Sierra Metals Inc. (NYSE MKT:SMTS) Q3 2018 Earnings Conference Call Transcript
Nov 13, 2018 • 10:30 am ET
Good day. My name is Jodie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sierra Metals Inc. Third Quarter 2018 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)
Michael McAllister, VP of Corporate Development, you may begin your conference.
Thank you, operator, and good morning, everyone. Welcome to Sierra's third quarter 2018 results conference call. On today's call, we are joined by Igor Gonzales, our President and CEO; Ed Guimaraes, our CFO; and Gordon Babcock, our COO.
Today's call will be followed by a question-and-answer period. Today's presentation is available for download, both through the webcast and from the company's website at www.sierrametals.com. Monday's press release, the financial statements and the management's discussion and analysis are also posted on the company's website.
(Forward-Looking Cautionary Statements)
With that, I would now like to turn the call over to Igor Gonzales, our President and CEO.
Thank you, Mike, and good morning, everyone. Q3 2018 was a solid quarter and built upon the strong results that the company reported in the first half of 2018. We continue to realize good returns on the capital we employed, improving and growing the mines while continuing to improve the operating performance with solid production results. This helped to further lower our costs. Also, despite a weaker realized metal prices and harsh weather events at the Bolivar Mine during Q3, the company still generated positive cash flow at its three operating mines of over $18 million.
Additionally, we continue with successful exploration programs and have discovered a copper-molybdenum porphyry at our Yauricocha Mine, with more progress in brownfield opportunities to further increase our mineral reserves and resources at each of our mines. We have also now filed Preliminary Economic Assessments for each mine, which boasts positive economic and demonstrate the path to staged and responsible expansion plans.
The management team and I are very encouraged by the continued progress and strength in the achievements seen in the third quarter and in the nine months of 2018. The company is at an inflection point, having improved the performance of all of our mines and now embarking on a growth program to grow the company. This includes segmented production increases at all three mines, which provide for responsible and economically prudent production growth, with increased revenue and cash flow opportunity. We're optimistic that 2018 and the years ahead will be growth years not only for Sierra Metals, but also for its shareholders.
Following my summary highlights, Gordon Babcock will take us through the operational highlights. And then Ed Guimaraes will take us through the 2018 third quarter financial highlights, and then we'll open the call to questions.
Turning to slide number four, the company remains focused on improving operating and financial performance in 2018. The third quarter built on the momentum from the first half of 2018. And despite