Sierra Metals Inc.

Thank you for standing by. This is the conference operator. Welcome to the Sierra Metals Incorporated third quarter 2024 financial and operating results conference call. As a reminder, all participants are in listen only mode and 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 one on your telephone keypad. Viewers on the Spanish language webcast are invited to submit their questions in writing using the form at the bottom of the webcast frame. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I now hand the call over to Alia Benavidez, the company's new corporate finance manager. Please go ahead.

Good afternoon, everyone. Thank you for joining our call today. some housekeeping items before I pass the call to Ernesto Valareso, our CEO, and Jean-Pierre Ford, our CFO. The accompanying presentation for today's call is available for download from the company's website at sierrametals.com. Today's press release, the financial statements, and the MD&A are all posted on our website and our CEDAR platform. 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. and we also use terms that are non-IFRS performance measures. Please review our Q3 2024 disclosure materials for the risk associated with this forward-looking information and the use of non-IFRS performance measures. Please note that all dollar amounts mentioned on today's call are in U.S. dollars, unless otherwise noted, and that all unique cash costs and all in-sustaining costs are in a corporate equivalent payable fund basis. I would now like to turn the conference over to Ernesto Valareso, Chief Executive Officer for Sierra Metals. Please go ahead.

Thank you, Leah. Let me begin, as we always do, by discussing our company's number one priority, safety. As seen on slide four, our focus is to continuously ensure we provide a workplace environment where all our employees and contractors are safe. Amongst the many initiatives undertaken during the quarter, the most significant was the Risk Management Leadership Program that advanced our technical competencies and leadership skills that are necessary to manage risks and critical controls across our operations effectively. These training workshops reinforce our commitment to decision-making guided by safety and sustainable mining. Moving on to our performance for the quarter, We released our third quarter 2024 production results on October 15, and our financial results earlier today. I assume everyone has had an opportunity to review them, so I will not be going into detail, but will instead provide highlights as seen on this slide. On a consolidated basis, in the third quarter of 2024, our two operating mines, Yauricocha and Bolivar, processed almost 669,000 pounds of ore, which was 7% higher than the second quarter of 2024. Breaking this down, production by metal was higher than in Q2, with copper production of 11 million pounds being 29% higher. Silver production of 503,000 ounces being 30% higher. And gold production of nearly 4,000 ounces was 16% higher, all of which is encouraging, given rising metal prices. At the same time, lead production was lower and zinc production flat. As a result of quarter-over-quarter improvements, cash flow from operations was over $22 million, which was 48% higher than in Q2. Jean-Pierre will provide more details on our stronger financial position shortly. I'll also remind everyone that we sold the Cusi mine and its surrounding concessions in early Q3, allowing the company to receive $2.1 million in net proceeds and save nearly $300,000 per month in care and maintenance expenses. More importantly, this allows us to direct our full efforts and resources to perform in both Yahuicocha and Bolivia. Looking ahead to Q4, we expect a strong fourth quarter as Bolivar continues its steady state production level near capacity and Yauricocha ramps up production towards full capacity. As a result, I am pleased that both mines met our high expectations for the quarter and therefore very pleased to say that we expect to exceed our consolidated production guidance for the year. Moving on to slide six, Bolivar processed nearly 402,000 tons of ore, which represents a 7% and 11% increase from Q2 2024 and Q3 2023 respectively. Copper, silver, and gold production increased by 3%, 17%, and 12% respectively when compared to Q2 2024. Cash costs and all-in sustaining costs per pound for Q3 2024 were 2.42 and 3.23 respectively. Cash costs improved at Bolívar due to the combined impact of lower operating costs per ton and higher grades, which were partially offset by an increase in the sustaining capital expenditure. The sustaining capital included the cost to develop a total of 3,800 meters, which included 1,700 meters to prepare new operating stoves for production, and 2,100 meters for new ramps and underground accesses. Development in Q3 was focused on the Bolívar Northwest, Bolívar Northwest South, Dulce, and Cieneguita zones. Also shown on this slide, there are some of the major initiatives completed in Q3 and others now underway in Q4. A priority for us is to continually replace and grow our mineral reserves and resources. Exploration works at Bolivar this quarter included drilling over 10,000 meters as part of an infill program in the Bolivar Northwest, Cieneguita, and Dulce areas. The main purpose is to reclassify and further define the resources and extend the ore body to the northeast of Dulce. Slide 8 shows our 2024 guidance range as compared to actual year-to-date productions and costs. As indicated on this slide, given the production levels achieved to date and our year-to-date costs compared to guidance, we expect a strong fourth quarter of operations. Success at Bolivar is a key driver for the company's overall performance. Moving on to slide 9, Yauricocha averaged a processing rate of over 3,000 tons per day, or a total of nearly 267,000 tons in Q3, our highest in over two years. This was an increase of 5% over the previous quarter as the mine commenced extraction activities below the 1120 level. Head grades and recoveries for copper, silver, and gold improved in comparison to Q2, but dropped slightly for zinc and lead. The higher grades were due to increased contributions from the Esperanza zone and the copper-rich zone of Pamela. As a result of higher throughput, grades, and recoveries, copper production was 97% higher with silver, gold, with silver and gold higher by 43% and 41% respectively when compared to the previous quarter. Yabicocha's cash cost per pound was 3.25 and holding sustaining costs were 3.75. The previously discussed operating improvements resulted in slightly lower costs as compared to Q2. As you would expect, the focus for the quarter was on mineral extraction below the 1120 level. This included constant improvements in equipment utilization and increasing existing shafts usage. Replacing mineral reserves and resources is just as important at the Auricocha. In Q3, underground exploration at the Auricocha was focused on replacing mineral resources and nearly 8,800 meters of diamond drilling were completed in the main mineralized bodies. Polymetallic ore and copper were intersected, which will replace the mineral depleted during 2024. As seen on this slide, surface exploration was focused on carrying out detailed geological work and geomechanical sampling to define the polymetallic areas in the El Paso, Fortuna, and Vizcachita zones. We also have other high-priority brownfield targets identified that we'll work on shortly. As indicated on slide 11, we expect a strong fourth quarter of operations as we ramp up to full capacity. Furthermore, given the results to date, we expect Yauricocha to beat annual cost guidance. We're very pleased with the progress being made at Yauricocha and expect to announce shortly our achievement of heating capacity throughput rates. Now over to Jean-Pierre to discuss our financial results.