Sierra Metals (SMTS) Q4 2024 earnings summary

Executive summary

• Achieved record operational and financial performance in 2024, with revenue of $272 million (up 19%) and adjusted EBITDA of $74.2 million, surpassing production guidance and delivering strong safety and sustainability results.

• Q4 2024 saw record consolidated throughput of 798 kt and adjusted EBITDA of $26.6 million.

• Cash and cash equivalents at year-end were $19.8 million, more than doubling from 2023.

• Major operational milestones included completion of development below the 1120 level at Yauricocha and consistent capacity achievement at Bolivar.

• Management expects further production increases, lower costs, and stronger cash flows in 2025, targeting ~$130 million EBITDA.

Financial highlights

• 2024 revenues exceeded $272 million, up 19% year-over-year, driven by higher production and metal prices.

• Adjusted EBITDA from continuing operations reached $74.2 million, a 44% increase over 2023.

• Full-year net income from continuing operations was $17.5 million, reversing a loss of $6.6 million in 2023.

• Cash and cash equivalents at year-end were $19.8 million, up from $9.1 million in 2023.

• Q4 2024 adjusted EBITDA was $26.6 million, up 98% from Q4 2023.

Outlook and guidance

• 2025 production expected to increase for copper, zinc, silver, and lead, with Yauricocha operating primarily below the 1120 level and Bolivar incorporating new ore bodies.

• 2025 production guidance: copper 44.6–48.5 million lbs, zinc 53.6–58.4 million lbs, silver 1.9–2.06 million oz, gold 10,200–11,100 oz, lead 13.7–15 million lbs.

• All-in sustaining costs at Bolivar projected to rise to $3.45–$3.62 per copper equivalent pound in 2025, while Yauricocha's costs are expected to fall to $2.91–$3.11.

• EBITDA guidance for 2025 is $130 million, based on copper at $4.20/lb and gold at $2,300/oz.

• CapEx for 2025 expected to be around $75 million, similar to 2024, with a decrease anticipated in subsequent years.