Sierra Metals Inc.

Thank you for standing by. This is the conference operator. Welcome to the Sierra Metals Inc. Third Quarter 2023 Consolidated Financial Results Conference Call. As a reminder, all participants are in listen-only mode. The conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then 0. I would now like to turn the conference over to Jean-Pierre Fortelrio, Manager of Business Development and Investor Relations for Sierra Metals. Please go ahead.

Good morning, everyone. I'd like to note that this earnings call contains forward-looking information that is based on the company's current expectations, estimates, and beliefs. Please review this slide and other forward-looking information contained in the company's annual information form. which is publicly available on Cedar Plus and the company's website. The accompanying presentation for today's call is available for download from the company's website at sierrametals.com. This morning's press release, the financial statements, and the MD&A are posted on our website and on Cedar Plus. Please note that all dollar amounts mentioned on today's call are in U.S. dollars, unless otherwise noted. I will also point out that the CUSI mine was deemed a non-core asset earlier this year, placed on current maintenance on September 20, 2023, so the results of the mine are not included in the consolidated results in our 2023 guidance and has been reclassified as a discontinued operation in our financial statements, with all historical results related to CUSI also reclassified. We are well along the process to sell the mine, and we'll have more to report in due course. Speakers on today's call are Ernesto Valareso, our CEO, and Jose Fernandez Vaca, our CFO. Following management's prepared remarks, a question and a period will be followed. And now I would like to turn the call over to Ernesto.

Thank you, JP, and good morning, everyone. Let me begin, as we always do, by discussing our number one priority, safety. Our strong operating performance inside Joint as CEO is due in large part to our improved approach to safety. Our focus is to relentlessly ensure we provide a workplace environment where all our employees and contractors are safe and, as a result, able to maximize their productivity. As you'll hear me always say, a safe mind is an operating mind. As shown on this slide, we can see how everyone at Sierra Metals has embraced our renewed focus on safety. On a consolidated 2023 year-to-date basis, we continue to trend in the right direction. I know we will do everything we can to ensure this positive trend continues. Now, let's move onto an overview of our results. We released our third quarter 2033 production results on October 19, and our financial results earlier today. I will assume everyone has had a chance to review them, so I will not be going into detail on each mine, but will instead provide these highlights. On a consolidated basis, our two operating mines, Yauricocha and Bolivar, processed 623,000 tons of ore in the third quarter of 2023. which was 25% higher than in the third quarter of 2022. All metals produced in the quarter were higher on a year-to-year basis, most notably copper, which was up 50%. This resulted in 18.5 million copper equivalent pounds produced in the third quarter of 2023, which was a 27% increase over the same quarter last year. In fact, In just nine months this year, we have produced 55.3 million copper equivalent pounds, which is almost as much as we did in all of last year. Bolívar achieved a throughput of almost 363,000 tons in Q3 2023, a 59% increase from Q3 2022, and an 11% decline from Q2 2023. This decline was anticipated in our life of mine plans. We expect to return to higher throughput rates in Q4 2023, like we achieved earlier in the year. Copper equivalent production of 8.1 million pounds in Q3 2023 was 113% higher than in Q3 2022, and 24% lower than in Q2 2023. Bolivar's cash cost per copper equivalent payable pound decreased 36% to $2.15, and all in sustaining cost per copper equivalent payable pound decreased 30% to $3.57 when compared to Q3 2022. I won't take you through all the significant productivity and cost reduction initiatives shown on this slide that we undertook at Bolivar during the quarter. other than to highlight the initiatives with the biggest impact, the replacement of the primary crusher and the hiring of an additional specialized mining contractor. At our other cooperation, Yauricocha processed 260,000 tons during Q3 2023, an increase of 6% over Q2 2023, and a decrease of 3% from Q3 2022. Copper equivalent production for Q3 2023 of 10.4 million pounds represented a 9% increase over the previous quarter and a decline of 4% when compared to Q3 2022. I'll point out when compared to Q3 2022, the 4% decrease in the copper equivalent pounds produced is largely due to the change in metal prices. particularly because of lower sink and higher copper prices when calculating copper equivalency. When compared to Q3 2022, we have produced more fine metals, specifically in copper and zinc. This was Yauricocha's best quarter of the year. In Q3 2023, Yauricocha had a cash cost per copper equivalent pay of pound of $2.08, and an all-in sustaining cost per copper equivalent payable pound of $3.75, both of which were slight increases from Q3 2022. Again, I won't take you through all the significant productivity and cost reduction initiatives shown in this slide that we undertook at Yaudicocha during the quarter, other than to mention that we have hired a new operations manager, Mr. Carlos Trillo, Mr. Trillo brings more than 35 years of vast experience in underground mining in companies such as Pan American Silver, Hawkshield Mining, Vulcan, and Glencore. We continue to maximize production and reduce costs where we can until we obtain the permit to mine below the 1120 level. More on that permit later. Now, let me hand the call over to Jose, our CFO.