the increase in costs. Copper equivalent payable pounds increased 5% to 13.8 million and zinc equivalent payable pounds increased 26% to 45.2 million compared to the same quarter of 2020. Sustaining capital investment was significantly higher as the Company resumed its capital projects, whereas in Q2 2020, capital projects were deferred or cancelled due the problems related to COVID.
  For H1 2021, AISC per copper equivalent payable pound was $2.62 as compared to $2.05 in H1 2020. The increase was driven by higher cost of production and 11% decrease in copper equivalent payable pounds as compared to the six-month period of 2020. AISC per zinc equivalent payable pound was $0.82 as compared to $0.76 in H1 2020, as a 5% increase in the zinc equivalent payable pounds partially offset the increase in costs. Sustaining costs for H1 2021 included a 6% decline in treatment and refining costs.
• Adjusted EBITDA of $25.9 million for Q2 2021 as compared to $7.8 million for the same quarter of 2020 and $42.0 million for H1 2021 as compared to $17.6 million for H1 2020, higher primarily due to increased net income from higher metal prices.
• Operating cash flows before movements in working capital of $25.6 million for Q2 2021, compared to $7.3 million for Q2 2020. The increase in operating cash flows before movements in working capital was primarily due to the increase in revenues, discussed previously. For the six-month period of 2021, operating cash flows before movements in working capital increased to $42.1 million from $17.3 million during the same period of 2020.
• Cash and cash equivalents of $72.5 million as at June 30, 2021, compared to $65.0 million as at December 31, 2020. Cash and cash equivalents increased due to $14.9 million of cash generated from operating activities partially offset by $7.3 million of cash used in investing activities and $3.1 million used in financing activities.
• Net income of $12.6 million, or $0.349 per share for Q2 2021 ($17.7 million or $0.493 per share for H1 2021) compared to net income of $1.8 million, or $0.051 per share for Q2 2020 ($3.9 million or $0.11 per share for H1 2020).

Corona’s Operational Highlights for the Three and Six Months Ended June 30, 2021:

The following table displays the production results for the three and six months ended June 30, 2021:

^{(1) Copper and zinc equivalent pounds for Q2 2021 were calculated using the following realized prices: $26.80/oz Ag, $4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb, $1,818/oz Au. Copper and zinc equivalent pounds for Q2 2020 were calculated using the following realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb, $1,722/oz Au. Copper and zinc equivalent pounds for 6M 2021 were calculated using the following realized prices: $26.62/oz Ag, $4.13/lb Cu, $1.29/lb Zn, $0.94/lb Pb, $1,798/oz Au. Copper and zinc equivalent pounds for 6M 2020 were calculated using the following realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb, $1,654/oz Au.
(2) The increase in copper equivalent pounds was lower than the increase in zinc equivalents due to the 82% increase in realized prices for copper ($4.37/lb in Q2 2021 versus $2.40/lb in Q2 2020) as compared to the 51% increase in realized prices for zinc ($1.34/lb in Q2 2021 versus $0.89/lb in Q2 2020)}

Quality Control

The contents of this press release have been reviewed by Américo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning, who 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 18, 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
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 Subsidiary in Peru, Sociedad Minera Corona Reports Q2-2021 Financial Results

 

Sierra Metals’ Consolidated Financial Results Will Be Released on August 9, 2021

(All metal prices reported in USD)

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX:SMT) (BVL:SMT) (NYSE AMERICAN:SMTS) (“Sierra Metals” or “the Company”) announces the filing of Sociedad Minera Corona S.A.’s (“Corona”) unaudited Financial Statements and the Management Discussion and Analysis (“MD&A”) for the second quarter of 2021 (“Q2 2021”).

The Company holds an 81.8% interest in Corona. All amounts are presented in US dollars unless otherwise stated and have not been adjusted for the 18.2% non-controlling interest.

Corona’s Highlights for the Three Months Ended June 30, 2021

• Revenues of US$50.8 million, a 117% increase from Q2 2020.
• Adjusted EBITDA of US$25.9 million, a 231% increase from Q2 2020.
• Total tonnes processed of 328,909, a 62% increase from Q2 2020.
• Net production revenue per tonne of ore milled increased by 42% to US$151.51.
• Copper equivalent pounds production increased 7% to 15.3 million pounds.
  Cash Cost per copper equivalent payable pound higher by 55% to US$1.41. All-in sustaining cost (“AISC”) per copper equivalent payable pound higher by 42% to US$2.57.
• Zinc equivalent pounds production increased 29% to 49.9 million pounds.
  Cash cost per zinc equivalent payable pound higher by 28% to US$0.43. All-in sustaining cost (“AISC”) per zinc equivalent payable pound higher by 18% to US$0.79.
• $72.5 million of cash and cash equivalents as at June 30, 2021.
• $102.2 million of working capital as at June 30, 2021.

The Yauricocha mine processed 328,909 tonnes during the second quarter Q2 2021, representing an increase of 62% over the Q2 2020, despite continuing to face several operational challenges related to COVID-19. During the quarter, the treatment capacity in the concentrator plant was increased, obtaining improvements in efficiency and utilization.

Metal grades were negatively impacted during Q2 2021 due to the delays in the contribution from the Esperanza zone due to ground conditions, which have since been addressed and controlled.

Metal production for Q2 2021 was 54%, 35%, 23% and 22% higher for zinc, silver, gold and lead, respectively, while copper production was 11% lower compared to the same quarter of 2020.

Luis Marchese, CEO of Sierra Metals, commented, “The Yauricocha Mine had a relatively strong quarter with increases in throughput, revenue and net income over the same period in 2020 and over the previous quarter in 2021. The Mine continues to deal with operational difficulties related to COVID-19, however, we are managing the impact using best practices. Our goal continues to be avoiding any mine closure while ensuring that strict protocols remain in place to protect the wellbeing of our employees and the local communities.”

He continued,“Looking ahead at the remainder of 2021 we have received the final permit required to expand the throughput at Yauricocha to 3,600 tonnes per day. We continue to work on the completion of a Preliminary Feasibility Study to support the planned expansion to 5,500 tonnes per day at the Yauricocha Mine. Brownfield and greenfield explorations programs are ongoing, and we continue to work to improve operations and manage costs in this challenging environment.”

He concluded, “Minera Corona and the Yauricocha Mine continues to have a strong balance sheet to support the Company’s capital expenditures and growth initiatives, and we continue to work to improve per share value for all shareholders.”

The following table displays selected unaudited financial information for the three and six months ended June 30, 2021:

The following table displays average realized metal prices information for the three and six months ended June 20, 2021, vs June 30, 2020:

Corona’s Financial Highlights for the Three and Six Months Ended June 30, 2021

• Q2 2021 revenue of $50.8 million compared to $23.4 million for the same quarter of 2020. Sales for the quarter increased mainly due to higher metal prices and the application of new commercial copper terms since April 2021 that more than offset the lower amounts of metals sold compared to the second quarter of 2020. Revenue for H1 2021 was $92.8 million, which is an increase of 62% from the $57.1 million of revenues in H1 2020. The increase in revenues was driven mainly by higher average realized metal prices and decrease in treatment and refining charges as compared to H1 2020.
• Cash Cost per copper equivalent payable pound was $1.41 compared to $0.91 for the same quarter of 2020 ($1.45 for H1 2021 versus $1.06 in H1 2020). Cash Cost per zinc equivalent payable pound was $0.43 compared to $0.34 for the same quarter of 2020 ($0.45 for H1 2021 versus $0.39 in H1 2020).
• AISC per copper equivalent payable pound was $ 2.57 for the second quarter of 2021 compared to $ 1.80 for the same period of 2020. AISC per zinc equivalent payable pound was $0.79 compared to $0.67 for the same period of 2020. AISC increased during Q2 2021 as the increase in the equivalent payable metals could not offset the increase in costs. Copper equivalent payable pounds increased 5% to 13.8 million and zinc equivalent payable pounds increased 26% to 45.2 million compared to the same quarter of 2020. Sustaining capital investment was significantly higher as the Company resumed its capital projects, whereas in Q2 2020, capital projects were deferred or cancelled due the problems related to COVID.
  For H1 2021, AISC per copper equivalent payable pound was $2.62 as compared to $2.05 in H1 2020. The increase was driven by higher cost of production and 11% decrease in copper equivalent payable pounds as compared to the six-month period of 2020. AISC per zinc equivalent payable pound was $0.82 as compared to $0.76 in H1 2020, as a 5% increase in the zinc equivalent payable pounds partially offset the increase in costs. Sustaining costs for H1 2021 included a 6% decline in treatment and refining costs.
• Adjusted EBITDA of $25.9 million for Q2 2021 as compared to $7.8 million for the same quarter of 2020 and $42.0 million for H1 2021 as compared to $17.6 million for H1 2020, higher primarily due to increased net income from higher metal prices.
• Operating cash flows before movements in working capital of $25.6 million for Q2 2021, compared to $7.3 million for Q2 2020. The increase in operating cash flows before movements in working capital was primarily due to the increase in revenues, discussed previously. For the six-month period of 2021, operating cash flows before movements in working capital increased to $42.1 million from $17.3 million during the same period of 2020.
• Cash and cash equivalents of $72.5 million as at June 30, 2021, compared to $65.0 million as at December 31, 2020. Cash and cash equivalents increased due to $14.9 million of cash generated from operating activities partially offset by $7.3 million of cash used in investing activities and $3.1 million used in financing activities.
• Net income of $12.6 million, or $0.349 per share for Q2 2021 ($17.7 million or $0.493 per share for H1 2021) compared to net income of $1.8 million, or $0.051 per share for Q2 2020 ($3.9 million or $0.11 per share for H1 2020).

Corona’s Operational Highlights for the Three and Six Months Ended June 30, 2021:

The following table displays the production results for the three and six months ended June 30, 2021:

^{(1) Copper and zinc equivalent pounds for Q2 2021 were calculated using the following realized prices: $26.80/oz Ag, $4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb, $1,818/oz Au. Copper and zinc equivalent pounds for Q2 2020 were calculated using the following realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb, $1,722/oz Au. Copper and zinc equivalent pounds for 6M 2021 were calculated using the following realized prices: $26.62/oz Ag, $4.13/lb Cu, $1.29/lb Zn, $0.94/lb Pb, $1,798/oz Au. Copper and zinc equivalent pounds for 6M 2020 were calculated using the following realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb, $1,654/oz Au.
(2) The increase in copper equivalent pounds was lower than the increase in zinc equivalents due to the 82% increase in realized prices for copper ($4.37/lb in Q2 2021 versus $2.40/lb in Q2 2020) as compared to the 51% increase in realized prices for zinc ($1.34/lb in Q2 2021 versus $0.89/lb in Q2 2020)}

Quality Control

The contents of this press release have been reviewed by Américo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning, who 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 18, 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
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.