Sierra Metals (SMTS) Clean Energy Metals Virtual Investor Conference summary

Leadership and strategic changes

• New CEO with extensive mining experience joined in January 2023, bringing a new management team focused on operational excellence and long-term value.

• Previous management's focus on selling led to operational neglect and financial distress, including mine flooding and equipment failures in 2022.

• Management overhaul prioritized safety, health, environment, and community engagement as foundational pillars.

• Nearly all top 40 managers are new hires from leading mining companies, signaling a cultural and operational shift.

• Management and insiders now own 4-5% of shares, demonstrating strong alignment with shareholders.

Operational turnaround and asset optimization

• Two core mines, Bolivar (Mexico) and Yauricocha (Peru), are now the focus after divesting the Cusi mine, which required significant investment.

• Bolivar ramped up from 2,000 to 5,000 tons per day, with plans to expand to 7,500 and 10,000 tons per day pending tailings capacity expansion.

• Yauricocha received a critical permit in February 2024 to mine below Level 1,120, unlocking 95% of its resources and enabling a ramp-up to full capacity by year-end.

• Both mines now have over 13 years of life at current production rates, with ongoing exploration expected to extend this further.

• Production and cost improvements are expected as both mines reach full capacity in 2025.

Financial restructuring and performance

• Successfully refinanced $85 million in debt to a five-year term loan, improving financial flexibility and reducing near-term risk.

• Equity financing in October 2023 demonstrated management and shareholder confidence, with 10% of CAD 16 million raised coming from management.

• EBITDA improved from $13 million in 2022 to $46 million in 2023, with projections of $60-70 million in 2024 and further growth in 2025.

• Net debt to EBITDA ratio improved from 5.86x to 1.56x, alleviating lender concerns.

• Share price rebounded 200% since August 2023, reflecting operational and financial turnaround.