Sierra Metals Inc. (NYSE MKT:SMTS) Q2 2019 Earnings Conference Call - Final Transcript
Aug 15, 2019 • 10:30 am ET
Good morning. My name is Christine and I'll be your conference operator today. At this time, I would like to welcome everyone to the Sierra Metals Q2 2019 Consolidated Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there'll be a question-and-answer session.
[Operator Instructions] Thank you. Mike McAllister, VP, Investor Relations. You may begin your conference.
Thank you, operator. And good morning, everyone. Welcome to Sierra Metals Q2 2019 results conference call. On today's call, we are joined by Igor Gonzales, President and CEO; Ed Guimaraes, CFO; and Gordon Babcock, COO. Today's call will be followed by a question-and-answer period. Today's accompanying presentation is available for download through both the webcast and from the company's website at www.sierrametals.com. Yesterday's press release, the financial statements and the management discussion and analysis document are also posted on the company's website.
Before I turn the call over to Igor, I would like to indicate that this earnings call contains forward-looking information that is based on the company's current expectations, estimates and beliefs. This forward-looking information is subject to a number of risks, uncertainties and other factors. Actual results could differ materially from our conclusions, forecasts or projections as reflected in the forward-looking information.
Additional information about the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information and the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information is contained in the company's annual information form which is publicly available on SEDAR or EDGAR via the Form 40-F or on the company's website. Please note that all dollar amounts mentioned on today's call are in US dollars, unless otherwise noted.
With that I would now like to turn the call over to Igor Gonzales, our President and CEO. Please go ahead, Igor.
Thanks, Mike, and good morning, everyone. I will begin the call on the Slide 4, with some highlights from our consolidated results for the second quarter of 2019. After that, we will open the call for questions where myself, Gordon and Ed will be happy to answer questions.
Turning now to the highlights of the second quarter continue to build on the first and the company realized the solid quarter production. We continue to overcome the challenges we have encountered to this date, including lower metal prices and illegal strike at Yauricocha and a slower than expected ramp up of throughput at Bolivar and Cusi Mine. Despite these challenges, the company realized record consolidated quarter throughput during the second quarter, with record throughput at both the Bolivar and Cusi Mines, which contributed to strong cash flows in order to reduce debt levels, fund capital expenditures and maintain liquidity.Furthermore, we continue to realize good returns on capital invested in our growth projects. Revenues from metals payable in Q2 2019 were $50.7 million, with $12.8 million of operating