Sierra Metals Inc.

Revenue in 2024 was over $272 million, up 19% from 2023. Adjusted EBITDA from continuing operations was $74.2 million in 2024, up 44% from $51.5 million, and Q4 adjusted EBITDA was $26.6 million, up 98% year over year. Cash flow generated from operating activities before working capital was $69.5 million in 2024, up 60% from $43.3 million, and cash and cash equivalents rose to $19.8 million from $9.1 million. Net debt-to-EBITDA was 1.0x at year-end, and management said year-end debt in 2025 is projected to be around $85 million after paying down about $10 million of principal. For 2025, management reiterated EBITDA guidance of around $130 million, estimated copper prices of $4.20/lb and gold at $2,300/oz, CapEx around $75 million, and said Yauricocha AISC should fall to $2.91-$3.11 per copper equivalent pound while Bolivar AISC should rise to $3.45-$3.62.

Ernesto Balarezo framed 2024 as a milestone year in which Sierra Metals delivered or surpassed all goals, highlighting the completion of development below the 1120 level at Yauricocha, record throughput, and stronger mine performance at Bolivar. He said the company enters 2025 with momentum, expecting higher grades, higher throughput, and expansion work that could eventually support 7,500 tpd at Bolivar. His tone was upbeat and assertive, but he also repeatedly tied future plans to the ongoing strategic process and advised patience on refinancing and capital allocation.

Jean Pierre Fort emphasized that the operational gains translated into stronger financial results, citing 2024 revenue of over $272 million, adjusted EBITDA of $74.2 million, and operating cash flow before working capital of $69.5 million. He said the company funded almost $60 million of CapEx during 2024, ended with $19.8 million of cash, and had a manageable net debt-to-EBITDA ratio of 1.0x. For 2025, he referenced the company’s $130 million EBITDA outlook, said copper assumptions are around $4.20/lb and gold around $2,300/oz, and noted the intercompany-related loan balance is around $55 million, with 82% attributable to Sierra and 18% to minority holders in Corona.

Analysts pressed management on whether EBITDA could exceed the stated $130 million, but Ernesto said the company is comfortable with that guidance for now given high CapEx and debt repayment needs, while acknowledging higher metal prices could lead to better results. Questions also focused on refinancing and buybacks; management said it is already talking with banks about refinancing, but has been told to wait until the strategic process is complete, and that a share repurchase is under discussion with the board but also deferred until after that process. In a separate exchange, management said the remaining intercompany loan will be addressed as part of the broader refinancing, and Ernesto reiterated he made a personal commitment to minority holders to resolve it.