Sierra Metals shares plummet as operating losses, negative cash flows mount

Sierra Metals

18/10/2022 14:27

** U.S. listed shares of Sierra Metals Inc  SMTS.A   SMT.TO 
plummet 50% to 24 cents before the bell
    ** Co announced that a special committee has initiated a
process to evaluate and consider its current financial and
liquidity position
    ** SMTS, however, is not disclosing developments with
respect to the special committee process
    ** Co says it faces liquidity challenges as operations at
the Yauricocha Mine were suspended due to community protests
earlier in September
    ** A majority of the operation still remains suspended and a
precise timeline for achieving full plant throughput has not
been established
    ** Co says operating losses and negative cash flows have
also accumulated, primarily from the Bolivar and Cusi operations
    ** SMTS says that absent additional support and increased
funding, its ability to continue operations in the ordinary
course may be impacted
    ** As of Monday's close, stock was down 64% YTD
 (Reporting by Arshreet Singh in Bengaluru)
 ((Arshreet.Singh@thomsonreuters.com))