From the Wires
Sierra Metals establishes cash dividend policy and announces inaugural quarterly dividend
Feb. 12, 2013 11:27 AM
TORONTO, Feb. 12, 2013 /PRNewswire/ - Sierra Metals Inc. (TSX-V:SMT)(BVL:SMT) ("Sierra" or the "Company") is pleased to announce
that the Company has adopted a policy whereby it intends to declare and
pay cash dividends on a quarterly basis. In respect of the year 2013,
the Company intends to pay aggregate cash dividends of approximately
$10 million.
Accordingly, the board of directors (the "Board") declared today that
the Company will pay a cash dividend of approximately $2.5 million or
$0.016 per common share ("Common Share") payable on or about April 30,
2013 to the holders of the Company's issued and outstanding Common
Shares as of the close of business on March 31, 2013.
Press Release Highlights:
-
Sierra announces its first dividend policy as a result of strong cash
flows from our Yauricocha mine in Peru and operational improvements at
the Bolivar mine and Cusi project in Mexico.
-
Sierra intends to pay approximately $10.0 million in 2013, commencing
with the declaration of a cash dividend of approximately $2.5 million
or $0.016 per Common Share payable on or about April 30, 2013.
-
Simultaneously, the Company's 82% owned subsidiary Sociedad Minera
Corona S.A. ("Corona") has approved a dividend to its shareholders of
US$40.0 million. The Company will receive US$32.7 million of this
dividend.
-
After this dividend, the Company will have received US$98.7 million in
dividends from its US$285.6 million investment in Corona in May, 2011.
-
Sierra's board of directors is also considering the implementation of a
share buyback programme under Canadian laws.
|
Daniel Tellechea, President and CEO of Sierra Metals, commented: "Sierra is very pleased that it has progressed to the point that the
adoption of a dividend policy has been made possible. The announcement
of this policy is a testament to the value and high returns achieved
through the Yauricocha mine acquisition in Peru and operational
improvements achieved at its Bolivar mine and Cusi project in Mexico.
This dividend policy is an important milestone because it is the first
in the Company´s history and comes as a consequence of Sierra's focus
on shareholder returns, capital discipline and financial strength.
Sierra's net debt position has fallen from $121 million in May 2011 to
$6 million in September 2012 which is impressive considering that the
Company has implemented an aggressive capex programme in Mexico and
Peru which materially expanded ore reserves, resources and production
capacity".
The declaration and payment of future dividends will be subject to the
Company's cash requirements as well as the satisfaction of statutory
solvency tests. In addition, the Board will assess future year's
dividend payout levels, from time to time, in light of the
Corporation's financial performance and its then current and
anticipated business needs at that time.
______________________________________________________________________
All figures in this press release are expressed in Canadian dollars
unless otherwise noted
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company focused on precious and
base metals from its Yauricocha mine in Peru and its Bolivar mine in
Mexico. The Company is also advancing its Cusi silver project in Mexico
from advanced development into commercial production. In addition,
Sierra Metals is exploring several precious and base metal targets in
Peru and Mexico. Projects in Peru include Adrico (gold), Victoria
(copper-silver) and Ipillo (polymetallic) at the Yauricocha Property in
the province of Yauyos. Projects in Mexico include Bacerac (silver) in
the state of Sonora, La Verde (gold) at the Batopilas Property in the
state of Chihuahua, and Las Coloradas (silver) at the Melchor Ocampo
Property in the state of Zacatecas.
This press release does not constitute an offer to sell or solicitation
of an offer to buy the securities in the United States or any other
jurisdiction. The Common Shares will not be and have not been
registered under the United States Securities Act of 1933, as amended,
and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements.
Neither the TSXV nor its Regulation Services Provider (as that term is
defined in policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this release.
Forward-Looking Statements
Except for statements of historical fact contained herein, the
information in this press release may constitute "forward-looking
information" within the meaning of Canadian securities law. Other than
statements of historical fact, all statements are "forward-looking
statements", which involve various known and unknown risk and
uncertainties and other factors, including market conditions that may
affect the Company's ability to execute its current business plan.
Actual results might differ materially from results suggested in any
forward-looking statements. The Company assumes no obligation to update
the forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward-looking
statements unless and until required by securities laws applicable to
the Company. Additional information identifying risks and uncertainties
is contained in filings by the Company with the Canadian securities
regulators, which filings are available at www.sedar.com.
SOURCE Sierra Metals Inc.
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